Today, the Department of Defense Office of Inspector General (DoD OIG) released the report, “Audit of the Department of Defense’s FY 2024 Compliance with Payment Integrity Information Act Requirements.”
For the fourth consecutive year, the DoD OIG found that the DoD failed to comply with the Payment Integrity Information Act (PIIA), which requires federal agencies to manage and report improper payments. In addition, the DoD OIG determined that the DoD did not develop and implement an effective methodology for identifying all valid financial transactions, which resulted in unreliable estimates of improper payments for the 14th straight year. Consequently, DoD leadership and Congress lack the information to effectively allocate resources to reduce improper payments.
“A reduction in improper payments and compliance with the PIIA is a top DoD financial management priority,” said Assistant Inspector General for Financial Management Lorin T. Venable. “The DoD must ensure responsible stewardship of taxpayer funds.”
The DoD OIG made recommendations to many DoD officials urging them to improve oversight, reporting, and compliance with PIIA requirements. Until these and other outstanding related recommendations that the DoD OIG made in previous years are implemented, the DoD is unlikely to achieve PIIA compliance.
The DoD OIG will continue monitoring the implementation of the recommendations.