During a recent government meeting, officials discussed significant challenges related to data management and improper payments within federal programs, particularly highlighting issues with antiquated data systems. The conversation revealed that many state agencies are still relying on outdated systems established as far back as the 1970s and 1980s, which hampers their ability to execute programs effectively and prevent fraud.

One of the key points raised was the lengthy process required for the Small Business Administration to verify applicant information with the Social Security Administration (SSA). It reportedly took around eight months to establish an agreement for data verification, raising concerns about the efficiency of inter-agency collaboration. Officials emphasized that such delays are costly and should not be standard practice, especially when one federal agency charges another for access to essential data.

The meeting also addressed the need for legislative action to secure permanent access to the SSA's death master file for the Treasury Department, which currently has only temporary access. This access is crucial for preventing improper payments, which amount to approximately $250 billion annually. The officials underscored the importance of \"democratizing\" data access across federal agencies to enhance efficiency and accountability.

Additionally, the discussion touched on the role of state agencies in verifying eligibility for unemployment benefits during the pandemic. Some states were criticized for inadequately checking applicants' identities, leading to payments being issued to individuals using foreign IP addresses. This raised questions about the responsibilities of state agencies in managing federal funds and the need for robust IT systems and data analytics capabilities.

Overall, the meeting highlighted a pressing need for improved data management practices and stronger partnerships between federal and state agencies to combat fraud and reduce improper payments effectively. The officials called for a more serious approach to these issues, emphasizing that every dollar lost to improper payments is a dollar borrowed and incurs interest, further straining the federal budget.