VA’s Compliance with the Improper Payments Elimination and Recovery Act for FY 2017

The VA Office of Inspector General (OIG) conducted a review to determine whether VA complied with the requirements of the Improper Payments Elimination and Recovery Act (IPERA) for fiscal year (FY) 2017. VA met four of six IPERA requirements for FY 2017 by publishing the Agency Financial Report (AFR), performing risk assessments, reporting improper payment estimates, and providing information on corrective action plans. VA did not fully comply with two of six IPERA reporting requirements as specified by the Office of Management and Budget. Specifically, VA did not: • Report a gross improper payment rate of less than 10 percent for seven of 13 programs and activities that had an improper payment estimate in its FY 2017 AFR. Further, two of the seven programs have exceeded the 10 percent threshold for three consecutive fiscal years. The two programs’ improper payments were primarily due to administrative or process errors, insufficient documentation, or noncompliance with Federal Acquisition Regulation requirements. • Meet annual reduction targets for seven programs and activities. In addition, four of the seven programs have not met reduction targets for three consecutive fiscal years and are repeat findings. These four programs’ improper payments were primarily due to administrative or process errors, insufficient documentation, or noncompliance with FAR requirements. The OIG recommended the Executives in Charge for the Office of the Under Secretary for Health and Veterans Benefits Administration develop a timeline to reduce improper payments under the 10 percent IPERA threshold and implement steps to reduce improper payments for its applicable programs and activities.