A bill to amend title 31, United States Code, to provide for executive agencies to conduct annual recovery audits and recovery activities, and for other purposes.

Amends Federal law to require the head of each executive agency to conduct each fiscal year: (1) recovery audits of the agency's payment activities for the preceding fiscal year if the activities for such year total at least $500 million; and (2) recovery activities (attempts to collect payment errors) warranted with respect to such activities. Defines a "recovery audit" as a financial management technique of an executive agency that is used to perform internal audits of its records to identify facial-discrepancy payment errors made in connection with a payment activity.

Authorizes such agencies to conduct recovery audits and activities in any fiscal year if the payment activities for the year total less than $500 million.

Makes amounts collected as a result of recovery audits available for specified purposes, including: (1) payment of audit contractors or agency audit costs; (2) agency management improvement programs; and (3) other agency appropriations. Requires 50 percent of amounts collected to be deposited into the Treasury. Makes provisions regarding collected amounts inapplicable to the extent inconsistent with existing law that authorizes the crediting of such amounts to other funds or accounts.

Directs heads of executive agencies required to conduct recovery audits to conduct management improvement programs. Requires the heads of such agencies, in conducting such programs, to address problems that contribute directly to agency payment errors. Authorizes such agencies to seek to reduce errors and waste in other programs by improving the agency's staff capabilities, information technology, and financial management.

Requires the Director to issue guidance and provide support to the executive agencies for implementation of this Act. Authorizes the Director to exempt agencies from the recovery audit requirement if compliance: (1) would impair the performance of the agency's mission; or (2) would not, or would no longer, be cost-effective. Exempts certain contracts from such requirement.

Authorizes a recovery audit pilot program for payment activities that involve payments to entities providing services or making payments for or on behalf of the Federal Government pursuant to grants, contracts, or other arrangements.