The Office of Management and Budget and the Treasury Department have issued guidelines designed to reduce improper payments by federal agencies. 

The guidelines stem from a November 2009 executive order requiring federal agencies to eliminate payment errors and establish accountability to correct problems.
 
According to federal officials, payment errors have increased steadily in recent years, reaching $98 billion in 2009, a $30 billion increase from the previous year.

While some of that increase is attributable to overall growth in federal programs and payments, some is due to more accurate accounting of federal funds distribution.
  
The requirements set goals for high-priority programs, establish reporting requirements for those programs, and identify parties that have improper payments outstanding.  Medicare, Medicaid and the food stamp program are among those targeted due to their size and scope.

Agencies with high-priority programs will be required to provide annual rates and amounts of improper payments, targets for reducing improper payments, and amounts of improper payments recovered.
 
A web-based platform will be established for the collection of information about improper payments, as well as providing information to the public.
 
While reducing improper payment will depend on cooperation between federal, state and local entities, officials acknowledged that current policies sometimes discourage, rather than encourage, states from reporting them.