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).