Fraud and Abuse Procedures

Issuance No: A8
Issuance Date: July 8, 2004; Revised 6/5/2018
Subject: Reports and Complaints about Criminal Fraud, Waste, Abuse, or Other Criminal Activity Related to Federal Awards


In accordance with DWD Issuance 23-2015 and TEGL 02-2012

Recipients of federal awards under WIOA or the Wagner-Peyser Act are obligated to report incidents of fraud, waste, misappropriation, or theft of those funds by the recipient, or a subrecipient, as a condition of receiving of funds. DWD Issuance 23-2015 makes reference to 20 CFR 683.200(h) which requires reporting of criminal fraud, waste, abuse, or other criminal activity.

In the WIOA implementing regulations, 20 CFR 683.200(h) stipulates that all WIOA Title I and Wagner-Peyser Act recipients of federal awards must disclose violations of federal criminal law potentially affecting the award.  The Rule incorporates by reference the requirements of the “Uniform Guidance for Federal Awards” at 2 CFR 200.113, “Mandatory Disclosures.”  This Rule requires:

The non-federal entity or applicant for a federal award must disclose, in a timely manner, in writing to the federal awarding agency or pass-through entity, all violations of federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the federal award.  Failure to make required disclosures can result in any of the remedies described in 200.338 “Remedies for noncompliance,” including suspension or debarment.

The above-referenced Rule at 2 CFR 200.338 prescribes the following remedies or penalties for noncompliance with mandatory disclosures:

If a non-federal entity fails to comply with federal statues, regulations, or the terms and conditions of a federal award, the federal awarding agency or pass-through entity may impose additional conditions, as described in 200.207, “Specific conditions.”  If the federal awarding agency or pass-through entity determines that noncompliance cannot be remedied by imposing additional conditions, the federal awarding agency or pass-through entity may take one or more of the following actions, as appropriate in the circumstances:

(a) Temporarily withhold cash payments pending correction of the deficiency by the non-federal entity or more severe enforcement action by the federal awarding agency or pass-through entity;
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.
(c) Wholly or partly suspend or terminate the federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and federal awarding agency regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a federal awarding agency).
(e)  Withhold further federal awards for the project or program.
(f) Take other remedies that may be legally available.

It is the policy of North Central Missouri College and the Northwest Workforce Development Board that the highest standard of ethical conduct be maintained by Board members, contracted agencies, and staff alike.  To achieve and maintain this standard and to abide by DWD Issuance 23-2105 and TEGL 02-2012, there are various policies, procedures, and activities in place:

  • NCMC Board Policy Manual
  • Northwest WDB Administrative Procedures
  • Financial Procedures Manual
  • College Audit
  • Travel Procedures
  • Time sheets
  • Inventory control
  • Annual Fiscal Monitoring/ Program Evaluation
  • Annual Continuous Improvement Review

In those rare circumstances when established standards are not met, this procedure should guide actions.  For purposes of this procedure, the following definitions will be used:

Fraud – intentional perversion of the truth in order to induce another to part with something of value.
Abuse – intentional misrepresentation for personal gain.
Waste – intentional or neglectful use of resources which minimizes their intended effect or contribution.

It is the shared responsibility of all WDB staff to communicate openly any concerns of irregular practices which involve travel expenses, payroll, procurement, time sheets, agency equipment/ supplies, or any other business/ financial records.  However, it is not the responsibility of employees to investigate or determine if fraud or abuse has actually occurred.  Upon receiving a report of irregular practice, the Director shall:

  1. Ensure necessary precautions are taken to prevent recurrence.
  2. Determine whether partial or full recovery is possible (fidelity/ surety bonds,liability insurance, employee repayments, etc.).
  3. Conduct preliminary investigation through interviews and/ review of records.
  4. If necessary, conduct in-person interviews.
  5. Notify Missouri Division of Workforce Development and US Department of Labor

Cases of fraud and abuse will be determined on an individual basis.  The Director may consider verbal warning, written warning, probation, or termination based upon the severity of the infraction. In case of charges against the Director, the College President and WDB Chair shall be notified to serve in the investigative and hearing role.  If necessary, they will make a final recommendation to the Workforce Development Board and the Board of Trustees.

Any cases of confirmed fraud, waste, or abuse by contracted agencies of the WDB that rise to the level of disciplinary action must be reported to the WDB Director as soon as is legally possible.  In all cases where WDB or contracted agency situations result in criminal charges being filed, the Workforce Development Board, the College President, the Division of Workforce Development, must be notified immediately and concurrently.




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