WASHINGTON—Official Washington is consumed this week with the Senate impeachment trial of President Donald Trump, but the wheels of government continue to turn, spending trillions of tax dollars and making many of the same management mistakes over and over again, according to reports of federal investigators.
Nearly a quarter of the $4.3 trillion the federal government will spend in 2020 will go, via contracts issued by departments and agencies, to buying everything from advanced airplanes and ammunition, fruits and vegetables, office furniture and paint, computers and processors, and on and on.
Billions more will be paid to contractors and subcontractors in benefit programs such as Medicare and Medicaid.
An Epoch Times review of inspector general (IG) and Government Accountability Office (GAO) reports suggests that federal bureaucrats have much to learn about how to manage contracts and benefits programs more effectively and efficiently, to avoid mistakes such as paying somebody who shouldn’t be paid.
Defined by GAO as “any payment that should not have been made or that was made in an incorrect amount,” improper payments have long been a huge problem across a wide span of federal activities. Such payments are one ailment among many that fester under the broader label of government procurement.
“For fiscal year 2017, federal entities estimated about $141 billion in improper payments—composed of estimates for 90 programs across 21 agencies. This total was down from about $144 billion for fiscal year 2016, but up from about $137 billion for fiscal year 2015. Medicare programs, Medicaid, and the Earned Income Tax Credit (EITC) account for about 74 percent of this total,” GAO said. The Department of the Treasury administers the EITC.
But there was good news in one area—improper payments in Medicare’s Fee-for-Service area accounted for $31.6 billion, or 37 percent of the total, but that was down from $36.2 billion in 2017.
The IG said, “In May 2015, we reported that the department did not comply with the Improper Payments Elimination and Recovery Act of 2010. ... We have identified concerns in numerous areas relating to improper payments, including the completeness, accuracy, and reliability of improper payment estimates and methodologies and improper payments involving grantees.”
Trump administration officials are actively seeking new ideas to fix such problems, according to an official who requested anonymity after participating in one such recent meeting.
Good news on government waste and fraud, however, remains rare.
Taxpayers Protection Alliance President David Williams told The Epoch Times on Jan. 22, “The federal government agencies never seem to learn from past mistakes or listen to their own internal watchdogs, like the inspectors general. With the amount of contracts given by federal agencies, they should be experts in not only identifying, but eliminating waste, fraud, and abuse.”
Williams said, “Solyndra [the now-bankrupt solar company] should have been a cautionary tale for the Department of Energy, yet DOE continues to fund solar projects like the Crescent Dunes project in Nevada that has gone belly up.”
“The environmental rules they just came out with, for example, are intended to speed things up, so I think some of those changes will help over time; it’s not going to happen in a day,” Schatz said. “This administration, more than others, has looked at it and said, ‘Look, this should be operating more like a private business would operate.’”