Examining Billion Dollar Waste through Improper Payments

PURPOSE:

• To examine agency compliance with improper payment laws and the role of Treasury’s Do Not Pay Center (DNP) in reducing improper payments.

BACKGROUND:

• The Improper Payments Information Act (IPIA) requires federal executive branch agencies to review all programs and identify those that may be susceptible to significant improper payments.
• Improper payment estimates across the federal government for FY 2015 totaled $136.7 billion, more than $30 billion higher than the estimated total for FY 2013.
• The Department of Health and Human Services, the Department of Veterans Affairs, and the Social Security Administration have been flagged for excessive non-compliance and high rates of improper payments.
• DNP offers a centralized system of data sources that allow agencies to verify the eligibility of entities and people to receive payments, thus reducing the amount of improper payments distributed by agencies.