U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Washington, D.C. 20507 Office of Inspector General May13, 2015 MEMORANDUM TO: Committee on Homeland Security & Governmental Affairs United States Senate 340 Dirksen Senate Office Building Washington, DC 20510 Committee on Oversight and Government Reform United States House of Representatives 2157 Rayburn House Office Building Washington, DC 20515 Honorable Jenny R. Yang, Chair U.S. Equal Employment Opportunity Commission 131 M St. NE Washington, DC 20507 Beryl H. Davis Director, Financial Management and Assurance U.S. Government Accountability Office 441 G Street, NW, Room 5490 Washington, DC 20548 Honorable David Mader Controller, Office of Federal Financial Management Office of Management and Budget 725 17th Street, NW Washington, DC 20503 FROM: Milton A. Mayo, Jr. Inspector General SUBJECT: U.S. Equal Employment Opportunity Commission’s Compliance with the Improper Payments Elimination and Recovery Act P.L. 111-204 (IPERA), as amended by the Improper Payments Elimination and Recovery Improvement Act P.L. 112-248 (IPERIA) for FY 2014 OIG Report No. 2015-01-IPERA The IPERIA1 requires agencies and entities, such as the U.S. Equal Employment Opportunity Commission (EEOC), with improper payment estimates that do not meet the statutory thresholds to report an estimate of the annual amount and rate of improper payments, as well as reduction targets in their annual Agency Financial Reports (AFRs) or Performance and Accountability Reports (PARs) per M-15-02 Part IA 9 Step 4c (page 16). These agencies also are required to conduct a risk assessment to identify programs/activities that may be susceptible to significant improper payments. If an agency determines that it is not at high risk for significant improper payments, then risk assessments are required every 3 years. If no programs are at risk for significant improper payments, the other requirements on annual reduction targets, corrective action plans, etc. are not applicable. Additionally, small agencies should have a payment recapture program in place. The Office of Inspector General (OIG) is required by IPERA to determine and report by May 15, 2015, on whether the EEOC is in compliance with the Improper Payments Information Act. Based on our findings, we determined the agency has complied with the Improper Payments Information Act (IPIA), as amended by IPERIA. To satisfy our reporting requirements, we communicated with the agency’s Chief Financial Officer (CFO) to determine whether a risk assessment was conducted to identify programs/activities in the agency that may be susceptible to significant improper payments and whether the agency has a payment recapture program in place. The CFO indicated that the agency conducted an agency-wide risk assessment via a statistical sampling of vendor and travel payments in FY 2014. Additionally, the agency relied on the results of the FY 2014 financial audit, which did not uncover duplicate/improper payments, and agency internal controls in place relating to payments. The CFO concluded that the agency is not at risk for significant improper payments and determined that there were no significant improper payments made during FY 2014. The agency plans to continue performing in house-risk assessments. As a result of the CFO’s response, the requirement for annual reduction targets, corrective action plans, etc., is not applicable. Additionally, in regard to having a payment recapture program in place, the CFO indicated that if any improper payments arise in the future, the agency will establish an accounts receivable and follow the procedure of collection. The agency has a process in place to refer all valid debts for collection through the U.S. Department of Treasury’s FedDebt system. Further, both the FY 2014 Financial Statement Audit and the agency’s Performance and Accountability Report (PAR) are posted on the agency’s website. 1 The IPERIA, which was signed into law by President Obama on January 10, 2013 amends the Improper Payments Elimination and Recovery Act (IPERA; P.L.111-204) of 2010 and the Improper Payments Information Act (IPIA; P.L. 107-300) of 2002, and directed the Office of Management and Budget (OMB) to issue implementing guidance to agencies. On October 20, 2014, OMB issued revised government-wide implementation guidance, OMB Memorandum, M-15-02, Appendix C to Circular A-123 Requirements for Effective Estimation and Remediation of Improper Payments. 2 OIG Report No. 2015-01-IPERA Willie A. Eggleston, Senior Auditor, is available to answer any questions regarding our review and determination. He may be reached at (202) 663-4372 or by email at email@example.com. 3
Report 2015-001-IPER - U.S. Equal Employment Opportunity Commission's Compliance with the Improper Payments Elimination and Recovery Act P.L. 111-204 (IPERA), as amended by the Improper Payments Elimination and Recovery Improvement Act P.L. 112-248 (IPE
Published by the Equal Employment Opportunity Commission, Office of Inspector General on 2015-05-13.
Below is a raw (and likely hideous) rendition of the original report. (PDF)