GAO estimates agencies could save billions of dollars by reducing the number of agency programs with overlapping missions, but the OMB has yet to complete a comprehensive inventory of agency programs nearly a decade after Congress mandated it.
David Mader spent the last two years as the controller at the Office of Management and Budget working with the Treasury Department and other agencies to try to get a better handle on why the government spends money that is deemed improper.
David Mader, OMB controller, said the administration will target specific agencies with new technology to access more data to combat this long-standing challenge. GAO reported Feb. 26 that the governmentwide improper payment rate was 4.02 percent, meaning agencies misspent almost $125 billion in 2014.
The White House launched a new “Do Not Pay” tool on Thursday to prevent improper payments to individuals and companies. Agency heads must submit plans to adopt the tool by June 30.
The chairman of the subcommittee on federal financial management said legislation may be needed to ensure agency accounting procedures are focusing on stopping improper payments. He said progress across the government is good, but more tools are necessary. OMB is testing the Do Not Pay List and plans to launch the full portal in 2012.
The Obama administration is attacking the $100 billion improper payments problem on yet another front.
President Obama has issued a memo detailing the steps agencies must take to do pre-and post-award audits on who gets federal funds. By the fall, agencies will have to check several databases to ensure the recipient is permitted to get money.