DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE - PREVENTION AND DETECTION OF FRAUD AND PROGRAM ABUSE - UNITED STATES HOUSE COMMITTEE ON GOVERNMENT OPERATIONS - 10TH REPORT 94TH CONGRESS - 2ND SESSION

• NCJ Number: 63790
• Author(s): ANON
• Date Published: 1976
• Length: 46 pages
• Corporate Author: US Congress
• Sale Source: National Institute of Justice/
• Language: English
• Country: United States of America

Annotation

THIS REPORT SUMMARIZES HOUSE SUBCOMMITTEE HEARINGS INVESTIGATING THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE'S (DHEW'S) PROCEDURES FOR PREVENTING AND DETECTING FRAUD AND ABUSE IN ITS PROGRAMS.

Abstract

THE COMMITTEE ON GOVERNMENT OPERATIONS INITIATED THIS INVESTIGATION BECAUSE OF CONCERN THAT FRAUD AND ABUSE IN DHEW PROGRAMS MAY BE RESPONSIBLE FOR UNWARRANTED AND UNNECESSARY EXPENDITURES OF MASSIVE AMOUNTS OF TAX DOLLARS, AND THAT ABUSES MAY BE SERIOUSLY IMPAIRING AGENCY PROGRAMS BY DIVERTING RESOURCES FROM THEIR INTENDED PURPOSES AND BENEFICIARIES. SPECIFIC AREAS OF INQUIRY INCLUDE THE NATURE AND EXTENT OF FRAUD AND ABUSE, THE EFFECTIVENESS OF PLANNING AND COORDINATING DHEW PREVENTION AND DETECTION ACTIVITIES, DHEW WORKING AND FOLLOWUP PROCEDURES, AND THE ADEQUACY OF PERSONNEL AND OTHER RESOURCES UTILIZED TO COMBAT FRAUD AND ABUSE. TESTIMONY AT THE HEARINGS WAS GIVEN BY OFFICIALS OF VARIOUS DHEW AGENCIES AND REPRESENTATIVES OF THE JUSTICE DEPARTMENT AND THE GENERAL ACCOUNTING OFFICE. FINDINGS REVEAL THAT DHEW IS CURRENTLY RESPONSIBLE FOR ABOUT 300 SEPARATE PROGRAMS INVOLVING EXPENDITURE OF MORE THAN ONE THIRD OF THE ENTIRE FEDERAL BUDGET. BECAUSE OF THE MAGNITUDE AND COMPLEXITY OF ITS OPERATIONS, AGGRAVATED BY LACK OF DIRECT CONTROL OVER EXPENDITURES, DHEW ACTIVITIES PRESENT AN UNPARALLELED DANGER OF ENORMOUS LOSS THROUGH FRAUD AND ABUSE. DHEW OFFICIALS HAVE LITTLE RELIABLE INFORMATION CONCERNING THE EXTENT OF SUCH LOSSES. THERE IS NO CENTRAL SOURCE OF DATA CONCERNING FRAUD AND ABUSE, AND AGENCY UNITS CHARGED WITH DETECTION AND PREVENTION ARE POORLY ORGANIZED, WITHOUT CENTRAL COORDINATION, AND LACKING AUTHORITY AND INDEPENDENCE FOR THEIR WORK. RESOURCES ALLOCATED FOR DETECTION AND PREVENTION OF ABUSE ARE INADEQUATE AND POORLY UTILIZED. THERE IS NO DEPARTMENTWIDE POLICY FOR OR CENTRALIZED SUPERVISION OF THE REFERRAL OF POSSIBLE FRAUD CASES FOR PROSECUTION. IN SOME INSTANCES, 5 YEARS PASSED BEFORE DHEW TOOK CORRECTIVE ACTION. THE COMMITTEE RECOMMENDS THAT THE DHEW OFFICE OF INVESTIGATIONS AND SECURITY DISCONTINUE ITS PRACTICE OF OBTAINING PRIOR CLEARANCE BEFORE INITIATING INVESTIGATIONS. MOREOVER, DHEW SHOULD REVIEW ITS FRAUD AND ABUSE PROBLEMS AND TAKE PROMPT ACTION TO CORRECT ITS PROCEDURAL DEFICIENCIES. FOOTNOTES ARE INCLUDED. (MRK)