To satisfy the reporting requirements of the Improper Payments Information Act (IPIA), a brief summary of what components have accomplished, and plan to accomplish, must be included in the Management Discussion and Analysis (MD&A) portion of the Annual Performance and Accountability Report. This summary, not to exceed 2 pages, must be entitled:

Improper Payments Information Act of 2002
Narrative Summary of Implementation Efforts for FY_____
and Agency Plans for FY ____ - FY ____

In addition to the narrative summary above, the following items are the IPIA Reporting Detail required for the report.

1. Describe your component’s risk assessment(s), performed subsequent to compiling your full program inventory. List the risk-susceptible programs (i.e., programs that have a significant risk of improper payments based on OMB guidance thresholds) identified through your risk assessments. Be sure to include the programs previously identified in the former Section 57 of OMB Circular A-11.

2. Describe the statistical sampling process conducted to estimate the improper payment rate for each program identified. Statistical sampling is not required in any program you have determined not to be at significant risk according to OMB thresholds.

3. Describe the Corrective Action Plan for:

1. Reducing the estimated rate of improper payments. Include in this discussion what is seen as the cause(s) of errors and the corresponding steps necessary to prevent future occurrences. If efforts are already underway, and/or have been ongoing for some length of time, it is appropriate to include that information in this section.

2. Grant-making agencies with risk susceptible grant programs, discuss what your component has accomplished in the area of fund stewardship past the primary recipient. Include the status on projects and results of any reviews.

A response is not required for any program you have determined not to be at significant risk according to the OMB thresholds.

4. The table titled “Improper Payment Reduction Outlook” is required for each component. Note that: (1) all risk-susceptible programs must be listed in this chart whether or not an error measurement is being reported; (2) where no measurement is provided, components should indicate the date by which a measurement is expected; (3) if the Current Year (CY) is the baseline measurement year, indicate by either footnote or by “n/a” in the Prior Year (PY) column; (4) if any of the dollar amount(s) included in the estimate correspond to newly established measurement components in addition to previously established measurement components, separate the two amounts to the extent possible; (5) include outlay estimates for CY+1, +2, and +3; and (6) components are expected to report on CY activity.

Improper Payment Reduction Outlook
($ in millions)

Future year estimates (CY+1, +2, and +3) should match the outlay
estimates for those years as reported in the most recent President’s Budget.


PROGRAM	PY OUTLAYS	PY IP %	PY IP $	CY OUTLAYS	CY IP %	CY IP $	CY+1 OUTLAYS	CY+1 IP %	CY+1 IP $





PROGRAM	CY+2 OUTLAYS	CY+2 IP %	CY+2 IP $	CY+3 OUTLAYS	CY+3 IP %	CY+3 IP $

Note: Improper Payment (IP)




Over- and under-payments should be indicated if this information is available. The absolute value of the dollars and the rates should be shown - do not net the figures.

5. Discuss your component’s recovery auditing effort, if applicable, including any contract types excluded from review and the justification for doing so; actions taken to recoup improper payments, and the business process changes and internal controls instituted and/or strengthened to prevent further occurrences. In addition, complete the table below.

COMPONENT	AMOUNT SUBJECT TO REVIEW FOR FY __ REPORTING1	ACTUAL AMOUNT REVIEWED AND REPORTED	AMOUNTS IDENTIFIED FOR RECOVERY	AMOUNTS IDENTIFIED/ ACTUAL AMOUNT REVIEWED	AMOUNTS RECOVERED CY	AMOUNTS RECOVERED PY(S)

1 This amount should equal the total of each component’s commercial and non-commercial payments.




6. Describe the steps the component has taken and planned (including a timeline) to ensure those agency managers (including agency heads) are held accountable for reducing and recovering improper payments.

7. 1. Describe whether the component has the information system and infrastructure it needs to reduce improper payments to the levels the component has targeted.

   2. If the component does not have such systems and infrastructure, describe the resources the component requested in its budget submission to Congress to obtain the necessary information systems and infrastructure.

8. Describe any statutory or regulatory barriers, which may limit the component’s corrective actions in reducing improper payments and actions taken by the component to mitigate the barriers’ effects.

9. Additional comments, if any, on overall component efforts, specific programs, best practices, or common challenges identified, as a result of IPIA implementation.