The Office of Management and Budget has issued revised guidance effective immediately for agencies to use in their fiscal 2006 performance and accountability reporting.
The guidance, found in OMB memo M-06-23, takes the form of an appendix to Circular A-123 and consolidates three memoranda —
M-03-07, Programs to Identify and Recover Erroneous Payments to Contractors, M-03-12, Allowability of Contingency Fee Contracts for Recovery Audits, and M-03-13, the Improper Payments Information Act of 2002.
OMB said the appendix also clarifies and updates requirements in support of the IPIA, including new language clarifying the
definition of an improper payment; provisions for alternative sampling methodologies; reporting requirements for certain low
risk programs; guidance for federal agencies that fund state-administered programs; a list of best practices for preventing, identifying, detecting, and recovering improper payments; and clarification of OMB’s authority to require agencies to track programs under the IPIA with error rates under 2.5 percent, but with significant improper payment amounts.