2022-R-26 - CDBG Fraud Policy RESOLUTION NO. 2022-R-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EDGEWATER, FLORIDA ADOPTING POLICIES AND
PROCEDURES RELATING TO ENSURING THE CITY'S
DETECTION AND PREVENTION OF FRAUD, WASTE AND
ABUSE FOR USE IN ADMINISTERING COMMUNITY
DEVELOPMENT BLOCK GRANTS; PROVIDING
DEFINITIONS; DEFINING AN ACTION PLAN; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Edgewater desires to establish policies and
procedures regarding the detection and prevention of fraud, waste and abuse under the City's
Community Development Block Grants(CDBG),and
WHEREAS,the City Council of the City of Edgewater recognizes the need to adopt policies
and procedures for the detection and prevention of fraud, waste and abuse under the Community
Development Block Grant to ensure compliance and adherence to requirements and standards set for
by the United State Department of Housing and Urban Development(HUD), the Florida.Department
of Economic Opportunity (DEO), Federal Regulations, State Statutes, and Stant Adminiatra v6..
'r
Rules.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the-City of
Edgewater Florida:
Section 1. The City Council hereby adopts policies and procedures for the detection and
prevention of fraud, waste and abuse under the Community Development Block Grant, a
copy of which is attached and incorporated herein as Exhibit"A"
Section 2. All conflicting purchasing policies are superseded by this policy.
Section 3. All resolutions or part of resolutions in conflict herewith are hereby repealed.
Section 4.This resolution shall take effect upon adoption.
2022-R-26 I
After Motion to approve by r) i f')r; Q 1r)Mr.-n ?� with Second by
&Ik-nr� 7 - ,the vote on this Resolution was as follows:
AYE NAY
Mayor Mike Thomas _
Councilwoman Christine Power �C
Councilwoman Gigi Bennington K
Councilwoman Debbie Dolbow X
Councilman Jonah Powers x
PASSED AND DULY ADOPTED thislZinday ofL2 !Qj-:, r i I "A . 2022.
CITY COUNCIL OF THE
CITY OF EDGEWATER,
RIDA ) �r
Mike Tho s
� TT a
15-1'
• _J
1
Bonnie Zlotnik, C
City Clerk
For the use and reliance only by the City of Edgewater,
Florida Approved as to form and legality by:
Aaron R.Wolfe, Esquire
City Attorney
Doran, Sims,Wolfe&Yoon
Approved by the City Council of the City of Edgewater at a
meeting held on this :�qay ol`C jLj rc A,2022,
under Agenda Item No 8
�1
2022-R-26 2
EXHIBIT "A"
ANTI FRAUD, WASTE AND ABUSE POLICY
2022-R-26 3
CDBG
Anti-Fraud, Waste,
and Abuse Policy
city Of
E-D GEWc.19 1ATEIR
Resolution No. 2022-R-26
Table of Contents
Anti-Fraud, Waste, and Abuse (AFWA)........................................................................................ 1
Scope............................................................................................................................................... 1
AFWAComplaint Process.............................................................................................................. 2
Fraud, Waste, and Abuse Prevention Measures ............................................................................. 2
Confidentiality
Whistle-blower's Act of 1986......................................................................................................... 3
Cooperation with Official Department Investigations.................................................................... 3
CDBG
Anti-Fraud, Waste&Abuse Policy
Resolution 2022-R-26
P"1 Anti-Fraud,Waste, and Abuse(AFWA)
The City of Edgewater is the Sub-recipient of Community Development Block Grant funds-from
the Florida Department of Economic Development (DEO) and the United States Department of
Housing and Urban Development (HUD). These CDBG funds will be utilized to support long-
term disaster recovery needs for housing, infrastructure, economic development and health and
safety in Florida affected communities. As a steward of public funds, the City is actively
working to combat fraud, waste and abuse in its programs.
This policy is directed specifically to the Community Development Block Grant programs and is
intended to establish procedures and processes that will aid in the detection and prevention of
fraud,waste,and abuse in the CDBG programs.
This policy applies to all City employees, providers, vendors, contractors, consultants, partners,
citizens, applicants, external departments and agencies doing business with the City, as well as,
beneficiaries and others associated with, working for, accessing, or attempting to access benefits
under the CDBG programs.
Scope
Fraud is the intentional (willful or purposeful) deception or misrepresentation made by a person
with the knowledge that the deception could result in some unauthorized benefit to him/herself or
some other person. There are many forms of fraud.
!'h
Waste includes over-utilizing City services, supplies or equipment, or causing unnecessary costs
through carelessness or inefficiency.
Abuse includes activities that result in unnecessary costs to the City. Note that this is financial
abuse, not physical or emotional abuse of a person. Physical and emotional abuse of a person
should be reported to the police.
Examples of fraud include,but are not limited to,misrepresentation of:
• Income(Unreported or under-reported)
• Household composition
• Financial resources (transferred or hidden resources)
• Residency
• Citizenship status
Other types of fraud include, but are not limited to:
• Using another person's identification
• Forging signatures or documents
• Concealing access to duplicate funding
• Misrepresenting a medical condition to obtain additional benefit
• Misusing funds (diverting them for an unintended use)
Pte\
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Anti-Fraud,Waste&Abuse Policy
Resolution 2022-R-26
Other actions constituting fraud,waste and abuse include,but are not limited to: �1
• Any dishonest or fraudulent act
• Misappropriation of funds, supplies or assets
• Impropriety in handling or reporting money or financial transactions
• Profiting as a result of insider knowledge
• Unauthorized disclosure of confidential or private information
• Accepting or seeking anything of material value from contractors, vendors or any person
that seeks a beneficial decision,contract, or action from the City
• Accepting or seeking anything of material value from contractors, vendors or any person
that is providing services for CDBG activities
• Unnecessary cost or expenditures
• Diversion of program resources
AFWA Complaint Process
The City's constituents, employees and contractors may report suspected fraud, waste, or abuse
by contacting the appropriate DEO CDBG program managers.
All suspected cases of fraud will be taken seriously, and complaints will be reported to the
appropriate DEO Compliance and Reporting Manager and DEO's Office of the Inspector
General at OIG@deo.myflorida.com. If DEO's OIG determines that it is appropriate, it will
coordinate its investigation with agencies such as the Florida Office of the Inspector General, the
Florida Office of the Attorney General, or the Florida Department of Business and Professional
Regulation.
All substantiated cases of fraud, waste, or abuse of government funds will be forwarded to the
United States Department of Housing and Urban Development (HUD), Office of Inspector
General (OIG) Fraud Hotline (phone: 1-800-347-3735 or email: hotline@hudoig.gov) and
DEO's HUD Community Planning and Development(CPD)Representative.
Fraud,Waste,and Abuse Prevention Measures
The City's governing body is responsible for ensuring that the City's CDBG programs comply
with all federal and state regulations as well as recommending improvements that enhance
programmatic efficiency, effectiveness, and documented results. Below are the main critical
responsibilities for preventative measures:
• Ensure ongoing compliance with federal, state, and local regulations through review of the
policies and procedures, project and beneficiary eligibility and award determinations, and
program activity files.
• Conduct regular internal self-monitoring of the City's CDBG programs and report results to
City Manager.
• Identify and assist with investigations of potential fraud, referring cases to DEO's CDBG
team and DEO's OIG as appropriate.
• Oversee and coordinate all reporting for DEO's CDBG programs, including state and
federal reporting requirements,data analysis, and providing data for DEQ leadership.
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Anti-Fraud,Waste&Abuse Policy
Resolution 2022-R-26
Provide technical assistance to program areas regarding compliance issues and questions,
as well as monitoring findings.
Confidentiality
Complainants reporting fraud, waste and misuse of federal resources, or other program
irregularities may remain anonymous. All information received about suspected fraud, waste and
abuse will be treated confidentially. Furthermore, all investigative materials developed and
interviews conducted to substantiate the allegations of fraud, waste or abuse will be treated
confidentially.
Information will only be disclosed on a need-to-know basis to appropriate law enforcement
authorities. No information about the status of an investigation will be shared outside of the
City's CDBG Program Manager, DEO's Constituent Services Manager, DEO's Policy Manager,
DEO's Compliance and Reporting Manager, and DEO's CDBG Program Director and
authorized DEO staff members, except with the State or HUD OIG upon conclusion of the
investigation or with law enforcement or legal counsel, in the event legal action should be
needed.
Whistle-blower's Act of 1986
The City understands that confidentiality is important to avoid retaliation against reporting
individuals. Florida's Whistle-blower's Act prevents agencies or independent contractors from
f' `\ taking retaliatory action against an employee who reports to a person or agency designated by
the statute (see next paragraph below) violations of law on the part of a public employer or
independent contractor [as defined in Section 112.3187(3)(d), Florida Statutes], that create a
substantial and specific danger to the public's health, safety or welfare. It also prevents agencies
or independent contractors from taking retaliatory action against any person who discloses
information to an appropriate agency alleging improper use of governmental office, gross waste
of funds, or any other abuse or neglect of duty on the part of an agency, public officer, or
employee.
Violations of this act should be reported in accordance with Section 112.3187, Florida Statutes.
Any employee who has a complaint should immediately contact the DEO Department head,
DEO Office of the Inspector General, the Governor's Office of the Chief Inspector General, the
Florida Commission on Human Relations, or the state's whistle-blower's hotline at (800) 543-
5353. [Section 112.3187, Florida Statutes]
Cooperation with Official Department Investigations
The City's employees are required to maintain high standards of honesty, integrity, and
impartiality and to place the interests of the public ahead of personal interests. When allegations
of violations of these standards are received, full and accurate information must be obtained so
management may respond appropriately. Toward this end, employees of the City must cooperate
with DEO program staff and the duly appointed investigators from DEO's Office of Inspector
/'� General to uncover the facts surrounding possible violations in an official investigation.
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Anti-Fraud,Waste&Abuse Policy
Resolution 2022-R-26
Failure to comply as specified above without a valid mitigating reason, such as exercising a right (�
protected by federal or state law, will constitute a violation of this policy and subject the City to
appropriate disciplinary action up to and including dismissal of employees of the City.
CABG 4
Anti-Fraud,Waste&Abuse Policy
Resolution 2022-R-26