Fraud Prevention and Accountability Act

The governmentwide data analysis program was changed from a mandatory program to a 'voluntary governmentwide data analysis program in accordance with applicable law,' fundamentally reducing its reach and enforceability.

A new purpose limitation was added: the program may be used 'for no other purpose including any policy analysis and enforcement action purpose,' explicitly restricting how the data can be used beyond fraud detection and improper payment prevention.

The Inspector General website provision now includes findings from 'financial managers' in addition to agency Inspectors General and State auditors, broadening the sources of oversight information displayed publicly.

The entities covered were narrowed from 'Federal agencies, States (with respect to any federally funded State-administered programs), and any nongovernmental entity administering or disbursing Federal funds' to 'Federal agencies and any State...and local government responsible for the administration of a federally funded program or the disbursement of Federal funds,' removing nongovernmental entities entirely.

Data sharing was narrowed from requiring agencies to share data on 'known or suspected fraudulent entities and transactions (resulting from internal agency fraud prevention or detection investigations)' to only sharing 'known fraudulent entities and transactions resulting from final adverse action determinations, payment denials, referrals for criminal investigation, or equivalent findings.' This excludes suspected fraud and requires a formal determination before data can be shared.

Mandatory screening requirements were removed. Screening of awardees and payees is now 'as feasible and in accordance with individual program requirements' rather than required prior to every award or payment. Cyber activity screening changed from 'prior to allowing changes' to simply 'to review' changes.

The emphasis in data standards was reversed: changed from 'fraudulent payment data, to include improper payments' to 'data related to improper payments, to include fraudulent payments,' broadening the category while making fraud a subset rather than the primary focus.

Inspector General access to Fiscal Service data was changed from a conditional provision (access unless the Secretary determines it is not appropriate and notifies Congress) to simply 'in accordance with applicable law,' removing the specific congressional notification requirement.

In the data sharing authority section, the language for private sector engagement was changed from 'memoranda of understanding...and private entities' to 'memoranda of understanding...and agreements with private entities,' distinguishing the legal instrument used for private sector data access.