Don't show this message again
31 U.S. Code § 3352. Estimates of improper payments and reports on actions to reduce improper payments
(a)Identification of Susceptible Programs and Activities.—
(1)In general.—The head of each executive agency shall, in accordance with guidance prescribed by the Director of the Office of Management and Budget—
(A)
periodically review all programs and activities that the head of the executive agency administers; and
(B)
identify all programs and activities with outlays exceeding the statutory threshold dollar amount described in paragraph (3)(A)(i) that may be susceptible to significant improper payments.
(2)Frequency.—
A review under paragraph (1) shall be performed for each program and activity that the head of an executive agency administers not less frequently than once every 3 fiscal years.
(3)Risk assessments.—
(A)Definition of significant.—In this paragraph, the term “significant” means that, in the preceding fiscal year, the sum of a program or activity’s improper payments and payments whose propriety cannot be determined by the executive agency due to lacking or insufficient documentation may have exceeded—
(i)
$10,000,000 of all reported program or activity payments of the executive agency made during that fiscal year and 1.5 percent of program outlays; or
(ii)
$100,000,000.
(B)Scope.—In conducting a review under paragraph (1), the head of each executive agency shall take into account those risk factors that are likely to contribute to a susceptibility to significant improper payments, such as—
(i)
whether the program or activity reviewed is new to the executive agency;
(ii)
the complexity of the program or activity reviewed;
(iii)
the volume of payments made through the program or activity reviewed;
(iv)
whether payments or payment eligibility decisions are made outside of the executive agency, such as by a State or local government;
(v)
recent major changes in program funding, authorities, practices, or procedures;
(vi)
the level, experience, and quality of training for personnel responsible for making program eligibility determinations or certifying that payments are accurate;
(vii)
significant deficiencies in the audit report of the executive agency or other relevant management findings that might hinder accurate payment certification;
(viii)
similarities to other programs or activities that have reported improper payment estimates or been deemed susceptible to significant improper payments;
(ix)
the accuracy and reliability of improper payment estimates previously reported for the program or activity, or other indicator of potential susceptibility to improper payments identified by the Inspector General of the executive agency, the Government Accountability Office, other audits performed by or on behalf of the Federal, State, or local government, disclosures by the executive agency, or any other means;
(x)
whether the program or activity lacks information or data systems to confirm eligibility or provide for other payment integrity needs; and
(xi)
the risk of fraud as assessed by the executive agency under the Standards for Internal Control in the Federal Government published by the Government Accountability Office (commonly known as the “Green Book”).
(C)Annual report.—Each executive agency shall publish an annual report that includes—
(i)
a listing of each program or activity identified under paragraph (1), including the date on which the program or activity was most recently assessed for risk under paragraph (1); and
(ii)
a listing of any program or activity for which the executive agency makes any substantial changes to the methodologies of the reviews conducted under paragraph (1).