The objective of this statutory audit was to determine whether the Department complied with the Payment Integrity Information Act of 2019 for FY 2021.
The Department did not comply with the Payment Integrity Information Act in FY 2021 because it did not meet one of the six compliance requirements established under the Act. Specifically, the Department reported an improper payment estimate for an Elementary and Secondary Education Act of 1965, as amended, Title I, Part A program that exceeded 10 percent. We also concluded that the Department’s improper payment estimates were not reliable for three of its programs that required an estimate for FY 2021: Improving Basic Programs Operated by Local Education Agencies (Title I, Part A) program; the Federal Pell Grant program; and the William D. Ford Federal Direct Loan program.
We made four recommendations, including that the Department design and implement an improper payment sampling and estimation plan for its Title I, Part A program that will produce a reliable estimate, and develop and implement procedures to ensure that the results it records in its Title I, Part A program improper payment testing spreadsheets are accurate and supported; and that the Department, in conjunction with FSA, develop and implement procedures to ensure that the sampling and estimation plans for the Pell and Direct Loan programs will produce reliable estimates, or produce an estimate that is otherwise appropriate using a methodology approved by the Office of Management and Budget.
Improper Payments
See previous improper payments reports.