A Prepared Federal Government: Preventing Fraud and Improper Payments in Emergency Funding

When the government distributes supplemental funding to address various
national emergencies such as the global pandemic, time is of the essence.
Putting money quickly in the hands of Americans in need benefits vulnerable
segments of the American population and stabilizes the nation in a time of
crisis. At the same time, transparency and accountability mechanisms are
essential to safeguard these taxpayer dollars and maintain public trust.

Rapid program delivery and program integrity are not mutually exclusive,
but it can be difficult to establish the appropriate controls and checks
and balances and produce the desired outcome in a fast-moving crisis.
With a combination of new programs, additional funding, and broader
program eligibility, the risk of waste, fraud, and improper payments
increases significantly.

This report began with a roundtable discussion of experts in government
fraud and improper payments in December 2023. Leaders and experts from
the budget, financial management, data and oversight communities came
together with those with experience in implementing efficient, effective, and
lawful tracking and safeguarding of taxpayer dollars during emergency situations.
These roundtable discussions generated insights on how the government
can ensure integrity while meeting policy and programmatic goals in
increasingly frequent emergency situations.

This report documents the challenges that governments experience with
fraud and improper payments, especially during a national emergency. It also
profiles the many collaborative initiatives currently underway to create lasting
solutions to reduce fraud and improper payments. In addition to these
initiatives, this report recommends others to provide a holistic capacity for
the next funding emergency. It includes 27 recommendations that Congress
and federal agencies can use to ensure the integrity, efficacy, and protection
of funds distributed in increasingly frequent emergency situations.

This report builds on prior reports about government funding released by the
IBM Center, including Risk Management and Reducing Improper Payments:
A Case Study of the U.S. Department of Labor by Dr. Robert Greer and
Justin B. Bullock; The Partnership Fund for Program Integrity Innovation by
Jonathan C. Tucker; and Managing Recovery: A View from Inside by G.
Edward DeSeve.

We hope that the insights and findings in this report help government leaders
and stakeholders as they continue to mature their emergency funding
capabilities, while ensuring effective safeguards and oversight methods.