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Wednesday, November 17, 2010

Audio: Danny Werfel and Ken Baer on federal improper payments

The Office of Management and Budget held a press call Nov. 16 to announce that the governmentwide improper payment rate decreased during the last fiscal year to 5.49 percent, down from the 5.65 agencies reported the year before.

That decrease amounts to a $3.8 billion reduction in improper payments, according to OMB officials. However, even as the rate declined somewhat, the absolute number grew by $15 billion to $125 billion during fiscal 2010. An improper payment occurs when a recipient receives either too much or too little of an intended federal payment, or when the recipient misuses the funds, or even when there's a lack of sufficient documentation to prove that a payment was proper.

During the call, OMB Controller Danny Werfel also announced the release of new guidance (.pdf) requiring agencies to submit a payment recapture audit plan.

-David Perera, FierceGovernmentIT.com

For more:
- download the new OMB improper payment guidance (.pdf)

- read a Nov. 16 post on the OMB blog about improper payments

- read Sen. Collins statement

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