House Approves Senate-Amended Version of H.R. 4878,
the "Improper Payments Reduction Act of 2002"
On November 12, 2002, the House, by voice vote, agreed to the
Senate amendment to H.R. 4878, the "Improper Payments Reduction Act
of 2002." This action clears the measure for the President. As
agreed to by the House and Senate, H.R. 4878 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 report
those estimates to Congress before March 31 of the following year,
with all agencies using the same method of reporting, as
determined by the Office of Management and Budget (OMB).
- Require the inclusion of these estimates in annual budget
submissions for fiscal years after fiscal year 2003.
For estimates of improper payments that exceed $10,000,000
dollars annually, would require the head of the agency to provide
with the estimate a report including:
- A discussion of the causes of the improper payments
identified, actions taken to correct those causes, and results
of the actions taken to address those causes;
- 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.
The bill requires that these estimates be made with respect to
the administration of programs, and improper payments under
programs, in fiscal years after fiscal year 2002 and would require
the inclusion of these estimates in annual budget submissions for
fiscal years after fiscal year 2003.
Guidance by the Office of Management and Budget
(OMB)
- Would require OMB to issue guidance on implementation of this
Act no later than 6 months after enactment.
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