[Congressional Record Volume 158, Number 166 (Friday, December 21, 2012)]
[Senate]
[Pages S8357-S8358]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       IMPROPER PAYMENTS ELIMINATION AND RECOVERY IMPROVEMENT ACT

  Mr. CARPER. Mr. President, this week, the Senate passed the Improper 
Payments Elimination and Recovery Improvement Act of 2012, The IPERA 
Improvement Act or H.R. 4053. Earlier this month, the House passed the 
same legislation, which builds on the Improper Payments Elimination and 
Recovery Act of 2010 (IPERA) by taking additional steps to identify and 
prevent improper payments by Federal agencies. I look forward to seeing 
the President sign into law this important, bipartisan legislation.
  The Improper Payments Elimination and Recovery Improvement Act of 
2012 goes beyond IPERA's goals for curbing agencies' improper payments 
with three main concepts, including provisions that: expand 
requirements and strengthen estimates for agencies' improper payments; 
mandate the establishment of a government-wide ``Do Not Pay'' program; 
and prevent payments to deceased individuals. As my colleagues know, 
improper payments are payments made in error, such as payments made to 
the wrong person or in the wrong amount. These kinds of preventable 
mistake unfortunately result in billions of lost taxpayer dollars every 
year.
  Although we have made great strides in curbing improper payments in 
the past year, we still have a ways to go to improve transparency and 
make agencies and agency leadership more accountable for better 
protecting the taxpayer dollars we entrust to them. At a time of record 
deficits, we need to be getting the most out of every dollar and cannot 
afford to waste more than a hundred billion annually. I will continue 
to work with my colleagues in Congress and the Administration to see 
that these measures are enacted, and properly and efficiently 
implemented.
  The bipartisan legislation requires several important steps to curb 
Federal Government waste and fraud.
  First, the bill requires agencies to strengthen the estimation of 
improper payments. The legislation requires improved and more 
consistent reporting of improper payment estimates by Federal agencies, 
based on recommendations from the Department of Defense inspector 
general and the Government Accountability Office. The legislation, for 
example, would prevent agencies from relying only on voluntary 
disclosure of improper payments by contractors, as well as require 
agencies to produce documentation to prove a payment was correct.
  Second, the bill mandates the establishment of a government wide ``Do 
Not Pay'' program. Too often, Federal agencies make improper payments 
to individuals that could easily be identified as ineligible if 
payments were more routinely screened against Federal databases. 
Unfortunately, Federal agencies are not doing this basic eligibility 
screening before payments are made. Through the initiative, before an 
agency could award a contract or grant, the agency would have to cross 
check against the ``Do Not Pay'' database, which will include a central 
comprehensive database of individuals, contractors, and others who may 
be ineligible to receive Federal funds, such as companies that are no 
longer allowed to do work with the Federal Government because of a 
fraud conviction or similar reason.

[[Page S8358]]

  The administration is currently establishing a ``Do Not Pay `` 
program based on the White House executive memorandum, Memorandum on 
Enhancing Payment Accuracy Through a ``Do Not Pay List.'' However, 
there was no statutory mandate to proceed. The legislation establishes 
the ``Do Not Pay'' program in law throughout the Federal Government 
under a specific timetable.
  Third, the legislation targets death fraud and improper payments to 
deceased individuals. Improper payments include those made to 
individuals who are deceased, and should therefore no longer be 
eligible under program rules, yet still receive payments. For example, 
the Office of Personnel Management Inspector General reported that $601 
million in improper payments were made to Federal retirees found to 
have already died. However, such payments to dead people were not 
unique to this one program. Improving the collection and use by Federal 
agencies of data on deceased beneficiaries will help curb hundreds of 
millions, if not billions of dollars, in improper payments. The IPERA 
Improvement Act requires that the Office of Management and Budget, in 
consultation with other agencies and stakeholders, determine a plan for 
curbing improper payments to deceased individuals.
  Finally, the legislation requires that the Office of Management and 
Budget report to Congress on the current efforts by agencies to recover 
improper payments, including a listing of agencies that employ outside 
contractors for recovery efforts, and their current levels and targets 
for recoveries. This reporting can easily be done as part of the annual 
report on improper payments currently conducted by the OMB.
  I believe passage of the Improper Payments Elimination and Recovery 
Improvement Act of 2012 represents an important step toward curbing 
waste and fraud within the Federal Government. I look forward to 
working with the administration and Federal agencies to implement the 
legislation's provisions. I also look forward to working with my 
congressional colleagues on additional steps during the next 
legislative session.

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