Improper Payments Elimination and Recovery Act of 2008

Bill: 110-s-2583
Sponsor: Sen. Carper, Thomas R. [D-DE]
Introduced: 2008-01-31 in the Senate
Policy area: Economics and Public Finance
Subjects: Administrative procedure
Appropriations
Auditing
Collection of accounts
Finance and Financial Sector
Financial statements
Government Operations and Politics
Government paperwork
Law
Office of Management and Budget
Planning-programming-budgeting
Waste in government spending

Summary:
action_date: 2008-01-31
text: 
Improper Payments Elimination and Recovery Act of 2008 - Amends the Improper Payments Information Act of 2002 to require the head of each federal agency to: (1) annually review all agency programs and identify those programs and activities that may be susceptible to significant improper payments; and (2) report on agency actions to reduce and recover improper payments. Defines &quot;improper payment&quot; as any payment that should not have been made, that was made in an incorrect or duplicate amount, or that was made to an ineligible recipient. 

Requires the Director of the Office of Management and Budget (OMB) to: (1) provide guidance to agencies for reducing improper payments, addressing risks, and establishing appropriate prepayment and postpayment internal controls; and (2) prepare an annual report with an identification of the compliance status of each agency in identifying improper payments and the delinquent programs responsible for the agency's status.

Requires federal agencies with outlays of $1 million or more to conduct a recovery audit of all programs and activities to assist in recouping improper payments.

Requires: (1) each agency's Inspector General to report each fiscal year on agency compliance with the Improper Payments Information Act of 2002 and this Act; (2) the head of an agency determined not to be in compliance for two consecutive fiscal years to expend available appropriations on intensified compliance; and (3) an agency determined not to be in compliance for three consecutive fiscal years, with a delinquent program reported for two of those years consecutively, to transfer 5% of the appropriations for each of delinquent program to the Treasury.

Suspends appropriations to agencies that have an improper payment rate greater than 15% for three consecutive fiscal years until the agency's Inspector General certifies that sufficient changes have been implemented to warrant resumed authorization of appropriations.

action_date: 2008-10-01
text: 
Improper Payments Elimination and Recovery Act of 2008 - Amends the Improper Payments Information Act of 2002 to require the head of each federal agency to review agency programs and activities every three fiscal years and identify those that may be susceptible to significant improper payments. Defines &quot;significant&quot; to mean improper payments in program or activity payments in the preceding fiscal year that may have exceeded: (1) $10 million and 2.5% of program outlays; or (2) $100 million. Sets forth risk factors for conducting improper payment reviews, including: (1) whether the program or activity is new to the agency; (2) the volume of payments made; (3) whether payment decisions are made outside of the agency; (4) recent major changes in program funding, authorities, practices, or procedures; (5) the level and quality of personnel training; and (6) significant deficiencies in auditing practices.

Requires agency heads to: (1) annually produce a statistically valid estimate of the improper payments in their agencies; and (2) include such estimates in their annual financial statements.

Expands agency reporting requirements with respect to improper payments to require reports on actions to reduce and recover improper payments.

Requires the Director of the Office of Management and Budget (OMB) to: (1) report to specified congressional committees in each fiscal year on actions agencies have taken to report on and recover improper payments; and (2) provide guidance to agencies for implementing actions to reduce improper payments and strategies for addressing risks and establishing internal controls.

Requires the President's Council on Integrity and Efficiency to study the effectiveness of OMB Circular No. A-123 (revised) (Management's Responsibility for Internal Control) and report on such study to specified congressional committees.

Requires agency heads to conduct recovery audits for agency programs that expend $1 million or more annually if such audits would be cost-effective. 

Requires: (1) each agency's Inspector General to report each fiscal year on agency compliance with this Act; (2) agencies determined not to be in compliance for two or three consecutive fiscal years to obligate additional funding for intensified compliance; and (3) agencies not in compliance for more than three consecutive fiscal years to submit to Congress reauthorization proposals for each noncompliant program and proposed statutory changes to achieve compliance. 

Authorizes the Director of OMB to establish one or more pilot programs to test accountability mechanisms to insure compliance with this Act and eliminate improper payments. Requires the Director to report to Congress on findings associated with any pilot program.


Legislative actions:
action_date: 2008-10-01
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 1103.
action_date: 2008-10-01
text: Committee on Homeland Security and Governmental Affairs. Reported by Senator Lieberman with an amendment in the nature of a substitute. Without written report.
action_date: 2008-10-01
text: Committee on Homeland Security and Governmental Affairs. Reported by Senator Lieberman with an amendment in the nature of a substitute. Without written report.
action_date: 2008-07-30
text: Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
action_date: 2008-02-27
text: Committee on Homeland Security and Governmental Affairs referred to Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security.
action_date: 2008-01-31
text: Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (text of measure as introduced: CR S545-547)
action_date: 2008-01-31
text: Sponsor introductory remarks on measure. (CR S544-545)
action_date: 2008-01-31
text: Introduced in Senate