Background
Investigations by the Federal Office of the Inspector General
(OIG) and National Highway Traffic Safety Administration (NHTSA)
have detected cases of fraud involving some subgrantees receiving
federal highway safety grant funds. A comprehensive monitoring program
is one of the most effective ways to prevent fraud. Such a program
includes the elements outlined in Sections 1-3 of this chapter.
Sufficient management oversight is essential to ensure that the
monitoring program is fully implemented. On-site monitoring of grants
that include personnel services is essential.
TxDOT will notify NHTSA in writing within three (3) business
days from TxDOT receiving notification of any potential fraudulent
activity or other violation of federal criminal law in accordance with
the regulatory requirement.
Personnel services grants, including Selective Traffic
Enforcement Program (STEP) grants that include law enforcement overtime
and grants containing subcontracts, have been identified as high
risk for fraud. These grants require strong internal supervision
by the subgrantee and extra attention/supervision by the TxDOT Traffic
Safety Division - Behavioral Traffic Safety Section (TRF-BTS).
Based on the results of investigations conducted in Texas
and other states, the OIG, NHTSA and the Governors Highway Safety
Association (GHSA) have compiled the following information to assist State
Highway Safety Offices (SHSOs) in communicating with subgrantees,
implementing safeguards, monitoring, and taking action when fraud
is detected (See under “Manuals
and Reports” on the eGrants Help Page).