This report transmits the results of our inspection of the “Summary of Improper Payments” section in DOI's FY 2014 “Agency Financial Report” to determine whether DOI met the requirements of the Improper Payments Elimination and Recovery Act of2010 (IPERA) and the Improper Payments Information Act of 2002 (IPIA). In addition, we evaluated the accuracy and completeness of DOI's reporting of improper payments and its performance in reducing and recapturing improper payments.
IPERA requires each agency to follow OMB guidance to periodically identify and review all programs and activities that may be susceptible to significant improper payments.
We found that DOI published an AFR for FY 2014 and posted the report on its website, as required by IPERA. Based on the results of its FY 2012 risk assessments and in accordance with OMB guidance, DOI placed its programs on a 3-year risk assessment cycle, with the next cycle due in FY 2016.
Although DOI included information in its FY 2014 AFR regarding Hurricane Sandy funding, it did not specifically include a determination of the amount of outlays related to Hurricane Sandy funding, nor did it include an estimated error rate and dollar amount for improper payments on Hurricane Sandy expenditures, which are required by OMB guidance.
We make one recommendation that, if implemented, will bring DOI into compliance with improper payment reporting requirements related to its Hurricane Sandy funding.