In this subchapter:
((1)) ** .—** The term “annual financial statement” means the annual financial statement required under or similar provision of law.
((2)) ** .—** The term “compliance” means that an executive agency—
((A)) has—
((i)) published improper payments information with the annual financial statement of the executive agency for the most recent fiscal year; and
((ii)) posted on the website of the executive agency that statement and any accompanying materials required under guidance of the Office of Management and Budget;
((B)) if required, has conducted a program specific risk assessment for each program or activity that conforms with the requirements under section 3352(a);
((C)) if required, publishes improper payments estimates for all programs and activities identified under section 3352(a) in the accompanying materials to the annual financial statement;
((D)) publishes programmatic corrective action plans prepared under section 3352(d) that the executive agency may have in the accompanying materials to the annual financial statement;
((E)) publishes improper payments reduction targets established under section 3352(d) that the executive agency may have in the accompanying materials to the annual financial statement for each program or activity assessed to be at risk, and has demonstrated improvements and developed a plan to meet the reduction targets; and
((F)) has reported an improper payment rate of less than 10 percent for each program and activity for which an estimate was published under section 3352(c).
((3)) ** .—** The term “Do Not Pay Initiative” means the initiative described in section 3354(b).
((4)) ** .—** The term “improper payment”—
((A)) means any payment that should not have been made or that was made in an incorrect amount, including an overpayment or underpayment, under a statutory, contractual, administrative, or other legally applicable requirement; and
((B)) includes—
((i)) any payment to an ineligible recipient;
((ii)) any payment for an ineligible good or service;
((iii)) any duplicate payment;
((iv)) any payment for a good or service not received, except for those payments where authorized by law; and
((v)) any payment that does not account for credit for applicable discounts.
((5)) ** .—** 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 or a Federal employee, that is made by a Federal agency, a Federal contractor, a Federal grantee, or a governmental or other organization administering a Federal program or activity.
((6)) ** .—** The term “payment for an ineligible good or service” includes a payment for any good or service that is rejected under any provision of any contract, grant, lease, cooperative agreement, or other funding mechanism.
((7)) ** .—** The term “recovery audit” means a recovery audit described in section 3352(i).
((8)) ** .—** The term “State” means each State of the United States, the District of Columbia, each territory or possession of the United States, and each Federally recognized Indian tribe.