NW Kentucky News

The Subcommittee on Government Operations and the Federal Workforce held a hearing titled “Where Do We Go From Here? Examining a Path Forward to Assess Agencies’ Efforts to Prevent Improper Payments and Fraud.” The session aimed to evaluate current oversight mechanisms within federal agencies designed to identify and prevent improper payments and fraud. The hearing comes in light of significant fraud and improper payments during pandemic-era programs, highlighting the need for proactive, data-informed measures.

“Every dollar that goes to a fraudster doesn’t go to the small business, to the unemployed, to others that Congress were intending to help,” stated Mr. Michael Horowitz, Chair of the Pandemic Response Accountability Committee (PRAC). He emphasized the necessity of renewing the analytics platform PACE, which was funded with $40 million by Congress in early 2021 but is scheduled to expire on September 30, 2025.

Ms. Orice Williams Brown, Chief Operating Officer at the U.S. Government Accountability Office (GAO), stressed the importance of federal agencies assessing their unique fraud risks and developing strategies accordingly. “Agencies must commit to establishing an organizational culture dedicated and conducive to fraud risk management,” she noted.

A report from the Oversight Committee revealed that basic anti-fraud measures were often not deployed, facilitating fraudulent claims by organized criminal gangs, prisoners, foreign entities, and insiders at state workforce agencies. Ms. Linda Miller from the Program Integrity Alliance identified key issues such as inadequate access to necessary data and lack of incentives for agency leaders to address fraud effectively.

Subcommittee Chairman Pete Sessions (R-Texas) discussed potential congressional actions to encourage states to prioritize initiatives like IT system modernization. Rep. Gary Palmer (R-Ala.) highlighted problems related to antiquated data systems affecting effective oversight.

Rep. Eric Burlison (R-Mo.) addressed legislative solutions for supporting federal agencies in identifying fraud, noting that improper payments amounted to $236 billion in 2023 alone. Mr. Horowitz mentioned that while exact figures for pandemic-related fraud are not yet available, estimates exceed $300 billion.

Rep. William Timmons (R-S.C.) questioned Ms. Brown about the implementation of GAO’s Fraud Risk Framework across executive agencies since its development in 2015. She reported mixed results but maintained positive relationships with oversight bodies like OMB.

The hearing underscored the critical need for continued vigilance and cooperation among federal agencies and legislative bodies in combating improper payments and fraud.