Fact Sheet: President Donald J. Trump Protects America’s Bank Account Against Waste, Fraud, and Abuse
March 25, 2025
Action Summary
- Financial Integrity and Efficiency: Executive Order aims to promote transparency and operational efficiency by enhancing the Treasury’s ability to screen for improper payments, fraud, and to better track transactions and manage Government disbursements.
- Enhanced Verification Measures: Agencies must comply with Treasury disbursement requirements including verifying payee information, ensuring funds availability, standardizing reporting formats, and implementing pre-certification verification measures.
- Data Sharing and System Consolidation: Agencies are required to share relevant data with Treasury to detect fraud, while consolidating core financial systems (including for non-CFO Act agencies) to improve financial reporting and traceability.
- Reduction of NTDOs: The Order directs the reduction of Non-Treasury Disbursing Offices (NTDOs) as Treasury develops a plan to centralize and manage payments previously handled by these offices.
- Addressing Fraud and Waste: Highlights the significant financial losses (up to $521 billion annually) due to fraud and the fragmented nature of disbursement authority, stressing the need for centralized control to safeguard taxpayer funds.
- Complementary Efficiency Initiatives: Emphasizes President Trump’s broader policy efforts, including a cost efficiency initiative, establishment of the Department of Government Efficiency, a 10-to-1 deregulation initiative, and termination of certain previous administrative actions to eliminate waste and improve government operations.
Risks & Considerations
- The Executive Order’s emphasis on financial integrity and operational efficiency could lead to increased scrutiny and compliance requirements for institutions receiving federal funds, including universities. This may necessitate additional administrative resources to ensure compliance with new Treasury guidelines.
- The consolidation of financial systems and reduction of Non-Treasury Disbursing Offices (NTDOs) could streamline processes but may also result in temporary disruptions or delays in funding disbursements, affecting cash flow for federally funded projects at Vanderbilt University.
- Enhanced data sharing requirements with the Treasury could raise concerns about data privacy and security, necessitating robust data management and protection strategies to safeguard sensitive information.
- The focus on preventing fraud and improper payments may lead to more stringent auditing and reporting requirements, impacting the university’s financial management practices and necessitating potential adjustments in internal controls.
Impacted Programs
- Vanderbilt’s Office of Sponsored Programs may need to enhance its compliance and reporting mechanisms to align with the new Treasury requirements, ensuring that all federal funds are managed in accordance with updated guidelines.
- The Finance and Administration Department could face increased workload in adapting to new financial systems and processes, requiring potential investments in training and technology upgrades.
- Research initiatives funded by federal grants may experience changes in funding timelines or requirements, necessitating close coordination with federal agencies to mitigate any potential impacts on research activities.
Financial Impact
- The centralization of financial systems and enhanced verification measures could lead to more efficient management of federal funds, potentially reducing administrative costs associated with compliance and reporting.
- However, the transition to new systems and processes may incur initial costs related to system upgrades, staff training, and process adjustments, impacting the university’s budget and resource allocation.
- Vanderbilt University may need to reassess its financial strategies to ensure alignment with the federal government’s cost efficiency initiatives, potentially affecting future funding opportunities and partnerships.
Relevance Score: 3 (The order presents moderate risks involving compliance and financial management adjustments.)
Key Actions
- Vanderbilt’s Financial Office should review and potentially update its financial management systems to align with the new federal standards for pre-certification verification and fraud prevention. This will ensure compliance with any new federal requirements and enhance the university’s financial integrity.
- The Office of Federal Relations should monitor developments in federal financial management policies to identify any changes that could impact funding or financial reporting requirements for the university. Staying informed will help Vanderbilt adapt to new regulations efficiently.
- Vanderbilt’s Data Management Team should explore opportunities to improve data sharing and reporting capabilities, ensuring that the university can meet any new federal data requirements and contribute to enhanced financial transparency and traceability.
Opportunities
- The executive order’s emphasis on financial integrity and efficiency presents an opportunity for Vanderbilt’s Business School to develop research initiatives focused on financial fraud prevention and operational efficiency. This could position the university as a leader in financial management research and education.
- By aligning with federal efforts to streamline financial operations, Vanderbilt can enhance its reputation as a fiscally responsible institution, potentially attracting more federal funding and partnerships.
Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with new federal financial management standards.)
Timeline for Implementation
N/A – The directive does not specify any deadlines or time frames for implementation.
Relevance Score: 1
Impacted Government Organizations
- Department of the Treasury: Directed to update guidance, enhance financial systems, and enforce pre-certification and verification measures for payments across the Federal Government.
- Federal Agencies (Agency Heads): All agencies that disburse funds must comply with Treasury’s updated requirements, share relevant financial data, and adjust their financial reporting practices.
- Non-Treasury Disbursing Offices (NTDOs): Identified for reduction as the Treasury plans to centralize and manage payments previously handled by these offices.
- Department of Government Efficiency: Newly established to streamline operations, eliminate waste, and ensure rigorous standards for government contracts and grants.
Relevance Score: 2 (A moderate number of Federal agencies and newly established organizations are impacted by the directive.)
Responsible Officials
- Department of the Treasury – Tasked with updating guidance, enhancing systems for screening payments and detecting fraud, consolidating core financial systems, and developing plans to reduce non-Treasury Disbursing Offices.
- Agency Heads – Required to comply with Treasury disbursement requirements, ensuring funds availability, verifying payee information, standardizing reporting formats, and cooperating by sharing relevant data with Treasury.
Relevance Score: 4 (Directives affect agency heads and senior Treasury officials responsible for implementing comprehensive financial oversight measures.)