An inspector general audit has said that DHS is not in compliance with the Improper Payments Elimination and Recovery Act, falling short in fiscal 2018 on two of the six requirements for agencies.
That law is one of numerous laws and administrative initiatives of recent years aimed at improper payments, which by the government’s definition include not only overpayments but also underpayments and correct payments that are not properly documented.
The IG’s major finding was that DHS did not meet its annual reduction target established for the homeland security grant program run by FEMA, one of the eight DHS programs deemed susceptible to significant improper payments. Management said the reason was that the program uses a measurement methodology that allows for only a limited scope of testing which does not allow a specified level of precision, and that it intends to “develop a corrective action plan to ensure that it publishes the appropriate improper payment estimates for all program,” the report said.
The audit also found that certain information was missing in its report of overpayments that were recaptured, a shortcoming that the IG said “did not result in a material misstatement in the financial statements” but needs to be corrected nonetheless for the department to be in compliance with the law.