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GAO-24-107482 1 (2024-06-27)

handle is hein.gao/gaoqla0001 and id is 1 raw text is: Why This Matters

Key Takeaways

Improper payments are a long-standing and significant problem in the federal
government. Since fiscal year 2003, federal executive agencies (referred to in
this report as agencies) have reported cumulative improper payment estimates of
about $2.7 trillion, including $236 billion for fiscal year 2023. The Payment
Integrity Information Act of 2019 (PIIA) requires agencies to manage improper
payments by, among other things, identifying risks, taking corrective actions, and
estimating and reporting on improper payments in programs and activities
(referred to in this report as programs per Office of Management and Budget
(OMB) guidance) they administer. Understanding the requirements and related
key concepts is important to more effectively managing improper payments.
Estimating improper payments is a key step in helping agencies identify root
causes and develop effective corrective actions. Agencies that fail to properly
develop estimates for risk-susceptible programs as required may not be able to
determine the extent to which improper payments occur. Further, without these
estimates, agencies may not be able to assess whether corrective actions are
leading to reductions in improper payments.
House Report 117-389, which accompanied the Legislative Branch
Appropriations Act, 2023 (Pub. L. No. 117-328, Div. 1, 136 Stat. 4913), includes a
provision for GAO to provide quarterly reports on improper payments. This is our
sixth such report. This report provides information related to requirements,
standards, and guidance on identifying, estimating, and reporting improper
payments. Additionally, we discuss programs for which agencies reported fiscal
year 2023 estimated improper payment rates of 10 percent or higher, as well as
those for which agencies failed to report fiscal year 2023 estimates as required.
Agencies are required to report improper payment estimates for those
programs they have identified as risk-susceptible. Reliable estimates are
helpful for understanding and addressing financial vulnerabilities and for
assessing the effectiveness of corrective actions. The causes of improper
payments can range from unintentional administrative errors to the willful
misrepresentation inherent in fraud.

* Agencies reported estimated improper payment rates of 10 percent or higher
for 16 of the 71 programs with reported estimates for fiscal year 2023. The
reported rates for 10 of these programs have exceeded 10 percent for at
least 2 consecutive years.
* Agencies did not develop and report fiscal year 2023 improper payment
estimates as required for nine risk-susceptible programs. These agencies

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GAO-24-107482 Improper Payments

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