Notification: Fraud Alert: Grantees Disclose Violations to OIG

Transcript fraudcast_transcript_omb_uniform_guidance.txt

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Fraud Alert

The U.S. Environmental Protection Agency Office of Inspector General is issuing this fraud alert to highlight new regulatory requirements for EPA grant recipients and subrecipients to disclose both civil and criminal violations of federal law to the OIG. Disclosures should be made using this form, which can be completed online or emailed to OIG.Hotline@epa.gov. The fraud alert also reiterates the whistleblower protections available for EPA contractors, grant recipients, and subrecipients who make protected disclosures.

Uniform Guidance Update

On April 4, 2024, the Office of Management Budget released revisions to the mandatory grant disclosure language in the “Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” section of 2 C.F.R. part 200, also known as the Uniform Guidance. These revisions align the grant disclosure requirements in the Code of Federal Regulations with the requirements in Federal Acquisition Rule section 52.203-13. The effective date for the final guidance is October 1, 2024.

The changes made to the Uniform Guidance include the following:

A requirement that disclosures now be filed with both the cognizant OIG and the grantor agency.
New language to emphasize that the requirements apply not just to prime recipients but also to any subrecipients, such as city governments and non-profit organizations. For example, the previous language of “potentially affecting the award” was replaced with “in connection with the Federal award (including any activities or subawards thereunder).” Also, “subrecipient” was added to the first sentence of the section.
A requirement to report potential civil False Claims Act violations, not just criminal violations.
The addition of the “credible evidence” standard. This is commonly defined as information “that is worthy of belief; trustworthy evidence.” Using this standard means that grant recipients, subrecipients, and applicants do not need to make a firm legal determination that a criminal law has been violated before they are required to disclose a violation to the pass-through entity, if applicable; the grantor agency; and the cognizant OIG.

For more information on the changes made to the Uniform Guidance, refer to the Office of Management and Budget’s “Uniform Guidance: Title 2 of the Code of Federal Regulations” at this webpage. For more information regarding mandatory disclosures, refer to EPA OIG’s website.

Whistleblower Protections for Employees of EPA Contractors, Subcontractors, Grant Recipients, Subrecipients, and Personal Service Contractors

Under 41 U.S.C. § 4712, it is illegal for an employee of a federal contractor, subcontractor, grant recipient, subrecipient, or personal services contractor to be discharged, demoted, or otherwise discriminated against for making a protected whistleblower disclosure. If you are such an employee and believe you have been retaliated against for making a protected whistleblower disclosure, you may submit a retaliation complaint to the OIG Hotline. For more information about whistleblower protections, review this whistleblower protection informational brochure.