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FRAUD AWARENESS

FRAUD AWARENESS . Presented by Audit Services. Why is the Prevention and Detection of Fraud/Waste/Abuse Important?.

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FRAUD AWARENESS

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  1. FRAUD AWARENESS Presented by Audit Services

  2. Why is the Prevention and Detection of Fraud/Waste/Abuse Important? It is our responsibility to administer and oversee the services and funds we provide to our consumers to the best of our abilities in compliance with applicable laws and regulations in order to maximize successful outcomes for our consumers.

  3. What is FRAUD? Any illegal act characterized by deceit, concealment, or violation of trust. Frauds are perpetrated by parties and organizations to obtain money, property, or services; to avoid payment or loss of services; or to secure personal or business advantage.

  4. What is WASTE? Waste - Involves the taxpayers not receiving reasonable value for money in connection with any government funded activities. Waste relates to mismanagement, inappropriate actions and inadequate oversight.

  5. Abuse - Involves behavior that is deficient or improper when compared with behavior that a prudent person would consider reasonable and necessary business practice given the facts and circumstances. Abuse may include misuse of authority or position for personal gain. What is ABUSE?

  6. Types of Fraud/Waste/Abuse • Billing for service hours authorized but not actual. • Using grant/contract funds for personal expenses. • Redirecting the use of grant/contract funds in a manner different than outlined in theagreement. • Billing for expenses that have not been incurred/paid. • Use of subcontractors/consultants without a fair selection process.

  7. Types of Fraud/Waste/Abuse • Failing to maintain or creating fictitious supporting documents/invoices to support grant expenses billed. • Billing for expenses already billed in a prior month or on another line item. • Billing for expenses already reimbursed by another grant/contract. • Overcharging Personnel costs; inflated attendance; inflated pay rate; billing for employee paid benefits / other expenses.

  8. Fraud Prevention Considerations • Ensure separation of duties • Establish business procedures • Develop strong internal controls • Adhere to proper billing practices • Maintain sufficient and verifiable supporting documentation to justify actual use of funds

  9. Fraud Prevention Considerations • Utilize knowledge gained from prior experience administering government grants/contracts • Respond to grant/contract related inquiries timely and provide factual information • Establish a fair selection process when utilizing subcontractors or consultants

  10. Expectations Related to Fraud • Know the fraud/waste/abuse related exposures in your area of responsibility • Inform others – the more awareness the better the prevention and detection • Question and challenge the unusual • Develop methods to deter and detect fraud, waste, and abuse

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