What are fraud, waste and abuse?

FRAUD

The dishonest and deliberate course of action that results in the obtaining of money, property, or an advantage to which the recipient would not normally be entitled. The intentional deception perpetrated by an individual or individuals, or an organization or organizations, either internal or external to County government, which could result in a tangible or intangible benefit to themselves, others, or could cause detriment to others or the County. Fraud includes a false representation of a matter of fact, whether by words or by conduct, by false or misleading statements, or by concealment of that which should have been disclosed, and is intended to deceive.

Examples of Fraud:

• Theft
• Falsifying documents (invoices, payroll, financial, other)
• Personal use of County resources
• Kickbacks/Bribes

WASTE

The expenditure or allocation of resources significantly in excess of need. Waste does not necessarily involve an element of private use nor or personal gain, but invariably signifies poor management. "Waste" means the intentional or unintentional thoughtless or careless expenditure, consumption, mismanagement, use, or squandering of resources owned or operated by the County to the detriment or potential detriment of the County. Waste also includes incurring unnecessary costs because of inefficient or ineffective practices, systems, or controls. Waste does not normally lead to an allegation of "fraud."

Examples of Waste:

• Purchase of unneeded supplies or equipment
• Paying inflated prices for goods and services

ABUSE

The exploitation of "loopholes" in the limits of County ordinances and laws, primarily for personal advantage. For example, an individual may abuse travel allowances by intentionally and unnecessarily scheduling meetings in another city on a Friday afternoon and on the following Monday morning in order to claim per diem over a weekend. "Abuse" means the excessive or improper use of something, or the use of something in a manner contrary to the natural or legal rules for its use; the intentional destruction, diversion, manipulation, misapplication, maltreatment, or misuse of resources owned or operated by the County; or extravagant or excessive use so as to abuse one's position or authority. "Abuse" does not necessarily lead to an allegation of "fraud."

Examples of Abuse:

• Using one’s position to gain personal advantage
• Improper destruction or use of County resources