; 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) Payment 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) Payment for an ineligible good or service 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) Recovery audit The term recovery audit means a recovery audit described in section 3352(i). (8) State 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. 3352. Estimates of improper payments and reports on actions to reduce improper payments (a) Identification of susceptible programs and activities (1) In general The head of each executive agency shall, in accordance with guidance prescribed by the Director of the Office of Management and Budget— (A) periodically review all programs and activities that the head of the executive agency administers