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Recognizing Fraud, Waste, and Abuse
- Recognizing Fraud
- Recogizing Waste
- Recognizing Abuse
- Brochures on Fraud, Waste, and Abuse
- What to Do If You Suspect Fraud, Waste, or Abuse
Recognizing Fraud
Fraud is a false representation about a material fact. It is any intentional deception designed to unlawfully deprive the United States or EPA of something of value or to secure for an individual a benefit, privilege, allowance, or consideration to which he or she is not entitled. Following are key fraud indicators; this list is not all-inclusive:
- Unexplained entries of altered records
- Unusually large amounts of payments in cash
- Inadequate or missing documentation
- Delays in producing requested documentation
- Non-serial number transactions
- Unauthorized transactions
- Unusual patterns and trends in contracting and procurement
- Unrealistic contract prices
- Increase in claims for reimbursement
- Offers of gifts, money, or other gratuities from contractors, grantees, or other individuals dealing with the government
- Photocopies of documents where it is difficult to detect alteration
- False or misleading information
- Missing approval signatures
- Lack of separation of duties
- Discrepancies in handwriting
- Lack of or out-of-date written policies and procedures, including those safeguarding assets
- Lack of communication and/or support for ethical standards by management
- Uncharacteristic behavior, including a person living beyond his/her means
- 0naccountable funds
- Uncharacteristic willingness to settle claims
- Fictitious vendors
- Unauthorized personnel with access
- Overly complex organizational structure
- High turnover rate
- Reassignment of personnel
- Termination of key personnel
- "Missing" files, reports, data, and invoices (both electronic and paper)
- Missing, weak, or inadequate internal controls
- Management override of key internal controls
- Inadequate monitoring by management
- A history of impropriety
Recognizing Waste
Waste involves the taxpayers not receiving a reasonable value for money in connection with any government-funded activities due to an inappropriate act or omission. Most waste does not involve a violation of law; rather, waste relates primarily to mismanagement, inappropriate actions, and inadequate oversight.
Recognizing Abuse
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 also includes misuse of authority or position for personal financial interests or those of an immediate or close family member or business associate. Abuse does not necessarily involve fraud or violations of laws, regulations, or provisions of a contract or grant agreement. Following are examples of abuse; this list is not all-inclusive:
- Creating unneeded overtime.
- Requesting staff to perform personal errands or work tasks for a supervisor or manager.
- Performing tasks related to a personal business during working hours and on government equipment.
- Misusing the official's position for personal gain (including not only the official's personal interests but the interests of family members or others).
- Making travel choices that are contrary to existing travel policies or are unnecessarily extravagant or expensive.
- Making procurement of vendor selections that are contrary to existing policies or are unnecessarily extravagant or expensive.
Brochures on Fraud, Waste, and Abuse
The EPA Office of Inspector General provides the following brochures that provide additional details regarding fraud, waste, abuse:
Deterring Fraud, Waste and Abuse of EPA Funds
Disuadiendo el fraude, mal gasto y abuse de los fondos de la EPA (in Spanish)
When Good Money Goes Bad - True Stories of Grant Fraud at EPA
When Good Money Goes Bad - True Stories of Contract Fraud at EPA
When Good Money Goes Bad - True Stories of Fraud in the EPA Superfund Program
Fraud, Waste, and Abuse - Prevention, Detection, and Reporting Contractors, Awardees, and Recipients
What to Do If You Suspect Fraud, Waste, or Abuse
If you suspect fraud, waste, or abuse, contact the EPA Office of Inspector Hotline (see http://www.epa.gov/oig/hotline.htm).