Prevention of Fraud and Program Abuse

(a)To ensure the integrity of Summer Youth Employment Programs, special efforts are necessary to prevent fraud and other program abuses. Fraud includes deceitful practices and intentional misconduct, such as willful misrepresentation in accounting for the use of program funds. Abuse is a general term which encompasses improper conduct which may or may not be fraudulent in nature. While any violation of this Chapter may constitute fraud or program abuse, this Section identifies and addresses COL120106 CH. 21 SUMMER EMPLOYMENT AND TRAINING PROGRAMS FOR YOUTH those specific program problems which were of most concern to the Legislature during the authorization of programs herein.

(b)Conflict of Interest.

(1)No member of the Guam Council on Youth Affairs shall cast a vote on any matter which has a direct bearing on the services to be provided by that member or any organization which such member directly represents or on any matter which would financially benefit such member or any organization which such member represents.

(2)The administrative entity for programs under this Chapter shall avoid organizational conflict of interest, and their personnel shall avoid personal conflict of interest and the appearance of conflict of interest in awarding financial assistance, and in the conduct of procurement activities involving funds under this Chapter.

(c)Kickbacks. No officer, employee or agent of programs funded under this Chapter shall solicit or accept gratuities, favors or anything of monetary value from any actual or potential subrecipient or contractor.

(d)Political Activities.

(1)No program under this Chapter may involve political activities.

(2)No participant or trainee under this Chapter may engage in partisan or non-partisan political activities during hours for which the participant is paid with summer youth employment program funds.

(3)No participant or trainee under this Chapter may, at any time, engage in partisan or nonpartisan political activities in which such participant or trainee represents himself/herself as a spokesperson of the Summer Youth Employment Program.

(4)A participant or trainee under this Chapter may be employed or outstationed in the immediate office of any local elected official within the government of Guam.

(e)Theft or Embezzlement from Employment and Training Funds. Whoever, being an officer, director, agent or employee of, or connected in any capacity with, any agency receiving financial assistance under this Chapter knowingly hires an ineligible individual or individuals; embezzles, wilfully misapplies, steals, or obtains by fraud any of the moneys, funds, assets, or property which are the subject of an appropriation or contract COL120106 CH. 21 SUMMER EMPLOYMENT AND TRAINING PROGRAMS FOR YOUTH under this Chapter, shall be fined not more than Ten Thousand Dollars ($10,000) or imprisoned for not more than five

(5)years, or both; but if the amount so embezzled, misapplied, stolen, or obtained by fraud does not exceed One Hundred Dollars ($100), such person shall be fined not more than One Thousand Dollars ($1,000) or imprisoned not more than one

(1)year, or both.