From the U.S. Government Accountability Office, www.gao.gov

Transcript for: FraudNet and COVID-19 Federal Assistance

Description: GAO's Director of Investigations, Howard Arp, joins the
Watchdog Report to talk about FraudNet. It's a GAO program for the
public, government workers, and contractors to report allegations of
improper activities in the federal government. And it can help ensure
the proper use of funds provided under the Coronavirus Aid, Relief, and
Economic Security (CARES) Act.

Released: April 2020

[Music]

[Howard Arp:] FraudNet is a significant resources to submit allegations
or concerns of fraud, waste, abuse, mismanagement by federal employees. 

[Matt Oldham:] Welcome to GAO's Watchdog Report, your source for news
and information from the U.S. Government Accountability Office. I'm Matt
Oldham. President Trump signed the CARES Act into law on March 27th. It
provides more than $2 trillion for emergency aid during the coronavirus
pandemic. GAO has a program called FraudNet that Americans can use to
report allegations of fraudulent spending, waste, abuse or mismanagement
of federal funds. And with me to talk about FraudNet and its importance
as it relates to the CARES Act is Howard Arp, GAO's Director of
Investigations and member of the Forensic Audits and Investigative
Service team. Thanks for joining me, Howard.

[Howard Arp:] Thanks for having me, Matt.

[Matt Oldham:] So what kind of fraud would be reportable to FraudNet?

[Howard Arp:] So any and all fraud involving federal funds or federal
programs. This would include those associated with the federal
government's response to COVID-19 and its economic impacts. FraudNet is
here to help members of the public get their concerns to the appropriate
agency with jurisdiction over their specific issue as well as to be a
resource to inform GAO as it supports Congress and its oversight
responsibilities.

[Matt Oldham:] Let's say somebody is looking to give a tip to FraudNet.
How do they do that?

[Howard Arp:] So to submit a tip to FraudNet, the preferred method is
through our Internet which they can access at www.gao.gov/fraudnet again
www.gao.gov/fraudnet. That said, however, anyone who doesn't have access
to the Internet can also call our 800 number at 800-424-5454 where they
may leave a message and our FraudNet staff will obtain that and respond.
And then the final mechanism for them to submit a complaint or an
allegation is to send an e-mail to fraud@gao.gov, fraud@gao.gov.

[Matt Oldham:] And for anyone who's using any of those three methods,
Howard, can people remain anonymous when they contact FraudNet?

[Howard Arp:] Yes. So FraudNet takes confidentiality very seriously. And
people have a choice in how they choose their confidentiality to be
used. So they can submit information anonymously. However, if anonymity
is requested, they need to understand that they will not be contacted by
FraudNet staff regarding their allegation or information or what action,
if any, is taken as a result. Additionally, if they choose a filing
preference of either standard filing or confidential, they then may be
contacted if we need additional information to process the allegation.
If a determination were to be made to refer the allegation to federal,
state or local agencies or departments, they would be notified of that
by FraudNet.

[Matt Oldham:] And, Howard, what do you do once GAO has received an
allegation?

[Howard Arp:] Matt, after we receive an allegation, it's assigned a
unique control number for the tipster to use when referencing it when
they're communicating with our FraudNet staff about the status of the
tip they submitted. FraudNet does not -- I want to repeat, does not
conduct investigations. FraudNet's investigative research analysts
review each complaint to identify the appropriate entity to make a
referral to, if that were to be appropriate. FraudNet also may refer
allegations for follow-up to an appropriate Inspector General office or
to the Department of Justice or other law enforcement agency. And
information of these allegations is also made available to GAO staff as
they evaluate federal programs.

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[Matt Oldham:] So it sounds like FraudNet is a clearinghouse for
allegations or tips that Americans can use when they would like to
report fraud, waste, abuse, or mismanagement of federal funds. They have
three methods to do so. Is every allegation investigated?

[Howard Arp:] So no. Every allegation that comes in is given, you know,
its appropriate consideration, review, and once a determination is made
to make a referral and that referral goes out, it is then up to that
receiving agency to review the information and decide how they are best
going to proceed. When information is shared internally within GAO, it
can play a critical role to identify improper activities or potential
weaknesses within a program for GAO to consider as part of our oversight
work.

[Matt Oldham:] And just to be clear, FraudNet isn't only for issues
related to the CARES Act or the coronavirus pandemic, is that right?

[Howard Arp:] That's correct. In addition to the recently passed CARES
Act and the other legislation related to that, FraudNet is also a
mechanism for anybody to report concerns of fraud or other misconduct
involving any federal program. It does not have to be necessarily
related to the CARES Act, although that, of course, is what is obviously
on everybody's mind at this point.

[Matt Oldham:] And last question, Howard. Why is this program important?

[Howard Arp:] Well, FraudNet is a significant resource for the private
citizens, government employees, contractors as well as others to submit
allegations or concerns of fraud, waste, abuse, mismanagement or
misconduct by federal employees. And, as you know, fraud, waste, and
abuse and mismanagement of federal funds erodes their trust in the
government. And we can help ensure that tips are routed to the
appropriate agency with jurisdiction over their concerns. So
additionally, the information plays a crucial role in steering GAO's
oversight work as we work to assist the Congress in fulfilling their
oversight responsibility.

[Matt Oldham:] Howard Arp was talking about FraudNet, a GAO program
where Americans can report things like fraud, waste, or abuse in the
federal government. Thank you for your time, Howard.

[Howard Arp:] Thank you, Matt.

[Matt Oldham:] And thank you for listening to the Watchdog Report. To
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For more from the congressional watchdog, the U.S. Government
Accountability Office, visit us at gao.gov.

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