U.S. Department of State Fiscal Year 2019 Agency Financial Report

are referred to the Department of Justice for litigation. The OIG also disclosed disallowed costs associated with the Defense Contract Audit Agency and Single Audits within the OIG’s semiannual reports that are presented in the “Payment Recaptures Reporting” table as well. Detailed information and supporting documentation was readily available and obtained to support single audit activities. Given the majority of disallowed costs for OIG and Defense Contract Audit Agency are resolved by various means, we disclosed collections as equal to amounts identified as disallowed, which we believe are materially correct. Additional Department Payment Integrity (previously referred to as Improper Payments) information can be found at the following link: https://paymentaccuracy.gov/ . annuitant deaths occur. This and other internal controls greatly assist ANP in preventing and managing improper payments. Additionally, the Office of Inspector General (OIG) conducted a number of audits, evaluations, inspections, and investigations to prevent and detect fraud, waste, abuse, and mismanagement in programs and operations of the Department. The OIG disclosed disallowed costs identified from their activities in the OIG’s FY 2019 Semiannual Reports to Congress that were presented in the “Payment Recaptures Reporting” table. Despite substantial efforts made to obtain actual collections data for OIG’s identified disallowed costs, we were unable to ascertain the exact status for all of the amounts owed. Multiple collection techniques are utilized by contracting and grants officers, which can include collecting cash, applying agreed-upon reductions of current billings due to the vendor, and other appropriate offsets which effectively serve to recover the funds for the government. OIG disallowed costs are occasionally related to matters that PAYMENT RECAPTURES REPORTING Program or Activity (None of the below include funds recaptured from a High-Priority Program) Overpayments Recaptured outside of Payment Recapture Audits (dollars in thousands) Overpayments Recaptured through Payment Recapture Audits (dollars in thousands) Amount Identified in FY 2019 Amount Recaptured in FY 2019 Amount Identified in FY 2019 Amount Recaptured in FY 2019 Recapture Rate in FY 2019 FY 2020 Recapture Rate Target Travel Program $ 30.6 $ 22.2 $ 51.5 $ 80.2 156% 95% OBO Programs 39.7 34.1 106.6 44.4 42% 95% Diplomatic and Consular Programs 521.1 414.6 149.1 146.5 98% 95% Foreign Service Annuities 574.3 129.8 American Compensation 6,251.6 5,536.7 Working Capital Fund 118.5 113.4 Educational and Cultural Exchange Programs 9.0 13.8 Nonproliferation, Antiterrorism, Demining 14.5 243.1 Other Programs 79.6 73.6 Office of Inspector General Audits 1,694.0 1,694.0 Defense Contact Audit Agency Audits 68,104.0 68,104.0 Single Audits 92.0 92.0 Total $ 77,528.9 $ 76,471.3 $ 307.2 $ 271.1 Agency Improvement of Payment Accuracy with the Do Not Pay Initiative The Department reviewed potential improper payments provided by the Department of the Treasury (Treasury) 140 | U nited S tates D epartment of S tate 2019 A gency F inancial R eport OTHER INFORMATION | PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS