Audit of Department of State FY 2013 Compliance With Improper Payments Requirements

OIG recommends that the Bureau of the Comptroller and Global Financial Services: • Expand its recapture audit procedures to include pension annuity and Payment Management System grant payments or formally document the justification for excluding these payment types.• Communicate the recapture audit exclusions to the Office of Management and Budget and OIG, along with the justification or cost-benefit analysis.

OIG recommends that the Bureau of Comptroller and Global Financial Services improve its controls for improper payments reporting to ensure that all payment types excluded from recapture audits are disclosed and all improper payments identified and recovered are reported in the Agency Financial Report.