With Do Not Pay system, Agencies Share Info to Stop Improper Payments

October 12, 2012

Recently passed legislation that President Obama is expected to sign into law will improve agencies’ ability to stop benefits, contract and grant dollars from going to dead people or suspended companies, experts say.

Separate bills — one that passed the Senate and another that is awaiting action on the House floor — would require agencies to use the Treasury Department’s Do Not Pay system, which centralizes procurement, grant and benefit-issuing staffs’ access to at least seven databases. Through the system, agencies can match names of federal beneficiaries, grant and loan recipients, and contractors against those in databases such as the Excluded Parties List System, which identifies suspended or debarred companies, and the Social Security Administration’s list of people who have died.

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