Department of Defense:
Improving the DOD Payment Process, Using Recovery Auditing and Changing the Prompt Payment Act
T-NSIAD-99-193: Published: Jun 16, 1999. Publicly Released: Jun 16, 1999.
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Pursuant to a congressional request, GAO discussed the Department of Defense's (DOD) payment problems and how recovery auditing is being used to identify and recover overpayments.
GAO noted that: (1) the need for DOD to achieve effective control over its payment process remains an imperative; (2) if DOD does not, it will continue to risk erroneously paying contractors hundreds of millions of dollars and perpetuating other financial management and accounting control problems; (3) further, improving the efficiency of the payment process could save millions of dollars annually in reduced processing costs; (4) while DOD is taking steps to improve its payment process and controls, it will likely take many years before DOD gets its pay ment problems under control; (5) the focus of DOD's actions needs to be on making better use of technology to improve and integrate its payment systems and to streamline and simplify its payment requirements; (6) these actions will, however, require sustained top-management efforts; (7) DOD also needs to concetrate on reducing overpayments and, recognizing that some overpayments are inevitable, adopt best practices to quickly identify and recover them; (8) GAO believes that recovery auditing offers a low-risk opportunity to achieve both these goals, and GAO is supportive of the recently introduced legislation to require federal agencies to use recovery auditing; (9) contractors are not required to inform the government when they have been overpaid; (10) contractors should be required to notify the government of overpayments when they become aware of them; (11) this requirement should not impose a significant burden on the contractor; (12) once notified, government contracting personnel should immediately ask contractors to refund the overpayment; (13) it may be time to raise the minimum dollar threshold required by the Prompt Payment Act; (14) the Defense Finance and Accounting Service pays interest amounts to that are less than it costs them to process the checks; and (15) however, raising the threshold should be part of an overall assessment of the efficiency pf the payment process.
Nov 16, 2020
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Financial Audit:
Bureau of Consumer Financial Protection's FY 2020 and FY 2019 Financial StatementsGAO-21-174R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020. -
Financial Audit:
Federal Housing Finance Agency's FY 2020 and FY 2019 Financial StatementsGAO-21-201R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020. -
Financial Audit:
Securities and Exchange Commission's FY 2020 and FY 2019 Financial StatementsGAO-21-192R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020.
Nov 10, 2020
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Financial Audit:
IRS's FY 2020 and FY 2019 Financial StatementsGAO-21-162: Published: Nov 10, 2020. Publicly Released: Nov 10, 2020. -
Financial Audit:
Office of Financial Stability's (Troubled Asset Relief Program) FY 2020 and FY 2019 Financial StatementsGAO-21-173R: Published: Nov 10, 2020. Publicly Released: Nov 10, 2020.
Nov 9, 2020
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Financial Audit:
Bureau of the Fiscal Service's FY 2020 and FY 2019 Schedules of Federal DebtGAO-21-124: Published: Nov 9, 2020. Publicly Released: Nov 9, 2020.
Nov 6, 2020
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FY 2020 Excise Tax:
Agreed-Upon Procedures Related to Distributions to Trust FundsGAO-21-163R: Published: Nov 6, 2020. Publicly Released: Nov 6, 2020.
Oct 13, 2020
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DOD Financial Management:
Continued Efforts Needed to Correct Material Weaknesses Identified in Financial Statement AuditsGAO-21-157: Published: Oct 13, 2020. Publicly Released: Oct 13, 2020.
Sep 30, 2020
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Financial Management:
DOD Needs to Implement Comprehensive Plans to Improve Its Systems EnvironmentGAO-20-252: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020.
Sep 9, 2020
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Defense Real Property:
DOD-Wide Strategy Needed to Address Control Issues and Improve Reliability of RecordsGAO-20-615: Published: Sep 9, 2020. Publicly Released: Sep 9, 2020.
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