# Presentation: 293279

## How To Prevent OIG Investigators From Knocking On Your Door(or at least make it a pleasant visit) 

*AIRI 47**th** Annual Meeting*
*September 8, 2008*
- Fara Damelin
- Investigative Attorney
- OIG/NSF

## THE OBVIOUS ANSWERS

- Read and know the applicable grant conditions, rules and regulations when you receive federal grant funds
- Know and document how you spent federal grant funds
- Maintain (during, not after the fact) adequate documentation to support all expenditures

## Top 5 Things You Probably Don’t Want To Say To An OIG Investigator 

- Do you think I have time to read all of your rules?
- Time and Effort Policy?  Well, we don’t have one of those yet.
- Wow, I had no idea our records were such a mess.
- Sorry, I can’t get you the records for those 2 years; they are being archived in a dangerous building.
- I don’t know, is a trip to Disney World really entertainment?

## What is an Office of Inspector General?

- Each federal agency has an independent OIG
- Audit and investigative components
- OIG missions:
- Prevent and detect waste, fraud and abuse
- Promote economy, effectiveness, efficiency
- Keep agency head and Congress fully and currently informed

## What Do We Investigate?

- Reactive Investigations:
- Allegations received from:
- Program officers/NSF Staff
- Colleagues, Students, Post-Docs
- Ex-spouses/Ex-partners/Disgruntled Employees
- University Administrators
- Anonymous Tips
- Allegations of:
- Fraud
- Theft/Embezzlement
- Financial Mismanagement
- Research Misconduct (Plagiarism, Fabrication, Intellectual Theft)
- _ _

## What Do We Investigate? (Part II)

- Proactive Investigations:
- Program Income
- Participant Support
- Plagiarism
- Human Subjects

## What Are the Possible Outcomes of OIG Investigations?

- Administrative Action
- Including recommendations for debarment
- Civil Action
- Civil False Claims Act
- Treble damages
- Criminal Action (Prosecution)
- Criminal False Claims/False Statements
- Theft/Embezzlement
- Mail/Wire Fraud

## How Do Grantees Get in Trouble?

- Embezzlement/Theft
- Using grant funds to buy bedroom furniture, vacations, American Idol tickets
- False Statements
- Falsely asserting in proposal that you have the support of a key organization when you do not
- Falsely asserting that you collaborated with a foreign scientist when you did not
- False Claims
- Making claim to be reimbursed for grant funds that were not spent on your project
- AND......

## How Do Grantees Get In Trouble?(Part II)

**MISMANAGEMENT OF FEDERAL FUNDS**
**Co-mingling federal and non-federal funds**
**Charging one grant for expenditures of another**
**Failing to know, follow, or care about applicable rules**

## Key to Prevention? 

**       ****Government **
**Institution/University **
**          ****Researcher**

**Compliance Programs**

## What is a Compliance Program?

- SYSTEM OF RESPONSIBLE ADMINISTRATIVE, FINANCIAL AND RESEARCH MANAGEMENT AND OVERSIGHT, CREATING AN ENVIRONMENT IN WHICH EMPLOYEES CAN OPERATE WITH INTEGRITY
- 	Implemented voluntarily or mandated as part of negotiated resolution
_**REQUIRES**_:
**Leadership**  - commitment to do the right thing
**Management**  - ethical environment
- Focus on high risk areas
- Provide systematic monitoring, auditing, oversight
**Training**  - Communicate facts and expectations
**Action**  - Early detection and correction problems
**Reporting** – Relay information regarding wrongdoing

## How do Compliance Programs Prevent Fraud, Waste and Abuse?

- ENSURE ACCOUNTABILITY
- MINIMIZE AND/OR DETECT CRIMINAL MISCONDUCT
- ENCOURAGE REPORTING
- CREATE AWARENESS THROUGH TRAINING

## What Elements Make an Effective Compliance Program?

- Reasonable Compliance Standards and Procedures
- Specific High-Level Personnel Responsible
- Due Care in Assignments with Substantial Discretionary Authority
- Effective Communication of Standards and Procedures
- Establish Monitoring and Auditing Systems and Reporting Systems (whistleblowing without fear of retaliation)
- Consistent Enforcement of Standards through Appropriate Mechanisms
- Respond appropriately to the Offense (reporting to law enforcement, modify program, prevention)
- Federal Sentencing Guidelines
- U.S.S.G. 8B2.5(f) & 8D1.4(c)(1) (11/1/04)

## Why Are They Important?

- A well-structured compliance program can reduce risk and guide decisions
- Demonstrates commitment to ethical conduct
- Signals importance of compliance to faculty and staff
- Communicates facts and expectations, via education and training
- Systematic monitoring (technical assistance)
- Early detection of problems and prevention of regulatory action/penalty
- Prevents improper expenditures and improves grant administration
- May help avoid the filing of legal actions
- Mitigation, e.g., may reduce penalty or administrative action taken

## How (under what circumstances) Are Compliance Programs Developed

- The Voluntary
- Trend: many universities voluntarily creating compliance programs because they recognize benefits and because the right thing to do!
- CoGR June 2005 Guidance
- Encouraging voluntary compliance programs as means for institutions to meet compliance obligations

- 	**And The Not So Voluntary**
- 	Trend:  DOJ/NSF OIG has incorporated mandated compliance plans into settlements with institutions that have:
- Overcharged IDC
- Misused Federal Grant Funds
- Created False Cost-Share Certifications
- Double Charged
- Maintained False Time and Effort Reports
- 	These Compliance Plans regularly span 3-5 years, require annual compliance audits, and provide monitoring by federal agency.

## QUESTIONS

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## Want to Learn More?

**Surf Our Website**: _[www.oig.nsf.gov](http://www.oig.nsf.gov/)_
- NSF OIG Brochures
- NSF OIG Semiannual Reports
- NSF OIG Outreach Presentations
**Confidential Communications:**
**Hotline:1-800-428-2189**
**E-mail:oig@nsf.gov**
**Fax:(703) 292-9158**
**Mail:**
**4201 Wilson Boulevard **
**Arlington, VA. 22230 **
**ATTN: OIG HOTLINE**

**Anonymous Communications:**
**oig.nsf.gov**