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The State Employee Fraud, Waste, and Abuse Hotline


The State Employee Fraud, Waste, and Abuse Hotline ... it is every State employee's obligation to report significant instances of fraud, waste, or abuse to management. – PowerPoint PPT presentation

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Title: The State Employee Fraud, Waste, and Abuse Hotline

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

History of the Division of State Internal Audit
  • 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.

  • 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

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.

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 callers allegations to be sent to
    appropriate agency internal auditor or Hotline
    Coordinator to investigate

  • 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
  • Maintain the SEFWA Hotline Policies and
    Procedures Manual

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

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

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
  • Callers gender not identified in case write-up

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

  • 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

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
  • - Seriousness of the allegation
  • -Materiality of the allegation
  • -Timing of the allegation - how long ago did it
  • -Has the allegation been reported/investigated

  • 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

What if the allegation involves an agency head,
I/A, governing board member or other high-level
  • 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 Governors Chief of Staff

When DSIA Receives Investigative Report From
Agency Internal Auditor
  • Reviews report to ensure allegations were
    adequately addressed with reasonable conclusions
  • 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

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

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
  • 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

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

State Employee Fraud, Waste And Abuse Hotline
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.

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.

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

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
  • The Hotline is available for reporting
    significant instances of fraud, waste, and abuse
  • 815 a.m. to 500 p.m., Monday through Friday,
    except state holidays.

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

What Should Be Reported And What Should Not Be
  • 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