Management

Improper payments by agencies on the decline

Improper Payments Reform

Improper payments are on the decline across federal agencies, according to a Nov. 21 blog post from Danny Werfel, Controller of the Office of Management and Budget.

Werfel said federal agencies saved over $47 billion in improper payments since 2009, "almost hitting the President's ambitious goal of avoiding $50 billion in improper payments by the end of (fiscal year) 2012," as government-wide error rates decreased to 4.3 percent from a “high-water mark” of 5.4 percent in 2009.

Werfel defined improper payments as "those Federal payments that are made in the wrong amount, to the wrong entity, or for the wrong purpose," and credited Obama's signing of the Improper Payments Elimination and Recovery Act and his issuance of an executive order in 2010 to improve transparency by holding agency officials accountable for improper payments.

"When the President took office, the rate of wasteful government-wide improper payments was on the rise," Werfel said in the post. "Across the board, Federal agencies are taking targeted steps to combat erroneous payments."

Werfel said federal agencies recaptured $4.4 billion in overpayments to contractors since 2009 –- more than doubling the president's goal -- and credited the Medicare Fee-for-Service Recovery Audit Contractor program for much of that success. He added that when Defense Department commercial payments are factored in, total improper payments avoided since 2009 climbs to about $70 billion.

About the Author

Frank Konkel is a former staff writer for FCW.

Rising Stars

Meet 21 early-career leaders who are doing great things in federal IT.

Featured

  • SEC Chairman Jay Clayton

    SEC owns up to 2016 breach

    A key database of financial information was breached in 2016, possibly in support of insider trading, said the Securities and Exchange Commission.

  • Image from Shutterstock.com

    DOD looks to get aggressive about cloud adoption

    Defense leaders and Congress are looking to encourage more aggressive cloud policies and prod reluctant agencies to embrace experimentation and risk-taking.

  • Shutterstock / Pictofigo

    The next big thing in IT procurement

    Steve Kelman talks to the agencies that have embraced tech demos in their acquisition efforts -- and urges others in government to give it a try.

  • broken lock

    DHS bans Kaspersky from federal systems

    The Department of Homeland Security banned the Russian cybersecurity company Kaspersky Lab’s products from federal agencies in a new binding operational directive.

  • man planning layoffs

    USDA looks to cut CIOs as part of reorg

    The Department of Agriculture is looking to cut down on the number of agency CIOs in the name of efficiency and better communication across mission areas.

  • What's next for agency cyber efforts?

    Ninety days after the Trump administration's executive order, FCW sat down with agency cyber leaders to discuss what’s changing.

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

More from 1105 Public Sector Media Group