USDA's Compliance with Improper Payment Requirements for FY 2023

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Date Issued

Friday, July 12, 2024

Submitting OIG

Department of Agriculture OIG

Other Participating OIGs

Department of Agriculture OIG

Agencies Reviewed/Investigated

Department of Agriculture

Report Number

50024-0004-24

Report Description

OIG reviewed USDA’s compliance with improper payment and high-dollar overpayment requirements for FY 2023.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2	Yes	$0	$0
We recommend that for Each Year of Non-Compliance:b. FNS should provide information for FNS SNAP, describing the actions that the agency will take to come into compliance, in the 0MB Annual Data Call. This information will be published on paymentaccuracy.gov and serve as the plan that agencies are required to submit to the appropriate authorizing and appropriations committees of Congress including:i. Measurable milestones to be accomplished in order to achieve compliance for each program;ii. The designation of a senior agency official who shall be accountable for the progress of the executive agency in coming into compliance for each program; andiii. The establishment of an accountability mechanism such as a performance agreement, with appropriate incentives and consequences tied to the success of the senior agency official in leading the efforts of the agency to come into compliance for each program.
3	Yes	$0	$0
We recommend that for the Second Consecutive Year of Non-Compliance:a. FSA should propose to the director of OMB in its next budget submission additional program integrity proposals for LFP that would help the program come into compliance. This process will unfold as part of the annual development of the President's budget. In the budget submission, the agency should describe how each proposal would help the program come into compliance.b. If the director of OMB determines that additional funding would help the program become compliant, the agency should obligate an amount of additional funding determined by the director of OMB to intensify compliance efforts. When providing additional funding for compliance efforts, the agency should:i. Exercise reprogramming or transfer authority to provide additional funding to meet the level determined by the director of OMB; andii. Submit a request to Congress for additional reprogramming or transfer authority if additional funding is needed to meet the full level of funding determined by the director of OMB.
5	Yes	$0	$0
We recommend FNS ensure proper reporting and classification of its CACFP. If FNS is unable to report improper payment information for all three components of the program, FNS should evaluate if some payments should be considered unknown payments.
6	Yes	$0	$0
We recommend OCFO and responsible program officials review supporting documentation to verify the accuracy and completeness of reported information prior to publication. Any fatal flaws identified should be communicated timely to OMB to remediate the incorrectly reported information.