ARRA Fraud Language Likely To Be Expanded

Washington, May 25 – The federal government likely will consider adding language to Office of Management and Budget circulars covering grants and cooperative agreements that will require grantees to inform inspectors general about potential fraud, a Justice Department Office of Inspector General official said. This language is already contained in the American Recovery and Reinvestment Act and currently affects all programs receiving funds under the stimulus law.

“At some point in the future, this will be mandatory for everybody,” said Kenneth Dieffenbach, senior special agent with the DOJ OIG’s fraud detection office, at the National Grants Management Association’s Annual Training Luncheon. “That’s important on a number of levels. Prior to this, if a nonprofit became aware of employees stealing funds from them or lying on timesheets or committing fraud, it did not have to step forward and air their dirty laundry. Now they won’t have that option.”