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between the intake/verification function, the certification for payment function, and the vendor payment (check writing) function. b) Investigation: Contractor agencies must investigate all credible reports of suspected agency staff fraud and refer cases to the Department of Justice through DSSC/OCS. 1003. Referral for Prosecution

A. Client When contractor agency investigation appears to confirm suspicion of client fraud, the case must be referred to the Department of Justice through DSSC. Contractor agency staff must cooperate fully with the Department of Justice to provide whatever additional evidence is requested. If the Department of Justice feels they have sufficient evidence, they will initiate prosecutorial proceedings. If the Department of Justice does not initiate prosecutorial proceedings (because of jurisdictional issues or the dollar amount involved), contractor agencies must limit their involvement in the case to reasonable recoupment efforts as addressed in Section 1002, A, 2. (b). B. Vendor

When a contractor agency investigation appears to confirm suspicion of vendor fraud, the case must be immediately referred to the Department of Agriculture, Division of Standards and Inspection, Weights and Measures Unit, through DSSC. DSSC will be responsible for referring the case to the Department of Justice, and the contractor agency staff must cooperate fully with the Department of Justice to provide whatever additional evidence is requested.

Payments to vendor must be terminated and the vendor contract suspended until the vendor has been cleared of any wrongdoing. If the Department of Justice feels they have sufficient evidence they will initiate prosecutorial proceedings. If the Department of Justice refuses to initiate prosecutorial proceedings (because of jurisdictional issues or the dollar amount involved) Then if it’s a regulated vendor, the contractor must:  recall any unspent lines of credit from the vendor  attempt to recoup funds that were not applied to clients’ account  and revoke the contract with that vendor.

If it is a non-regulated vendor then the contractor must:  revoke the contract with that vendor.