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Abstract:
Improper payments occur when Federal funds go to the wrong recipient, the recipient receives the incorrect amount of funds, documentation is not available to support a payment, or the recipient uses the funds in an improper manner. Since the enactment of the Improper Payments Information Act (IPIA) of 2002 (P.L. 107-300) and the Recovery Auditing Act (Section 831 of the Defense Authorization Act for Fiscal Year 2002 (P.L. 107-107)), the Federal government has achieved measurable results in eliminating improper payments. These laws, as implemented through Office of Management and Budget (OMB) guidance (OMB Circular A-123, Appendix C), have created a permanent framework for assessing every Federal program and dollar for improper payment risk, measuring the accuracy of high risk payments annually, and initiating program improvements to ensure that payment errors and improprieties are reduced and ultimately eliminated. The remainder of this report describes the progress agencies reported during fiscal year (FY) 2008. Focus is placed where efforts stand with respect to identifying high-risk programs, developing statistically valid improper payment estimates, and eliminating improper payments. The report concludes with a discussion of the outlook for improper payments beyond FY 2008.
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