PRESS STATEMENT   

 
   

June 26, 2001

Lieberman, Thompson Seek Inspectors General Assistance in Reducing Improper Payments

GAO Finds Billions of Dollars Drained from Agencies and Programs Each Year

 

WASHINGTON - Governmental Affairs Committee Chairman Joe Lieberman (D-Conn.) and Ranking Member Fred Thompson (R-Tenn.), asked the heads and Inspectors General of federal departments and agencies Tuesday to take steps to reduce improper payments that are draining billions of dollars from government programs each year.

"We are confident you agree that administration of government funds is an essential public trust and that agencies have a clear duty to ensure that this money is properly spent in support of the agency’s missions and goals," Lieberman and Thompson said in a letter dated June 26, which accompanied a recent General Accounting Office (GAO) report recommending strategies to reduce improper payments. "We are writing to 24 major departments and agencies asking that they review this report with a focus on evaluating the adequacy of their internal controls and implementing those strategies that are appropriate for each agency."

Specifically, the letter asks departments and agencies to assess their efforts in five areas outlined in "Strategies to Manage Improper Payments," a May 2001 General Accounting Office (GAO) report compiled at the request of Chairman Lieberman: creating accountability for program integrity, identifying sources of risk for loss, determining the extent of the problem with improper payments, developing a strategy to reduce improper payments, and monitoring progress in reducing improper payments.

According to recent reports by GAO, agencies reported $20.7 billion in improper payments in FY 1999 alone, and GAO said that the extent of improper payments is likely to be much worse. Furthermore, GAO recently found that these payments may be the result of agency errors such as duplicate payments; poor management of programs; or outright fraud and abuse.

The following is the text of a letter dated June 26, 2001 sent to the Inspectors General of 24 federal agencies and major departments

The following is the text of a letter dated June 26, 2001 sent to the heads of 24 federal agencies and major departments

 

Full text of the letter can be found at lieberman.senate.gov or
http://www.senate.gov/~gov_affairs/index.htm
The GAO report can be found at www.gao.gov.

 
 

 

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