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Monday, April 18, 2011

Executive Memo M-11-16: Issuance of Revised Parts I and II to Appendix C of OMB Circular A-123

April 14,2011



FROM: JacobJ. Lew, Director, OMB

SUBJECT: Issuance of Revised Parts I and II to Appendix C ofOMB Circular A-123

Each year, the -Federal Government wastes billions of taxpayer dollars on improper payments to individuals, organizations, and contractors. These are payments made in the wrong amount, to the wrong entity, or for the wrong reason. Despite efforts to reduce improper payments, agencies reported an estimated $125 billion in improper payments for Fiscal Year 2010. Whether these payments resulted from inadequate recordkeeping, inaccurate eligibility determinations, inadvertent processing errors, the lack of timely and reliable information to confirm payment accuracy, or fraud, the amount of improper payments is simply unacceptable.

On July 22, 2010, the President signed into law the Improper Payments Elimination and Recovery Act (IPERA; Pub.L. 111-204). IPERA amended the Improper Payments Information Act of 2002 (IPIA; Pub. L. 107-300) and generally repealed the Recovery Auditing Act (Section 831, Defense Authorization Act, for FY 2002; Pub.L. 107-107). IPERA directed the Office of Management and Budget (OMB) to issue implementing guidance to agencies.

OMB is now issuing the attached government-wide guidance on the implementation of IPERA. This guidance is contained in Parts I and II to Appendix C ofOMB Circular A-I23, Management's Responsibility for Internal Controls'.


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