The state comptroller is asking Tennesseans to help keep an eye out for stimulus fraud. He says the huge wave of federal dollars, along with weak systems for monitoring it all, combine to form a “perfect storm” for state auditors.
State Comptroller Justin Wilson wants help stopping people from taking unfair advantage of the five billion extra federal dollars flowing through the state. He says that surge of money heightens the risk of fraud.
At the same time, some state agencies receiving huge windfalls from the stimulus must spend the money quickly, or risk having to give it back.
“This means that some of the recipients don’t have what we call internal controls – and that’s something like balancing your checkbook or looking at your kid at night to be sure he’s in bed. They don’t have them to handle this new volume of funds.”
Wilson says that means more work for auditors, even as the state wrestles with shrinking resources and fewer employees for monitoring and reviewing.
Wilson says fraud could include people lying when applying for various assistance programs, or officials steering contracts for stimulus work to family or friends. But, Wilson cautions, there’s no limit to the way people will try to steal.
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