From the U.S. Government Accountability Office, www.gao.gov Transcript for: FraudNet and COVID-19 Federal Assistance Description: GAO's Director of Investigations, Howard Arp, joins the Watchdog Report to talk about FraudNet. It's a GAO program for the public, government workers, and contractors to report allegations of improper activities in the federal government. And it can help ensure the proper use of funds provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Released: April 2020 [Music] [Howard Arp:] FraudNet is a significant resources to submit allegations or concerns of fraud, waste, abuse, mismanagement by federal employees. [Matt Oldham:] Welcome to GAO's Watchdog Report, your source for news and information from the U.S. Government Accountability Office. I'm Matt Oldham. President Trump signed the CARES Act into law on March 27th. It provides more than $2 trillion for emergency aid during the coronavirus pandemic. GAO has a program called FraudNet that Americans can use to report allegations of fraudulent spending, waste, abuse or mismanagement of federal funds. And with me to talk about FraudNet and its importance as it relates to the CARES Act is Howard Arp, GAO's Director of Investigations and member of the Forensic Audits and Investigative Service team. Thanks for joining me, Howard. [Howard Arp:] Thanks for having me, Matt. [Matt Oldham:] So what kind of fraud would be reportable to FraudNet? [Howard Arp:] So any and all fraud involving federal funds or federal programs. This would include those associated with the federal government's response to COVID-19 and its economic impacts. FraudNet is here to help members of the public get their concerns to the appropriate agency with jurisdiction over their specific issue as well as to be a resource to inform GAO as it supports Congress and its oversight responsibilities. [Matt Oldham:] Let's say somebody is looking to give a tip to FraudNet. How do they do that? [Howard Arp:] So to submit a tip to FraudNet, the preferred method is through our Internet which they can access at www.gao.gov/fraudnet again www.gao.gov/fraudnet. That said, however, anyone who doesn't have access to the Internet can also call our 800 number at 800-424-5454 where they may leave a message and our FraudNet staff will obtain that and respond. And then the final mechanism for them to submit a complaint or an allegation is to send an e-mail to fraud@gao.gov, fraud@gao.gov. [Matt Oldham:] And for anyone who's using any of those three methods, Howard, can people remain anonymous when they contact FraudNet? [Howard Arp:] Yes. So FraudNet takes confidentiality very seriously. And people have a choice in how they choose their confidentiality to be used. So they can submit information anonymously. However, if anonymity is requested, they need to understand that they will not be contacted by FraudNet staff regarding their allegation or information or what action, if any, is taken as a result. Additionally, if they choose a filing preference of either standard filing or confidential, they then may be contacted if we need additional information to process the allegation. If a determination were to be made to refer the allegation to federal, state or local agencies or departments, they would be notified of that by FraudNet. [Matt Oldham:] And, Howard, what do you do once GAO has received an allegation? [Howard Arp:] Matt, after we receive an allegation, it's assigned a unique control number for the tipster to use when referencing it when they're communicating with our FraudNet staff about the status of the tip they submitted. FraudNet does not -- I want to repeat, does not conduct investigations. FraudNet's investigative research analysts review each complaint to identify the appropriate entity to make a referral to, if that were to be appropriate. FraudNet also may refer allegations for follow-up to an appropriate Inspector General office or to the Department of Justice or other law enforcement agency. And information of these allegations is also made available to GAO staff as they evaluate federal programs. [ Music ] [Matt Oldham:] So it sounds like FraudNet is a clearinghouse for allegations or tips that Americans can use when they would like to report fraud, waste, abuse, or mismanagement of federal funds. They have three methods to do so. Is every allegation investigated? [Howard Arp:] So no. Every allegation that comes in is given, you know, its appropriate consideration, review, and once a determination is made to make a referral and that referral goes out, it is then up to that receiving agency to review the information and decide how they are best going to proceed. When information is shared internally within GAO, it can play a critical role to identify improper activities or potential weaknesses within a program for GAO to consider as part of our oversight work. [Matt Oldham:] And just to be clear, FraudNet isn't only for issues related to the CARES Act or the coronavirus pandemic, is that right? [Howard Arp:] That's correct. In addition to the recently passed CARES Act and the other legislation related to that, FraudNet is also a mechanism for anybody to report concerns of fraud or other misconduct involving any federal program. It does not have to be necessarily related to the CARES Act, although that, of course, is what is obviously on everybody's mind at this point. [Matt Oldham:] And last question, Howard. Why is this program important? [Howard Arp:] Well, FraudNet is a significant resource for the private citizens, government employees, contractors as well as others to submit allegations or concerns of fraud, waste, abuse, mismanagement or misconduct by federal employees. And, as you know, fraud, waste, and abuse and mismanagement of federal funds erodes their trust in the government. And we can help ensure that tips are routed to the appropriate agency with jurisdiction over their concerns. So additionally, the information plays a crucial role in steering GAO's oversight work as we work to assist the Congress in fulfilling their oversight responsibility. [Matt Oldham:] Howard Arp was talking about FraudNet, a GAO program where Americans can report things like fraud, waste, or abuse in the federal government. Thank you for your time, Howard. [Howard Arp:] Thank you, Matt. [Matt Oldham:] And thank you for listening to the Watchdog Report. To hear more podcasts, subscribe to us on Apple podcasts. Make sure you leave a rating and review to let others know about the work we're doing. For more from the congressional watchdog, the U.S. Government Accountability Office, visit us at gao.gov. [ Music ]