Investigating Allegations of Noncompliance and Misuse of Funds in
advertisement
Investigating Allegations of Noncompliance and/or Misuse of Funds in the CACFP & SFSP How the Investigation Affects the Administrative Hearing 2012 CACFP National Professional Association Conference- Austin Texas MH Miles Company, CPA PC • Full service CPA firm • Corporate Office in Decatur, GA • Satellite office in Richmond, VA • MHM Financial Services - Washington DC 2012 CACFP National Professional Association Conference- Austin Texas Specialize in Compliance FEDERAL • Nutrition • Transportation • Equal Opportunity/ Civil Rights STATE Prekindergarten 2012 CACFP National Professional Association Conference- Austin Texas Nutrition – CACFP & SFSP • State Agencies – Complaint Investigations – Fraud Investigations – Agreed-upon Procedure Reviews – Staff Augmentation – Policy & Procedure Development – Internal/External Audit Services – Budget Reviews – VCA Analysis 2012 CACFP National Professional Association Conference- Austin Texas Nutrition – CACFP & SFSP • Sponsors – OMB Circular A-133 audits – Management Studies – Programmatic Audits – Compliance Monitoring – Management Plan Evaluation – Policy & Procedure Development – Accounting System Set-up 2012 CACFP National Professional Association Conference- Austin Texas Objectives • • • • • Documenting the Complaint/Allegation Assessing the allegation(s) Planning the engagement Fieldwork Techniques for Investigating Common Schemes • Reporting • Affects on the Administrative Hearing Process 2012 CACFP National Professional Association Conference- Austin Texas Looking at the Big Picture 2012 CACFP National Professional Association Conference- Austin Texas Who files Complaints? Whistleblowers 2012 CACFP National Professional Association Conference- Austin Texas WHISTLEBLOWERS Program Beneficiaries Parents/Guardians Caregivers Employees Agency Sub-recipients General Public Vendors 2012 CACFP National Professional Association Conference- Austin Texas Documenting the Complaint/Allegation 2012 CACFP National Professional Association Conference- Austin Texas Documentation Process Capture Pertinent Information • Who received the complaint • Date Received • How the complaint was received – Written • Email • Letter – Recorded • Voicemail – Live • Telephone call • Interview in person • Does complainant want to remain anonymous? 2012 CACFP National Professional Association Conference- Austin Texas Documentation Process Documenting the actual complaint • Written or Recorded – Verbatim • Live / complainant doesn’t want to be anonymous – Verbatim – Clarity 2012 CACFP National Professional Association Conference- Austin Texas Helpful Words & Phrases 2012 CACFP National Professional Association Conference- Austin Texas Organizing the Information What is being communicated • What is actually being said? • Supporting documentation available? • Keep the complainant on track Side bar thoughts • What they didn’t say….. • What other areas are impacted? • Follow-up questions 2012 CACFP National Professional Association Conference- Austin Texas Documentation Process • Compiling the information –Assign a tracking number –Categorizing the Complaint 2012 CACFP National Professional Association Conference- Austin Texas Documentation Process C 2012-06178-01 - A Complaint Identifying Number Year Complaint Category Sequence in the year 2012 CACFP National Professional Association Conference- Austin Texas Assessing the Allegation(s) • Group allegation(s) in bite size subcategories 1st on face value then by noncompliance • Additional Observations • Committee for feedback • Next Steps 2012 CACFP National Professional Association Conference- Austin Texas USDA OIG Complaint Hotline Categories Participant Fraud Waste Management Employee Misconduct Bribery Reprisal Health & Safety Opinion & Information National intake-point for reports from both employees and the general public of suspected incidents of fraud, waste, mismanagement, and abuse in USDA programs and operations. 2012 CACFP National Professional Association Conference- Austin Texas FY2010 – FY2011 USDA-OIG Semiannual Report to Congress FY2010 1st Half FY2010 2nd Half FY2011 1st Half FY2011 2nd Half Participant Fraud 780 1,090 931 969 Waste Management 108 165 207 259 Employee Misconduct 183 204 177 172 Bribery 1 1 3 - Reprisal 1 2 2 4 Health & Safety 25 51 41 31 Opinion & Information 127 198 131 116 Total Complaints 1,225 1,711 1,492 1,551 2012 CACFP National Professional Association Conference- Austin Texas USDA-OIG FY'10 & FY'11 2,000 1,800 TOTAL COMPLAINTS 1,600 1,400 1,200 1,000 800 600 400 FY2011 200 - FY2010 Waste Management 273 Employee Misconduct 387 Bribery Reprisal FY2010 Participant Fraud 1,870 3 Health & Safety 76 Opinion & Information 325 2 FY2011 1,900 466 349 3 6 72 247 2012 CACFP National Professional Association Conference- Austin Texas Planning the Engagement Investigation Review Plan • Review Tools • Staffing Considerations • Scope – Determine Necessary Documents – Develop Interview List • Fieldwork- Action Plan • Timeline 2012 CACFP National Professional Association Conference- Austin Texas Review Tools • • • • • • Review Reports & Management Plan Interviews Observations Program Documentation Independent Research Supplies 2012 CACFP National Professional Association Conference- Austin Texas Staffing Considerations • Specific Experience • Independent • Coverage & Resources 2012 CACFP National Professional Association Conference- Austin Texas Scope & Timeline • • • • • • Clear & Concise Regulatory Compliance Subject to Change Documentation for Review Interview List Develop an initial timeline 2012 CACFP National Professional Association Conference- Austin Texas Action Plan •Start Big • Drill Down 2012 CACFP National Professional Association Conference- Austin Texas Fieldwork • Entrance Conference • Document Request • Tour 2012 CACFP National Professional Association Conference- Austin Texas Interviews & Observations Interview Methodology: • Telephone Interview – Quick – No Travel – Record • Ability to record (State) • Less intimidating • In-person Interview – Observe reactions to questions • Questionnaire 2012 CACFP National Professional Association Conference- Austin Texas Interview Objectives • Gather information related to the allegations • Identify possible “leads” to support/refute allegations 2012 CACFP National Professional Association Conference- Austin Texas Interview Techniques • Develop an Interview Plan • Start with easy questions – Build rapport – Relax • • • • Identify relationships Be prepared Private/Confidential Choose your words wisely 2012 CACFP National Professional Association Conference- Austin Texas Interview Techniques • Observe body language • Pose open & close ended questions • LISTEN – What is said – What is not said • Take Notes- not dictation • Show documentation where applicable 2012 CACFP National Professional Association Conference- Austin Texas Red Flags • Information changes • No eye contact • Long pauses 2012 CACFP National Professional Association Conference- Austin Texas Document Analysis Techniques • • • • • • Horizontal & Vertical Analysis of Information Signatures Dates & Times Transactions Formatting Verifying item codes 2012 CACFP National Professional Association Conference- Austin Texas Techniques for Common Program Schemes Inflated Meal Counts • Assess knowledge of sponsored facilities • Confirm affiliated/unaffiliated sites • Flux analysis of meals by type/site • Observe behavior 2012 CACFP National Professional Association Conference- Austin Texas Techniques for Common Program Schemes Inflated Meal Counts • Open Sites- #of meals delivered = # of meals served 100% • Simultaneous Reviews (open site & central kitchen) • Arrive early & engage participants • Observe behavior • Test Leftover meal practice 2012 CACFP National Professional Association Conference- Austin Texas Techniques for Common Program Schemes Falsified labor documentation – Review standardized forms by individual – Record transaction number by vendor/date/total – Be familiar with other programs Duplication of Costs – Record transaction number by vendor/date/total – Be familiar with other programs Other Unallowable Costs – Cost of Ownership between organizations under common control 2012 CACFP National Professional Association Conference- Austin Texas Reporting • Status Reports • Draft Report • Final Report – Findings of noncompliance – Recommendations for oversight 2012 CACFP National Professional Association Conference- Austin Texas Administrative Hearing • Methodology and Results are relied upon to determine how to move forward • Notes and emails related to investigation may be requested • Weakest Evidence is anything than can be contradicted • Anyone who has touched the investigation is a potential witness 2012 CACFP National Professional Association Conference- Austin Texas Ideal Witness • Education/Training/ Experience in the area • Knowledge of the investigation • Testified in other cases & courts have relied on information presented • 13 Tips 2012 CACFP National Professional Association Conference- Austin Texas 2012 CACFP National Professional Association Conference- Austin Texas Questions Cherese Myree, CFE Vice President, MH Miles Company, CPA PC (404) 633-4555 cmyree@mhm-cpa.com 2012 CACFP National Professional Association Conference- Austin Texas Thank You! 2012 CACFP National Professional Association Conference- Austin Texas
