Reporting Possible Fraud
Reporting Possible Fraud
Who Completes This Task: Anyone
Process
Everyone who deals with funding is responsible for helping combat fraud, and for reporting suspected or possible fraud when it is identified.
Whistle-blower protection exists for employees who report concerns of fraud. An employee may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to information that the employee reasonably believes is evidence of:
- Intentional mismanagement
- Intentional misuse of funds
- A danger to public health and safety
- An abuse of authority
- A violation of law
Allegations of fraud can and should be made directly to the grant awarding agency’s Office of Inspector General (OIG).
See the US Government Accountability Office’s information sheet on this topic.
Criteria
- Evidence of possible fraud has been identified
Steps - Federally Funded Projects
- Contact the chief financial officer (CFO) for a confidential consultation regarding the issue
- An internal investigation will be initiated
- If necessary, the case will be forwarded to the OIG for evaluation and investigation
Steps - State Funded Projects
- Contact the CFO for a confidential consultation regarding the issue
- An internal investigation will be initiated
- If necessary forwarded to the state’s Office of Grants Management (OGM) and the Office of the State Auditor (OSA)
Steps – Evidence of Theft, Embezzlement or Unlawful Use
- If there is evidence of theft, embezzlement, or any unlawful use of public funds or property, contact the CFO
- An internal investigation will be initiated
- The CFO will notify the Office of the State Auditor (OSA) and the appropriate agency’s OIG
Documentation Required
- If there is documentation that supports your suspicion of fraud or waste, provide it to the CFO if possible
- Those charged with investigating the allegations will document their process including
- Names
- Dates
- Evidence and data gathered
Why This is Important
- It’s the law (see 2 CFR 200.113, 2 CFR 200.303 d-e, 2 CFR 200.415, 2 CFR 200 516 a 6, 18 USC 1031, Minn. Statutes 609.456)
- Every grant agreement guarantees the funds will be used appropriately and the funder has the right to inspect and audit to ensure this has been done
Related Topics
Fraud Prevention Best Practices
Grant Management Best Practices