House Subcommittee Approves H.R. 4878, the
"Improper Payments Reduction Act of 2002"
On June 18, 2002, the Subcommittee on Government Efficiency,
Financial Management and Intergovernmental Relations of the House
Committee on Government Reform approved (with an amendment) H.R.
4878, the "Improper Payments Reduction Act of 2002."
The legislation contains the following provisions:
Estimates of Improper Payments and Reports on Actions to
Reduce Them
Would require the head of each Federal agency to:
- Annually review all programs and activities they administer
and identify any that may be susceptible to significant improper
payments.
- Estimate the annual amount of improper payments and include
that estimate in their annual budget submission.
For estimates that exceed one percent of the total program
budget or 1 million dollars annually (whichever is less), would
require the head of the agency to provide with the estimate a
report including:
- A statement of whether the agency has the information
systems and other infrastructure necessary to reduce improper
payments to minimal cost-effective levels;
- A description of the resources it has requested in its
budget submission to get the necessary information systems and
infrastructure; and
- A description of the steps that the agency has taken to
ensure accountability by responsible agency managers for
reducing improper payments.
Guidance by the Office of Management and Budget (OMB)
- Would require OMB to issue guidance on implementation of this
Act.
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