INFORMATIONAL MEMORANDUM: COM19-002




1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

May 03, 2019

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Heather Manzano, Deputy Administrator for Compliance /s/ Heather Manzano    5/3/2019

Subject:

Risk Management Agency Improper Payments Reviews
Background

The United States Department of Agriculture (USDA), Risk Management Agency (RMA) is required annually, in accordance with Appendix C of the Office of Management and Budget (OMB) Circular No. A-123, Requirements for Effective Estimation and Remediation of Improper Payments dated October 20, 2014, to estimate and report an improper payment rate using a statistically selected, statistically valid sample of policies for the Federal crop insurance program.

The agency is now initiating its review of policies for the 2020 reporting period.

Action

To comply with the above mandate for the 2020 reporting period, RMA has statistically selected a valid sample of policies from across the program for review from the 2018 reinsurance year. The policies, 366 in all, were selected with regard to the Approved Insurance Provider (AIP) that serviced the policy and will be reviewed to estimate an improper payment rate for the program.

Notifications will be transmitted on or about May 10, 2019, through the Compliance Activities Results System SharePoint to each AIP servicing the selected policies. Regional Compliance Offices (RCO) will send notification letters to selected policyholders on or about May 14, 2019. AIPs will provide all applicable policyholder and AIP documentation to RMA through the CARS SharePoint by July 8, 2019.

Due to differences in the policy lifecycle, you will receive a second notification letter in September, identifying the Whole Farm Revenue Protection (WFRP) policies selected for review. If you do not receive a subsequent letter, you do not have a WFRP policy selected.

 

DISPOSAL DATE:
Until modified or rescinded

USDA is an Equal Opportunity Employer and Provider