OIG: NASA’s Efforts to Identify Improper Payments
Each year, the Federal Government wastes billions of taxpayer dollars on improper payments to individuals, organizations, and contractors. An improper payment is any payment that should not have been made; was made in an incorrect amount, to an ineligible recipient, for ineligible goods or services, or for goods or services not received; was duplicative; or did not reflect credit for applicable discounts. Improper payments may result from inadequate recordkeeping, inaccurate eligibility determinations, inadvertent processing errors, lack of timely and reliable information to confirm payment accuracy, or fraud.
To combat improper payments, Congress passed the Improper Payments Information Act (IPIA) of 2002 and the Improper Payments Elimination and Recovery Act (IPERA) of 2010. These Acts require agencies to identify and report on programs or activities that are susceptible to significant improper payments by conducting a risk assessment, testing a sample of transactions, and determining the estimated amount of improper payments. Agencies are required to report to the President and Congress in their annual Performance and Accountability Report (PAR) or Agency Financial Report (AFR) the amount of estimated improper payments, along with steps taken and actions planned to reduce those payments. Since fiscal year (FY) 2006, NASA has consistently reported that it has identified no programs with significant improper payments.
IPIA also requires agencies to conduct payment recapture audits to review and analyze their accounting and financial records to identify overpayments. In addition, IPERA requires Inspectors General to determine whether their respective agencies comply with IPIA requirements, evaluate the accuracy and completeness of agency reporting, and evaluate agency performance in reducing and recapturing improper payments. The Office of Management and Budget (OMB) has issued guidance regarding agency compliance with IPIA.
