Waste, fraud and abuse of Federal spending cost taxpayers billions of dollars each year.
Do you know what these terms mean when it comes to spending of Federal funds?
What is Fraud?
Fraud is any deliberate deception which exists to unlawfully deny the Federal government something of value or give a person or organization consideration to which they are not entitled.
Fraud includes kickbacks, bribes, embezzlement and other forms of prosecutable fraud.
What is Waste?
Waste is careless, excessive, or unnecessary spending of Federal funds or use of property.
Spending that is not supported by adequate documentation, purchasing unneeded equipment or supplies to “spend the budget” and inadequate monitoring of credit card use.
(See more examples with the article on excessive spending on GSA conferences)
What is Abuse?
Abuse is the deliberate improper use of Government resources.
Abuse of job position, rank or signing authority. Misusing vehicles, computers, tools, and office equipment
How to you stay out of trouble?
Now you know what it is, how do you protect your grant from waste, fraud and abuse?
The most important keys are having strong internal controls and following established procedures and policies.
Here are 5 more ways to keep your Federal grant safe:
#1 Stay up on grant training and current regulations regarding grant management
#2 Have strong and open lines of communication within your organization
#3 Require that staff, vendors, and sub-grantees are accountable for their behavior
#4 Monitor work to make sure it is conducted as described in the award terms and conditions
#5 Safeguard vehicles, equipment and other resources purchased with Federal funds
If waste, fraud or abuse are witnessed or suspected, please contact the Office of the Inspector General (OIG) or the OIG Hotline immediately.
Lucy Morgan CPA, MBA
CEO, Compliance Warrior
P.S. If you’d like some more help about what we talked about today, we offer online grant management training that helps that helps people work through these issues.
Click the link below for your type of organization to get more information about our courses and to get signed up.