I know how biz purchase order / purchase card / payment systems work. When the purchasing office gets the paperwork acknowledging receipt of goods, they check the paperwork and then write the check (make the payment). (I'm using a physical item example, just like your personal Amazon orders.)
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A person in a Department submits Requisition 123456 for 1 case of condoms.
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The Purchase office creates and sends PO 123456 for 1 case of condoms to The Condom Company and duplicate copies to the Receiving room and others, if necessary. (E.g., the orderer gets their duplicate of the PO to check against their original Requsition: "Hey, I ordered 1CASE of condoms, not 1 condom! You made a mistake converting my Req to a PO!" or maybe, "Oh crap! 1 CASE of condoms!?!? I meant to order 1 condom! I just checked my copy of the Req. I made a mistake! Stop that PO and re-issue it for ONE condom!!")
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A few weeks later, a case of condoms arrives at Receiving with the attached paperwork for PO 123456.
(Just like your Amazon orders have your order number paperwork in the clear plastic sticker envelope on the outside (or inside) of the package.)
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Receiving pulls their copy of PO 123456 to see what was ordered and if it matches what was received. (1 case of condoms = 1 case of condoms.)
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Receiving checks PO 123456 for the name of the person who placed the order and notifies them their PO that their order has arrived.
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The ordering person checks the item, signs the paperwork confirming that they ordered 1 case of condoms, they received 1 case of condoms, and The Condom Company can now be paid.
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The signed paperwork now goes to the Purchasing office who will then write and send a check to The Condom Company.
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IF THERE IS A PROBLEM, it is caught by the receiving department (received 1 case of dildoes on PO 123456 which does NOT match the original PO in their files) or the end user ("I ordered case of magnums and they sent a box of regulars.") who notify The Condom Company to fix the problem and notify the purchasing office not to pay PO 123456 until the order is rectified.
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It is NOT the job of the Purchasing (and Check Writing) office to investigate the matter. Sometimes, the recipient will SIGN (approve) the shipment and authorize the Purchasing Office to pay The Condom Company. Six months later, they finally open the shipping box and it's the wrong item. TOO LATE! The Condom Company has already cashed the check. THAT is NOT the fault of the Purchasing Office, it is the fault of the orderer - receiver. It is NOT fraud, it is stupidity or laziness of the orderer.
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It is my understanding that The Treasury Dept's job is to write and send the checks and that all of the other stuff (amount, payee, address, etc.) is authorized by the "ordering" department. It is NOT the job Treasury to investigate every invoice-to-be-paid. If would quadruple the workload:
Contact the orderer: "Did you order X? What was your Req #? What was your PO#? ..."
Contact the receiving room: "Did you receive X? When did you receive it? Did it match the original PO? ..."
Contact the orderer: "Is this your sig when you signed for the package in the receiving room? ... Any other issues? ..."
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From news reports, it seems that ALL of EVERYONE'S and every company's info (tax ID numbers) is now in the hands and on the servers of Elon Musk and his coders: SSN, bank account #s, tax refunds, etc.. They will know EVERY payment (check or electronic) but they will have NO info relevant to fraud or waste or the investigation of fraud or waste. THAT has to be determined by or at the authorizing departments.
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Fraud and waste may occur but that happens in the originating department, not at Treasury. E.g., willy probably steals reams of paper, staples, and scotch tape from the office stockroom. He just fills another req and tells the manager that, "Yeah, we're using a lot more paper these days so I had to order another 10 cases." Or he might be stealing computers and other electronics but it isn't on Treasury to investigate that: if the Department tells them that they needed 10 computers, ordered 10 computers, and received 10 computers, then the company should be paid. If willy stole 9 of those computers, that's on him, not Treasury.
Posted By: willywonka4u
Re: When Treasury approves spending on everything…
…then why are paying someone to check and see if Treasury payments are fraudulent before they’re paid out? Elon isn’t the issue. Fraud and waste is. They’re trying to scare people about Elon because there’s a ton of money laundering going on.
It is my understanding that Treasury WRITES THE CHECKS but does not APPROVE OR NOT APPROVE spending (except to the extent that there is money "in the account" to pay the purchase order). "You charged those 10 computers to Project ABC which uses Gov Account 98765 which was funded by Congress with $10 M. When we try to encumber that account with $10,000 for those 10 Computers it doesn't go through because you are over budget. We suggest that you ask willy why he needs 10 computers when everybody else only needs one computer."
