Recovering and Reusing Funds
Using analytics to accelerate funds recovery
Many federal agencies, including the Department of Defense (DOD), are facing significant fiscal challenges. Managing under sequestration is forcing painful decisions with immediate and long-term repercussions. While top-line budget growth may be limited, there is significant opportunity to positively impact agency budgets through increased efficiency in the execution of existing funds. The current budget pressures are driving a renewed focus on improving and monitoring program effectiveness and are forcing agencies to continue to do “more with less.” At the same time, many are looking for rapid, creative insights to address the present funding constraints.
One area where performance can usually be improved is in the management of undelivered orders (UDO) outstanding or unliquidated obligations (ULO). The DOD loses approximately $2-$3 billion annually in budgetary resources, largely because the expenditures were significantly less than recorded obligations. Similar issues occur at non-Defense agencies. To address that risk, some Government agencies are required to conduct triennial reviews of outstanding obligations. However, the results of the reviews are often limited due to systems and process challenges.
Deloitte has developed approaches to assist in meeting these by maximizing the reviews, incorporating them into routine processes, and helping to return funds before they expire. Deloitte’s Funds Recovery and Re-Use methodology provides improved visibility and analysis of specific attributes of UDOs and ULOs, which can provide additional resources to help relieve the difficult decisions that need to be made in the current fiscal environment. Leveraging our knowledge and experience with audit readiness tools and advanced analytic techniques, the ability to identify and recover significant amounts of funds for re-use is now within reach.
The current budget and fiscal challenges faced by many agencies will likely continue for several fiscal years. Leveraging technology and advanced data analytics can assist agencies in identifying and quantifying funds that could potentially be recovered for other uses.
Learn more about accelerating funds recovery, common challenges for quick recovery and Deloitte’s Funds Recovery and Re-Use methodology in the “Recovering and reusing funds: Using analytics to accelerate funds recovery” whitepaper.
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