State Agency - NASACT



TOPIC: Investigation of Complaints about General GovernmentOFFICE: AuditorSTATE: IDDATE: 12/09/2014QUESTION / ISSUE: Idaho does not currently have a fraud hotline, or a designated agency, to investigate potential fraud or complaints about government practices.?We are interested in finding out how other states handle investigation of complaints about general government. Do you have a hotline function for concerns/complaints about general government (as opposed to hotlines for benefit fraud)?What office oversees the hotline function? Do you have an investigative function for substantiated complaints, and if so, how is it structured? Is it an Executive, Judicial, Legislative entity? Or is it within a constitutional/elected office such as the State Auditor’s Office, Attorney General’s Office, etc?If it is an independent office, how is the Director/Inspector General appointed?Do they issue public reports, refer to law enforcement if necessary, make recommendations?StateCommentsAlaskaThe State of Alaska, Division of Legislative Audit does not have a fraud hotline nor does the State of Alaska’s executive branch. Our workpapers are made confidential by statute. Therefore, when fraud is suspected, we turn it over to the Department of Public Safety/Department of Law/FBI for investigation. However, we have assisted with ongoing investigations by loaning auditors to help with evidence gathering.ConnecticutIn Connecticut, all whistleblower complaints are governed by state statute. Per that statute, we receive the initial complaints, review them, and report to the Attorney General for further review.?See attached statute for your information.Whistleblowers can call our hotline or submit a complaint electronically.The whistleblower statute also allows our agency to review complaints against state agencies, quasi-public agencies, and large state contractors (with contracts over $5 million per year). I would note that our law allows any citizen to make a complaint (other states only allow state employees) and the complainant can remain anonymous. The law grants protections from workplace retaliation to complainants who are state employees or employees of large state contractors. It also grants our office discretion as to how to handle a complaint or to reject a complaint for various reasons. Those reasons include that another agency may more appropriately handle the complaint, the complaint can be included as part of a normal audit, or the complaint is frivolous.\sIllinoisThe Illinois Auditor General’s Office was directed to establish a fraud hotline in 2011. It became operational in January 2012. Our jurisdiction is over complaints of fraud in executive agencies. The statutory language is as follows:?(30 ILCS 5/2-15) Sec. 2-15. Fraud hot line. The Office of the Auditor General shall operate a toll-free telephone hot line for the public to report allegations of fraud in the executive branch of State government. The Office may conduct audits concerning alleged fraud and, in appropriate circumstances, may refer allegations of fraud to law enforcement authorities or other governmental entities with jurisdiction over the alleged fraud. The Office shall adopt rules for the implementation of this Section. (Source: P.A. 97-261, eff. 8-5-11.)We have received approximately 177 complaints since inception of our fraud hotline. The calls are taken by trained staff who are primarily responsible for other duties. Many of the complaints are out of our jurisdiction, in which case we assist the caller in identifying the proper agency to contact. For those complaints that are within our jurisdiction, we may refer the complaint to another agency for investigation and/or to our auditors for follow-up within the context of our regularly scheduled audits and examinations. If, during our audit work, the complaint results in a finding, it would be reported in our publicly released audit/examination.By law, Illinois also has several executive branch inspector generals, as well as a legislative inspector general. Those entities receive complaints, conduct investigations and issue reports on the results of those investigations. This law, the State Officials and Employees Ethics Act, can be found at: . Copies of reports issued by the Executive Inspector General for the Agencies of the Illinois Governor can be viewed at: , we have a hotline called a TIPS line that is for any allegation of waste, fraud, or abuse of public funds.The hotline is managed as a joint responsibility of the Office of Financial Audits and the Office of IT and Special Audits.Yes, we have an investigative function. The allegations are reviewed by the division directors. Those allegations related to our routine annual audits for state and local governments are assigned in our database to the manager responsible for the specific audit. Allegations are followed up as part of those audits. For allegations not related to routine audit work, we consider the magnitude of the issue and determine a) if we need further information to determine how to handle it or b) decide to perform a special examination of the matter. Additional information gathered as part of part a) sometimes leads to a more in depth special investigation, sometimes it leads to us deciding that the matter didn’t have merit or needs to be referred to a private CPA performing the entity’s audit.It is within the State Auditor’s Office, which is a constitutional office.N/A – ElectedAll special examinations are released as public reports. Our office refers matters to law enforcement from either a special examination or even a financial audit if the situation warrants it. We work closely with the KY State Police, Attorney General, and FBI. We actually have public corruption meetings monthly with these groups to exchange information and discuss concerns.MichiganThe Michigan Office of the Auditor General does not have a hotline for complaints about government activities. However, citizens may file a complaint regarding state or local governmental practices with the Michigan Department of Attorney General's Public Integrity Unit, which is located within its Criminal Division. The link to file a complaint is . Although the webpage is labeled as "consumer" complaints, the Attorney General's staff will route each compliant to the proper division for appropriate follow-up.The Michigan Office of the Auditor General does not investigate complaints. As appropriate, the Michigan Department of Attorney General will work with the Michigan Department of State Police to investigate potential crimes.The Michigan Attorney General is an elected office. The Director of the Michigan Department of State Police is appointed by the Governor with the consent of Michigan's Senate.Noted above.The Michigan Attorney General will post newsworthy items to their webpage. Please see: for examples.Minnesota OSAWe have a "Report a Concern" tab on our website. We provide a form for the public to use to report concerns. The form asks for the unit of local government and what their concern is. This approach makes it much more efficient for staff as it makes the person think through what it is they want to communicate, and gives staff something to follow up with. (I have chosen not to have a hotline because you get a lot more reports coming in that have nothing to do with what we do). We have different forms for mandatory reporters to use when it comes to misuse or theft of public funds at the local level. It should be noted that the public can also call us or send a written letter which they do.Our office. Our Legal/SI Division tends to respond to the concerns (quite often they are answering questions or providing information or referring them to another office or agency).Yes, it is our Legal/SI Division. We have my General Counsel who oversees the Division. We have a lead investigator who is an attorney and a CPA who assists them when needed. We have other attorneys in the Division who can also assist if needed.Constitutional Office - State Auditor.My General Counsel is appointed by me, the State Auditor. I also appointed my lead investigator.Yes they issue reports after the county attorney completes their work (if they act). They work with law enforcement when needed. Yes, they also make recommendations for improved internal controls after we issue a report.MissouriYesThe Office of State Auditor operates a toll-free, confidential hotline, as described on the Web site page office has a formal follow-up process for hotline calls; please see the attached file.The state auditor is an elected position that is part of the executive branch of government.N/AThe actions taken after hotline information is received depend upon the specific circumstances. Although the resolution of calls is recorded in the hotline system, the office does not issue a report on the investigation of each complaint or tip received. Several other state agencies also have hotlines or units to receive and follow up on complaints or other information received from external parties. Examples include the Office of Attorney General (Medicaid provider fraud and consumer complaints); the Office of Secretary of State (investor complaints); and the Department of Insurance, Financial Institutions and Professional Registration (complaints involving companies or licensed professionals regulated by the department).MontanaMontana has a hotline to report Fraud, Waste, and Abuse of state resources. Here is a link to our hotline page for information regarding what and how to report and our fillable form. What office oversees the hotline function? The Legislative Audit Division is statutorily responsible for the oversight of the hotline. Our statute can be found at you can see from the information on the web page the complaints are handled in a couple of different ways. In many cases the complaint is referred to the agency audit where the complaint originated to check compliance with state or federal law or policy. I also occasionally write a letter to the agency and ask them to do an internal investigation and report back their findings and resolution. If we believe it is a violation of the criminal code we would refer that allegation to the Attorney General’s Office (an Executive Branch elected official) for possible prosecution at a state level or they might choose to refer to local law enforcement for prosecution.See above.N/AAny criminal prosecution would be a public record. Also, if referred to the audit and it developed into a finding it would be reported and recommendations made in a “Blue Cover” report and presented to the Legislative Audit Committee. Additionally, agencies are required by statute to report to the Attorney General and legislative auditor in writing the discovery of any theft, actual or suspected, involving state money or property under that agency's control or for which the agency is responsible. These reports are also tracked in our Hotline database. During the design phase of every audit the audit team reviews the Hotline database for the period of the audit to see what has been reported both as a hotline or penal violation. They may then incorporated those reports into their audit of the agency.NebraskaYesAuditor of Public Accounts- hotline covers State and all local governments.YesAuditor of Public AccountsN/Ac. Yes,?we issue Attestation and refer matters to law enforcement and work with them to ensure they have the financial information needed.New Jersey OSCYesThe Office of the State Comptroller (appointed), Investigations Division.YesThe Investigations Division is part of the Office of the State Comptroller (appointed) within the Executive branch.The Director of Investigations is hired through a competitive process by the Comptroller.Yes public reports are issued which include recommendations. The Investigative Division has administrative subpoena power, but does not have the ability to prosecute. Any findings of a criminal nature are referred to the Attorney General’s office for consideration.North CarolinaYesOffice of the State Auditor – Investigations DivisionOne Manager, 3 Supervisors, 9 audit staff, and a program assistant (Manager reports to the Chief Deputy)State Auditor, who is a member of the Council of State and falls under the Executive Branch of state government, but not an appointee of the Governor.State Auditor is elected in North Carolina – 4 year terms, no term limits (Constitutional Office)Yes, we issue public reports on substantiated allegations of improper governmental activity, refer to law enforcement and others as necessary and make recommendations.OhioThe Ohio Auditor of State (AOS) operates a hotline to receive complaints about government misconduct and fraud. The hotline is just one of the methods available to register complaints. Other methods include regular mail, a dedicated email address (fraudohio@), an on-line complaint form on our internet website, and a smartphone app (Ohio Stops Fraud). Ohio statute requires the hotline. I’ve attached that statute.The AOS Special Investigations Unit oversees the hotline function.Substantiated complaints of criminal activity are investigated by the Special Investigations Unit independently or in conjunction with the Special Audit Section. The Special Investigations Unit provides criminal investigative services and the Special Audit Section provides fraud examination services.The Ohio Auditor of State is a constitutionally established popularly elected position. The Special Investigations Unit and Special Audit Section are departments within the AOS.NA – see 2.a.The Special Investigations Unit prepares case files for law enforcement and/or prosecutorial referral which include charging recommendations. The Special Audit Section prepares and issues public reports of its examinations which include internal control or operational improvement recommendations.OklahomaYes, a link to a PDF fillable Fraud Report form on our website that can be printed and sent by US Mail, or emailed to our office when completed. A dedicated phone line is also available to report fraud, waste or abuse, and costs very little as we only pay by the call. However, most calls come in to our regular phone line.State Auditor & Inspector’s Office Yes, a separate division, Special Investigative Unit, within the State Auditor & Inspector’s Office (elected office). We issue public reports with recommendations when appropriate, available on our website, and refer to the local District Attorney when necessary.OregonOregon has a Government Waste Hotline for citizens and state employees to report waste, inefficiency, or abuse by state agencies, state employees or persons under contract with state agencies. The hotline offers a 24/7 toll-free telephone line as well as online reporting. The Secretary of State Audits Division oversees the hotline function. See our website at for more information about our hotline.We have a team of auditors who review each report received on the hotline. We investigate certain complaints and refer others to appropriate government agencies for their review of the complaints. The Oregon Secretary of State, an elected official, is an independent constitutional officer, and is responsible for, among other things, auditing public spending.See 2.a.We issue public reports on the activities of the hotline and investigations we perform, and make recommendations for improvements. In certain circumstances, we refer issues to law enforcement and the Oregon Government Ethics Commission. See our most recent hotline report at RicoThe Office of the Comptroller of Puerto Rico does have a hotline function for complaints about general government as well as for benefit fraud. To attend these complaints on October 1, 2014, we created the Office of Complaints and Fiscal Intelligence (OCFI). Before that, we had a Complaints Office under direct supervision of the Deputy Comptroller.Yes, we have an investigative function for substantiated complaints. In the case of complaints about general government, we directly investigate those related to the misuse of the government funds and public property. Complaints related to ethical matters are referred to the Office of Government Ethics. The Office of Complaints and Fiscal Intelligence (OCFI) is an office within the Comptrollership. It has two Special Aids, one who is in charge, an Attorney, and Analyst. It is under the Deputy Comptroller’s supervision.The Office of the Comptroller of Puerto Rico is a Legislative Entity.In accordance to the Constitution of the Commonwealth of Puerto Rico the Comptroller is appointed by the Governor with the advice and consent of the majority of the total number of members of the Puerto Rico Senate and House of Representatives. The Comptroller hold office for the term of ten years.The OCFI makes a preliminary investigation of the complaints. Depending on the results, the complaint is referred to the corresponding audit division for further action.The Office of the Comptroller of Puerto Rico issue public reports of one and each audit conducted. These reports include the findings, if any, of the complaints investigated in the field. If potential violations of state or federal law are uncovered, these are referred to the Puerto Rico Department of Justice or federal law enforcement agencies, accordingly. Every audit report includes recommendations to the Governor of Puerto Rico, Presidents of the Senate and House of Representatives, the Puerto Rico Department of Justice, President of the Board of Directors of an audited public corporation, the Principal Officer of the audited governmental entity or the Major of the audited municipality, and to the Principal Officer of those entities to which were referred findings.Furthermore, the public has access to all reports through the Comptroller’s Office Web page at .pr.TennesseeIn Tennessee, the Comptroller of the Treasury maintains a telephone and web based hotline for reporting fraud, waste, and abuse of government funds, property, and employees. The hotline was established through legislation in 1988 (please see attached state law). In addition to the hotline, concerns/complaints about general government are also received directly through the Comptroller’s Office, the Division of State Audit, the Division of Local Government Audit, the Financial and Compliance Investigations unit, the Special Investigations unit, and the Office of General Counsel.Currently, the Office of General Counsel oversees the hotline function. In the past, it was overseen by the Division of State Audit.Hotline notifications that have merit can either be reviewed/investigated by the applicable division within the Comptroller’s Office, or may be referred to the appropriate program or investigative agency. Both hotline calls, and outside referrals, may go through a “triage” process, where the allegations are discussed among representatives from the above mentioned groups to determine how, and who, will review/investigate the allegations. Comptroller staff may work with outside law enforcement agencies, local district attorneys, and the State’s Attorney General’s Office.The Office of the Comptroller of the Treasury is a constitutional office. The Comptroller of the Treasury is elected by a joint vote of the State’s legislature every two years.N/AThe Comptroller’s Office issues public audit and investigative reports. When necessary, these reports are shared with law enforcement. The reports do contain recommendations when deficiencies are identified.UtahThe Office of the Utah State Auditor operates a hotline where citizens can report suspected financial improprieties or violations of laws or regulations by state and local governments; waste of public funds or resources; and/or constructive suggestions for improving state and local governments regarding financial-related matters, internal control, or compliance. More information can be found at is run independently by the State Auditor.We currently have a staff of 3 people who are CPA’s and CFE’s who investigate complaints. For complaints deemed to be within our scope, we handle the entire investigation. Coordination with other entities is necessary in order to avoid duplication of efforts. Some complaints are referred to the subject entity’s internal audit when deemed appropriate.Office of the Utah State AuditorN/AWhen applicable, we issue reports with findings and recommendations. These reports are public documents. When we find that there has been a potentially criminal misappropriation of funds, we communicate with the applicable county attorney and send them a copy of the report. They determine whether prosecution is warranted.VirginiaVirginia has a hotline function that is overseen by the Office of the State Inspector General (OSIG). This is the link to the site: is the manual that they have for the policies and procedures for the Hotline investigations. The OSIG, a part of the Executive branch of government, oversees the Hotline investigations. Some of the complaints are referred to internal auditors at the agency that the complaint is about. If the agency does not have an internal audit function, the OSIG has staff who can investigate. They only investigate complaints for the Executive branch. The OSIG is appointed by the Governor to a four-year term subject to confirmation by the General Assembly. Legislative and Judicial branch complaints are referred by OSIG to the Auditor of Public Accounts (APA). The Auditor is in the legislative branch and is elected by a joint vote of both houses of the General Assembly to a 4 year term. The OSIG generally does not issue reports on its fraud investigations. However, they do share their information with the Auditor of Public Accounts and the Virginia State Police and sometimes joint investigation ensue.Beyond the Fraud hotline, agency officials that suspect fraud are required by statute (Code of Virginia Section 30-138) to report that to the OSIG, APA and State Police. We work together to determine which office(s) will be involved with each investigation. Each agency has appointed a staff member to take the lead on coordination of our work and to meet periodically to share information. ................
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