Government Auditors: Federal Agencies Made $125 Billion in Payment Errors in Just One Year

Government Auditors: Federal Agencies Made $125 Billion in Payment Errors in Just One Year

Posted by Adam Kazda on 03/29/2016

GAO Improper PaymentsRecently, the Government Accountability Office (GAO) released a report that uncovers $125 billion in improper payments among Federal agencies. According to the report, “the estimated improper payments for fiscal year 2014 were attributable to 124 programs spread among 22 agencies.” These improper payments were an increase of $19 billion from 2013, and are primarily linked to three major programs: Medicare, Medicaid, and the Earned Income Tax Credit.

The report identifies that a large portion of improper payments in these programs are paid out to the deceased. GAO has suggested numerous recommendations that could help improve program management, reduce improper payments, and save the Federal Government money. However, these agencies have failed to implement such recommendations. 

GAO improper payment analysts concluded, “The Federal government continues to face an unsustainable long-term fiscal path. Changing this path will require difficult fiscal policy decisions to alter both long-term federal spending and revenue.” Read the full report here.

View our report on "Federal Programs to Die For." Help uncover waste, fraud and abuse here.