For fiscal year 2020, the Department of Transportation (DOT) reported approximately $46 billion in payments for programs and activities susceptible to significant improper payments and estimated $172 million in improper payments. In March 2020, the Payment Integrity Information Act of 2019 (PIIA) was enacted and replaced the Improper Payments Elimination and Recovery Act of 2010 (IPERA). PIIA establishes requirements similar to IPERA’s, including annual reports by inspectors general on their agencies’ compliance.
PIIA also requires agencies to identify, report, and reduce improper payments in Federal Government programs and activities. In March 2021, the Office of Management and Budget (OMB) updated its Circular A-123, Appendix C, for PIIA’s implementation. In October 2021, the Council of the Inspectors General on Integrity and Efficiency issued guidance to assist inspectors general with the reviews of their agencies’ PIIA compliance.
As PIIA requires, we are initiating this audit of DOT’s fiscal year 2021 implementation of the act. Our audit objective will be to determine whether DOT complied with PIIA’s requirements as prescribed by OMB.