[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4878 Reported in Senate (RS)]






                                                       Calendar No. 727
107th CONGRESS
  2d Session
                                H. R. 4878


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 11 (legislative day, July 10), 2002

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

                            October 15, 2002

              Reported by Mr. Lieberman, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
 To provide for estimates and reports 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Improper Payments 
Information Act of 2002''.</DELETED>

<DELETED>SEC. 2. ESTIMATES OF IMPROPER PAYMENTS AND REPORTS ON ACTIONS 
              TO REDUCE THEM.</DELETED>

<DELETED>    (a) Identification of Susceptible Programs and 
Activities.--The head of each agency shall, in accordance with guidance 
prescribed by the Director of the Office of Management and Budget, 
annually review all programs and activities that it administers and 
identify all such programs and activities that may be susceptible to 
significant improper payments.</DELETED>
<DELETED>    (b) Estimation of Improper Payment.--With respect to each 
program and activity identified under subsection (a), the head of the 
agency concerned shall--</DELETED>
        <DELETED>    (1) estimate the annual amount of improper 
        payments; and</DELETED>
        <DELETED>    (2) include that estimate in its annual budget 
        submission.</DELETED>
<DELETED>    (c) Reports on Actions to Reduce 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 provide with the estimate under subsection 
(b) a report on what actions the agency is taking to reduce the 
improper payments, including--</DELETED>
        <DELETED>    (1) a statement of whether the agency has the 
        information systems and other infrastructure it needs in order 
        to reduce improper payments to minimal cost-effective 
        levels;</DELETED>
        <DELETED>    (2) if the agency does not have such systems and 
        infrastructure, a description of the resources the agency has 
        requested in its budget submission to obtain the necessary 
        information systems and infrastructure; and</DELETED>
        <DELETED>    (3) a description of the steps the agency has 
        taken to ensure that agency managers (including the agency 
        head) are held accountable for reducing improper 
        payments.</DELETED>
<DELETED>    (d) Definitions.--For the purposes of this 
section:</DELETED>
        <DELETED>    (1) Agency.--The term ``agency'' means an 
        executive agency, as that term is defined in section 102 of 
        title 31, United States Code.</DELETED>
        <DELETED>    (2) Improper payment.--The term ``improper 
        payment''--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Payment.--The term ``payment'' means any 
        payment (including a commitment for future payment, such as a 
        loan guarantee) that is--</DELETED>
                <DELETED>    (A) made by a Federal agency, a Federal 
                contractor, or a governmental or other organization 
                administering a Federal program or activity; 
                and</DELETED>
                <DELETED>    (B) derived from Federal funds or other 
                Federal resources or that will be reimbursed from 
                Federal funds or other Federal resources.</DELETED>
<DELETED>    (e) Application.--This section--</DELETED>
        <DELETED>    (1) applies with respect to the administration of 
        programs, and improper payments under programs, in fiscal years 
        after fiscal year 2002; and</DELETED>
        <DELETED>    (2) requires the inclusion of estimates under 
        subsection (b)(2) only in annual budget submissions for fiscal 
        years after fiscal year 2003.</DELETED>
<DELETED>    (f) Guidance by the Office of Management and Budget.--The 
Director of the Office of Manage- ment and Budget shall prescribe 
guidance to implement the requirements of this section.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improper Payments Information Act of 
2002''.

SEC. 2. ESTIMATES OF IMPROPER PAYMENTS AND REPORTS ON ACTIONS TO REDUCE 
              THEM.

    (a) Identification of Susceptible Programs and Activities.--The 
head of each agency shall, in accordance with guidance prescribed by 
the Director of the Office of Management and Budget, 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) submit those estimates to Congress before March 31 of 
        the following applicable year, with all agencies using the same 
        method of reporting, as determined by the Director of the 
        Office of Management and Budget.
    (c) Reports on Actions To Reduce Improper Payments.--With respect 
to any program or activity of an agency with estimated improper 
payments under subsection (b) that exceed $10,000,000, the head of the 
agency shall provide with the estimate under subsection (b) a report on 
what actions the agency is taking to reduce the improper payments, 
including--
            (1) a discussion of the causes of the improper payments 
        identified, actions taken to correct those causes, and results 
        of the actions taken to address those causes;
            (2) a statement of whether the agency has the information 
        systems and other infrastructure it needs in order to reduce 
        improper payments to minimal cost-effective levels;
            (3) if the agency does not have such systems and 
        infrastructure, a description of the resources the agency has 
        requested in its budget submission to obtain the necessary 
        information systems and infrastructure; and
            (4) a description of the steps the agency has taken to 
        ensure that agency managers (including the agency head) are 
        held accountable for reducing improper payments.
    (d) Definitions.--For the purposes of this section:
            (1) Agency.--The term ``agency'' means an executive agency, 
        as that term is defined in section 102 of title 31, United 
        States Code.
            (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) 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.
    (e) Application.--This section--
            (1) applies with respect to the administration of programs, 
        and improper payments under programs, in fiscal years after 
        fiscal year 2002; and
            (2) requires the inclusion of estimates under subsection 
        (b)(2) only in annual budget submissions for fiscal years after 
        fiscal year 2003.
    (f) Guidance by the Office of Management and Budget.--Not later 
than 6 months after the date of enactment of this Act, the Director of 
the Office of Management and Budget shall prescribe guidance to 
implement the requirements of this section.




                                                       Calendar No. 727

107th CONGRESS

  2d Session

                               H. R. 4878

_______________________________________________________________________

                                 AN ACT

 To provide for estimates and reports of improper payments by Federal 
                               agencies.

_______________________________________________________________________

                            October 15, 2002

                       Reported with an amendment