Federal Reports

For our final report on fiscal year (FY) 2022 improper payment reporting, our review objective was to determine the U.S. Department of Commerce's (the Department’s) compliance with the Payment Integrity Information Act of 2019 (PIIA). To determine FY 2021 compliance, we reviewed the “Payment Integrity” section of the Department’s FY 2021 Agency Financial Report (AFR), accompanying materials to the AFR, and other improper payment-related documentation. We also assessed the Department’s efforts related to preventing and reducing improper payments and unknown payments. Based on our review, we concluded that the Department complied with the PIIA criteria for FY 2021. We did not identify any actions needed to further improve prevention and reduction measures within the Department.

OIG reviewed USDA’s compliance with improper payment and high-dollar overpayment requirements for FY 2022.

What We Looked AtThe Payment Integrity Information Act of 2019 (PIIA) 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. Accordingly, our audit objective was to determine whether DOT complied in fiscal year 2022 with PIIA’s requirements as prescribed by the Office of Management and Budget (OMB). What We FoundDOT was in compliance with PIIA requirements for fiscal year 2022. DOT reported improper payment estimates for two programs identified as susceptible to significant improper payments. Generally, the payment integrity information in DOT’s 2022 Agency Financial Report and data posted to the Payment Accuracy website were accurate and complete. We found a data entry error at the website. DOT reported $104,907 under the cause category of Data/Information Does Not Exist instead of the correct cause category of Failure to Access Data/Information Needed. This error did not impact DOT’s PIIA compliance. DOT’s corrective action plan was adequately designed, focused on root causes, and effectively implemented. DOT also published improper and unknown payment amounts and estimated future improper and unknown payment rates on the Payment Accuracy website in the financial statement materials. The Federal Highway Administration’s Highway Planning and Construction Program did not meet its reduction target of 1 percent and reported estimated improper payments of 1.13 percent ($548.95 million). However, FHWA demonstrated improvement by reducing its overall improper and unknown payments. DOT developed a plan to meet the reduction target and reported an improper and unknown payment estimate of less than 10 percent for all programs reporting improper payments in fiscal year 2022. The Department has also taken steps to recapture improper and unknown payments. RecommendationsWe are making no recommendations at this time.