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GAO-23-106761 1 (2023-09-28)

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Why   This Matters      Detecting and preventing improper payments-those that should not have been
                            made  or were made in an incorrect amount, including overpayments and
                            underpayments-is  critical to safeguarding federal funds.' Since fiscal year 2003,
                            reported cumulative executive agency improper payment estimates have totaled
                            about $2.4 trillion, including $247 billion for fiscal year 2022.
                            The Payment  Integrity Information Act of 2019 (PIIA) requires the Office of
                            Management   and Budget (OMB)  to annually designate a list of high-priority
                            programs for greater levels of review and oversight.2 OMB requires the agencies
                            administering these programs to provide certain information, such as actions for
                            reducing improper payments, in a scorecard format each quarter.'
                            According to our survey of chief financial officers (CFO) from the 24 agencies
                            covered by the Chief Financial Officers Act of 1990 (CFO Act), CFOs play a role,
                            to different extents, in managing their agencies' efforts to reduce improper
                            payments and  overseeing compliance with PIIA reporting requirements.4 The
                            CFO  Act provided certain agency CFOs with leadership responsibilities for
                            overseeing all financial management activities within their respective agencies.5
                            We have  made prior recommendations  to agencies to help detect and prevent
                            improper payments, and recommended   that Congress consider clarifying certain
                            CFO  responsibilities.
                            House Report 117-389, which accompanied  the Legislative Branch
                            Appropriations Act, 2023, includes a provision for GAO to provide quarterly
                            reports on improper payments. This is our third quarterly report, and it examines
                            recent updates to the high-priority scorecard, CFOs' role in managing improper
                            payments, and opportunities for improvement.6


Key  Takeaways          For programs OMB designated as high priority, scorecards contain key
                               information that is important for both OMB and inspectors general (IG) in
                               overseeing efforts to address improper payments.
                              While OMB  has solicited feedback from IGs on an ad-hoc basis, additional
                               collaboration is imperative as OMB considers revising the scorecard.
                              CFOs  at CFO  Act agencies view their role to include some level of
                               responsibility for tasks related to managing improper payments.
                              While federal agencies, OMB, and Congress have made  efforts in recent
                               years to improve payment integrity, additional opportunities remain to reduce
                               improper payments.
                              We  recommend   that OMB review reports on compliance with applicable PIIA
                               criteria from IGs of agencies with high-priority programs, and document and
                               communicate  to IGs any considerations of their reported issues that may
                               warrant revisions to the scorecard's format and content.


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GAO-23-106761 Improper Payments

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