Ethics &

RISK ASSESSMENT ARRA INVESTIGATIONS

Judicial Disciplinary Code Executive Disciplinary Code Code of Ethics Rules of Professional Conduct

Judicial Executive 42 IAC – Divulging Confidential Information RPC 1.6 – Confidentiality of Information 42 IAC – Conflicts of Interest; Decisions & Voting RPC 1.7 – Conflict of Interest; Current Clients 42 IAC – Conflict of Interest; Contracts RPC 1.8 – Conflict of Interest; Specific Rules 42 IAC – Donor Restriction Ethics

IC (16)

Investigative Legal Audit Forensics Office of Inspector General

The Ethics Rules on the Web

Summary of the rule Examples SEC Advisory Opinions Interpreting the rule The full rule

1 st 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 – Conflict of Interest; Contracts Applies to contracts with ANY agency. IC – Conflict of Interest Applies to contracts with your own agency.

OIG Disclosure Disclosures State Board of Accounts 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 Required: IC (b) Itemization: Expenditure of Appropriations, IC

D Monster Contracts

E Uniform Government Code UGC

UGC: Uniform Government Code

II ARRA

ARRA: Stimulus Money

The Act Public Law

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. 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. 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…

III INVESTIGATIONS

Types of contract ethics violations: MECCA (overbilling) Paragon Labs (gifts from contractor) SBDC Forgery (fraud) Evansville (identity theft)

Looper: First Steps

Vocational Rehabilitation

Nurse Overbilling

DNR Bribe

PLA Manicurist Test Proctor Bribes

Change-Orders

Bogus daycare center

IMPACT job training: $40,000

Contracts Gone Bad Fictitious IMPACT job training (Catch the Fire)

Paragon Examples of Contracts Gone Bad

In summary: Keep contracts in order Screen contracts for COIs Beware of monster contracts & demand itemizations ARRA Stimulus reports timely

Advisory Opinions

Office of Inspector General 315 W. Ohio St., Room 104 Indianapolis, IN