Campaign Seeks To Curb Fraud in ED COVID-19 Programs
Like the song refrain in the musical "West Side Story," the Department of Education (ED) Office of Inspector General (OIG) Special Investigations Unit is telling state educational agencies (SEAs) and local educational agencies (LEAs) to “Play it cool, boy!” during investigations of potential instances of fraud, waste and abuse of COVID-19 response funds received under the Elementary and Secondary School Emergency Relief Fund, Higher Education Emergency Relief Fund and the Governor’s Emergency Education Relief Fund.
As part of a recent campaign calling for recipients to work with the agency on preventing fraud, waste and abuse, which includes a presentation, fact sheet and other materials, OIG aims to ensure that these funds are used as required. “This is no small task: criminals and bad actors are targeting Coronavirus response funds, seizing on every opportunity they can in this time of crisis to steal or intentionally misuse this money, including preying on students; schools; and federal, state and local government agencies,” according to the fact sheet. “That’s why oversight and accountability of these funds is so critical.”
The presentation provides information on federal laws related to fraud, recent cases, certification requirements, and actions SEAs and LEAs can take to prevent fraud, waste and abuse. Best practices include conducing a fraud risk assessment and assessing potential risks; creating a plan to mitigate risks and to evaluate potential fraud; ensuring adequate monitoring and oversight to include separation of duties and an established approval process for purchases, contracts and other expenditures; reviewing documents thoroughly, questioning and verifying authenticity and requesting additional information; and ensuring that staff receive necessary training and fraud awareness materials.
However, the presentation does have an intriguing recommendation. Should a grantee suspect potential fraud and OIG subsequently conducts an audit or investigation, OIG tells the recipient, “Don’t ‘tip off’ subjects of actual or pending investigation; continue normal course of business unless otherwise directed.” In other words, play it cool, boy!
ED OIG maintains a fraud hotline for grantees who know of or suspect fraud, waste, abuse, mismanagement or violations of laws and regulations involving ED funds or program. The presentation also contains links to other resources to assist recipients in preventing fraud. When so many dollars are allocated so quickly to respond to a national economic emergency, the chances of fraud can be great. Hopefully, with the cooperation of ED grantees, opportunities for such violations can be greatly reduced.
Join us for our following Thompson Grants events:
Thompson Grants Workshop: Federal Grant Reporting - 2022 Update| Feb. 23, 2022 | Virtual Event
Federal Grants Forum For State & Local Governments | March 2-3, 2022 | Virtual Event
Nonprofit Legal, Finance, and Grants Conference | March 16-18, 2022 | Washington, D.C.
