Audit of the Department of Defense’s FY 2021 Compliance With Payment Integrity Information Act Requirements

Submitting OIG:

Department of Defense OIG

Date Issued:

Tuesday, June 28, 2022

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2022-108

Component, if applicable:

Defense Finance and Accounting Service (DFAS)

Defense Health Agency (DHA)

Under Secretary of Defense Comptroller/Chief Financial Officer

United States Air Force (USAF)

United States Army (USA)

United States Marine Corps (USMC)

United States Navy (USN)

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
DODIG-2022-108.pdf	17.24 MB

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation
D-2022-0108-D000FL-0001-0001.a	Open	No
Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement a process to obtain accurate confirmed fraud amounts, report them in paymentaccuracy.gov, and consider the fraud amounts when reviewing and approving the Sampling and Estimation Methodology Plans for each program.
D-2022-0108-D000FL-0001-0001.b	Open	No
Rec. 1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, update the DoD Financial Management Regulation, volume 4, chapter 14, to ensure the guidance is consistent with all current payment integrity requirements, and include a definition of baselining that standardizes the application for all DoD payment integrity programs.
D-2022-0108-D000FL-0001-0001.c	Open	No
Rec. 1.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement internal control procedures to ensure that DoD Components produce reliable estimates by validating that the Sampling and Estimation Methodology Plans are accurate and complete.
D-2022-0108-D000FL-0001-0002.a	Open	No
Rec. 2.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, in coordination with the Deputy Director of Enterprise Accounting and Audit Support for the Defense Finance and Accounting Service, use a sufficient sample size to support the improper payment estimate by calculating the sample size based on improper payment amounts instead of only using the paid amount. To reduce the required sample size, we recommend considering alternative improper payment estimation methodology, and conducting risk assessments of the payment types for each program.

Department of Defense OIG

Department of Defense

The Department of Defense Office of Inspector General was established in 1982. The mission of the DoD OIG, as established by the Inspector General Act of 1978, as amended, (5 U.S.C. Appendix); and implemented by DoD Directive 5106.01, "Inspector General of the Department of Defense," is to serve as an independent and objective office in DoD to:

a) conduct, supervise, monitor, and initiate audits, evaluations, and investigations relating to programs and operations of the Department of Defense,

b) provide leadership and coordination and recommend policies for activities designed to promote economy, efficiency, and effectiveness in the administration of, and to prevent and detect fraud and abuse in, such programs and operations,

c) provide a means for keeping the Secretary of Defense and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress of corrective action

http://www.dodig.mil

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Audit of the Department of Defense’s FY 2021 Compliance With Payment Integrity Information Act Requirements

Related Open Recommendations