Platts Helps Lead Bipartisan Effort to Prevent Improper Payments

WASHINGTON, D.C. – Congressman Todd Platts (PA-19) continues his push to make the federal government more efficient in its use of taxpayer dollars, joining a bipartisan effort to identify, prevent, and recover improper payments made by the federal government.  At a hearing held on February 7th by the Subcommittee on Government Organization, Efficiency and Financial Management, chaired by Congressman Platts, it was revealed that the federal government reported an estimated $115 billion in improper payments in Fiscal Year 2011.

“Focusing on eliminating improper payments goes to the very heart of government accountability,” said Congressman Platts.  “When citizens pay their taxes, they have an absolute right to expect that their tax dollars are being spent responsibly and appropriately.”

H.R. 4053, the Improper Payments Elimination and Recovery Improvement Act (IPERIA), was introduced yesterday by Congressman Edolphus “Ed” Towns (D-NY-10), Congressman Platts, Congressman Kurt Schrader (D-OR-05), and Congressman Gerald Connolly (D-VA-11).  An improper payment could be an incorrect payment, an over- or under- payment, and could include a payment to an ineligible recipient, a payment for an ineligible service, a duplicate payment or a payment for a service not received. 

“As stewards of taxpayer dollars, we must be certain that we maintain the integrity of the programs established to help those in need,” said Congressman Towns, Ranking Member of the Subcommittee on Government Organization, Efficiency and Financial Management. “This bill takes important steps towards ensuring programs are only benefiting those who are eligible.”

Under the current improper payment law, agencies are required to estimate the annual amount of improper payments and submit those estimates to Congress for federal programs meeting specific risk criteria. The law also requires improper payments recoveries, as well as authorizes and defines Recovery Audit Contracting procedures. In the intervening years, the amount of improper payments recorded by federal agencies more than tripled, a result of better detection and reporting mechanisms.

IPERIA strengthens the identification and reporting of federal agency improper payments, including codifying an existing Executive Order on improper payments estimating and reporting. In addition, agencies will be required to report annually to their inspectors general and make available to the public a report on any high-dollar improper payments identified by the agency. The bill establishes the Do Not Pay Initiative, which requires prepayment and contract award screening against databases containing relevant information on payees to verify eligibility and prevent improper payments. 

The subcommittee will continue its oversight efforts of improper payments throughout the 112th Congress as part of its ongoing review of Executive Branch financial management and accountability issues.  Recent hearings have examined financial management deficiencies at the U.S. Department of Defense, improving data protection at the U.S. Department of Homeland Security, and reviewing Internal Revenue Service policies regarding tax identity theft.