Agencies can minimize "Pay and Chase" strategies by implementing preemptive measures.
In the realm of federal funding, the concept of Pay and Chase, often associated with Chase Bank and PayPal, has gained significant attention. This scenario refers to a process where grant recipients receive funds before their eligibility is confirmed, potentially requiring agencies to recoup payments if fraud or improper payments are discovered.
Our website offers a solution to this challenge, providing a tailored strategy based on deep expertise in various sectors. With a proven track record with federal awarding agencies, state and local entities, and grant recipients, we bring a unique combination of technology and analytics, industry, risk, and compliance experience to the table.
To prevent Pay and Chase, our website advocates the use of Standardized Operating Procedures (SOPs) that enable financial assistance staff to independently complete their evaluation and compliance actions prior to awarding new funding. Additionally, agencies are encouraged to utilize readily available technologies and tools for automated controls in critical processes like determining applicant eligibility and validating entity and account information.
One such solution we offer is automated claim verification processes, clear communication channels, and proactive follow-ups. These measures ensure that claims are managed efficiently without the need for chasing payments after the fact.
In the fight against improper payments, understanding and implementing leading practices and technologies is crucial. Our website focuses on reducing burden, increasing process automation and machine-readable data to improve transparency and increase reliability. We also develop and execute assessments to manage risk, and provide analytics to 'tell the story' of programs and measure impact.
Grantors are advised to evaluate these methods in conjunction with the U.S. Government Accountability Office Report 'A Framework for Managing Improper Payments in Emergency Assistance Programs.' Furthermore, they should reference the digital identity control guidance for government information systems published by the National Institute of Standards and Technology (NIST) and the SP 800-53, 'Security and Privacy Controls for Information Systems and Organizations' for best practices when developing these automated controls.
Standard Operating Procedures (SOP) are being developed that include operational best practices and examples of potential fraud schemes, such as validating applications against the Do Not Pay system. Grantors should also be aware that awarded funds being used outside of the intended purpose can be a consequence of Pay and Chase.
Beyond the financial implications, Pay and Chase scenarios can lead to bad publicity and compromised reputation among the U.S. population. Concerns around program integrity and compliance with regulations, such as OMB Circular A-123 Appendix A, can also arise from these scenarios.
From 2020-2022, the federal government provided approximately $4.6 trillion to respond to and recover from the COVID-19 pandemic. In FY22 alone, federal agencies reported ~$247 billion in improper and unknown payments. It is clear that the need for effective measures to prevent Pay and Chase is more important than ever.
Our website employs a team of grants experts who have extensive experience working with and connecting all grant stakeholders to address their challenges. By working together, we can strive to minimize the occurrence of Pay and Chase scenarios, ensuring that funding reaches those who truly need it.
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