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GAO-24-106608 1 (2023-12-07)

handle is hein.gao/gaopos0001 and id is 1 raw text is: Why This Matters Key Takeaways Improper payments are a long-standing, significant problem in the federal government.1 Since fiscal year 2003, executive agencies have reported cumulative improper payment estimates of about $2.4 trillion, including $247 billion for fiscal year 2022. Improper payments are any payments that should not have been made or that were made in an incorrect amount, which can stem from various causes, including fraud. Fraud involves obtaining a thing of value through willful misrepresentation. Willful misrepresentation can be characterized by making material false statements of fact based on actual knowledge, deliberate ignorance, or reckless disregard of falsity. The extent of fraud government-wide will likely never be known with certainty because not all fraud will be detected, investigated, and adjudicated through judicial or other systems. As of December 2023, we are exploring ways to estimate the amount of fraud that affects the federal government. Both improper payments and fraud result in significant financial and nonfinancial impacts to the integrity of federal programs. They erode public trust in government, waste taxpayer dollars, and hinder agencies' efforts to execute their missions and program objectives effectively and efficiently. Legislation, guidance from the Office of Management and Budget (OMB), and standards for internal control in the federal government have increasingly focused on the need for program managers to strategically address improper payments, including those resulting from fraud. Understanding the relationships and distinctions between improper payments and fraud is important to more effectively target the associated root causes and mitigate the impacts of each. House Report 117-389, accompanying the Legislative Branch Appropriations Act, 2023, includes a provision for GAO to provide quarterly reports in improper payments. In fiscal year 2023, we issued three reports under this provision.2 In this fourth report, we describe examples of the relationships and distinctions between improper payments and fraud. We also describe relevant GAO and other federal guidance and executive agency efforts since 2015 to manage and reduce the causes and impacts of improper payments and fraud. . Improper payments and fraud are distinct concepts. Improper payments can have fraud-related root causes and impacts, but not all are caused by fraud. We have made over 40 recommendations to agencies and published guidance to help them better use data to manage fraud risks that include fraud-related improper payments. Agencies had not fully implemented more than half of these recommendations as of August 2023. We have also recommended that Congress take action in this area, which it had not yet done as of September 2023. Page 1 GAO-24-106608 Improper Payments and Fraud Page 1 GAO-24-106608 Improper Payments and Fraud

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