The HHS Grants Policy Statement identifies fraud, waste, and abuse of grants funds that includes embezzlement, misuse or misappropriation of property, and false statements by organizations or individuals. Grantees will find this information helpful in preventing financial abuses in their programs.

Management can perpetuate financial reporting frauds by overriding established control procedures and recording unauthorized or inappropriate journal entries or other closing adjustments. Grantees will find this information useful in preventing similar occurrences from happening within their organizations.