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Reducing Improper Payments

Reducing Improper Payments. UI Integrity Conference April 20 th , 2010. 1. Agenda. Introduction of the Executive Order Components of the Executive Order Stakeholder roles and responsibilities Executive Order milestones Guidance Guidance overview

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Reducing Improper Payments

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  1. Reducing Improper Payments UI Integrity Conference April 20th, 2010 1

  2. Agenda • Introduction of the Executive Order • Components of the Executive Order • Stakeholder roles and responsibilities • Executive Order milestones • Guidance • Guidance overview • Major questions addressed in guidance • Sections that states may be interested in • Work Groups • Description of work groups and issue areas • Role of states and state agencies • Next Steps • Questions and resources 2

  3. Collaboration • Strengthening partnerships between Federal, State, and local governments and agencies. • Partner4Solutions.gov has been established to gather best practices to improve program integrity. 3

  4. Improper Payments Overview Landscape Statistics Payment errors have been steadily increasing since 2004 when Federal agencies first began measuring and reporting payment errors. The increase is the result of: • More programs measuring error • More thorough measurement methodologies • Increases in total Federal outlays FY 2009 improper payments are approximately ~$100 billion • Represent ~$30 billion increase versus FY 2008, driven primarily by more stringent measurement and increased expenditures • Approximately 90% of the errors are in 12 of the 72 programs measured (6 agencies) • The Medicare, Medicaid, EITC and Unemployment Insurance programs each have over $10 billion in improper payments The President issued Executive Order #13520, Reducing Improper Payments on November 20, 2009. 4

  5. Components of the Executive Order Transparency Agency Accountability Incentives for Compliance • “High-priority” programs designated (programs with largest amount of error) • More frequent measurement and reporting • Improper payment dashboard • High dollar errors/fraud • Assessment of performance versus planned targets • Publicly available • Central website for reporting waste, fraud, and abuse • Accountable Senate-confirmed appointees for high-priority programs • Inspector generals review: • Error payments over certain thresh-hold amounts • Measurement plans and reduction targets • Agency forensic auditing pursued • Required sharing of eligibility information among programs and agencies • Quarterly reporting of high-dollar improper payments • Financial incentives for States to build better systems to identify and reduce errors • State audits to focus on error reduction versus compliance • Contractors charged damages for improperly invoicing the government 5

  6. Stakeholders 6

  7. Executive Order Milestones • Establish working groups • Issue government-wide guidance to agencies • Establish annual or semi-annual reduction targets • Publish dashboard • Submit recommendations on: • Improving measurements • Strengthening internal control measures • Improving information sharing • Enhancing contractor accountability • Shifting focus of single audits to improper payments • Improving incentives and accountability • Agency submits first quarterly report on high-dollar improper payments • Agency provides IG with report on error methodology and plans for meeting targets 7

  8. Guidance Overview • OMB issued implementing guidance for Executive Order 13520 - March 22, 2010 • The guidance is: • Drafted in a “Question and Answer” format • Separated into several sections: • General questions • Improper payments reporting • Reporting deliverables 8

  9. Major Questions Addressed in Guidance Although many questions are addressed in the guidance, the highlights include instructions on: • Specifying responsibilities for agency accountable officials; • Determining the programs subject to the EO (i.e., high-priority programs); • Defining supplemental measures and targets for high-priority programs; • Establishing reporting requirements under the EO; and • Establishing procedures to identify entities with outstanding improper payments. 9

  10. Guidance Sections of Interest to State UI Officials • A few sections that may interest State UI community include: • Measures of access requirements; • More frequent “supplemental measures”; and • Posting additional information on the web. 10

  11. Work Groups 11

  12. Work Group Collaboration • Interagency work groups: • Being lead by agency representatives; • Sharing best practices from different agencies and programs; and • Bridging “silos” • State involvement in several work groups, including: • Measuring program access; • Improving data sharing; • Single audit requirements; and • Incentives for state and local governments 12

  13. Next Steps • 5/19 Work groups to issue recommendations • 5/19 Website launch • Which recommendations will be pursued? • Payment Recapture Audits 13

  14. Questions and Resources • Joe Pika: jpika@omb.eop.gov or 202-395-1040 • OMB’s improper payments website with EO, guidance, and other materials: http://www.whitehouse.gov/omb/financial_fia_improper/ 14

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