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Uncle Sam wants tattlers

| January 11, 2011 8:00 PM

Never have waste and fraud been desirable, but in this political and economic climate tolerance has reached a low point. With public funds the waste really hits the fan. Given the last two years of executive branch emphasis on transparency, the magnifying glass is widening to public demands of accountability.

Sunday's online Press story about the 2011 Report on Government Waste by the watchdog Idaho Freedom Foundation is just one example. The government also polices itself, at least in theory. FraudNet, formed in 1979 as a tip hotline, is part of the Forensic Audits and Special Investigations Team in the mammoth Government Accounting Office. Its objectives are to "operate an automated means that anyone may use to report allegations of fraud, waste, abuse, or mismanagement of federal funds." Confidential citizen reporting to FraudNet has led to investigations, arrests, and in some cases, changes in the law.

In 2010 the feds funneled $111 billion of Recovery Act cash to states and local governments to invest in private and public sector projects to jump start the economy. Between February 2009 and September 2010 Idaho received $1.7 billion of those funds, generating 9,394 jobs. These amounts will decrease drastically from this point on; the high amounts scheduled for 2009 and 2010 were designed to address the recession.

Especially since this massive influx of money with low oversight, the GAO has announced it wants citizens to report any suspected misuse of Recovery Act funds by contractors and state and local governments receiving them. So far Idaho's score card, while not perfect, has been pretty good by comparison to other states. Generally FraudNet reports describe misuse of travel funds and similar applications of federal money which citizens feel are inappropriate or exceed the scope of a grant's intent. Most recipients are careful not to use the money unethically, but big influxes of cash can make it easier to hide fraud.

Reporting suspected fraud or misuse of federal funds may be done via e-mail (name not required) to fraudnet@gao.gov or by phone (800) 424-5454. About half of reports are transferred to other agencies where appropriate. If the information can be verified an investigation may result. For more information see www.gao.gov.

Sholeh Patrick is a columnist for the Hagadone News Network. E-mail sholehjo@hotmail.com