Detecting and Preventing Fraud on Federal Grant Projects

The Government Accountability Office (GAO) has found that billions in Federal grant awards are subject to waste, fraud, and abuse. Grant recipients and other grants personnel must be vigilant in detecting and preventing fraud in grant administration. You will gain an understanding of potential fraud risks inherent in various programs and entities, and learn techniques to mitigate those risks. Case studies will enhance your learning, enabling you to practice identifying and preventing fraudulent activities. This is an elective course in all tracks of the GMCP™.

Learning Objectives

• Conduct a risk assessment of a sample federal program
• Create an effective fraud prevention monitoring process
• Evaluate and test an entity's internal controls for vulnerabilities
• Analyze case studies for actions that could have prevented fraud or detected it earlier
• Review a sample recipient to determine whether fraud is occurring
• Develop action item lists to improve fraud monitoring

Course Topics

Fraud in the Grants Context

• Fraud in Federal Financial Assistance
• Influences Driving Focus on Fraud Prevention
• What is Fraud?

Fraud Prevention: Risk Assessments

• Understanding the Mind of a Fraudster
• Risk Assessments

Fraud Prevention: Policies and Procedures

• Internal Controls
• Management’s Role in Deterring Fraud
• Communication and Training

Fraud Detection: What are You Looking For?

• Who is Likely to Notice Red Flags?
• Types of Red Flags
• Challenges to Detecting Fraud

Fraud Detection Tools

• Site Visits
• Desk Reviews
• Audits
• Financial Reconciliations
• Exercise: Bank Reconciliation Scenario
• Data Analytics

Actions to Take When Fraud is Suspected or Detected

• Reporting Suspected Fraud
• Sanctions
• Remedies to Resolve Issues that Led to Fraud