The Energy Department developed risk assessments using risk factors such as recent major changes in program funding, but some programs have not prepared risk assessments and some of the information reported was not reliable, GAO has said.
GAO was examining the department’s compliance with the Improper Payments Elimination and Recovery Act of 2010, which requires that federal agencies review their programs and identify those that are susceptible to significant improper payments—a process known as a risk assessment.
It looked specifically at 55 programs for the 2011 fiscal year. Of those, 26 did not prepare risk assessments and some of the reported data did not include information for all aspects of the programs, it said.
At least six of the programs that did make risk assessments did not take into account all eight standards DoE set, “the basis of their risk determinations unclear.” Of those that appeared to account for all eight, “support for their determinations varied widely, and some did not contain enough information to identify how the program arrived at its risk determination, which is inconsistent with federal standards for internal control.”
The department agreed with GAO’s recommendations to revise guidance on how programs are to address risk factors, provide examples of additional risk factors likely to contribute to improper payments, and direct programs to consider those factors.
