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Hi, you are at my web page with information on the following subject:

Some legal definitions including gross mismanagement.









Section:  17   Page 4 of 12    


Effective:    June 11, 2004


Supersedes:  Original Issue





Fraud is any deceitful act or omission, or willful device used with the intent to obtain some unjust advantage for one party, or to cause an inconvenience or loss to another party.  Types of fraud include embezzlement, forgery, theft, solicitation and receipt of bribes (kickbacks), and falsification of records and claims regarding trainees (e.g., knowingly enrolling ineligible participants).  Criminal fraud is a type of larceny and is punishable under both federal and California law as a felony.  Civil fraud is subject to tort actions under civil laws.


Misapplication of funds

Misapplication of Funds is defined as any use of funds, assets, or property not authorized or provided for in the grant or contract. This category includes, but is not limited to, nepotism, political patronage, use of participants for political activity, intentional services to ineligible enrollees, conflict of interest, failure to report income derived from federal funds, violation of contract provisions, maintenance of effort violations, and the use of WIA funds for other than WIA purposes.


Gross mis-management

Gross Mismanagement is defined as actions, or situations arising out of management ineptitude or oversight, which led to a major violation of contract provisions and/or which severely hamper accomplishment of program goals.  These include situations which lead to waste of government resources and put into serious jeopardy future support for a particular project.  This category includes, but is not limited to, unauditable records, unsupported costs, highly inaccurate fiscal and/or program reports, payroll discrepancies, payroll deductions not paid to the Internal Revenue Service or the State of California, and the lack of internal control procedures.


Employee/ participant misconduct

Employee/Participant Misconduct should be considered as actions occurring during or outside work hours that reflect negatively on the program or its purpose, and may include, but are not limited to, conflict of interest involving outside employment, business and professional activities, and the receipt or giving of gifts, fees, entertainment, and favors; misuse of federal property; misuse of official information and other activities that might adversely affect the confidence of the public regarding the integrity of government.

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