There is somewhat of a disconnect between the intent of the data matching that occurs through the DNP system and the various policy considerations that agencies take stock of when determining payment eligibility. Image: Stanislaw Mikulski/Shutterstock.com
By: FEDweek StaffWhile both Congress and the White House have emphasized greater use of the Treasury Department’s Do Not Pay system against improper payments, that data matching system can do only so much toward that goal, says a Congressional Research Service report.
“Data access issues are among the root causes of improper payments. In cases where data access issues are a root cause, policymakers and others believe that if the data were accessible or the access issue were otherwise corrected, then improper payments would be prevented. Some of the policies enacted by Congress to curb improper payments are intended to make it easier for agencies to access and use data,” it says.
As an example of such laws, it said, the Payment Integrity Information Act of 2019 codifies the Do Not Pay Initiative and requires agencies to review certain databases before disbursing payments. A law enacted this year meanwhile makes permanent what had been a temporary authority of having the SSA share its master file of deaths with Treasury for use with the system.
The report further noted that an executive order of last March told agencies to ensure that they can disclose certain information—such as Social Security numbers and names—on intended payment recipients to the system. Like the changes in law, the order “presumes that by reducing administrative barriers to the sharing of payment recipient information with the DNP system, more agencies will use the DNP system, which will presumably increase the detection of improper payments,” it said.
However, “the DNP system itself, at least as it currently operates, does not necessarily assist agencies in sorting through the relevant policy considerations given a data match within the system.” Not all agencies use it, “and a proportion of those agencies that do use the system indicate that it is not effective in reducing improper payments for them. The DNP system does not necessarily contain all information that is needed by an agency to verify eligibility for a particular type of payment,” it said.
Further, federal payment policies vary in how payment eligibility is determined. “This variation challenges the idea that the DNP system might systematically prevent improper payments through payment eligibility verification . . . Thus, there is somewhat of a disconnect between the intent of the data matching that occurs through the DNP system and the various policy considerations that agencies take stock of when determining payment eligibility,” it said.
The costs and benefits of integrating use of the DNP system into payment processing workflows, which are largely automated, may vary by agency and by program, it added.
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