A Day in the Life of an A Day in the Life of an Auditor at the Division of Auditor at the Division of
State Internal AuditState Internal Audit
The State Employee Fraud, The State Employee Fraud, Waste, and Abuse HotlineWaste, and Abuse Hotline
How many calls do we answer in a How many calls do we answer in a typical day?typical day?
There are some days that we There are some days that we respond to 10 callsrespond to 10 calls
There are some days that we There are some days that we respond to four callsrespond to four calls
And there are some days that we do And there are some days that we do not get any calls for the Hotlinenot get any calls for the Hotline
Calls to the HotlineCalls to the Hotline
Are all calls to report allegations of fraud, Are all calls to report allegations of fraud, waste, and abuse?waste, and abuse?• No, some calls are just to find out how the No, some calls are just to find out how the
Hotline worksHotline works• Some are to check on the status of an Some are to check on the status of an
investigationinvestigation• Some are to provide additional information to Some are to provide additional information to
an original callan original call• And some are to check to see if the And some are to check to see if the
investigator has any questions for the callerinvestigator has any questions for the caller
The DSIA AuditorsThe DSIA Auditors We are auditors, too!We are auditors, too! We have the same experience, skills, We have the same experience, skills,
and certifications as agency auditorsand certifications as agency auditors When investigations involve agency When investigations involve agency
heads or other auditors we will heads or other auditors we will perform the investigationperform the investigation
We will write and issue the We will write and issue the investigative reportinvestigative report
The Call to the HotlineThe Call to the Hotline
Thank you for calling the State Thank you for calling the State Employee Fraud, Waste, and Abuse Employee Fraud, Waste, and Abuse Hotline, please do not disclose your Hotline, please do not disclose your identity, are you calling back about a identity, are you calling back about a case that you have previously case that you have previously reported?reported?
The Screen Out ProcessThe Screen Out Process
The DSIA uses two screening processes to The DSIA uses two screening processes to determines if the call falls within the scope determines if the call falls within the scope of the Hotline Policyof the Hotline Policy
The first screen out process determines if The first screen out process determines if the allegation is for an executive branch the allegation is for an executive branch agency, or if the caller should be directed agency, or if the caller should be directed to another agency for assistanceto another agency for assistance
Each Hotline call that is assigned a case Each Hotline call that is assigned a case number goes through a second screening number goes through a second screening processprocess
The Second Screen Out ProcessThe Second Screen Out Process
How material are the allegations?How material are the allegations? How timely are the allegations?How timely are the allegations? Did the caller provide enough detail Did the caller provide enough detail
to perform an investigation?to perform an investigation?
Gathering the InformationGathering the Information
Its our job to obtain as much detailed Its our job to obtain as much detailed information as possible from the information as possible from the caller about the allegationcaller about the allegation
This can, at times, be very difficultThis can, at times, be very difficult We try to put the caller at ease We try to put the caller at ease
The CallerThe Caller
Many of the callers are fearful about Many of the callers are fearful about calling the Hotlinecalling the Hotline
Many callers are fearful that they will Many callers are fearful that they will not remain anonymousnot remain anonymous
Many callers are fearful of retaliation Many callers are fearful of retaliation from their agencyfrom their agency
The identity of the caller is The identity of the caller is anonymous and the information they anonymous and the information they provide is kept confidentialprovide is kept confidential
The Caller (continued)The Caller (continued)
Some callers are reporting the allegation Some callers are reporting the allegation to us as second hand informationto us as second hand information
Some callers don’t have all the facts about Some callers don’t have all the facts about the allegation when they callthe allegation when they call
We have to ask open-ended questions to We have to ask open-ended questions to get the callers to give us information get the callers to give us information about the allegationabout the allegation
Some callers report more than one Some callers report more than one allegationallegation
The Caller (continued)The Caller (continued)
Some callers will send us their Some callers will send us their allegations by mail, email, or faxallegations by mail, email, or fax
Many callers will broadly state that Many callers will broadly state that everyone knows what is going oneveryone knows what is going on
Unfortunately, often when employees Unfortunately, often when employees are interviewed, the information are interviewed, the information provided is of little helpprovided is of little help
The Caller (continued)The Caller (continued)
We ask for the names of witnessesWe ask for the names of witnesses Some callers will provide the names Some callers will provide the names
of witnessesof witnesses Sometimes the witnesses have some Sometimes the witnesses have some
information which is helpfulinformation which is helpful Sometimes the witnesses do not Sometimes the witnesses do not
have any useful informationhave any useful information
Hotline Statistics Hotline Statistics FY 2009FY 2009
Total cases assigned during fiscal Total cases assigned during fiscal year 2009 were 612year 2009 were 612
499 cases were closed499 cases were closed 39% of the Hotline cases 39% of the Hotline cases
investigated were substantiatedinvestigated were substantiated
Hotline Statistics (continued)Hotline Statistics (continued)
13% of the Hotline cases were 13% of the Hotline cases were unsubstantiated but improvements in unsubstantiated but improvements in controls were madecontrols were made
43% were unsubstantiated43% were unsubstantiated 9% were referred to others. 9% were referred to others.
Common AllegationsCommon Allegations
State vehicle abuse: 62 casesState vehicle abuse: 62 cases Abuse of the State’s leave policy:68 Abuse of the State’s leave policy:68
casescases Unnecessary purchases: 40 casesUnnecessary purchases: 40 cases
Cases Assigned by CategoryCases Assigned by Category
CategoryCategory FY 2009FY 2009 FY 2008FY 2008 FY 2007FY 2007
AbuseAbuse 381381 391391 229229
WasteWaste 139139 115115 104104
FraudFraud 7070 6161 4343
PersonnelPersonnel 00 1919 2020
OtherOther 00 1313 4747
TotalTotal 612612 599599 443443
Cases Assigned by TypeCases Assigned by TypeTypeType FY 2009FY 2009 FY2008FY2008 FY 2007FY 2007
Misuse of State Misuse of State VehicleVehicle
6262 6161 2626
Leave AbuseLeave Abuse 6868 6767 3737
Improper HiringImproper Hiring -- 3939 --
Non-compliance Non-compliance with agency with agency internal policyinternal policy
3939 3838 2727
Employee Employee MisconductMisconduct
5757 3737 2626
Poor ManagementPoor Management -- -- 4444
Misuse of State Misuse of State Equip.Equip.
-- -- 3535
All Other TypesAll Other Types 346346 357357 248248
TotalTotal 612612 599599 443443
Cases Substantiated by CategoryCases Substantiated by Category
CategoryCategory FY 2009FY 2009 FY 2008FY 2008 FY 2007FY 2007
AbuseAbuse 126126 127127 8484
WasteWaste 3232 3434 3232
FraudFraud 1414 2222 1010
PersonnelPersonnel 66 44 1818
OtherOther 11 44 1414
TotalTotal 179179 191191 158158
Documenting the AllegationDocumenting the Allegation
We write up the allegation in a clear We write up the allegation in a clear and concise format for the Agency and concise format for the Agency auditor to investigateauditor to investigate
Sometimes, depending on the Sometimes, depending on the allegation and or the Agency, we allegation and or the Agency, we may do some preliminary research to may do some preliminary research to assist the agency auditorassist the agency auditor
Documenting the Allegation Documenting the Allegation (continued)(continued)
We make and mail a copy of the We make and mail a copy of the allegation write-up to the Agency allegation write-up to the Agency Internal Audit DirectorInternal Audit Director
We keep the original write-up in the We keep the original write-up in the DSIA Hotline filesDSIA Hotline files
We enter the Hotline case We enter the Hotline case information into the DSIA databaseinformation into the DSIA database
Documenting the Allegation Documenting the Allegation (continued)(continued)
The agency is given 60 days to complete The agency is given 60 days to complete its investigationits investigation
The agency provides a written report to The agency provides a written report to the DSIAthe DSIA
We review the Agency Internal Auditor’s We review the Agency Internal Auditor’s investigative report to ensure that it investigative report to ensure that it adequately addresses the allegationsadequately addresses the allegations
We close the case in the DSIA databaseWe close the case in the DSIA database
When the DSIA Performs the When the DSIA Performs the InvestigationInvestigation
The allegations involve the Agency The allegations involve the Agency HeadHead
The allegations involve a Secretary in The allegations involve a Secretary in the Governor’s Cabinetthe Governor’s Cabinet
The allegations involve the agency The allegations involve the agency Internal Audit Department (IA)Internal Audit Department (IA)
When the DSIA Performs the When the DSIA Performs the Investigation (continued)Investigation (continued)
There may be an appearance of a There may be an appearance of a conflict of interest if the agency IA conflict of interest if the agency IA Department performs the Department performs the investigationinvestigation
The agency does not have an IA The agency does not have an IA Department or Hotline CoordinatorDepartment or Hotline Coordinator
When the DSIA Performs the When the DSIA Performs the Investigation (continued)Investigation (continued)
We have many of the same audit We have many of the same audit certifications that agency Internal certifications that agency Internal Auditors haveAuditors have
We follow the same audit procedures We follow the same audit procedures and investigative techniques as and investigative techniques as agency Internal Auditors doagency Internal Auditors do
We develop an audit planning We develop an audit planning documentdocument
When the DSIA Performs the When the DSIA Performs the Investigation (continued)Investigation (continued)
We gather data and evidenceWe gather data and evidence We interview witnessesWe interview witnesses We interview the subject(s)We interview the subject(s) We document our findings in our We document our findings in our
work paperswork papers We analyze our findingsWe analyze our findings
When the DSIA Performs the When the DSIA Performs the Investigation (continued)Investigation (continued)
We review our findings with the Audit We review our findings with the Audit ManagerManager
We make recommendations for We make recommendations for corrective action to the agencycorrective action to the agency
Our work papers are confidentialOur work papers are confidential
DSIA ResourcesDSIA Resources
Department of Human Resource Department of Human Resource ManagementManagement
Commonwealth Accounting Policies Commonwealth Accounting Policies and Procedures Manual (CAPP and Procedures Manual (CAPP Manual)Manual)
PaylinePayline Personnel Management Information Personnel Management Information
System (PMIS)System (PMIS) The InternetThe Internet
DSIA Resources (continued)DSIA Resources (continued)
The Commonwealth Accounting and The Commonwealth Accounting and Reporting System (CARS)Reporting System (CARS)
The Small Purchase Charge Card The Small Purchase Charge Card detaildetail
The Reid Interview TechniqueThe Reid Interview Technique
ReportingReporting
We write an audit report that will be We write an audit report that will be issued to an Agency Head, a issued to an Agency Head, a Governor’s Cabinet Secretary, and/or Governor’s Cabinet Secretary, and/or to the Governor’s Chief of Staffto the Governor’s Chief of Staff
We request a response to our audit We request a response to our audit reportreport
We evaluate the appropriateness of We evaluate the appropriateness of the response to our reportthe response to our report
The Audit ReportThe Audit Report
Our audit report contains:Our audit report contains:• The Scope of the InvestigationThe Scope of the Investigation• The Allegation(s)The Allegation(s)• The Finding of FactThe Finding of Fact• The ConclusionThe Conclusion• RecommendationsRecommendations
DSIA Statistical DataDSIA Statistical Data
Information regarding each Hotline Information regarding each Hotline case is entered into our DSIA case is entered into our DSIA databasedatabase
The information in our database can The information in our database can be queried in many waysbe queried in many ways
We issue monthly internal reports of We issue monthly internal reports of Hotline statisticsHotline statistics
DSIA Statistical Data (continued)DSIA Statistical Data (continued)
Quarterly, Hotline status reports are Quarterly, Hotline status reports are requested from Agency Auditors on requested from Agency Auditors on cases older than 60 days cases older than 60 days
Annually, a Hotline statistical report Annually, a Hotline statistical report is issued to the State Comptroller, is issued to the State Comptroller, the Secretary of Finance, and the the Secretary of Finance, and the Governor’s Chief of StaffGovernor’s Chief of Staff
Cases Assigned and Closed by Cases Assigned and Closed by DSIADSIA
Fiscal YearFiscal Year Open Open Cases Cases
Beginning Beginning of Yearof Year
Cases Cases AssignedAssigned
Cases Cases ClosedClosed
Open Open Cases End Cases End
of Yearof Year
FY 2009FY 2009 2222 4848 5252 1818
FY 2008FY 2008 2525 4545 4848 2222
FY 2007FY 2007 1818 4141 3434 2525
TotalTotal 111111 121121
Cases Assigned and Closed by Cases Assigned and Closed by DSIADSIA
Fifty-two cases were closed during 2009, an Fifty-two cases were closed during 2009, an increase of 4 from 2008:increase of 4 from 2008:• Twenty-seven (52% of closed cases) involved Twenty-seven (52% of closed cases) involved
substantiated allegationssubstantiated allegations• Six (11% of closed cases) involved Six (11% of closed cases) involved
unsubstantiated allegations but unsubstantiated allegations but recommendations were maderecommendations were made
• Three (6% of closed cases) involved allegations Three (6% of closed cases) involved allegations that were unsubstantiated that were unsubstantiated
• Sixteen (31% of closed cases) were screened outSixteen (31% of closed cases) were screened out ““Cases assigned” and “cases closed” Cases assigned” and “cases closed”
include screened out cases include screened out cases