Grants and Program Management
Grants and programs are, in many respects, similar to contracts. Grantees and their
subgrantees may attempt to perpetrate fraud through kickbacks, falsification of
credentials, overstatement of costs or performance, and failure to render adequate
levels of service.
Grants and programs are fraud magnets because they involve a great deal of money
and it is sometimes difficult to measure or verify if the grantee has actually done
what he or she was paid to do.
A common type of fraud perpetrated against grants and programs is simply the provision
of services at a level less than that agreed upon. Another common type of fraud
is the overstatement of the number of beneficiaries who were, or are, being served.
Because the government is not the direct recipient of the services covered by the
grant or program, it’s often difficult to ascertain the levels of service actually
provided or the number of beneficiaries who actually receive the service.
Awards are often subject to a number of legal requirements, such as the Buy American
Act. Recipients can reduce their costs by flouting these laws. Such non-compliance
can be lucrative for the recipient and difficult for the grantor or program administrator