1. Do Not Pay Business Center
Jenny Rone
Director, Outreach & Business Processes
January 2015

2. A New Day for Do Not Pay 2014 Transformation
Two major releases within the last few months
A new architecture provides:
An improved user interface
Increased efficiency
More substantive data sets continue to be incorporated - significantly increasing the ability to identify potential improper payments

3. That Will Transform Society and Governance
Brookings Institute
Top 10 Tech Innovations
That 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 better
serve their citizens.”
#8 – Do Not Pay Portal
12/22/14

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’ privacy
Partner 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 basics
All improper payments degrade the integrity of government programs
Reducing improper payments is a top priority
Not all improper payments represent a loss to the government and not all improper payments are fraudulent
$106 billion in improper payments issued in FY 2013
The Problem

7. Improper Payments – what, how, and why
Payments made to the wrong entity, in the wrong amount, or for the wrong reason
Why? –
Documentation and Administrative Errors
Authentication and Medical Necessity Errors
Verification Errors

8. Improper Payments Legislation & DNP

9. $106 billion in improper payments issued in FY 2013
DNP – A Tool in an Agency’s Toolbox
The Problem
(part of) The Solution
$106 billion in improper payments issued in FY 2013

10. DNP Built on a Strong Foundation
DNP Program
People
Governance
Technology
Data

11. Role and Responsibility
It’s a Partnership - DNP
Role and Responsibility
Provide 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 data
continuous system development
service enhancements
DNP does not:
inform an agency whether a payment is proper or improper
stop payments UNLESS they are approved/established in conjunction with agency

12. Role and Responsibility
It’s a Partnership – Federal Agency
Federal Agency
Role and Responsibility
Adjudication - 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 Shop
VS.
Many Sources - Many Datasets
One Source – Many Datasets
Death – SSA
Excluded Parties – GSA, HHS
Credit – SBA, VA, DOJ, HUD, USDA, Ed
Debt – Treasury
Foreign Asset Control - Treasury
Incarceration – SSA
Do Not Pay Verification Records System of Records Notice – 01/14

14. Multi-functional Analytics Tool Continuous Monitoring
Breaking it Down
Multi-functional Analytics Tool
One tool supporting an agency’s business processes and financial management controls
Payment Integration
Continuous Monitoring
Batch Matching
Single On Line Search
Advanced Analytics

15. DNP throughout the Payment Lifecycle
Pre-award
Verify award eligibility
Pre-payment
Re-verify or monitor eligibility for payments
Research matches
On-line single search
Batch Matching
Continuous Monitoring
On-line single search
Batch Matching
Continuous Monitoring
Post-payment
Analyze data and trends
Conduct reporting
Implement corrective action
At Time of Payment
Review matches from payment integration
Advanced Analytics
Payment Integration
Agency Adjudication

16. Helping agencies seamlessly comply with IPERIA
At Time of Payment
Payment Integration
4. Payment Integration
Helping agencies seamlessly comply with IPERIA
DNP, at time of payment, performs matches against the:
Death Master File (DMF)-Public
includes Social Security Number, Name, Date of Death, Date of Birth, Verified or Proof Indicator
System for Award Management (SAM)-Exclusion Records-Restricted
includes 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 matches
Ensure alignment with existing process and mission
Agency notified of matches
and logs onto portal 8 1 2 7
DNP suggests the following steps to successful adjudication
Investigate further, confirm matches & document decision 6 3
Prioritize critical matches 4 5
Research internal business rules that apply to matches
Apply 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 Portal
4. Payment Integration
One-off search to verify eligibility up front or further research a match identified during payment integration
Single On Line Search
Batch Matching
Verify 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 Monitoring
Agencies 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 searches
Statistical matches
Matching program between public data sources or those not aligned to a system of records
Matching programs that do not involve verifying eligibility in a Federal benefit program
Example: When the purpose of the match is to make procurement decisions
Payment Integration (Treasury handles this for you in the payment stream)

24. CMA Triggers
Matching against data sources with personally identifiable information (PII) on U.S. citizens; deceased are not covered by Privacy Act
Typically, only Federal benefit programs providing cash or in-kind assistance to individuals are covered
Presently, 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 Initiative
Do Not Pay Verification Records System of Records Notice (SORN #.023) JAN 2014
Enables DNP to derive data and retain records,
and enter into CMAs

26. CMA Process – OMB M-13-20
Highlights of OMB M-13-20, Protecting Privacy while Reducing Improper Payments with the Do Not Pay Initiative:
Topic
Excerpt
CMA Lifespan
Matching programs have a termination date of less than three years. Agencies may renew these CMAs for a maximum of three years.
Review Period
Data 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 Analysis
Agencies' cost-benefit analyses for a DNP matching program need not contain a specific estimate of any savings.

27. Typical CMA Process without DNP SORN
SAM
CMA
GSA
TOP
CMA
Treas
Federal Agency
LEIE
CMA
HHS

28. CMA Process with DNP SORN
SAM
MOU
CMA
DNP
DNP –
Treasury’s
Working System
(SORN #.023)
TOP
MOU
LEIE
Federal Agency
MOU

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 models
Identifying specific and generalized scenarios
Analyzing matching trends within and across agencies
Matching agency payment data against data sources using program-specific business rules
Level 4 3 2 1
Payment Data
(validated; disbursed; post-payment)
Data source shared with Payment Management
Data Sources
Eligibility Data
Demographic Data
Agency Data
Financial Data

31. Assembling Data into Information and Information into Insight
Adjudication Advanced Analytics
Risk
Analysis
Identify
Assess
Treat
Monitor
Assembling Data into Information and Information into Insight

32. Business Process Mapping
Helping to strengthen Government-wide Financial Management Controls on Payments
In-depth examination of the entire payment disbursement system
Components examined include program’s objectives, target beneficiaries, eligibility requirements, awarding criteria, and verification processes
Resulting in development of:
improved improper payment detection methods
business 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 Information
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