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How the US Can Save Tax Dollars (Continued)

Here are the other top 9  ways the US can save tax dollars.  Of course no list would be complete without including the number 1 way to save tax dollars - that is to not start a war that costs $275 Million per day.  Anyhoo, here's the list.

Studies published by the U.S. Government Accountability Office (GAO).

1. The Missing $25 Billion
The unreconciled transactions are funds for which auditors cannot account: The government knows that $25 billion was spent by someone, somewhere, on something, but auditors do not know who spent it, where it was spent, or on what it was spent. Blaming these unreconciled transactions on the failure of federal agencies to report their expenditures adequately.
The unreconciled $25 billion could have funded the entire Department of Justice for an entire year.

2. Unused Flight Tickets Totaling $100 Million
A recent audit revealed that between 1997 and 2003, the Defense Department purchased and then left unused approximately 270,000 commercial airline tickets at a total cost of $100 million. Even worse, the Pentagon never bothered to get a refund for these fully refundable tickets. Auditors also found 27,000 transactions totaling $8 billion between 2001 and 2002 in which the Pentagon paid twice for the same ticket. (In one case, an employee who allegedly made seven false claims for airline tickets professed not to have noticed that $9,700 was deposited into his/her account).
This $108 million could have purchased seven Blackhawk helicopters, 17 M1 Abrams tanks, or a large supply of additional body armor for U.S. troops in Afghanistan and Iraq.

3. Embezzled Funds at the Department of Agriculture
A recent audit revealed that employees of the Department of Agriculture (USDA) diverted millions of dollars to personal purchases through their government-issued credit cards. Sampling 300 employees’ purchases over six months, investigators estimated that 15 percent abused their government credit cards at a cost of $5.8 million. Taxpayer-funded purchases included Ozzy Osbourne concert tickets, tattoos, lingerie, bartender school tuition, car payments, and cash advances.

4. Credit Card Abuse at the Department of Defense
The Defense Department has uncovered its own credit card scandal. Over one recent 18-month period, Air Force and Navy personnel used government-funded credit cards to charge at least $102,400 for admission to entertainment events, $48,250 for gambling, $69,300 for cruises, and $73,950 for exotic dance clubs and prostitutes

5. Medicare Overspending
For example, Medicare pays as much as eight times what other federal agencies pay for the same drugs and medical supplies. Medicare also overpays for drugs. In 2000, Medicare’s payments for 24 leading drugs were $1.9 billion higher than they would have been under the prices paid by the VA or other federal agencies. Basic payment errors—the results of deliberate fraud and administrative errors—cost $12.3 billion annually. As much as $7 billion owed to the program has gone uncollected or has been written off. Finally, while Medicare contracts claims processing and administration to several private companies, 19 cases of contractor fraud have been settled in recent years, with a maximum settlement of $76 million.

6. Funding Fictitious Colleges and Students
In 2002, the Department of Education received an application to certify the student loan participation of the Y’Hica Institute in London, England. After approving the certification, the department received and approved student loan applications from three Y’Hica students and disbursed $55,000.
The Education Department administrators overlooked one problem: Neither the Y’Hica Institute nor the three students who received the $55,000 existed. The fictitious college and students were created (on paper) by congressional investigators to test the Department of Education’s verification procedures.

7. Manipulating Data to Encourage Spending
Investigations by the GAO, The Washington Post, and several private organizations have found that The Army Corps of Engineers studies routinely contain dozens of basic arithmetic errors, computer errors, and ridiculous economic assumptions that artificially inflate the benefits of water projects by as much as 300 percent. These errors appear to reflect more deception than sloppiness. A Washington Post investigation uncovered managers ordering analysts to “get creative,” to “look for ways to get to yes as fast as possible,” and “not to take no for an answer.” After a public outcry, in 2002, the Corps suspended work on 150 projects to review the economics used to justify them.

8. State Abuse of Medicaid Funding Formulas
The GAO and the HHS Inspector General have also uncovered some states’ practice of recovering improper payments, retaining the funds, and then spending them on unrelated programs—a practice that costs the federal government well over $2 billion per year. Congress could enact legislation to prohibit these actions more effectively.
Minor reforms enacted by HHS in 2001 and 2002 are expected to save Medicaid $70 billion over the next decade. A small sample of financing schemes uncovered in a few states suggests that, if Congress acts, even larger savings are available.

9. Redundancy Piled on Redundancy
Government’s layering of new programs on top of old ones inherently creates duplication. Having several agencies perform similar duties is wasteful and confuses program beneficiaries who must navigate each program’s distinct rules and requirements.
342 economic development programs;
130 programs serving the disabled;
130 programs serving at-risk youth;
90 early childhood development programs;
75 programs funding international education, cultural, and training exchange activities;
72 federal programs dedicated to assuring safe water;
50 homeless assistance programs;
45 federal agencies conducting federal criminal investigations;
40 separate employment and training programs;
28 rural development programs;
27 teen pregnancy programs;
26 small, extraneous K–12 school grant programs;
23 agencies providing aid to the former Soviet republics;
19 programs fighting substance abuse;
17 rural water and waste-water programs in eight agencies;
17 trade agencies monitoring 400 international trade agreements;
12 food safety agencies;
11 principal statistics agencies; and
Four overlapping land management agencies.

Posted on Saturday, March 15, 2008 at 04:49AM by Registered CommenterJDickson in | CommentsPost a Comment

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