IIB
107TH CONGRESS
2D SESSION
H. R. 4878
IN THE SENATE OF THE UNITED STATES
JULY 11 (legislative day, JULY 10), 2002
Received; read twice and referred to the Committee on Governmental Affairs
AN ACT
To provide for estimates and reports of improper payments
by Federal agencies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 4878 RFS
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Improper Payments
Information Act of 2002’’.
SEC. 2. ESTIMATES OF IMPROPER PAYMENTS AND RE-
PORTS ON ACTIONS TO REDUCE THEM.
(a) IDENTIFICATION
OF SUSCEPTIBLE PROGRAMS
AND ACTIVITIES.—The head of each agency shall, in ac-
cordance with guidance prescribed by the Director of the
Office of Management and Budget, annually review all
programs and activities that it administers and identify
all such programs and activities that may be susceptible
to significant improper payments.
(b) ESTIMATION OF IMPROPER PAYMENT.—With re-
spect to each program and activity identified under sub-
section (a), the head of the agency concerned shall—
(1) estimate the annual amount of improper
payments; and
(2) include that estimate in its annual budget
submission.
(c) REPORTS ON ACTIONS TO REDUCE IMPROPER
PAYMENTS.—With respect to any program or activity of
an agency with estimated improper payments under sub-
section (b) that exceed one percent of the total program
or activity budget or $1,000,000 annually (whichever is
less), the head of the agency shall provide with the esti-
mate under subsection (b) a report on what actions the
HR 4878 RFS
agency is taking to reduce the improper payments,
including—
(1) a statement of whether the agency has the
information systems and other infrastructure it
needs in order to reduce improper payments to mini-
mal cost-effective levels;
(2) if the agency does not have such systems
and infrastructure, a description of the resources the
agency has requested in its budget submission to ob-
tain the necessary information systems and infra-
structure; and
(3) a description of the steps the agency has
taken to ensure that agency managers (including the
agency head) are held accountable for reducing im-
proper payments.
(d) DEFINITIONS.—For the purposes of this section:
(1) AGENCY.—The term ‘‘agency’’ means an
executive agency, as that term is defined in section
102 of title 31, United States Code.
(2) IMPROPER PAYMENT.—The term ‘‘improper
payment’’—
(A) means any payment that should not
have been made or that was made in an incor-
rect amount (including overpayments and un-
derpayments) under statutory, contractual, ad-
HR 4878 RFS
ministrative, or other legally applicable require-
ments; and
(B) includes any payment to an ineligible
recipient, any payment for an ineligible service,
any duplicate payment, payments for services
not received, and any payment that does not ac-
count for credit for applicable discounts.
(3) PAYMENT.—The term ‘‘payment’’ means
any payment (including a commitment for future
payment, such as a loan guarantee) that is—
(A) made by a Federal agency, a Federal
contractor, or a governmental or other organi-
zation administering a Federal program or ac-
tivity; and
(B) derived from Federal funds or other
Federal resources or that will be reimbursed
from Federal funds or other Federal resources.
(e) APPLICATION.—This section—
(1) applies with respect to the administration of
programs, and improper payments under programs,
in fiscal years after fiscal year 2002; and
(2) requires the inclusion of estimates under
subsection (b)(2) only in annual budget submissions
for fiscal years after fiscal year 2003.
HR 4878 RFS
(f) GUIDANCE BY THE OFFICE OF MANAGEMENT
AND BUDGET.—The Director of the Office of Manage-
ment and Budget shall prescribe guidance to implement
the requirements of this section.
Passed the House of Representatives July 9, 2002.
Attest:
JEFF TRANDAHL,
Clerk.
By MARTHA C. MORRISON,
Deputy Clerk.