Wednesday, June 3, 2026
How GAO is Fighting Fraud and Reducing Improper Payments in Government Spending
The federal government loses hundreds of billions of dollars to fraud each year and millions more to payment errors—also known as improper payments. GAO helps federal understand the causes of these losses and works with them to reduce risks. We’ll learn more about this issue and GAO’s efforts from our experts Rebecca Shea and Heather Dunahoo.
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PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.