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Improper Payments

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Federal agencies make more than $2 trillion in payments to individuals and a variety of other entities each year. An improper payment occurs when the funds go to the wrong recipient, the recipient receives the incorrect amount of funds, or the recipient uses the funds in an improper manner. By strengthening financial management controls so that Federal agencies can better detect and prevent improper payments, the Federal Government can better ensure that taxpayer dollars are spent wisely and efficiently.

Legislation: Improper Payments Information Act of 2002 (IPIA) (P.L. 107-300) (2 pages, pdf)

Recovery Auditing Act (Section 831, Defense Authorization Act, for FY 2002) (P.L. 107-107) (348 pages, pdf)

Memoranda: M-06-23, Issuance of Appendix C to OMB Circular A-123 (August 10, 2006) (22 pages, 236 kb)
-- Appendix C, Requirements for Effective Measurement
    and Remediation of Improper Payments (22 pages, 236 kb)

Eligibility Verification Requirements for Delivery of Benefits to Victims of Hurricanes Katrina and Rita (October 13, 2005) (3 pages, 43 kb)

Other Guidance: Improving the Accuracy and Integrity of Federal Payments, 2007 Final Report (January 31, 2008) (49 pages, 286 kb)

Improving the Accuracy and Integrity of Federal Payments (January 31, 2007) (3 pages, 350 kb)

Improving the Accuracy and Integrity of Federal Payments (February 2, 2006) (32 pages, 307 kb)

OMB Report - Improving the Accuracy and Integrity of Federal Payments (January 25, 2005) (28 pages, 199 kb)

Alternative for Estimating Improper Payment Amounts,
CFO Council Working Group on Improper Payments
(September 2004)

Resources: www.cfoc.gov

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