The Improper Payment Puzzle: Can It Be Solved?

No matter which administration is in the White House, federal agencies over the last couple of decades have reported billions of dollars in estimated improper payments and fraud annually in federal financial assistance programs. In cases where funding needed to be provided quickly, such as the case of disbursing emergency financial benefits and assistance in response to the COVID-19 pandemic, the amount of improper payments and fraud became even more pronounced. 

What is the cause behind this stubbornly huge amount of erroneous payments, which is estimated at about $2.7 trillion cumulative since federal fiscal year (FY) 2003? Is there a difference between improper payments and fraud? Can anything be done to limit these concerns? This white paper delves into the current status of improper payments and discusses corrective actions that need to be taken to prevent such payments and the potential for fraud, waste and abuse.