On March 16, the White House released an Executive Order (EO) creating a task force to target fraud in federal benefit programs. Chaired by the vice president of the United States and vice chaired by the chair of the Federal Trade Commission (FTC), the task force is empowered to:
- Develop measures to change eligibility verification processes in federal benefits programs and maximize enforcement of eligibility requirements, including requirements within the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA);
- Coordinate with agencies to implement pre-disbursement controls to prevent improper payments and, when necessary, pause funding to address suspected fraud risk;
- Audit and ensure prospective compliance monitoring, including for use in identifying fraud in federal benefits programs
- Facilitate information and data sharing between federal, local and tribal…
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.