In the latest action taken by the Administration and the Congress to find, recapture, and reduce improper payments, the Office of Management and Budget (OMB) has issued instructions to agencies on how to intensify and expand their payment recapture audit reviews. In March, OMB ordered agencies to expand their payment recapture audit plans to identify and reclaim improper payments. In July, Congress passed the Improper Payments Elimination and Recovery Act (IPERA). The new OMB instructions provide interim guidance on expanding recovery audits. The interim guidance requires all agencies to submit a payment recapture audit plan by January 14, 2011 describing its current recapture efforts, including guidance the agency issues to its components and the technology or software it uses. The plan should only address an actual or planned recapture program. Agencies must also show how it is prioritizing its efforts to maximize recoveries and how it is exploring new processes. If an agency does not have a payment recapture audit payment program, it must submit a plan for such a program and an implementation timetable. Under the new guidelines, OMB will also review agencies Performance and Accountability Reports (PARs) and Agency Financial Reports (AFRs) to determine if payment recapture targets should be established. If an agency is notified that it needs to establish targets, it is required to submit quarterly and annual targets for FY2011 and FY2012 with their plan in January. Final OMB guidance, required by IPERA, will be issued in January 2011 and will provide instructions on which recovery audit programs are to be reviewed, how to use recaptured funds, and a description of a cost-effective program.