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Audit Initiated of Improper Payment Oversight of FHWA ARRA Programs

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The Office of Inspector General is initiating an audit of the Federal Highway Administration’s (FHWA) prevention and detection of improper payments in its American Recovery and Reinvestment Act (ARRA) programs. The Improper Payments Information Act of 2002 makes Federal agencies accountable for preventing and detecting improper payments within their programs. The more recent Improper Payment Elimination and Recovery Act, (2010) requires identification and estimation of improper payments. The Department of Transportation has identified FHWA’s Federal-aid Highway Programs as susceptible to significant improper payments. Our audit objective is to evaluate whether FHWA has adequate internal controls to prevent and detect improper payments to ARRA grant recipients.