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The State Employee Fraud, Waste, and Abuse Hotline Jeffrey Gargiulo Senior Internal Auditor Virginia Department of Accounts.

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Presentation on theme: "The State Employee Fraud, Waste, and Abuse Hotline Jeffrey Gargiulo Senior Internal Auditor Virginia Department of Accounts."— Presentation transcript:

1 The State Employee Fraud, Waste, and Abuse Hotline Jeffrey Gargiulo Senior Internal Auditor Virginia Department of Accounts

2 History of the Division of State Internal Audit (DSIA) 1985 The DSIA established as a separate division within the Department of Accounts by legislative action. This gave the DSIA independence, promoted broad oversight of other internal audit functions and allowed the flexibility to provide internal audit and advisory services as requested by agency heads.

3 1992 Governor Wilder wrote the first Executive Order to create the State Employee Fraud, Waste, and Abuse Hotline which has been operation ever since. On June 2, 2006 Governor Kaine issued Executive # 12 to ensure the employees of the Commonwealth continue to have the opportunity to anonymously report instances of fraud, waste, and abuse.

4 Executive Order #12  Directs the State Internal Auditor to continue to administer the Hotline.  Provides the DSIA with powers and directives to investigate fraud waste and abuse in executive State agencies.  No one shall interfere with a hotline investigation or coerce other not to cooperate with hotline investigators.  No one shall directly or indirectly attempt to identify or retaliate against someone suspected of calling the or cooperating with the hotline. Retaliatory actions against a caller will be subject to disciplinary action under the Standards of Conduct Policy.

5 Administer the State Employee Fraud Waste, and Abuse Hotline  DSIA has one dedicated untraceable phone line (No caller ID) to anonymously receive fraud, waste, and abuse calls  DSIA takes calls from State employees  Screens the calls using a two-step process  Document the caller’s allegations to be sent to appropriate agency internal auditor or Hotline Coordinator to investigate

6  Enter case into Hotline database for tracking and reporting purposes  Review investigative reports from agency Internal Auditor (I/A)  Close case and enter outcome into the hotline database  Maintain the SEFWA Hotline Policies and Procedures Manual

7 Conduct Hotline Investigations  Via agency internal audit programs  For agencies without internal audit staff  When it involves Agency Heads, Governing Board Members and other officials

8 Provide Oversight and Direction to State Agencies  Some State agencies do not have the staff or resources to review and develop internal controls  DSIA assists agencies in conducting internal control reviews for a variety of processes  DSIA makes recommendations to assist the agency

9 The Hotline Call  Phone call is toll-free  Call is untraceable- no caller ID  Call is answered with a scripted response  Caller is asked not to identify themselves  Caller’s gender not identified in case write- up

10 Documenting the call  Ask the caller: Who, What, Where, When -Perform level one screening process -Does the call fall within our jurisdiction? -Is the agency an executive branch agency? -Does the call involve discrimination, harassment, etc.?  If yes, refer the caller to the appropriate place to report the allegation

11  We receive phone calls, but occasionally we receive hotline cases via the mail, email, and envelopes put under our door  Investigator records what caller stated regarding the allegation obtaining as much detail as possible on the SEFWA Hotline form  Assign call a case number and case number to caller

12 Documenting the Call  Route the call write-up to audit manager to perform the Level Two screening process -Is there enough information/detail to perform an investigation? - Seriousness of the allegation -Materiality of the allegation -Timing of the allegation - how long ago did it occur? -Has the allegation been reported/investigated recently?

13  The call may be screened out (based upon screening criteria) or sent to appropriate agency internal auditor for investigation  DSIA will perform investigation if agency does not have an I/A or Hotline Coordinator (H/C)  DSIA may investigate any hotline case - even if the agency has an I/A or a H/C  Enter the case data into the FWA hotline database

14 What if the allegation involves an agency head, I/A, governing board member or other high-level official?  DSIA would then perform investigations that involve any of the individuals mentioned above  A report of allegations, findings, conclusions and recommendation would be issued to the Secretary over that agency  A copy to the Governor’s Chief of Staff

15 When DSIA Receives Investigative Report From Agency Internal Auditor:  Reviews report to ensure allegations were adequately addressed with reasonable conclusions reached  Follow-up occasionally with I/A as to questions or concerns  Upon resolution with the report, closes out the case and records the information in DSIA database

16  All SEFWA hotline work papers are confidential  Investigative reports are available to callers through the FOIA in a redacted format

17 DSIA Database  Case number, agency number, and agency name  Date call was received, date referred for investigation and date that the report is due to DSIA  Information relating to the case being open, closed, or screened out  To whom the case was referred - I/A, H/C, DSIA or other agency  Name of the subject in the allegation  Summary of the allegation  Date case was closed  If the case was substantiated, unsubstantiated, or improvements made in internal controls  Corrective action taken, if any  Using the database records, issues various monthly reports internally regarding DSIA hotline statistics

18 Hotline Statistics Number of Cases Assigned  FY 2008- 513  FY 2007- 443  FY 2006- 474  FY 2005- 443

19 State Employee Fraud, Waste And Abuse Hotline Purpose

20 All State Employees  State Employee Hotline provides state employees with an opportunity to report significant instances of fraud, waste or abuse anonymously by using a toll-free hotline number.  Major objective of the hotline is to identify situations where fraud, waste, or abuse may have occurred in state agencies and institutions so it can be eliminated.  If you observe a situation within your own agency that appears to involve fraud, waste, or abuse, give us a call - it's toll free and anonymous.

21 Why Should You Contact The State Employee Fraud, Waste, And Abuse Hotline?  Because we all share a common goal: To provide the citizens of the Commonwealth with an honest, effective, and efficient state government.  Further, it is every State employee's obligation to report significant instances of fraud, waste, or abuse to management.  If employees are uncomfortable with reporting to management, then they have the opportunity to report it anonymously to the Hotline.  When there is fraud, waste, or abuse in our state government, we all suffer, as taxpayers and as employees of the Commonwealth.

22 Who Can Call?  Any classified, at-will, contract, part-time, or full-time state employee.

23 When Should Employees Call?  When the employee first learns of the fraud, waste, or abuse. Keep in mind, the longer it has been from the incident and the time it is reported, the more difficult it becomes to investigate.  The Hotline is available for reporting significant instances of fraud, waste, and abuse from 8:15 a.m. to 5:00 p.m., Monday through Friday, except state holidays.

24 How Are Callers Protected?  You are never asked to provide your name when you call the Hotline, nor is your call traceable.  Should never be an attempt on anyone's part to try to identify the caller.  If someone is suspected of calling the Hotline or if the caller is found out, there can be no retaliation or retribution. If there is, it is a violation of policy and the Executive Order and we take it seriously in order to protect the integrity and credibility of the Hotline.  Retaliation against anyone for calling the Hotline is also reportable through the grievance process.

25 What Should Be Reported And What Should Not Be Reported?  It is not for general complaints, suggestions, or personnel issues  The Hotline does not accept calls of allegations that involve the Legislative Branch (we do have a cooperative agreement with the Auditor of Public Accounts), the Judicial Branch (we do have a cooperative agreement with the Supreme Court of Virginia), localities, or private businesses  The caller will be referred to the appropriate agency to report those calls  The Hotline is reserved for reporting: -Illegal or Fraudulent Conduct -Waste of Funds -Abuse of State Property or Resources -Gross Mismanagement -Gross Neglect of Duty

26 Questions???

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