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Pondera FraudCast

Welcome to the Pondera FraudCast, a weekly blog where we post information on fraud trends, lessons learned from client engagements, and observations from our investigators in the field. We hope you’ll check back often to stay current with our efforts to combat fraud, waste, and abuse in large government programs.

How Startups Benefit Government

How Startups Benefit Government

What a delight it was to read a commentary in Government Technology magazine by Rebecca Woodbury, a Senior Management Analyst with the city of San Rafael, California. In the article, Rebecca recounts her experiences working with technology startups and the benefits to the city of moving beyond a small set of traditional providers.

Rebecca argues that startups offer “simple and intuitive interfaces, don’t require costly implementation fees or long-term contracts, embody the spirit of continuous improvement, and have their eyes keenly on the future.” She goes on to state that these benefits are far more important than “the number of years a company has existed or the number of clients they have.” And she even provides ways to mitigate the risks associated with startups such as avoiding long term contracts.

Right on Rebecca! While Pondera is no longer considered a startup and we can meet the stringent financial and customer qualification requirements in public sector bids, we work hard to hold on to the EXACT list of benefits Rebecca articulated. And when Pondera was a startup, we counted on people recognizing those benefits. That’s why we would get so frustrated when we would read RFPs that asked for “innovative solutions” but required that they be implemented for at least five years! In the age of cloud computing and Agile development, the gap between business needs and archaic procurement policies has grown into a gaping canyon.

So, at the risk of inviting competitors into our market, I applaud Rebecca’s efforts and those of similar public servants who recognize that nimble, innovative startups offer compelling alternatives to large, established IT companies. I also know that competition makes all companies better. In the end, isn’t that what government wants in its partners?
New Data on Problematic Government Programs

New Data on Problematic Government Programs

One of my favorite websites, paymentaccuracy.gov, has received a number of updates which may provide some insight into the current administration’s priorities. If you haven’t done so already, I encourage you to visit the site as it provides improper payment information on the government’s high-priority programs: those that report over $750 million of improper payments in a year or have not established or reported on their error rates.

The current version of the site includes many of the usual suspects including Medicaid ($36.3 billion in errors), Medicare fee-for-service ($41.1 billion), and the Earned Income Tax Credit ($16.8 billion with a whopping 24% error rate). SNAP continues to be listed but still does not provide relative numbers because of inaccurate state reporting—something we have discussed in previous posts.

Other items of note are the inclusion of three Veterans Affairs programs for Disability Compensation, Community Care, and Purchased Long Term Services and Support. While the .59% error rate on the $64 billion Disability Compensation plan appears surprisingly low, the 75.86% error rate for the $4.7 billion Community Care program is likely the result of new reporting requirements… at least I genuinely hope so.

Other high error-rate programs include school nutrition services (both breakfast and lunch), student loan programs, and Unemployment Insurance which ticked up to 11.65% this year.

Regardless of political leanings, I think we can all agree that we want our tax dollars going to those who need them the most. And the transparency provided by paymentaccuracy.gov is a great step toward this goal. My hope is that the government will continue to provide easy access to this information. I am still disappointed each time I visit the expectmore.gov website (which reports on program performance, not just fraud, waste, and abuse) where I see the following message:

“Expect More.gov was an initiative of the George W. Bush administration. This website has been archived and is posted here as an historical resource. It has not been updated since the end of 2008 and links to many external websites and some internal pages will not work.”

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About Our Company

Pondera leverages advanced prediction algorithms and the power of cloud computing to combat fraud, waste, and abuse in government programs.



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