Civil Monetary Penalties: Federal Agencies' Compliance with the 2020 Annual Inflation Adjustment Requirements   [open pdf - 346KB]

From the Document: "Civil monetary penalties provide federal agencies with the ability to punish willful and egregious violators, deter future violations, and enforce regulatory policies government-wide. However, if agencies do not periodically adjust these penalties for the effects of inflation, the penalties may lose their effectiveness and agencies may lose opportunities to collect significant federal receipts. Thus, Congress passed the Federal Civil Penalties Inflation Adjustment Act of 1990 to allow for agencies to adjust their covered civil monetary penalties for inflation, to promote compliance, and to improve the collection of penalties. The act, as amended, hereinafter referred to as the Inflation Adjustment Act (IAA), includes a provision added in 2015 for GAO [Government Accountability Office] to annually submit to Congress a report assessing the compliance of agencies with the required civil monetary penalty adjustments. This fifth annual review responds to the statutory provision for us to assess agencies' compliance with the civil monetary penalty adjustments for inflation as required by the IAA. Specifically, our objective was to determine if each agency subject to the IAA published 2020 civil monetary penalty inflation adjustments in the 'Federal Register' as of December 31, 2020, and reported information about civil monetary penalties within the agency's jurisdiction in its 2020 agency financial report (AFR) submitted under Office of Management and Budget (OMB) Circular A-136. This circular provides guidance to agencies that produce either AFRs or performance and accountability reports and government corporations that produce annual management reports."

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Government Accountability Office: https://www.gao.gov/
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