department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
The Department utilizes internal payment recapture auditing processes to identify and recover outstanding overpayments. The
Department’s collections are shown in Tables 5 and 9.
Amount
Identified
(CY)
Amount
Recovered
(CY)
% of
Amount
Recovered
out of
Amount
Identified
(CY)
Table 5. Payment Recapture Audit Reporting
Amount
Outstanding
(CY)
% of
Amount
Outstanding
out of
Amount
Identified
(CY)
Amount
Determined
Not to be
Collectable
(CY)
A-65
% of
Amount
Determined
Not to be
Collectable
out of
Amount
Identified
(CY)
Amount
Identified
(PYs)
Amount
Recovered
(PYs)
Amount
Identified
(CY+PYs)
Amount
Recovered
(CY+PYs)
Amount
Outstanding
(CY+PYs)
Military Pay1,2 $197.3M $146.8M 74% $50.5M 26% $0.0M 0% $325.1M $302.7M $522.4M $449.5M $72.9M
Civilian Pay1 $81.8M $81.8M 100% $ 0.0M 0% $0.0M 0% $250.3M $250.3M $332.1M $332.1M $0.0M
Military R&A3 $67.4M $63.8M 95% $3.6M 5% $0.0M 0% $175.3M $163.5M $242.7M $227.3M $15.4M
Travel Pay4,6 DFAS
$1.9M $0.1M 4% $1.8M 96% $0.0M 0% $1.6M $0.1M $3.5M $0.2M $3.3M
Commercial
Pay5 $125.8M $114.2M 91% $11.1M 9% $0.5M 0% $1.5B $1.3B $1.6B $1.4B $0.2B
USACE
Travel Pay
USACE
$0.8M $0.8M 100% $ 0.0M 0% $0.0M 0% $1.1M $1.1M $1.9M $1.9M $0.0M
Commercial
Pay
$ 8.6M $8.6M 100% $0.0M 0% $0.0M 0% $50.8M $50.2M $59.4M $58.8M $0.6M
“M” represents millions. “B” represents billions.
Note 1: In-Service collection dollars are considered as recovery amounts. Actual results from random sample overpayments are negligible.
Note 2: Recoveries provided in the CY Military Pay includes collections reported in "Out of Service Debts", through the DFAS Debt Management Program. Debt recoveries, for purposes of the AFR, are tracked for twelve
months from the time the debt is established. Resulting impact is that recoveries for collections and random review findings will not be realized until the end of FY13. Out of Service Debts account for $59.8M
identified and $9.3M collected.
Note 3: FY 2012 amounts identified and recovered are based on 100 percent review of deceased retiree and annuitant accounts. FY 2012 recoveries will not be completed until December 31, 2012, as they are tracked for
120 days.
Note 4: Amounts for Current Year (CY) only include overpayments identified in the sampling of travel vouchers settled April 2011 through March 2012, as DFAS allows 120 days for the Service and Defense Components to
resolve improper travel payments. The amount includes $624K in duplicate payments from FY 2011 to FY2012 in addition to the statistical sampling amount identified; however, the total excludes $341K in improper
payments to foreign military students and amounts of $10 or less, both of which are non-recoverable pursuant to Regulation. It also excludes amounts recovered by Army Europe and Army Korea.
Note 5: Commercial Pay improper payments are based on date of payment. The Prior Years (PYs) data shown remains unchanged as these figures were reported to the OMB MAX database and previously published. Prior
Years (PYs) amounts in the OMB MAX database does not reflect collections and adjustments in subsequent fiscal years.
Note 6: Travel Pay also includes travel data from Army, Navy, and Air Force for vouchers paid outside of DTS.
Note 7: As of September 30, 2012, for debts caused by improper payments incurred during FY 2011, collections from offsets totaled $6.03M; for debts caused by improper payments incurred during FY 2012, collections from
offsets totaled $0.88M.
Addendum A