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Audit Initiated of Improper Payment Oversight in FTA ARRA Programs

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The Office of Inspector General plans to review improper payment oversight in the Federal Transit Administration's (FTA) programs funded by the American Recovery and Reinvestment Act (ARRA). The Improper Payments Information Act of 2002 holds Federal agencies accountable for preventing and detecting improper payments within their programs. More recent legislation has implemented consequences for non-compliance with statutory requirements for the reduction and recovery of improper payments. The Department of Transportation has identified FTA's Formula Grant and Capital Investment Grant Programs as susceptible to significant improper payments. Ninety-nine percent of FTA's ARRA funds were awarded through these programs. Our objective is to evaluate whether FTA has adequate internal controls to prevent and detect improper payments to ARRA grant recipients.