Detection and Prevention of Fraud and Abuse in Human Services Programs Contracted For by Government Agencies: Executive Summary

Although some differences were found among program types, a number of commonalities were observed. Check fraud was the single most common means of malfeasance. Falsified fiscal documents (inflated staff and participant timesheets), vendor overbilling, and falsified client eligibility also were uncovered. A risk analysis established potential points and patterns of vulnerability to fraud and abuse in check processing procedures, staff termination and payment procedures; vendor solicitations, deliveries, invoicing, billing, and accounting; and participant eligibility determination, termination, and payment. On the basis of these findings, recommendations are made for internal controls to improve administration and management of the city's contract programs. In addition to covering specific vulnerabilites, recommendations discuss staff training, reporting accounting, audit, and monitoring functions and propose development of a contract management system, an investigative organization to detect malfeasance in contract programs and funding agency management, and a unified contractor oversight system. For full report, see NCJ 109113.