Federal Government procurement fraud remains at best a severe risk, and at worst, rampant.
FRAUD RISK MANAGEMENT:
OMB Should Improve Guidelines and Working-Group Efforts to Support Agencies’ Implementation of the Fraud Reduction and Data Analytics Act
GAO-19-34: Published: Dec 4, 2018. Publicly Released: Dec 4, 2018.
Matter for Congressional Consideration
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Status: Open
Comments: When we determine what steps the Congress has taken, we will provide updated information.
Matter: Congress should consider extending the requirement in FRDAA for agencies to report on their implementation of fraud controls, identification of fraud risks, and strategies for mitigating them, beyond the current 2019 expiration. (Matter for Consideration 1)
Recommendations for Executive Action
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Status: Open
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Director of OMB should enhance the guidelines for agencies to establish the controls required by FRDAA, by clarifying the difference between FRDAA and ERM requirements, and through collaboration with agencies to determine what additional information agencies need to implement the controls. (Recommendation 1)
Agency Affected: Executive Office of the President: Office of Management and Budget
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Status: Open
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Director of OMB should enhance FRDAA reporting guidelines by directing agencies to report complete and detailed information on each of the reporting elements specified by FRDAA, which should include information related to financial and nonfinancial fraud. (Recommendation 2)
Agency Affected: Executive Office of the President: Office of Management and Budget
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Status: Open
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: The Director of OMB should ensure the working group’s composition meets FRDAA requirements by involving the CFO of all agencies subject to the act by inviting them to participate or otherwise providing access and input into the working group, and ensure that mechanisms to share controls, best practices, and data-analytics techniques are in place. (Recommendation 3)
Agency Affected: Executive Office of the President: Office of Management and Budget