The settlement is related to claims that in 2014 and 2015 employees of Catholic Charities who oversaw programs that placed senior volunteers with youths and with other seniors falsified records. The volunteers received small stipends for their time, funded by the Corporation for National and Community Service.
The employees also directed recipients to falsify the records, the US Attorney's Office for the District of Nevada said, "leading to CNCS grant funds being used to pay stipends for hours that were never actually worked, were in violation of program requirements, or were inflated."
Catholic Charities of Southern Nevada discovered the fraud, terminated the employees who had committed it, and disclosed the problem to the CNCS. The US attorney's office added that Catholic Charities "cooperated fully in the United States' investigation of its administration of these grants."
The settlement did not determine liability, nor did Catholic Charities of Southern Nevada admit wrongdoing.
US Attorney for the District of Nevada Nicholas A. Trutanich said Aug. 19 that "each day, Catholic Charities of Southern Nevada feeds the hungry, provides shelter for the homeless, and supports families and seniors in need of assistance. The federal government relies on its non-profit partners to help ensure that federal grant funds are being used to assist their communities. Today's settlement is a reminder that everyone receiving federal grant funds must adhere to grant compliance requirements and self-report misuse of federal grant funds, as Catholic Charities of Southern Nevada did here."
Deborah Jeffrey, inspector general of the CNCS, commented that "Catholic Charities acted responsibly upon discovering fraud, promptly reported the misconduct, cooperated actively with the investigation and willingly made the taxpayers whole."