June 8-11, 2009Joint Annual Meeting Human Resource Development National Science Foundation Office of Inspector General John P. Cieplak, Investigator Laura.

June 8-11, 2009 Joint Annual MeetingHuman Resource Development

National Science FoundationOffice of Inspector General

John P. Cieplak, Investigator

Laura Hansen-Rainey, Audit Manager


Our Mission

• Office of Inspector General (OIG) – Created 02/10/89 at NSF– Conduct independent audits,

investigations, and reviews of NSF and its programs

– To promote efficiency, economy and effectiveness of internal operations and external programs thereby promoting the integrity of NSF

OIG Performs Its Mission

• Investigations – Allegations–Fraud, waste, and abuse–Violations of federal policy, laws, etc.–Research Misconduct

• Audit – Conduct / Oversee Audits– Internal, external, and A-133 audits

• Outreach – Presentations / Briefing


Office of Investigations

• Civil & Criminal Investigations

• Administrative Investigations


What We Do With Allegations

• Investigate administrative, civil, criminal allegations–May refer to federal, state, or local

authorities, as well as to NSF–Criminal or civil outcomes –

prosecution or settlements–Administrative outcomes – award

termination, restrictions, debarments


Investigative Process

• Allegation received in OIG• Conduct preliminary investigation• Investigate substantive allegations• Report of investigation –

conclusions, recommendations• If appropriate, refer to audit• Work with NSF, DOJ, and awardeeJune 8-11, 2009 Joint Annual Meeting

Human Resource Development

Institutional Responsibilities

• Notify OIG–Of allegations of wrongdoing–Of significant administrative or

financial problems–That affect NSF awards or interests

• Take appropriate remedial actions• Respond to OIG’s requests for records

and information


Research Misconduct

• Fabrication – making up data or results & recording or reporting

• Falsification – manipulating materials, equipment or processes, or changing / omitting results, data

• Plagiarism – misappropriation of another’s ideas, words, results


Research Misconduct

• Institutions are required to report substantive allegations to OIG

• OIG frequently defers investigation to let institution investigation proceed

• Subjects have substantial due process• Confidentiality is protected• Certain timelines apply

Civil / Criminal Trends

• Purchase card abuses• Poor time & effort documentation• Shifting costs between projects• Failing to contribute cost sharing• Mischarging for budget items

unrelated to award


Common Civil/Criminal Issues

• Embezzlement/Theft• Fraud (including mail or wire fraud)• False Statements/Claims• Civil False Claims (treble damages)• Criminal False Claims• Obstruction of Justice


Other Investigative Concerns

• Conflicts of interest• Improper influence on peer review• Lobbying with federal funds• Commingling federal & non –

federal funds• Dual Compensation – paid by NSF

and other sources


Keys to Success

• Effective Award Management–Know requirements–Focus on research –Good accounting practices–Request & document NSF approvals

• Effective Compliance Programs–Risk assessment & stewardship


American Recovery and Reinvestment Act of 2009

• Related to ARRA funds, the Act prohibits reprisals against any non-federal employee for reporting:

• Gross mismanagement; waste; danger to public health or safety; abuse of authority; implementation or use of covered funds; or violation of law, rule, or regulation related to ARRA funds.


ARRA 2009

• Institution & contractor employees may submit complaints to OIG

• OIG investigates unless frivolous, no covered $ involved, or another adjudicative proceeding is underway

• Institutions & employers are required to post notice of employee rights and remedies


Office of Audit

• Internal Audits• External Audits • A-133 Audits


Internal Audits

• Evaluate the internal operations of NSF• Review agency policies and

procedures• Evaluate agency processes• Make recommendations for

improvements


External Audits• Financial aspects of institutions

who conduct NSF-funded research

• Review internal controls and compliance

• Audits performed by OIG auditors and/or CPA firms


Common Audit Findings

• Unallowable Costs • Award administration• Sub recipient monitoring• Cost sharing


Determination of Costs

• Allowable, reasonable, allocable, documented, consistent treatment of costs

• Unsupported costs• Expenditures and/or reimbursements

not properly documented • Time and effort reports not timely, not

signed/certified


Unallowable Costs

• Direct charges for costs in the indirect pool

• Overload salary (unless NSF-approved)

• Meals above per diem, alcohol• Expenditures not permitted

under OMB Cost Circulars


Award Administration

• Financial Management System• 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


Subrecipient Monitoring

• Responsible for program and financial oversight

• Ensure award terms / federal requirements are followed

• Assess and monitor subrecipient's capability for managing awards

• Ensure timely and appropriate corrective action


Cost Sharing• No federal funds can be used (as a

general rule)• Track cost sharing per award (no

duplication)• Documented and certified (AOR

>$500,000)• Valuation at actual/fair market value• Report annual and cumulative amounts• Both awardee and subawardee cost

sharing


A-133 Audits

• Audit of financial statement, internal controls, and compliance with federal requirements

• Required each year when auditee expends $500,000 or more in federal funds

• OIG reviews completed reports for identification of NSF-related findings and questioned costs, and for quality of audit reports


Results of A-133 Audits• April 2008 – March 2009

–Reviewed 320 reports –Reports covering $9.4 billion in NSF

expenditures–Less than unqualified opinions for 37

awardees–Auditors disclosed 412 audit findings


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


When Should You Contact OIG?

• Request an Outreach event or training session

• Questions related to ongoing audits (including A-133 audits) and investigations (but confidentiality restrictions may apply)


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


How Can I Contact OIG?• Website: http:///www.nsf.gov/oig/• Outreach website:

http://www.nsf.gov/oig/outreach_all.jsp• E-mail: [email protected]• US Mail: 4201 Wilson Blvd., Arlington,

VA 22230• Phone: 703-292-7100• Hotline: 1-800-428-2189

http://www.nsf.gov/oig/

http://www.nsf.gov/oig/outreach_all.jsp

mailto:[email protected]


OIG Liaisons to EHR

• John P. Cieplak [email protected] 703-292-4976

• Laura Hansen-Rainey [email protected] 703-292-7302




Questions??

June 8-11, 2009Joint Annual Meeting Human Resource Development National Science Foundation Office of Inspector General John P. Cieplak, Investigator Laura.

Documents

integrity of nsf slide

oig oig

oig of allegations

criminal allegations

nsf criminal

audit manager slide

nsf awards

reviews of nsf