Ethics &

RISK ASSESSMENT

ARRA

INVESTIGATIONS

Play

Judicial

Disciplinary Code

Executive

Disciplinary Code

Code of EthicsRules of

Professional Conduct

JudicialExecutive•42 IAC 1-5-11 – Divulging Confidential Information

•RPC 1.6 – Confidentiality of Information

•42 IAC 1-5-6 – Conflicts of Interest; Decisions & Voting

•RPC 1.7 – Conflict of Interest; Current Clients

•42 IAC 1-5-7 – Conflict of Interest; Contracts

•RPC 1.8 – Conflict of Interest; Specific Rules•42 IAC 1-5-2 –

Donor Restriction

Ethics

IC 4-2-7-3(16)

Investigative

Legal

Audit

Forensics

Office of Inspector General

The Ethics Rules on the Webwww.in.gov/ig/2336.htm

Summary of the rule

Examples

SEC Advisory OpinionsInterpreting the rule

The full rule

1st 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 1-5-7 – Conflict of Interest; Contracts

Applies to contracts with ANY agency.

IC 35-44-1-3 – Conflict of Interest

Applies to contracts with your own agency.

OIG Disclosure

DisclosuresState 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

Itemization Required: IC 5-11-10-1(b)

Itemization: Expenditure of Appropriations, IC 4-10-12-1

D

Monster Contracts

E

Uniform Government Code

UGC

UGC: Uniform Government Codewww.in.gov/ig/2332.htm

II

ARRA

ARRA:Stimulus Money

The Act

Public Law 111-5

www.recovery.gov

www.in.gov/gov/INvest.htm

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 Opinionswww.in.gov/ig/2334.htm

Office of Inspector General

315 W. Ohio St., Room 104

Indianapolis, IN 46202

www.in.gov/iginfo@ig.in.gov317.232.3850