124 STAT. 2227 PUBLIC LAW 111–204—JULY 22, 2010 ‘‘(7) if the agency has determined under section 2(h) of the Improper Payments Elimination and Recovery Act of 2010 (31 U.S.C. 3321 note) that performing recovery audits for any applicable program or activity is not cost-effective, a justifica- tion for that determination. ‘‘(e) GOVERNMENTWIDE REPORTING OF IMPROPER PAYMENTS AND ACTIONS TO RECOVER IMPROPER PAYMENTS.— ‘‘(1) REPORT.—Each fiscal year the Director of the Office of Management and Budget shall submit a report with respect to the preceding fiscal year on actions agencies have taken to report information regarding improper payments and actions to recover improper overpayments to— ‘‘(A) the Committee on Homeland Security and Govern- mental Affairs of the Senate; and ‘‘(B) the Committee on Oversight and Government Reform of the House of Representatives. ‘‘(2) CONTENTS.—Each report under this subsection shall include— ‘‘(A) a summary of the reports of each agency on improper payments and recovery actions submitted under this section; ‘‘(B) an identification of the compliance status of each agency to which this Act applies; ‘‘(C) governmentwide improper payment reduction tar- gets; and ‘‘(D) a discussion of progress made towards meeting governmentwide improper payment reduction targets.’’. (e) DEFINITIONS.—Section 2 of the Improper Payments Informa- tion Act of 2002 (31 U.S.C. 3321 note) is amended by striking subsections (f) (as redesignated by this section) and inserting the following: ‘‘(f) DEFINITIONS.—In this section: ‘‘(1) AGENCY.—The term ‘agency’ means an executive agency, as that term is defined in section 102 of title 31, United States Code. ‘‘(2) IMPROPER PAYMENT.—The term ‘improper payment’— ‘‘(A) means any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; and ‘‘(B) includes any payment to an ineligible recipient, any payment for an ineligible good or service, any duplicate payment, any payment for a good or service not received (except for such payments where authorized by law), and any payment that does not account for credit for applicable discounts. ‘‘(3) PAYMENT.—The term ‘payment’ means any transfer or commitment for future transfer of Federal funds such as cash, securities, loans, loan guarantees, and insurance subsidies to any non-Federal person or entity, that is made by a Federal agency, a Federal contractor, a Federal grantee, or a govern- mental or other organization administering a Federal program or activity. ‘‘(4) PAYMENT FOR AN INELIGIBLE GOOD OR SERVICE.—The term ‘payment for an ineligible good or service’ shall include a payment for any good or service that is rejected under any
