Computer Matching To Detect Error, Waste, and Fraud in Government Programs

GAO testified before a congressional subcommittee on the use of computer matching as a means of detecting and preventing error, waste, and fraud in Government programs. Computer matching is a technique in which selected data within computer files are compared to identify certain conditions. Because the computer provides the capability of matching large numbers of records at high speed, computer matching is a systematic and efficient means of conducting a screening and matching of records to identify possible erroneous payments. GAO experiences with computer matching have shown that the benefits generally far outweigh the cost of a match. However, incompatibilities in ways data are represented in computer files of different agency systems, coupled with inaccurate and unreliable data, can cause major operational problems. Proposed matches should be planned, properly justified, and periodically evaluated in terms of costs and benefits; and the performance of a match should be considered on a case-by-case basis. GAO believes that computer matching can be a very cost-effective tool for detecting error and fraud in Government entitlement programs and for identifying actions needed to strengthen program controls. Because computer matching is a relatively low-cost method of identifying and reducing erroneous payments, GAO endorses its use with the understanding that the rights of individual citizens will be protected as required by the Privacy Act and the Tax Reform Act, and that due-process provisions for reducing or eliminating payments are followed. GAO has also recommended some legislative changes to the Tax Reform Act to facilitate computer matching in needs-based benefit programs.