ExecutiveOrdersEO
EO 13520Executive OrderObama · D Quiet signal

Executive Order 13520

Reducing Improper Payments

This executive order establishes a comprehensive framework to reduce improper payments across federal programs by increasing transparency, designating accountable officials, setting reduction targets, and improving coordination between federal, state, and local governments. It creates public reporting requirements, working groups to recommend improvements, and mechanisms for public reporting of suspected waste, fraud, and abuse.

Federal Register Open PDF 74 FR 62201

Impact dates

  1. Treasury publishes Internet information on improper payments; creates public reporting mechanism; working group recommendations due on beneficiary access measurement, single audits, state/local accountability, CFOC forensic accounting recommendations, Treasury/OMB information sharing recommendations, agency IG reports on methodology and reduction plans

  2. First quarterly high-dollar improper payment reports due from agencies, then recurring every quarter thereafter

  3. Agency heads designate accountable officials for high-priority programs

  4. OMB identifies high-priority programs, establishes targets, issues guidance, creates beneficiary access working group

  5. OMB establishes single audit working group

  6. OMB establishes state/local accountability working group

Key directives

  • OMB to identify high-priority programs with highest improper payments
  • Designate Senate-confirmed accountable officials for each high-priority program
  • Treasury to publish improper payment data on Internet including names of accountable officials and top offending entities
  • Create central Internet-based public reporting mechanism for suspected waste, fraud, and abuse
  • Agency heads to submit quarterly public reports on high-dollar improper payments
  • Federal Acquisition Regulatory Council to recommend contractor accountability enhancements including debarment and public identification
  • Establish working groups on single audit effectiveness and state/local accountability incentives
  • CFOC to recommend tailored forensic accounting methodologies
  • Treasury and OMB to recommend inter-agency information sharing improvements
  • Develop legislative proposals for FY2011 budget to reduce improper payments

Who is ordered

Timeline

Immediate

  • OMB establishes two working groups on single audits and state/local accountability

Near term (90d)

  • OMB identifies high-priority programs, establishes reduction targets, issues government-wide guidance, creates beneficiary access working group

Long term

  • Quarterly high-dollar improper payment reports begin; ongoing transparency requirements; FY2011 budget policy proposals

Risks & tensions

  • Balancing transparency with privacy protections and ongoing law enforcement investigations
  • Risk that anti-fraud efforts could reduce program access for eligible beneficiaries—text repeatedly mandates this balance be protected
  • Reliance on voluntary coordination and recommendations rather than binding enforcement mechanisms
  • Quarterly reporting burden on agencies may create compliance costs
  • State/local working groups include 'elected' officials, which may introduce political dynamics into technical audit recommendations
  • Vague standard for 'unduly burdening' program access leaves implementation discretion to agencies
Executive Order 13520: Reducing Improper Payments · Executive Orders