National Science Foundation Office of the Inspector General

1
National Science Foundation Office of the
Inspector General

• Human Resource Development Division (HRD)
• Post-Award Management Workshop
• August 15, 2007
• Washington, DC
• John P. Cieplak Laura A. Rainey
• Investigator Audit Manager

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Our Mission

• At NSF, the Office of Inspector General conducts
  independent investigations, audits, and reviews
  of NSF and its programs.
• We support the NSF mission by promoting
  efficiency, effectiveness, and economy of
  internal operations and external programs thereby
  promoting the integrity of NSF.

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How OIG Performs Its Mission

• OIG Investigations - Investigates allegations of
• fraud, waste, and abuse
• violations of Federal policy, directives,
  regulations, and laws
• research misconduct
• OIG Audit - Conduct or oversee audits of NSF and
  its Programs
• Internal Audits
• External Audits
• OIG Outreach
• Presentations and Briefings
• Informational brochures

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What is Certified in a Proposal?

• Compliance with award terms and conditions
• Accuracy and completeness of statements
• COI Policy
• Drug-Free Workplace
• Debarment and Suspension
• Lobbying (proposal gt100,000)

Providing False Information is a criminal
violation of U.S. Code, Title 18, Section 1001.
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Interaction with OIG

• At OIG Our door is always open
• You may seek assistance to resolve issues /
  answer questions
• You may report matters that are or may be
  improper
• We may call upon you to
• Provide information as an advisor or expert
• Participate in performance and financial audits
  or reviews
• Participate in OIGs or awardees inquiry or
  investigation
• Participate in an Outreach seminar or training
  session

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Institutional Responsibilities

• Notify OIG
• of allegations of wrongdoing
• of significant financial or administrative
  problems
• of research misconduct issues
• Take appropriate remedial actions

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What Do We Do With Allegations?

• Investigate criminal, civil, administrative
  allegations
• Refer to federal, state, local authorities
  referral for audit
• Criminal or civil outcomes include
• Prosecutions or Settlement Agreements
• Incarceration Monetary Fines Reimbursement
  Compliance Agreements
• Administrative outcomes include
• Termination/Restriction on Awards
  Certifications Assurances Debarments
  Reprimands

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Office of Investigations

• Civil / Criminal
• Civil cases seek money (damages may be trebled)
• Criminal cases seek
• Imprisonment
• Money (fines, restitution)
• Both can be followed by administrative actions
  (debarment, termination)
• Settlement and Compliance Agreements
• Administrative
• Other wrongdoing by employees, contractors,
  grantees
• For agencies that support research, OIG may be
  involved in investigating Research Misconduct

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Research Misconduct (RM)

• Research Misconduct means the fabrication,
  falsification, or plagiarism in proposing or
  performing research, reviewing research
  proposals, or in reporting research funded by the
  agency. 45 C.F.R. 689.1.a
• Fabrication making up data or results and
  recording or reporting the same
• Falsification manipulating materials, equipment
  or processes, or changing or omitting data or
  results
• Plagiarism appropriation of another persons
  ideas, processes, results, or words without
  giving appropriate credit

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Common Civil/Criminal Issues

• 18 USC 641, 666
• 18 USC 1030, 1341, 1343
• 18 USC 287, 1001
• 18 USC 207, 208, 209
• 18 USC 1505, 1510, 1515, 1516
• 31 USC 3729

• Embezzlement/Theft
• Fraud
• False Statements/Claims
• Conflict of Interests
• Obstruction of Justice
• Civil False Claims (treble damages)

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Civil/Criminal Trends

• Handling Program Income
• Workshops and Conference
• Research Grants
• Managing Participant Support Costs
• Documentation
• Reallocation
• Contributing Cost Sharing
• Documentation
• Certifications
• Documenting Time and Effort

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Other Investigative Concerns

• Conflicts of Interest
• Seeking Employment
• Decision making
• Divided loyalties (commitment)
• Improper Influence of Peer Review Process
• Lobbying w/Federal Funds
• Commingling of Federal and non-Federal Funds
• Dual Compensation
• Receive funding from NSF and other entity for the
  same work

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Keys to the Success

• Effective grant management skills
• Know requirements (award letter and manuals)
• Focus on research objectives
• Good accounting practicessufficient support
  documents
• Document approvals and conversations between
  awardee and NSF program and grant officials
• Effective compliance programs
• Risk assessment
• Leadership, management, training, enforcement,
  reporting
• Ask if you have questions

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Office of Audit

• Internal Audits
• External Audits

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Internal Audits

• Evaluate the internal operations of NSF
• Recent Reports
• Sunshine Act (annual)
• Process for Reviewing Indirect Costs and Indirect
  Cost Proposals
• Public Access to Results of NSF-funded Research
• Travel Card Program
• Law Enforcement Program in the Antarctic

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External Audits

• Evaluate financial aspects of institutions who
  conduct NSF-funded research
• Includes A-133 audits
• Audits performed by OIG auditors and/or CPA firms
• Common areas for audit findings
• Unsupported Costs
• Award administration
• Subrecipient monitoring
• Cost sharing

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Costs Determinations

• Allowable, reasonable, allocable, documented,
  consistent treatment of costs
• Unsupported expenditures
• Expenditures and/or reimbursements not properly
  documented (including supervisory approvals)
• Time and effort reports not timely, not
  signed/certified
• Unallowable expenditures
• Direct charges for costs in the indirect pool
• Overload salary (unless NSF-approved)
• Meals, alcohol
• Expenditures not permitted under OMB Cost
  Circulars

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Award Administration

• Financial Management System
• Formal procedures for determining allowability of
  costs
• Obtain and document approvals of expenses
• Compare budget to actual expenditures
• Document participant support per award
• Ensure accuracy and timeliness of reporting and
  notifications
• Maintain equipment inventory and document
  bi-annual counts of federally-funded inventory

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Subrecipient Monitoring

• Responsible for program and financial oversight
• Ensure award terms/Federal requirements are
  followed
• Assess and monitor subrecipients capability
• Reporting, site visits
• A-133 audits
• Ensure timely and appropriate corrective action

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Cost Sharing

• No Federal funds can be used (as a general rule)
• Track cost sharing per award (no duplication)
• Documented and certified (AOR gt500,000)
• Valuation at actual/fair market value
• Report annual and cumulative amounts
• Both awardee and subawardee cost sharing

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When Should You Contact OIG?

• Report allegations of wrongdoing
• Research misconduct
• Financial fraud, theft from NSF or NSF-funded
  activities
• Violation of research related regulations,
  directives, or policy
• Report significant administrative or financial
  problems
• Request an Outreach event or training session
• Questions related to A-133 or other ongoing
  audits

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OIG Outreach

• Presentations, Seminars, and On-Site Visits
• For students, PIs, and administrators
• Emphasize education, partnerships, and lessons
  learned
• Assistance with matters relating to
  Investigations /Audits and NSF activities
• Website http//www.nsf.gov/oig/outreach_all.jsp
• Brochures
• Conference Presentations
• Briefings
• Fact sheets

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How Can I Contact OIG?

• Internet http///www.nsf.gov/oig/
• E-mail oig_at_nsf.gov
• US Mail 4201 Wilson Blvd., Arlington, VA 22230
• Phone [phone]
• Hotline [phone]
• OIG Liaisons to EHR
• John P. Cieplak jcieplak_at_nsf.gov 703-292-4976
• Laura A. Rainey lrainey_at_nsf.gov 703-292-7302