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Ethics &. CONTRACTS. RISK ASSESSMENT ARRA INVESTIGATIONS. Judicial. Executive. Disciplinary Code. Disciplinary Code. Code of Ethics. Rules of Professional Conduct. Ethics. Judicial. Executive. 42 IAC 1-5-11 – Divulging Confidential Information.
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Ethics & CONTRACTS
RISK ASSESSMENT ARRA INVESTIGATIONS
Judicial Executive Disciplinary Code Disciplinary Code Code of Ethics Rules of Professional Conduct
Ethics Judicial Executive • 42 IAC 1-5-11 – Divulging Confidential Information • RPC 1.6 – Confidentiality of Information • 42 IAC 1-5-6 – Conflicts of Interest; Decisions & Voting • RPC 1.7 – Conflict of Interest; Current Clients • RPC 1.8 – Conflict of Interest; Specific Rules • 42 IAC 1-5-7 – Conflict of Interest; Contracts • 42 IAC 1-5-2 – Donor Restriction
Office of Inspector General Legal Investigative Audit Forensics
The Ethics Rules on the Web www.in.gov/ig/2336.htm
Summary of the rule Examples SEC Advisory Opinions Interpreting the rule The full rule
1st Term • 64 criminal arrests • 27 ethics complaints • 33 efficiency reports (>30 recomms) • > 1,500 advisory opinions • $10 million savings & captures
I RISK ASSESSMENT
A Conflicts of Interest
Conflicts in Contracting 42 IAC 1-5-7 – Conflict of Interest; Contracts Applies to contracts with ANYagency. IC 35-44-1-3 – Conflict of Interest Applies to contracts with your own agency.
Disclosures State Board of Accounts Disclosure OIG Disclosure
B SBOA Findings
Contracts Gone Bad:SBOA Top Findings • Amendments not timely • Contract payments continued though lapsed • No contract before payment • Overpayment: payments not tracked
C Itemization
Itemization Itemization Required: IC 5-11-10-1(b)Itemization: Expenditure of Appropriations, IC 4-10-12-1
D Monster Contracts
E Uniform Government Code UGC
UGC: Uniform Government Code www.in.gov/ig/2332.htm
II ARRA
The Act Public Law 111-5 www.recovery.gov www.in.gov/gov/INvest.htm
Contract provision: Add this Provision to Contracts and Grants: American Recovery and Reinvestment Act Funding: Funds supporting this Grant/Contract/Loan have been provided through the “American Recovery and Reinvestment Act of 2009” (“ARRA”) and are subject to the reporting and operational requirements of ARRA. The State makes no representations/guarantees about funding beyond the grant/contract period as this is being funded with one time dollars from the ARRA. Therecipient of these fundsis responsible for record keeping and reporting requirements under ARRA. Reports required by Federal agencies and the State of Indiana shall include, but are not limited to, performance indicators of program deliverables, information on costs and progressagainst timelines. Additionally, each contract and grant subject to ARRA, including subcontractors and subgrantees, is subject toaudit by appropriate federal or state entities. Failure to comply with theterms, conditions and requirements of ARRA may result in the recapture of the balance of funds awarded. Add this Provision into RFPs: American Recovery and Reinvestment Act Funding: This procurement will result in a Grant/Contract paid for by funds provided through the “American Recovery and Reinvestment Act of 2009” (“ARRA”) and are subject to the reporting and operational requirements of ARRA. The State makes no representations/guarantees about funding beyond the grant/contract period as this is being funded with one time dollars from the ARRA. Respondents to this solicitation must acknowledge their ability to comply with all report requirements defined by the Federal Government for ARRA funds. The recipient of these funds is responsible for record keeping and reporting requirements under ARRA. Reports required by Federal agencies and the State of Indiana shall include, but are not limited to, performance indicators of program deliverables, information on costs and progress against timelines. Additionally, each contract and grant subject to ARRA, including subcontractors and subgrantees, is subject to audit by appropriate federal or state entities. Failure to comply with the terms, conditions and requirements of ARRA may result in the recapture of the balance of funds awarded.
ARRA penalties: • Reporting 10 days after CY quarter • Public report (on website) • Federal IG “shall” review “any” concerns raised by public • Recovery Accountability Transparency Board (and Recovery Independent Advisory Panel) • And…
False Claims Acts 31 U.S.C. §§ 3729-3733 IC 5-11.5-5-5
III INVESTIGATIONS
Types of contract ethics violations: MECCA (overbilling) Paragon Labs (gifts from contractor) SBDC Forgery (fraud) Evansville (identity theft)
Fictitious IMPACT job training (Catch the Fire) Contracts Gone Bad
Examples of Contracts Gone Bad Paragon
In summary: • Keep contracts in order • Screen contracts for COIs • Beware of monster contracts & demand itemizations • ARRA Stimulus reports timely
Advisory Opinions www.in.gov/ig/2334.htm
Office of Inspector General 315 W. Ohio St., Room 104 Indianapolis, IN 46202www.in.gov/ig info@ig.in.gov 317.232.3850