Monthly Webinar | Identifying Fraud and Monthly Webinar | Key Red Flags in Grant Awards and the Role of Certified Fraud Examiners in Your Anti-Fraud Program-Video Recording

Video Transcription

Video Summary

The National Grants Management Association (NGMA) hosted a webinar focusing on identifying and preventing fraud in government grant awards, featuring experts Ivan Gonzalez and Rebecca Silva from Falcon Sanchez and Associates, alongside FBI Special Agent Joseph Gonzalez. The session highlighted the significant risk of grant fraud amid increasing federal funding, with an estimated $233 billion to $521 billion lost annually to fraud nationwide. The discussion covered definitions and models of fraud, including the enduring "fraud triangle" (pressure, opportunity, rationalization) and the updated "fraud diamond," which adds capability as a critical factor.<br /><br />Key findings showed that most fraud is uncovered through anonymous tips rather than audits. The presentation differentiated types of government fraud—occupational (internal) and external—including corruption, procurement fraud, and grant fraud. Common fraud schemes like bid rotation, ghost employees, and misuse of grant funds were illustrated with real cases, including corruption involving municipal mayors in Puerto Rico.<br /><br />Red flags for grant fraud include misuse of funds, false reporting, conflict of interest, delays in documentation, and questionable financial practices. Prevention strategies emphasized implementing strong internal controls, comprehensive risk assessments, anti-fraud policies, mandatory training, and promoting a culture of compliance and ethical behavior. Data analytics techniques like Benford’s Law and textual analysis were introduced as tools to detect anomalies signaling fraud.<br /><br />The role of Certified Fraud Examiners (CFEs) was underscored as vital in investigating, documenting, and providing evidence for fraud cases without passing judgment, supporting legal processes. FBI insights stressed the growing complexity of fraud threats, including cyber and investment fraud, advocating for information sharing and employee awareness to bolster prevention. The webinar concluded with Q&A, stressing that early detection, clear policies, and active reporting systems are essential to reduce the prevalence and impact of grant fraud.

Keywords

National Grants Management Association

NGMA

government grant fraud

fraud triangle

fraud diamond

anonymous tips

occupational fraud

external fraud

bid rotation

ghost employees

internal controls

Benford's Law

Certified Fraud Examiners