The federal government reported $161. 8 billion in improper payments for the fiscal year 2024, according to a new watchdog report. Since 2003, the executive branches have estimated a total of around $2. 8 trillion in improper payments. The report suggests that the $161. 8 billion figure is likely underestimated, as not all federal agencies follow the necessary reporting guidelines.
Under the Payment Integrity Information Act, federal agencies must manage payments by identifying risks, taking corrective actions, and providing annual reports. However, the U. S. Government Accountability Office (GAO) found that some agencies do not fully comply with these requirements. While improper payments have decreased recentlyfrom $239 billion in 2023 to $161. 8 billion in 2024they still present a constant challenge for many federal agencies. The highest reported amount of improper payments was $281. 4 billion in fiscal 2021, largely due to issues during the COVID-19 pandemic.
The amount lost to improper payments in 2024 could fund nearly 2,000 V-22 Osprey helicopters, which cost $71. 3 million each. The GAO's report was part of a congressional mandate that requires quarterly updates on improper payments. This is the eighth report and evaluates the roles of the Office of Management and Budget (OMB) and the Inspector General in ensuring compliance with payment standards.
In 2023, the Inspector General reported that 10 federal agencies were noncompliant with fiscal requirements. Furthermore, nine of these agencies had previously failed to meet the standards for the same programs in both 2021 and 2022. Agencies that remain noncompliant for two or more consecutive years must create additional proposals for the OMB, which is responsible for addressing improper payments and creating improvement plans.
These plans need to be included in the agency's annual budget submissions and made available on PaymentAccuracy.gov, a government website aimed at ensuring transparency regarding improper payments. Improper payments can occur when funds are given to the wrong person or if claims lack proper documentation. Although not all improper payments signal fraud, the report emphasizes the need for stronger internal controls to minimize errors and protect taxpayer money.
The GAO recommended that the OMB ensure that noncompliant agencies include improvement plans in their annual financial statements, publish these plans on PaymentAccuracy.gov, or directly inform congressional committees about them. The OMB agreed with these recommendations.
No comments:
Post a Comment