DODD 7000.14-R VOL 4 CHAP 14

Abstract

Purpose <br>This chapter establishes the Department of Defense (DoD) policy for compliance with the Improper Payments Elimination and Recovery Act (IPERA) of 2010 (Public Law 111-204, as well as the Improper Payments Information Act (IPIA) of 2002 (Public Law 107-300), Executive Order 13520, "Reducing Improper Payments and Eliminating Waste in Federal Programs," (EO) and implementing guidance from the Office of Management and Budget (OMB) Circular A-123, Appendix C, Parts I, II, and III (M-10-13 and M-11-16), "Requirements for Effective Measurement and Remediation of Improper Payments," Office of Management and Budget (OMB) Memorandum M-11-04. The primary purposes of this guidance are to require quantification and estimation of improper payments for reporting purposes, to consolidate departmental reporting requirements, to identify and report high dollar overpayments, and to provide for further development and implementation of plans to identify, estimate, reduce and eliminate future improper payments. <br>Applicability <br>A. All DoD Components that process (compute) payments that are not currently measuring and reporting improper payments must conduct risk assessments (see section 1404 of this Regulation) of their payment processes in order to identify areas susceptible to significant improper payments, and establish controls to mitigate risks. Components must conduct random post-payment reviews of a statistically valid sample of the population to estimate improper payments for the total population. The root causes of improper payments must be identified and corrective actions developed and monitored periodically to ensure future improper payments will be reduced and eliminated. Improper payment reduction targets must be established and reviewed annually, and are subject to approval by the Director/OMB. Components must report post-payment review results quarterly for Travel Pay and annually for all other programs to the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)), Accounting and Finance Policy (A&FP) Directorate. The A&FP Directorate reports Department-wide results annually to OMB and in the Agency Financial Report (AFR). <br>B. DoD Components that process classified payments and/or payment information must comply with the requirements contained in this Regulation, but are excluded from the public reporting requirements. <br>C. DoD Components that process (compute/entitle) payments are subject to quarterly reporting of high dollar overpayments to both individuals and entities. See subparagraph 140503.B of this Regulation for more information.