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Protecting America's Bank Account Against Fraud, Waste, and Abuse

1. Purpose

The order aims to strengthen financial integrity and operational efficiency across the Federal Government by enhancing payment verification and establishing better tracking mechanisms for taxpayer dollar transactions.

2. Key Actions And Directives
  • Establishment of Pre-Certification Verification:  The Secretary of the Treasury must implement pre-certification verification processes for all payments made on behalf of agencies.
  • Review of System of Records Notices:  Agency heads must review and modify relevant system of records notices within 90 days of the order.
  • Delegation of Disbursing Activities:  Agencies with disbursing authority must collaborate with the Secretary of the Treasury to delegate disbursing activities to the Chief Disbursing Officer.
  • Guidance on Consolidation of Financial Systems:  The OMB Director must issue guidance within 180 days for agencies to consolidate their core financial systems.
  • Submission of Compliance Plans:  Agency heads are required to submit compliance plans to the OMB Director within 90 days.
3. Important Points
  • Financial Fraud Loss Estimates:  The Federal Government suffers annual financial losses estimated between $233 billion and $521 billion due to financial fraud.
  • General Fund Transaction Oversight:  The Department of the Treasury currently lacks controls necessary for tracking transactions in the General Fund.
  • Operational Efficiency Goals:  The order promotes financial integrity and operational efficiency to enhance transparency and accountability in Federal financial management.
  • Impact on Agency Authority:  The order specifies that it does not alter the existing legal authorities granted to executive departments and agencies.
  • FY 2024 General Fund Transactions:  In Fiscal Year 2024, the General Fund experienced inflows of $33.9 trillion and outflows of $33.6 trillion.

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