STEP Act

The STEP Act requires federal agencies to identify programs at risk of significant improper payments, particularly new programs exceeding $100 million in annual spending during their first four years. Agencies must annually estimate improper payments using approved methods, report these estimates with CFO certification, and include detailed fraud risk management plans in their financial statements. Key provisions mandate agencies to document fraud risk profiles, antifraud strategies, and progress on internal controls for high-risk areas like payroll and grants. This law directly affects all executive agencies managing federal payments by imposing new transparency and accountability standards for financial reporting.