Your Tax Dollars at Work: How Much Government Spending is Waste

When it comes to government spending – locally, at the state level, or at the national level – all eyes are on our elected and appointed representatives. The words "government" and "spending" go hand in hand and, for the general public, carry quite a few negative connotations. However, anyone who works for a federal, state, or local branch knows that the government walks a tightrope in regard to managing assets and spending taxpayer money wisely. 

We ask the government to spend our tax dollars responsibly on programs, partners, and tools to benefit all of us. But do we really know how much spending is really going to these programs and how much is going to waste? In this article, we’ll explore some examples of government waste and discuss how asset management software can optimize government spending. 

Government Waste: How Are Your Tax Dollars Being Squandered? 

When we think of waste, the term "assets" probably isn't the first thought that comes to mind. But in fact, many of the assets that the government buys with our tax dollars go unused and are wasted. In 2015, the group Citizens Against Government Waste released its annual "Prime Cuts" report, which recommended programs that the government could eliminate for some $648 billion in savings the following year. It detailed wasteful spending in almost every category of government, from agriculture to defense, energy to health and human services, justice, labor, transportation, and more. 

Also in 2015, Congressman Steve Russell from Oklahoma published the "Waste Watch" report, which identifies ten specific instances of government waste and mismanagement in recent years. The items listed in the reported total over $117 million, which had already been wasted. Congressman Russell said that each item points to more prominent, ongoing issues that merit further oversight, investigation, or action by Congress to protect taxpayer money. 

The wasteful spending detailed in both reports is quite surprising. Business owners should know how they run their companies operating and what money is spent on—and taxpayers should expect the same from the government. However, these reports show otherwise on many levels. 

Money Wasters: Non-Partisan Examples of Poor Spending Decisions 

1. Social Security Waste 

The tracking of assets in government goes beyond actual physical items. Consider this finding—a watchdog review found that at least 6.5 million active Social Security numbers belong to people who are at least 112 years old and likely deceased. Only 35 living individuals worldwide had reached that age as of October 2013. An inspector general's report said the questionable identification numbers put the government at risk of fraud and waste.  

Auditors proposed that the Social Security Administration take action to correct its death records. Still, the agency said it did not want to divert resources away from improving payment accuracy with benefits. This is just one example of wasted tax dollars and ways that asset tracking could help watch spending for unnecessary items and services. 

2. Wasteful Government Spending on IT Assets 

Federal spending on IT inventory is also on the rise. We are all aware that technology is evolving, and with that comes new ways of doing things. Changes in technology can be scary for many, and they are hesitant to move forward from how they've always done things. We hear more and more about identity theft, cyber-attacks, and stolen data from major retailers/corporations. Unfortunately, as technology changes, it can become more vulnerable to those who don't have our best interests at heart. The government has allocated more spending to protect IT infrastructure and prevent such instances from happening, but are they spending those dollars appropriately? 

A report released in February 2015 claims the federal government wastes at least half of the $70-80 billion it spends each year on IT and cybersecurity. However, critics say the metric used to compare agencies with private industry is flawed. The International Association of Information Technology Asset Managers (IAITAM), which compiled the report, looked at IT spending compared to headcount and found that federal agencies spend, on average, seven times on more than private companies per employee. Government agencies spend an average of $36,162 per person, while the private sector spends $4,867 per employee.  

The report cites examples of wasteful IT spending, such as two instances where the Department of Energy overspent on equipment and software licenses by a combined $2.6 million. Similar issues with unused software licenses cost the IRS some $11.6 million. 

Asset tracking allows government entities and businesses alike to scan and track assets as they are added into inventory. This eliminates duplicate purchases of items that are already in use or underutilized. Asset management platforms also come with the ability to add alerts on when software licenses are set to expire or need to be updated—something that is easy to overlook without proper tracking. 

3. Consideration of IT Inventory Tracking Software 

With comprehensive IT asset management software, government agencies can track their assets in real time to avoid lost items and duplicate purchases. Here are some key features to consider when choosing the right inventory tracking platform. 

• Flexibility and Ease of Use: The ideal IT inventory software should be easy to configure and navigate so you can realize fast time to value. An intuitive user interface and customizable fields that match the way you already work will also help you promote user adoption across your team. 
• Implementation and Support: To ensure efficient setup of your customized platform and a seamless onboarding process, look for software that offers robust implementation services. Ongoing customer support is also key to maintaining your asset management system and troubleshooting any issues that arise. 
• Asset Lifecycle Tracking: It's vital to track the full history of your assets including their funding source, maintenance history, and utilization. Effective asset lifecycle management also helps you calculate depreciation for your long-term assets so you can maintain accurate financial records and better plan for future purchasing needs. 
• Data Security: Government entities need to be especially cautious around data privacy and security, so consider a solution with certifications like SOC 2 or FedRAMP and features such as role-based user permissions and single sign-on (SSO). 
• Reports and Dashboards: Your chosen software should provide robust reporting capabilities so you can regularly review the state of your IT inventory. Consider a platform that allows you to fully customize reports and create automated reporting schedules. Plus, look for a solution with visual dashboards so you can quickly scan your asset data and identify any trends or anomalies. 

Discover Asset Panda’s Government Asset Management Software 

With tight budgets and increased calls for spending efficiency, all government agencies can benefit from better inventory tracking. Asset Panda’s robust solution gives your office real-time visibility into your assets so you can save valuable time and taxpayer dollars. 

Asset Panda’s highly customizable government asset management software helps you track everything from IT devices to Public Works vehicles in one convenient place. With clear insight into asset lifecycles, you can maximize asset usage, track depreciation, and plan for future purchases. Easily generate custom reports and dashboards, and set automated reporting schedules so you can routinely review the state of your asset inventory and budget. 

Our cloud-based solution is SOC 2-certified and offers TLS 1.2 encryption so you can be confident that your data is secure. With unlimited users and role-based user permissions, your office can ensure that the right people have the right access to your asset data. 

Asset Panda is the proud partner of numerous government agencies across the U.S. See for yourself how our comprehensive asset management software can meet your office’s unique needs—request your personalized demo today.