ZOMBIE Act

This bill would narrow federal reporting and tracking requirements for improper payments to focus specifically on those that result in a direct financial loss to the government. It proposes that agencies assess their programs for such risks every three years and allows them to retain up to 75% of recovered funds for their original activities, an increase from the current 25% limit. Additionally, the legislation would require the Department of the Treasury to develop new risk assessment guidance and mandate that agencies include improper payment estimates in their annual budget justifications.

This legislation primarily affects federal agencies, which must implement new assessment, tracking, and reporting requirements for improper payments that result in financial loss. The Department of the Treasury is specifically tasked with developing risk assessment guidance for these agencies. Additionally, federal programs and activities may be impacted by a provision allowing them to retain up to 75% of funds recovered through audits, an increase from the current 25% limit.

• Redefines improper payments as financial losses. The bill focuses federal assessment and reporting requirements on payments that exceed the correct amount and result in a financial loss to the government. It excludes payments made to the correct recipient for the correct amount that only fail to meet certain administrative procedures.
• Mandates triennial risk assessments. Federal agencies are required to assess their programs and activities every three years to determine the risk of improper payments that result in financial loss.
• Expands agency reporting and budget requirements. Agencies must include estimates of improper payments in their annual budget justifications and report on preventative actions, such as the use of the Do Not Pay system and the implementation of best practices.
• Directs Treasury to develop risk assessment guidance. The Department of the Treasury is tasked with creating guidance for agencies to use when conducting risk assessments for improper payments.
• Increases retention of recovered funds. The bill allows agencies to direct up to 75% of funds recovered through audits back to the original program or activity, an increase from the current limit of 25%.

The bill modifies existing federal requirements for assessing and reporting improper payments, including the use of the Do Not Pay system and the implementation of established best practices. It also increases the portion of funds recovered through audits that may be directed back to an original program from 25% to 75%.

The bill aims to refine federal oversight of improper payments by focusing assessment, tracking, and reporting requirements specifically on payments that result in actual financial loss to the government. It seeks to improve fiscal accountability by requiring triennial risk assessments, expanding reporting on prevention efforts, and increasing the percentage of recovered funds that can be returned to their original programs.