GAO Efforts Related to Fraud, Abuse, and Mismanagement in Federal Programs

No one knows the magnitude of fraud and abuse against the Government. It is hidden within legitimate undertakings, and usually goes unreported and undetected. Current efforts in combating fraud are aimed at ascertaining whether Federal agencies have instituted effective policies and procedures for combating fraud that might exist in their programs. While stronger internal audit, inspection, and criminal investigation capability is mandatory in establishing an effective policy, these alone are insufficient to solve the problems. A systematic approach to fraud prevention requires evaluation of the adequacy of management's internal control systems, and close coordination between investigators, auditors, and those responsible for program design and execution. GAO has established a Special Task Force for the Prevention of Fraud. Their major responsibility is to evaluate the adequacy of the management control systems in Federal agencies that are necessary for the prevention of fraud, and to assess the adequacy of followup and corrective actions taken on reports of auditors and investigators. A major part of the work of the Task Force will be the development of vulnerability assessments. Additionally, the Task Force will: (1) look at controls in effect to insure that the Government gets what it pays for and that work set out in contracts is actually performed; (2) analyze the reports of internal auditors in each agency reviewed, giving particular attention to indications of fraud or error the auditors have uncovered; (3) search for potentially fraudulent situations using GAO computerized data retrieval and analysis packages where practicable; (4) prepare a report to the Congress and the agency involved, with particular emphasis on any weaknesses in management controls that would permit fraud, theft, or error to occur; and (5) overview fraud and abuse and its cause in Federal programs.