Our Objective(s)To determine whether the Department of Transportation (DOT) complied with Payment Integrity Information Act of 2019 (PIIA) requirements as prescribed by the Office of Management and Budget (OMB).
Why This AuditPIIA requires agencies to identify, report, and reduce improper payments in programs susceptible to significant improper payments. The Act also requires agencies to publish applicable payment integrity information in the materials accompanying their annual financial statements. Moreover, PIIA requires inspectors general to report annually on their agencies compliance.
What We FoundDOT was in compliance with PIIA requirements for fiscal year 2024.
DOT complied with all of PIIAs requirements for the two programs identified as susceptible to significant improper payments"the Federal Highway Administrations (FHWA) Highway Planning and Construction (HPC) program and the Federal Transit Administrations (FTA) Transit Infrastructure Grants (TIG) COVID Relief Funds program.
DOT met OMB reporting requirements by publishing payment integrity information with its annual financial statements and posting required information on the Payment Accuracy website. The Department also conducted an improper payment risk assessment, reported improper and unknown payment estimates of less than 10 percent, and took steps to recapture overpayments.
Overall, DOT reported total improper payment estimates of approximately $1.22 billion. Specifically, the FHWA HPC program estimated $1.07 billion (1.96 percent) in improper payments, including $1.06 billion in monetary loss improper payments. The FTA TIG COVID Relief Funds program estimated $151.61 million (1.56 percent) in improper payments, including $151.51 million in monetary loss improper payments. While neither program met its reduction target of 1 percent, both achieved compliance by demonstrating improvements to payment integrity.
FHWA and FTA developed enhanced corrective action plans to reduce improper payments in fiscal year 2025, such as providing guidance and training to address the identified root causes of improper payments.
RecommendationsDOT complied with PIIAs requirements for fiscal year 2024, so we are not making recommendations.
