HR8467-119

What This Bill Does

The ZOMBIE Act narrows federal improper-payment reporting toward payments that actually caused financial loss to the government. It changes title 31 so agencies report improper payments resulting in financial loss and payments lacking enough documentation to determine whether loss occurred. It requires agencies to publish information on financial-loss improper payments with their annual budget justifications. Treasury must issue risk-assessment guidance within one year, including how to estimate financial loss, how to separate payment errors that do and do not cause loss, and how to use GAO fraud-risk best practices. Agency heads then use that guidance for each program or activity listed in the program inventory.

Who Benefits and How

Federal taxpayers benefit because improper-payment oversight is focused on actual financial loss rather than technical payment defects. Treasury financial-integrity staff benefit from clearer authority to write risk-assessment guidance. Agency inspectors general and GAO auditors benefit from more comparable financial-loss data. Congressional appropriators benefit because budget justifications must show financial-loss improper-payment information. Program managers benefit when correct payments with only administrative defects are not treated the same as overpayments.

Who Bears the Burden and How

Executive agencies must revise payment-integrity reviews, program inventory processes, budget justification disclosures, documentation categories, and risk assessments. Treasury must write the guidance and define formulas for estimating financial loss. Agency payment-integrity offices must distinguish true overpayments from administrative noncompliance. Programs with material financial-loss risk may face closer remediation and reporting pressure. OMB and congressional oversight staff must evaluate the new reports.

Key Provisions

• Requires agencies to report improper payments that resulted in financial loss to the government.
• Adds annual budget-justification publication of financial-loss improper-payment information.
• Defines financial loss to exclude correct payments made with some administrative procedure errors.
• Directs Treasury to issue risk-assessment guidance within one year.
• Requires risk assessments for program inventory activities using the new Treasury guidance.