Federal Manager's Daily Report

GAO has issued what it calls a framework to help federal managers counter fraud and preserve integrity in government agencies and programs,

“Fraud poses a significant risk to the integrity of federal programs and erodes public trust in government. Managers of federal programs maintain the primary responsibility for enhancing program integrity. Legislation, guidance by the Office of Management and Budget and new internal control standards have increasingly focused on the need for program managers to take a strategic approach to managing improper payments and risks, including fraud. Moreover, GAO’s prior reviews highlight opportunities for federal managers to take a more strategic, risk-based approach to managing fraud risks and developing effective antifraud controls. Proactive fraud risk management is meant to facilitate a program’s mission and strategic goals by ensuring that taxpayer dollars and government services serve their intended purposes,” it said.

GAO identified leading practices for managing fraud risks and organized them into a conceptual framework called the Fraud Risk Management Framework. It encompasses control activities to prevent, detect, and respond to fraud, with an emphasis on prevention, as well as structures and environmental factors that influence or help managers achieve their objective to mitigate fraud risks. In addition, it highlights the importance of monitoring and incorporating feedback.

Key elements include:
* Commit to combatting fraud by creating an organizational culture and structure conducive to fraud risk management;
* Evaluate outcomes using a risk-based approach and adapt activities to improve fraud risk management;
* Plan regular fraud risk assessments and assess risks to determine a fraud risk profile; and
* Design and implement a strategy with specific control activities to mitigate assessed fraud risks and collaborate to help ensure effective implementation.