H.R. 4878 (107^th): Improper Payments Information Act of 2002

HR 4878 IH

To provide for reduction of improper payments by Federal agencies.

JUNE 6, 2002

Mr. HORN (for himself and Mr. BURTON of Indiana) introduced the following bill; which was referred to the Committee on Government Reform

To provide for reduction of improper payments by Federal agencies.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Improper Payments Reduction Act of 2002’.

SEC. 2. DEFINITIONS.

For the purposes of this Act:

(1) PAYMENT- The term ‘payment’ means any payment (including a commitment for future payment, such as a loan guarantee) that is--

(A) made by a Federal agency, a Federal contractor, or a governmental or other organization administering a Federal program or activity; and

(B) derived from Federal funds or other Federal resources or that will be reimbursed from Federal funds or other Federal resources.

(2) IMPROPER PAYMENT- The term ‘improper payment’--

(A) means any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; and

(B) includes any payment to an ineligible recipient, any payment for an ineligible service, any duplicate payment, payments for services not received, and any payment that does not account for credit for applicable discounts.

(3) AGENCY- The term ‘agency’ means an executive agency, as that term is defined in section 102 of title 31, United States Code.

SEC. 3. ESTIMATES OF IMPROPER PAYMENTS AND REDUCTION TARGETS.

(a) IDENTIFICATION OF SUSCEPTIBLE PROGRAMS AND ACTIVITIES- The head of each agency shall, in accordance with guidance prescribed under section 4, annually review all programs and activities that it administers and identify all such programs and activities that may be susceptible to significant improper payments.

(b) ESTIMATION OF IMPROPER PAYMENT- With respect to each program and activity identified under subsection (a), the head of the agency concerned shall--

(1) estimate the annual amount of improper payments; and

(2) include that estimate in its annual budget submission and its annual program performance report under section 1116 of title 31, United States Code.

(c) REDUCTION OF IMPROPER PAYMENTS- With respect to any program or activity of an agency with estimated improper payments under subsection (b) that exceed one percent of the total program or activity budget or $1,000,000 annually (whichever is less), the head of the agency shall--

(1) estimate the minimal level to which improper payments can be reduced on a cost-effective basis;

(2) establish annual performance targets to reduce such improper payments by specific amounts each year, that will result in reducing improper payments to the minimal level as soon as practical;

(3) ensure that responsible agency managers (including the agency head) are held accountable for meeting the performance targets established under paragraph (2); and

(4) describe in the agency’s annual budget submissions and program performance reports--

(A) the agency’s performance in meeting the targets established under paragraph (2); and

(B) how managers have been held accountable for that performance.

SEC. 4. GUIDANCE BY THE OFFICE OF MANAGEMENT AND BUDGET.

The Director of the Office of Management and Budget shall prescribe guidance to implement the requirements of this Act not later than 30 days after the date of the enactment of this Act.

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