Incident Reporting and Fraud (and FOIA).ppt

Incident Reporting and Fraud (and FOIA) Incident Reporting Grantees are required to report the following activities through the DOL incident reporting system. Fraud, misfeasance, nonfeasance or malfeasance Misapplication of funds Gross mismanagement and misconduct Criminal activity Waste Known or Suspected Any known or suspected incidents of fraud, abuse or waste must be reported immediately. Reporting Mechanisms DOL Hotline - Office of Inspector General 1-800-347-3756 Departments Incident Reporting System DOL Incident Report Form DL 1-156 (see handout) DOL Office of Inspector General, Office of Investigations, Room S5514, 200 Constitution Avenue NW., Washington, DC 20210, or to the corresponding Regional Inspector General for Investigations, with a copy simultaneously provided to the Employment and Training Administration Your own reporting procedures… Incidents can be reported and channeled through a state or local system In all cases, DOL must be notified Incidents vs. Complaints The grantee must have a venue or mechanism to resolve allegations, complaints or disputes from Grantees Vendors Participants Third Parties or citizens Employees (The grantee must also maintain formal appeals processes) The Investigative Process Submit report to agency to start a record Agency OIG assigns investigative responsibility Agency monitors investigation/prosecution OIG agency closeout The Importance of Internal Controls Where are the Soft Spots? 2006 ACFE Study –Govt. Cases Skimming 22% Cash larceny 19% Billing schemes 32% Payroll schemes 16% Expense reimbursement schemes 13% Check tampering 9% Register disbursement schemes 1% Non-cash assets 32% Corruption 33% Fraudulent statements 3% *Sums exceed 100% because some respondents indicated more than one fraudulent activity in a single case Common Types of Public Corruption Fraud False claims Time attendance Travel Bid rigging, sole sourcing Contract compliance violations Labor, environmental, and anti