The Improper Payments Information Act

A Strategy for Reducing Improper Payments in Governmental Programs and Activities

The President's Management Agenda of FY 2002 included a financial management objective to establish a government-wide initiative on the extent of improper payments (P.L. 107-300-Improper Payments Act).

The Improper Payments Act requires agencies to:
  • Review programs and activities annually
  • Identify those that are susceptible to significant improper payments
  • Estimate annual improper payments, using acceptable statistical methodologies.

Programs and activities with significant improper payments are required to:
  • Determine the cause of improper payments
  • Implement corrective measures
  • Measure their progress in reducing improper payments
  • Report such progress to Congress, OMB, and agency heads

How We Can Assist Agency Program Managers

  • Comprehensive implementation assistance
  • Development of funds control plans for program and activities
  • Analysis and documentation of funds control processes
  • Development and implementation of statistical and econometric testing models
  • Assistance with advance data mining tools and techniques
  • Development and implementation of comprehensive recovery audit plans
  • Assistance with implementation of internal controls and other risk mitigation measures

Some of Our Relevant Experience

  • Conducted two large nation-wide Project-based Billing Study of Section 8 Projects, under the Improper Payments Information Act of 2002 for HUD
  • Conducted several Contractor Assessment Reviews (CARS) for Ginnie Mae
  • Conducted several Financial Management Oversight reviews for the Federal Transit Administration
  • Conducted numerous grant and contract recovery audits for agencies such as the National Science Foundation, the District of Columbia government, the Department of State, and others
  • Conducted Large-Scale Risk-Based Monthly Compliance Reviews of Single Family Management and Marketing Contractors (M&M) under HUD's Single Family Acquired Asset Disposition Program
  • Conducted Audits of HUD Preservation Offices' M2M Restructuring activities
  • Conducted compliance reviews of Rehabilitation Escrow Administrator's accounts under HUD's Mark-to-Market Program