Improper Payments Information Act (IPIA) Reporting Details
GSA continues to have low risk programs according to the threshold amounts established by the Office of Management and Budget (OMB) ($10 million and 2.5 percent of program disbursements). Since GSA does not have any programs deemed risk susceptible, the next full risk assessment is not required until FY 2008. In the interim years, GSA will perform simplified risk assessments to review whether any significant legislative, programmatic, funding, and/or other changes that have occurred which would result in substantial program impacts. All improper payments information is reported one year in arrears.
Recovery Audit Program
| Agency Component | Amount Subject to Review for CY Reporting | Actual Amount Reviewed and Reported CY | Amounts Identified for Recovery CY | Amounts Recovered CY | Amounts Identified for Recovery PY | Amounts Recovered PY | Cumulative Amounts Identified for Recovery (CY+PYs) | Cumulative Amounts Recovered (CY+PYs) |
|---|---|---|---|---|---|---|---|---|
| N/A | $14.0B | $11.0B | $11.2M | $9.4M | $163.0M | $68.8M | $174.2M | $78.2M |
| Total Agency Costs | $1,027,733 |
|---|---|
| Agency Salaries & Expenses | $214,354 |
| Total Contracted Expenses | $813,379 |
| Paid | $520,208 |
| Due | $293,171 |
| Total Payment Errors Identified | $11,165,987 |
| Discovered By Contractor | $5,098,540 |
| Amount Unrecoverable | $- |
| Amount Recovered | $4,026,629 |
| Amount Outstanding | $1,071,911 |
| Discovered Internally By GSA | $6,067,447 |
| Amount Unrecoverable | $- |
| Amount Recovered | $5,356,351 |
| Amount Outstanding | $711,096 |
In FY 2006, a total of $11,165,987 in payment errors was discovered through internal reviews and recovery audit activities. The original disbursement date for the payment errors occurred in multiple fiscal years. An audit base of $11 billion was examined during this fiscal year (see table above).
Details regarding GSA’s recovery audit program for FY 2006 are presented in the table to the right. The $1,027,733 in total Agency costs represent the total costs to GSA to recover the $11,165,987 in total payment errors identified. GSA does not reimburse itself for these costs. All amounts recovered are returned to the original program, excluding the contingency fee of 20.15 percent due to the recovery audit contractor upon successful collection.
Most of GSA’s business dealings with vendors are of recurring nature, therefore, it is anticipated that the outstanding balance will be successfully collected. Through FY 2007, the recovery audit contractor has identified $53 million in improper payments, and GSA has recovered $35 million of that amount. Payments are made to the recovery audit contractor upon identification and successful collection of erroneous payments. GSA continues to strengthen internal controls and improve its business processes to prevent and detect erroneous payments. As a result, GSA’s erroneous payments have declined from $46.7 million in FY 2005 to $11.2 million in FY 2006. GSA’s progress demonstrates a strong commitment to improving financial management.