Original Broadcast Date: 02/01/2026
Presented by CGI Federal
As agencies across government modernize their financial management systems, a new opportunity is emerging to strengthen payment integrity and stop waste, fraud, and abuse before money ever leaves the door. During her appearance on Fed Gov Today, Kerry Canfield, Vice President of Product Strategy and Market Engagement at CGI Federal, explains how financial modernization is becoming a critical tool in protecting taxpayer dollars.
Canfield points to the President’s recent executive order focused on protecting America’s bank account from fraud, waste, and abuse as a turning point. The order places financial management system consolidation squarely at the center of payment integrity efforts. Rather than treating fraud prevention as a standalone activity, agencies are increasingly viewing it as an outcome of well-integrated, modern financial systems.
One of the biggest advantages of modernization, Canfield says, is the ability to connect systems that traditionally operate in silos. Budget systems talk to HR, HR connects to finance, and procurement systems feed directly into financial management platforms. These intersections allow agencies to see a more complete picture of transactions and risks. Prebuilt integrations established by Treasury, including tools like Do Not Pay, give agencies a strong foundation to identify potential fraud, waste, or abuse earlier in the process.
Beyond existing integrations, agencies are beginning to pilot artificial intelligence tools to enhance these efforts. Canfield explains that agencies are experimenting with commercial data sets and AI techniques to validate payees and awardees before payments are made. Instead of discovering problems after funds are disbursed, agencies can receive a risk profile in advance, helping them decide whether a transaction should proceed.
This shift represents a move away from the long-standing “pay and chase” model of improper payments. According to Canfield, assessing risk before a payment goes out the door is one of the biggest opportunities agencies have with new technology. Payment integrity is a logical place to start because internal controls in this area are already relatively strong. By layering new tools on top of established processes, agencies can test innovations without disrupting core operations.
Pilots play a central role in this approach. Canfield advises agencies to start small and validate that tools actually identify fraud or waste before expanding their use. Whether agencies begin with high-risk or lower-risk programs, the goal is to gain confidence in the results and understand how the tools perform in real-world conditions. These early pilots help agencies determine where technology adds the most value and where further refinement is needed.
Risk assessment frameworks also guide these decisions. Canfield notes that agencies are registering their programs with OMB and Treasury and are already using robust risk management frameworks to evaluate their program inventories. The frameworks used for waste, fraud, and abuse closely resemble broader enterprise risk management approaches, making them familiar and easier to integrate into existing governance structures.
As agencies modernize, measurement remains critical. Canfield emphasizes starting with systems that have already been evaluated and validated, such as those available through government marketplaces where controls across multiple domains have been assessed. This reduces uncertainty and allows agencies to focus on innovation rather than rebuilding foundational capabilities. From there, agencies can introduce new tools where it makes sense, always tying technology investments back to mission outcomes.
Security and privacy considerations shape how these tools are deployed. Canfield explains that many agencies choose to implement fraud detection and analytics tools within their own security domains. Doing so allows them to avoid complex data-sharing requirements, such as those tied to the Computer Matching Act and the Privacy Act, and minimizes the need to open firewalls across agencies. While data sharing is a growing priority across government, piloting within a single security domain enables faster experimentation and clearer accountability.
That does not mean cross-agency data sharing is off the table. Treasury and OMB continue to focus on long-term data-sharing goals, and executive orders emphasize breaking down silos. For now, Canfield says, agencies are best served by validating tools internally, understanding their own risk profiles, and building a strong case for broader implementation over time.
Looking ahead, Canfield underscores the importance of continuous modernization. Financial systems are not something agencies modernize once and set aside. They require ongoing investment, both to maintain strong cybersecurity postures and to incorporate new capabilities driven by compliance requirements and evolving technologies like AI. Sustained collaboration with OMB and Congress is essential to ensure funding supports this continuous improvement.
Ultimately, Canfield frames modernization as more than a technology upgrade. It is a strategic shift in how agencies protect public funds, manage risk, and deliver on their missions. By integrating systems, piloting smart tools, and focusing on prevention rather than recovery, agencies are redefining what effective financial management looks like in the modern federal enterprise.