; (II) notify the executive agency of any overpayments identified by the contractor pertaining to the executive agency or to any other executive agency that are beyond the scope of the contract; and (III) report to the executive agency credible evidence of fraud or vulnerabilities to fraud and conduct appropriate training of personnel of the contractor on identification of fraud. (ii) Reports on actions taken Each executive agency shall, on an annual basis, include in annual financial statement of the executive agency a report on actions taken by the executive agency during the preceding fiscal year to address the recommendations described in clause (i)(I). (E) Agency action following notification Each executive agency shall— (i) take prompt and appropriate action in response to a report or notification by a contractor under subclause (I) or (II) of subparagraph (D)(i) to collect an overpayment; and (ii) forward to other executive agencies any information that applies to that executive agency. (2) Disposition of amounts recovered (A) In general Amounts collected by executive agencies each fiscal year through recovery audits shall be treated in accordance with this paragraph. (B) Distribution The head of an executive agency shall determine the distribution of collected amounts described in subparagraph (A), less amounts needed to fulfill the purposes of section 3562(a) of this title, in accordance with subparagraphs (C), (D), and (E). (C) Use for financial management improvement program Not more than 25 percent of the amounts collected by an executive agency through recovery audits— (i) shall be available to the head of the executive agency to carry out the financial management improvement program of the executive agency under paragraph (3); (ii) may be credited, if applicable, for the purpose described in clause (i) by the head of an executive agency to any executive agency appropriations and funds that are available for obligation at the time of collection