An improper payment is any payment that FEMA made that was obligated to and drawn down by the recipient and FEMA later determines was made with an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative or other legally applicable requirements. Improper payments may include:
- Any payment to an ineligible party.
- Any payment for an ineligible good or service.
- Any duplicate payment.
- Any payment for a good or service not received (except for such payments where authorized by law).
- Any payment that does not account for credit for applicable discounts.
- Any payment where insufficient or lack of documentation prevents a reviewer from discerning whether a payment was proper.