GAO: DOL Workers' Comp Program Made $13M in Improper Payments

April 1, 2008
The Department of Labor's Office of Workers' Compensation Programs (OWCP) mismanaged $13.3 million in improper payments in 2006, according to a report

The Department of Labor's Office of Workers' Compensation Programs (OWCP) mismanaged $13.3 million in improper payments in 2006, according to a report released by the Government Accountability Office (GAO).

GAO alleged that OWCP failed to fulfill its duty of managing improper payments in the Federal Employee Compensation Act (FECA) program. GAO pointed out that none of OWCP's performance goals addressed the issue and the agency did not “sufficiently emphasize preventing, detecting and recovering improper payments.”

In fact, GAO reported that OWCP only prioritized quick processing of claims and quickly returning claimants to work. GAO said it was important to strike a balance between service delivery and ensuring payment accuracy.

The Labor Department estimated that the FECA program administered $703,000 in improper payments in FY 2006. But the estimate “does not capture all types of improper payments and it does not include the improper payments that OWCP identified during the year,” which GAO estimated to be 13.3 million for 2006 — $7.1 million in overpayments and $6.2 million in underpayments.

The Labor Department disagreed with GAO's findings, claiming that the report included “erroneous payments” that actually were made in previous years to determine the number of improper payments in FY 2006. The department also argued that it was never provided with case names and numbers, “which greatly limit our ability to comment or verify the accuracy of GAO's findings.”

Sponsored Recommendations

10 Facts About the State of Workplace Safety in the U.S.

July 12, 2024
Workplace safety in the U.S. has improved over the past 50 years, but progress has recently stalled. This report from the AFL-CIO highlights key challenges.

Free Webinar: ISO 45001 – A Commitment to Occupational Health, Safety & Personal Wellness

May 30, 2024
Secure a safer and more productive workplace using proven Management Systems ISO 45001 and ISO 45003.

ISO 45003 – Psychological Health and Safety at Work

May 30, 2024
ISO 45003 offers a comprehensive framework to expand your existing occupational health and safety program, helping you mitigate psychosocial risks and promote overall employee...

Case Study: Improve TRIR from 4+ to 1 with EHS Solution and Safety Training

May 29, 2024
Safety training and EHS solutions improve TRIR for Complete Mechanical Services, leading to increased business. Moving incidents, training, and other EHS procedures into the digital...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!