Presentation on theme: "Do Not Pay Business Center"— Presentation transcript:
1 Do Not Pay Business Center Jenny RoneDirector, Outreach & Business ProcessesJanuary 2015
2 A New Day for Do Not Pay 2014 Transformation Two major releases within the last few monthsA new architecture provides:An improved user interfaceIncreased efficiencyMore substantive data sets continue to be incorporated - significantly increasing the ability to identify potential improper payments
3 That Will Transform Society and Governance Brookings InstituteTop 10 Tech InnovationsThat Will Transform Society and Governance“New technologies can have revolutionary impacts with widespread and unexpected benefits. Technology can also serve as a tool to enable governments to betterserve their citizens.”#8 – Do Not Pay Portal12/22/14
4 Do Not Pay (DNP) is…A multi-functional analytics tool and one-stop data shop built to help federal agencies detect and prevent improper payments
5 DNP’s Mission is to…Help prevent, reduce, and stop improper payments while protecting citizens’ privacyPartner with agencies to identify potential fraud, waste, and abuse in federally funded programs while protecting citizens’ privacy
6 $106 billion in improper payments issued in FY 2013 Improper Payments – the basicsAll improper payments degrade the integrity of government programsReducing improper payments is a top priorityNot all improper payments represent a loss to the government and not all improper payments are fraudulent$106 billion in improper payments issued in FY 2013The Problem
7 Improper Payments – what, how, and why Payments made to the wrong entity, in the wrong amount, or for the wrong reasonWhy? –Documentation and Administrative ErrorsAuthentication and Medical Necessity ErrorsVerification Errors
9 $106 billion in improper payments issued in FY 2013 DNP – A Tool in an Agency’s ToolboxThe Problem(part of) The Solution$106 billion in improper payments issued in FY 2013
10 DNP Built on a Strong Foundation DNP ProgramPeopleGovernanceTechnologyData
11 Role and Responsibility It’s a Partnership - DNPRole and ResponsibilityProvide a centralized system that agencies can use to determine whether a payment is proper or improper – one which is committed to providing:more and better quality datacontinuous system developmentservice enhancementsDNP does not:inform an agency whether a payment is proper or improperstop payments UNLESS they are approved/established in conjunction with agency
12 Role and Responsibility It’s a Partnership – Federal AgencyFederal AgencyRole and ResponsibilityAdjudication - the process by which agencies review the results of matches received from DNP and determine whether a payment is proper or improper.Determination of “proper vs. improper” are made consistent with existing laws, regulations, and guidance related to those particular payments.Agencies can work with DNP to establish business and stop payment rules.
13 Many Sources - Many Datasets One Source – Many Datasets Breaking it Down -One-stop Data ShopVS.Many Sources - Many DatasetsOne Source – Many DatasetsDeath – SSAExcluded Parties – GSA, HHSCredit – SBA, VA, DOJ, HUD, USDA, EdDebt – TreasuryForeign Asset Control - TreasuryIncarceration – SSADo Not Pay Verification Records System of Records Notice – 01/14
14 Multi-functional Analytics Tool Continuous Monitoring Breaking it DownMulti-functional Analytics ToolOne tool supporting an agency’s business processes and financial management controlsPayment IntegrationContinuous MonitoringBatch MatchingSingle On Line SearchAdvanced Analytics
15 DNP throughout the Payment Lifecycle Pre-awardVerify award eligibilityPre-paymentRe-verify or monitor eligibility for paymentsResearch matchesOn-line single searchBatch MatchingContinuous MonitoringOn-line single searchBatch MatchingContinuous MonitoringPost-paymentAnalyze data and trendsConduct reportingImplement corrective actionAt Time of PaymentReview matches from payment integrationAdvanced AnalyticsPayment IntegrationAgency Adjudication
16 Helping agencies seamlessly comply with IPERIA At Time of PaymentPayment Integration4. Payment IntegrationHelping agencies seamlessly comply with IPERIADNP, at time of payment, performs matches against the:Death Master File (DMF)-Publicincludes Social Security Number, Name, Date of Death, Date of Birth, Verified or Proof IndicatorSystem for Award Management (SAM)-Exclusion Records-Restrictedincludes exact name, DUNS, TIN, full address and information about debarment
17 Agency Adjudication Process Determine and identify “proper” or “improper”DNP identifies conclusive, probable and possible matchesEnsure alignment with existing process and missionAgency notified of matchesand logs onto portal8127DNP suggests the following steps to successful adjudicationInvestigate further, confirm matches & document decision63Prioritize critical matches45Research internal business rules that apply to matchesApply applicable rules
18 OMB Circular No. A-136 Financial Reporting Requirements X. Agency reduction of improper payments with the Do Not Pay Initiative.
19 Pre-Award / Pre-Payment Helping agencies verify eligibility through the DNP Portal4. Payment IntegrationOne-off search to verify eligibility up front or further research a match identified during payment integrationSingle On Line SearchBatch MatchingVerify eligibility up front for a group(e.g., potential grant recipients)Monitor eligibility for a group that receives recurring payments(e.g., approved vendor list)Continuous MonitoringAgencies Adjudicate Matches from these activities too…..
20 Currently Available through the Portal Death Master File (DMF) Public [SSA]List of Excluded Individuals & Entities (LEIE) Public [HHS]Office of Foreign Assets Control (OFAC) Public [Treasury]System for Award Management (SAM) Exclusion Records Public & Restricted [GSA]SAM Entity Registration Records Restricted [GSA]Treasury’s Offset Program (TOP) Debt Check Restricted [Treasury]Credit Alert System or Credit Alert Interactive Voice Response System (CAIVRS) Restricted [SBA]
21 Availability Pending through the Portal CAIVRS Restricted [VA, DOJ, Education, HUD, USDA]List of Excluded Individuals & Entities (LEIE) Restricted [HHS]Prisoner Update Processing System (PUPS) Restricted [SSA]
22 Public vs. Restricted – Let’s Talk CMA Computer Matching Agreements must be established for….any computerized comparison of two or more automated systems of records or a system of records with non-Federal records for the purpose of establishing or verifying the eligibility of, or continuing compliance with, statutory and regulatory requirements by, applicants for, recipients or beneficiaries of, participants in, or providers of services with respect to cash or in-kind assistance or payments under federal benefit programs
23 CMAs are NOT Required for… Single On Line searchesStatistical matchesMatching program between public data sources or those not aligned to a system of recordsMatching programs that do not involve verifying eligibility in a Federal benefit programExample: When the purpose of the match is to make procurement decisionsPayment Integration (Treasury handles this for you in the payment stream)
24 CMA TriggersMatching against data sources with personally identifiable information (PII) on U.S. citizens; deceased are not covered by Privacy ActTypically, only Federal benefit programs providing cash or in-kind assistance to individuals are coveredPresently, only batch and continuous monitoring users will need CMAs to match against restricted sources within Treasury’s Working System
25 DNP and CMAs Two Important Documents Office of Management and Budget OMB M-13-20, Protecting Privacy while Reducing Improper Payments with the Do Not Pay InitiativeDo Not Pay Verification Records System of Records Notice (SORN #.023) JAN 2014Enables DNP to derive data and retain records,and enter into CMAs
26 CMA Process – OMB M-13-20Highlights of OMB M-13-20, Protecting Privacy while Reducing Improper Payments with the Do Not Pay Initiative:TopicExcerptCMA LifespanMatching programs have a termination date of less than three years. Agencies may renew these CMAs for a maximum of three years.Review PeriodData Integrity Boards (DIBs) have a 60-day deadline for review of a CMA. If circumstances do not permit the DIB to approve or disapprove the DNP matching program within 60 days, the DIB shall provide a brief memorandum to the head of the agency (or to the Inspector General in cases where the Inspector General proposed the matching program) describing the necessity for the delay.Cost Benefit AnalysisAgencies' cost-benefit analyses for a DNP matching program need not contain a specific estimate of any savings.
27 Typical CMA Process without DNP SORN SAMCMAGSATOPCMATreasFederal AgencyLEIECMAHHS
28 CMA Process with DNP SORN SAMMOUCMADNPDNP –Treasury’sWorking System(SORN #.023)TOPMOULEIEFederal AgencyMOU
29 M & Data Analytics“…Treasury's Working System includes Treasury's system of records for Do Not Pay, as well as other activities such as investigation activities for fraud and systemic improper payments detection through analytic technologies and other techniques…”
30 Moving on – Advanced Analytics Creating and executing predictive modelsIdentifying specific and generalized scenariosAnalyzing matching trends within and across agenciesMatching agency payment data against data sources using program-specific business rulesLevel4321Payment Data(validated; disbursed; post-payment)Data source shared with Payment ManagementData SourcesEligibility DataDemographic DataAgency DataFinancial Data
31 Assembling Data into Information and Information into Insight Adjudication Advanced AnalyticsRiskAnalysisIdentifyAssessTreatMonitorAssembling Data into Information and Information into Insight
32 Business Process Mapping Helping to strengthen Government-wide Financial Management Controls on PaymentsIn-depth examination of the entire payment disbursement systemComponents examined include program’s objectives, target beneficiaries, eligibility requirements, awarding criteria, and verification processesResulting in development of:improved improper payment detection methodsbusiness rules and/or stop payment rules
33 But I Have a Pre-award/Payment Process GREAT!!!! With DNP you have….
34 Agencies Are Having Success Identifying payments to be stopped or recovered Preventing future improper payments
35 visit us at: www.donotpay.treas.gov Contact Informationvisit us at:Want to Learn More?Sign up for our mailing list to receive updates on new functionality and data sources or to schedule a demo.DNP Executive Director:DNP Director of Outreach & Bus. Processes: