SAP Thought Leadership Paper. Reduce Fraud, Waste, and Abuse with Flexible Analytics

Transcription

1 SAP Thought Leadership Paper Reduce Fraud, Waste, and Abuse with Flexible Analytics

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3 Table of Contents 4 Problem Improper payments waste more than $125 billion a year 5 Solution SAP solutions support faster, more powerful data analysis Categories of Federal Spending with High Levels of Improper Payments Improper Payments by Agency 6 Real-World Benefits Save money faster and redirect resources to other purposes Learn More Today 7 Improve Public Sector Performance with SAP Solutions

4 Problem Improper payments waste more than $125 billion a year Around the country, all levels of government are concerned about budget deficits. Now, more than ever, it is necessary to eliminate fraud, waste, and abuse in government spending. Improper payments are especially infuriating that is, when recipients are ineligible to receive payments, or use funds in an improper manner. The U.S. Government Accountability Office (GAO) estimates that improper payments at the federal level totaled more than $125 billion in 2010 almost three times larger than the entire budget of the Department of Homeland Security. State governments face the same problem, both in their own programs and in state-administered federal programs, such as Medicaid, Food Stamps, and Unemployment Insurance. In the past, most government agencies lacked the resources to cross check payee information against other databases that might rule out improper payments, such as death, tax, and prison records, or lists of contractors and individuals who are disbarred for fraudulent practices. With older technology, these searches are tiring and time consuming, involving trillions of data comparisons and thousands of hours of specialized staff time. The Obama administration and Congress are prioritizing the reduction of improper payments. President Obama seeks to reduce improper payments by $50 billion in fiscal 2012.

5 Solution SAP solutions support faster, more powerful data analysis. Now, user-friendly software is available to analyze multiple databases in real time to identify and prevent improper government payments before they happen. SAP s analytics solutions can handle the massive amounts of disparate data that must be analyzed to fight fraud, waste, and abuse. With SAP technology, your team can: Speed up the process of accessing and exploring multiple data sources to quickly find patterns, exceptions, and other areas of interest Reduce the burden on IT staff and empower a broader pool of staff to act on the information Substantially reduce improper payments and establish better processes to prevent them from recurring 2011 Improper Payments by Agency Categories of Federal Spending with High Levels of Improper Payments State auditors say improper payments pose a significant risk to their governments. The programs of greatest concern are: 5.3% Unemployment 10.5% Food Stamps 15.8% Vendor Payments 5.3% State Operating Expenditures 5.3% Welfare 5.3% Medicaid SOURCE: 2011 survey by National Association of State Auditors, Comptrollers and Treasurers Fiscal Year 2011 Reducing improper payments by just 5% at six federal agencies would yield budget savings of more than $5 billion per year. Improper Amount Saved Amount Saved Rank Federal Agency Payments 1% Improvement 5% Improvement 1 Health and Human Services (HHS) $65.5 Billion $656 Million $3.28 Billion 2 Department of Labor (DOL) $13.7 Billion $137 Million $685 Million 3 Social Security Administration (SSA) $9.1 Billion $91 Million $455 Million 4 USDA $5.4 Billion $54 Million $270 Million 5 (tied) Education $1.0 Billion $10 Million $50 Million 5 (tied) Housing and Urban Development (HUD) $1.0 Billion $10 Million $50 Million SAP Thought Leadership Paper Reduce Fraud, Waste, and Abuse with Flexible Analytics 5

6 Real-World Benefits Save money faster and redirect resources to other purposes For every 1% reduction in improper payments due to improved prevention capabilities, the federal government could save $5 billion over four years. Already, SAP is providing its solutions to a federal oversight agency for a new system capable of comparing trillions of records from various federal agencies against a list of current and prospective recipients of federal funds. The oversight agency expects the SAP solution will identify more improper payments in less time and contribute to the Obama administration s goal of reducing improper payments by $50 billion in fiscal SAP solutions can be implemented within weeks, not months, with the help of SAP or any of thousands of experienced SAP partners. The payback period is often a matter of months, not years. Learn More Today If you re thinking, I didn t know SAP could do that! it s time to learn more about our cutting-edge innovations especially in analytics, cloud computing, and mobility solutions and how they turbocharge our best-of-breed business solutions. For starters, why not invite SAP to share examples of how other public sector organizations have improved their performance and operating results with SAP solutions? Meaningful results fast with no need to rip and replace legacy systems

7 Improve Public Sector Performance with SAP Solutions Public sector software from SAP can help you increase fiscal and operational efficiency and facilitate citizen collaboration all while managing security threats with integrated, secure information sharing. For example, with SAP solutions you can: Reduce fraud and waste in government programs Do more with less through smarter budgeting and cost cutting Increase revenue collection without a tax increase Streamline and secure the government supply chain Reduce costs and improve services with cloud and mobile solutions Boost the performance of schools amid budget shortfalls For more information, please visit SAP Public Services at: com/industries/public-sector/index. epx, or call us at SAP Solutions for the Public Sector Public sector financials Government shared services Performance-based budgeting Program and project management Grantee management Asset operations and maintenance Procurement Continuous performance improvement Integrated incident and emergency management Investigative case management Justice management Payment services Citizen services case management Social services management Collections management Tax and revenue administration Mobile solutions for the public sector SAP Thought Leadership Paper Reduce Fraud, Waste, and Abuse with Flexible Analytics 7

8 SAP AG. All rights reserved. (0612) SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc. Sybase is an SAP company. Crossgate, EDDY, B2B 360, and B2B 360 Services are registered trademarks of Crossgate AG in Germany and other countries. Crossgate is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ( SAP Group ) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.