U.S. Department of the Interior

Office of Inspector General

Semiannual Report to the Congress, October 2005

*Investigation uncovers inappropriate appraisal process for land in the
Big Cypress National Preserve, preventing \$120 million deal. Page 1*

Message From the Inspector General

I am pleased to present the results and accomplishments of the Office of
Inspector General (OIG) from April 1, 2005, through September 30, 2005.
During this reporting period, we concluded one of our most publicized
investigations on the agreement for the acquisition and donation of
subsurface mineral rights between the U.S. Department of the Interior
(DOI) and the Collier Resources Company. We began our investigation in
September 2003 after receiving allegations from a confidential source
that the Collier Resources Company took advantage of the politically
charged situation surrounding drilling in the Florida Everglades and
"bluffed" DOI into executing an agreement to purchase the mineral
interests for an inflated price. Ultimately, our investigation helped
prevent the agreement from being consummated, saving American taxpayers
\$120 million.

We found that while the intentions behind the attempted acquisition --
which spanned both the Clinton and Bush administrations -- appeared to
be firmly grounded in a desire to protect the environmentally sensitive
Everglades from potential harm, the means by which these intentions were
advanced were distressing. DOI lawyers advanced the deal using an
inappropriate appraisal process and ignored the objections of career
employees who knew the rules were not being followed. We found nothing
to indicate that the mineral resources had any significant value, and
DOI may have even paid for those rights in an earlier deal with the
Collier Resources Company. Overall, the events surrounding this
agreement represent a compartmentalized view of responsibility that has
haunted DOI in past land transactions, such as the San Rafael land
exchange, which we reported on in our April 2004 Semiannual Report.

We must commend DOI, however, for the significant changes it has made to
the land appraisal program and process. Following the issuance of our
report concerning the San Rafael land exchange, the Secretary directed
consolidation of DOI's real estate appraisal functions to ensure
appraiser independence, accountability, high standards, appropriate
training, and oversight of DOI appraisal functions. In addition, a
Secretarial Order was issued establishing policy on alternative methods
of valuation for legislative land exchanges. We are confident that these
reforms, if strictly adhered to, will correct the problems we discovered
in both of these investigations.

In this Semiannual Report, I am also pleased to highlight our Office of
Audits report on DOI's management of hazardous materials sites on its
lands. We found serious deficiencies in DOI's management of its
hazardous materials sites, risking public exposure to harmful
contaminants and toxic substances. We were disturbed to find that DOI is
not able to identify how many contaminated sites are on its lands, and,
of the sites DOI knows of, it is not prioritizing which ones should be
mitigated first. We attribute these deficiencies to (1) DOI's failure to
provide guidance to the bureaus for identifying, tracking, and
prioritizing contaminated sites and (2) DOI's failure to provide
oversight for the management of hazardous materials site activities. DOI
agreed with our recommendations to improve the management of these
sites, and we will be tracking implementation. We issued this report
jointly with the Environmental Protection Agency (EPA) -- our audit
partner on this endeavor.

These significant accomplishments, along with the others highlighted in
this report, represent our dedication to not only detecting fraud,
waste, abuse, and mismanagement within DOI, but also to assisting DOI in
identifying and implementing new and better ways of conducting business.
Our commitment is to provide the highest quality products and services
at the best value to DOI and the American taxpayer. We look forward to
working with the Congress and the Secretary to promote excellence,
accountability, and efficiency in DOI and, overall, improve the
accountability of government to the American public.

Earl E. Devaney\
Inspector General

Table of Contents

Statistical Highlights v

OIG Organization Chart vii

Mission and Top Management Challenges viii

Significant Audits, Evaluations,\
Assessments, and Investigations

Department of the Interior 1

Bureau of Indian Affairs 7

Bureau of Land Management 11

Bureau of Reclamation 12

Minerals Management Service 13

National Park Service 14

Office of Insular Affairs 15

U.S. Fish and Wildlife Service 19

U.S. Geological Survey 20

Summary of Significant Ongoing OIG Activities 21

Appendixes

1\. Summary of Audit and Related Activities\
From April 1, 2005, Through September 30, 2005 23

2\. Reports Issued During the 6-Month Period Ended\
September 30, 2005 24

3\. Monetary Impact of Audit Activities From April 1, 2005,\
Through September 30, 2005 29

4\. Nonfederal Funding Included in Monetary Impact of Audit Activities\
During the 6-Month Period That Ended September 30, 2005 30

5\. Audit Resolution Activities 31

6\. Summary of Audit Reports Over 6 Months Old\
Pending Management Decisions at September 30, 2005. 34

7\. Summary of Internal Audit and Evaluation Reports Over 6 Months Old
Pending\
Corrective Action at September 30, 2005 38

8\. Summary of Insular Area Reports With Open Recommendations Over 6
Months Old 43

9\. List of Reports Issued on Information Security 45

10\. Cross References to the Inspector General Act 46

General Information 47

INVESTIGATIONS STATISTICAL HIGHLIGHTS

April 1, 2005, Through September 30, 2005

Investigative Activities

Cases Closed 177

New Cases Opened 231

Hotline Complaints/Inquiries Received 106

Criminal Investigative Activities

Indictments/Information 17

Convictions 23

Sentencings 18

\- Jail 260 months

\- Probation 624 months

\- Community Service 24 hours

\- Criminal Judgments/Restitutions \$1,102,398

Criminal Matters Referred for Prosecution 34

Criminal Matters Declined 10

Civil Investigative Activities

Civil Referrals 3

Administrative Investigative Activities

Personnel Actions 37

Management Advisories 10

AUDITS

STATISTICAL HIGHLIGHTS

April 1, 2005, Through September 30, 2005

Audit Activities

Reports Issued 47

Internal Audits 30

Contracts and Grant Audits 16

Single Audit Quality Control Reviews 1

Audit Impacts

Total Monetary Impacts \$15,730,734

Questioned Costs (includes unsupported costs) \$4,359,254

Recommendations That Funds Be Put to Better Use \$10,674,950

Lost or Potential Additional Revenues \$696,530

Internal Audit Recommendations Made 86

Internal Audit Recommendations Resolved 27

Mission

The mission of the OIG is to promote excellence, integrity, and
accountability in the programs, operations, and management of DOI.

Responsibilities

The OIG is responsible for independently and objectively identifying
risks and vulnerabilities that directly impact, or could impact, DOI's
ability to accomplish its mission. We are required to keep the Secretary
and the Congress fully and currently informed about problems and
deficiencies relating to the administration of DOI programs and
operations. Effective implementation of this mandate addresses the
public's demand for greater accountability and integrity in the
administration of government programs and operations, and addresses the
demand for programs that work better, cost less, and get the results
Americans care about most.

Activities

OIG accomplishes its mission by conducting audits, evaluations,
assessments, and investigations relating to the programs and operations
of DOI. Our activities are tied directly to DOI's major responsibilities
and are designed to assist DOI in developing\
solutions for its most serious management and program challenges, most
notably cross-cutting or DOI-wide issues. These activities are also
designed to ensure that we keep critical issues prominent, which greatly
influences key decisionmakers and increases the likelihood that we will
achieve desired outcomes and results that benefit the public.

DOI's Top Management Challenges

Financial Management\
Information Technology\
Health, Safety, and Emergency Management\
Maintenance of Facilities\
Responsibility to Indians and Insular Areas\
Resource Protection and Restoration\
Revenue Collections\
Procurement, Contracts, and Grants

Department of the Interior

OIG Investigation Uncovers\
Inappropriate Appraisal Process,\
Prevents \$120 Million Deal

An OIG investigation concerning a highly publicized plan for DOI to
block oil and gas drilling in Florida's Big Cypress National Preserve by
buying the subsurface mineral rights from a private company resulted in
significant changes to DOI's land appraisal program, and ultimately
saved American taxpayers \$120 million.

Our investigation was initiated after receiving allegations from a
confidential source that the Collier Resources Company took advantage of
the politically charged situation surrounding drilling in the Florida
Everglades and "bluffed" DOI into executing an agreement to purchase
Collier's mineral interests in the Big\
Cypress National Preserve for \$120 million. The acquisition of the
subsurface mineral rights for 400,000 acres -- including a vast
Everglades wildlife refuge -- was supported by both the Clinton and Bush
administrations, heralded by environmentalists, and enthusiastically
supported by citizens and state leaders.

While the intentions behind the attempted acquisition appeared to be
firmly grounded in DOI's desire to protect the environmentally sensitive
Everglades from potential harm, we found the means by which these\
intentions were advanced to be very troubling. Our special report,
"Agreement for the Acquisition and Donation of the Mineral Estate
Between the United States of America and the Collier Family," found
nothing to indicate that the mineral resources have "any significant
value" and even suggested that DOI paid for those rights in an earlier
deal with Collier.

Shortly after we concluded our investigation, Inspector General Earl E.
Devaney testified before the\
Senate Committee on Finance on June 8, 2005, to present the findings of
the special report and outline the\
various reasons why this acquisition was cause for concern.

DOI Must Take Active Role in Concessions Management

Concessioners are the main providers of commercial services to the
almost 473 million people who visit DOI's recreational sites each year.
DOI has well over 600 concession agreements administered by four
bureaus. Our audit found that DOI needs to take a more active role in
concessions management. For example, we found insufficient management
support, employees discouraged by a limited career path, a lack of
information available to make decisions, and no comprehensive policy for
making capital improvements or developing concession agreements.

Because the concession program does not follow sound business practices,
DOI may not be receiving fair value for concession activities. While
states such as California and Florida receive concession fees as high as
16 and 18 percent of concession revenue, respectively, DOI concession
fees average less than 6 percent. In this regard, concessioners
generated \$850 million in annual gross receipts in fiscal year 2003 --
from which DOI received \$26.7 million in fees. An additional \$22.7
million was retained in concessioner special accounts to be used for
capital improvement projects for facilities used in concession
operations.

DOI agreed that concessions management must be improved and has
committed to addressing our recommendations, including establishing a
departmental working group to improve policies and practices.

Public, Environment at Risk From Hazardous Materials

Our audit found that significant deficiencies continue to hamper DOI's
management of hazardous materials sites on its lands. As a result, DOI
risks exposing the public to hazardous contaminants and toxic
substances. Specifically, our audit found that DOI cannot identify how
many contaminated sites are on its lands and does not know if the most
critical hazardous sites are being mitigated first. These deficiencies
were attributable to DOI's insufficient leadership, guidance, and
oversight of its bureaus. DOI has not provided practical guidance to the
bureaus for identifying, tracking, and prioritizing contaminated sites,
and it has not provided the necessary degree of oversight to coordinate
the management of hazardous materials site activities.

We performed our audit with the assistance of EPA-OIG staff because of
their extensive experience and\
expertise with hazardous materials information systems and processes to
identify, assess, prioritize, and\
cost-estimate the mitigation of hazardous waste sites. EPA-OIG issued
its own report, which identified promising practices that could improve
DOI's management of its hazardous materials sites. DOI has committed to
reviewing EPA-OIG's report and providing us with an action plan to
implement the practices determined to be relevant.

We made seven recommendations to improve the management of hazardous
materials sites. Five of the recommendations are considered resolved but
not implemented and will be referred to DOI for tracking of
implementation. Management concurred with the remaining two
recommendations; however, we are waiting for additional information to
resolve the recommendations.

Workers' Compensation Program Inefficient, Ineffective

Overall, we found that management of DOI's Workers' Compensation Program
was inefficient and ineffective, resulting in workers' compensation
costs increasing annually and approaching \$60 million in 2003. DOI's
program for returning injured employees to work is at best managed
inconsistently and at worst\
subject to abuse by managers seeking an easy way to deal with problem
employees. For example, we identified 38 employees who could have
returned to light duty work -- their benefit payments total \$4.4
million. DOI is also not fully using resources provided by the Office of
Workers' Compensation Programs (OWCP). Further, DOI's program is
understaffed, employees lack training, and there is no uniform process
for ensuring that costs charged by OWCP are accurate.

We also found an overwhelming lack of awareness and consideration of
workers' compensation fraud during our review. More than 10 percent of
the workers' compensation cases we reviewed had indications of potential
fraud or abuse, but no action had been taken by the bureaus. These cases
amounted to almost \$1.5 million charged to DOI over a 2-year period.
For example, a temporary employee received \$500,000 in workers'
compensation over a 14-year period, even though he was capable of
working 5 years after his injury. The employee did not return to work
allegedly because medical conditions unrelated to the on-the-job injury
prevented him from performing the duties and responsibilities of his
position. Almost 6 years later, OWCP requested a second medical opinion,
and the doctor stated that the claimant could perform essentially any
job expected of a man of his age and training. The bureau still failed
to follow up on the case. Unknown to the bureau, the employee pursued
and received a bachelor's degree in 1998 and a master's degree in 1999,
at DOI's expense. Finally in 2002, after the bureau discovered and
notified OWCP about the college degrees, OWCP reduced the claimant's
compensation payments.

As a result of these findings, we plan to establish a special unit in
our Office of Investigations dedicated solely to pursuing fraud cases
related to workers' compensation.

DOI Web-Based Applications Show Vulnerabilities

In October 2004, we established a network security monitoring program to
provide independent oversight and monitoring of DOI's network security.
Our overall objective was to identify vulnerabilities that would allow a
potential "hacker" to have access from the Internet to internal DOI IT
infrastructure, in addition to sensitive and restricted information.

In November 2004, we began penetration testing of DOI's publicly\
accessible networks and systems. We conducted reconnaissance, scan, and
intrusion activities on targeted DOI bureau-managed networks. With few
exceptions, we were able to compromise the tested bureaus' IT
infrastructure. Even more serious, we were able to access some of DOI's
most sensitive information, such as financial- and privacy-related data.
We developed reports detailing activities, processes, vulnerabilities,
and recommendations for each penetration testing engagement.
Unfortunately, DOI has been slow in responding to our recommendations,
specifically on those involving\
sensitive- and privacy-related information.

Process to Remedy IT Security Weaknesses Ineffective

We concluded that DOI's Plan of Action and Milestones process used to
manage and remedy IT security weaknesses is ineffective. DOI's process
is incomplete, inaccurate, and misleading. Specifically, our evaluation
determined that DOI has failed to identify all known IT security
weaknesses and sufficiently describe IT security weaknesses and planned
corrective actions. In addition, about half (64 of 133) of the
weaknesses reported as corrected that we tested were not corrected.

As a result, DOI lacks assurance that the most critical security
weaknesses are being corrected first and that its systems and data are
adequately safeguarded.

We made five recommendations to assist DOI in improving its process.
Based on DOI's response to the draft report, we considered all five
recommendations unresolved and asked DOI to reconsider its response. We
recommended that the Plan of Action and Milestones process should be
reported as a material weakness under the Federal Managers\' Financial
Integrity Act of 1982 in DOI's 2005 Performance and Accountability
Report.

DOI's Grant Program Has Serious Deficiencies

Our review of the \$1.5 billion grant program managed by DOI bureaus
showed that to correct existing deficiencies and create a culture of
accountability and stewardship for its grants programs, DOI must take a
more holistic approach to managing the program. The current "stove-pipe"
management style, coupled with a lack of an overall DOI vision, has
created individual bureau-centered programs with serious deficiencies,
such as a lack of competition, training, reliable data, and assurance
that funds are being spent appropriately. These deficiencies do not
promote the accountable use of federal dollars; the fair treatment of
both grant applicants and recipients; or the reduction of risk for
fraud, waste, and abuse.

Although steps in the right direction, the efforts of a DOI-wide Federal
Assistance Working Group to\
address these deficiencies are by themselves insufficient to develop the
cohesive vision essential to protecting the integrity of DOI's grants
programs.

We developed a framework for the holistic management of grants within
DOI, encompassing seven\
core principles or key processes, which we identified as critical to the
successful implementation of any\
management system, including grants management. These principles are:

 Producing reliable data

 Soliciting competition

 Monitoring grants effectively

 Writing effective grant agreements

 Providing adequate training

 Streamlining policies and procedures

 Establishing measurable goals for grant programs

Where applicable, we offered promising management practices identified
by both government and private entities. We suggested actions that the
Federal Assistance Working Group, in conjunction with the Office of
Acquisition and Property Management, could take to assess and implement
the framework.

DOI, Agencies Not Always Implementing\
Prior Audit Recommendations, as Reported

DOI managers are responsible for ensuring that the actions agreed to be
taken during the audit process are, in fact, actually taken. As part of
our ongoing strategy to ensure that recommendations from our prior audit
reports have been implemented, we performed four verification reviews
and four status reviews. Verification reviews determine if DOI managers
have actually implemented closed recommendations, as they have reported,
and status reviews determine if their ongoing actions for open
recommendations are sufficient and timely.

For our four verification reviews, we concluded that bureau managers did
not take the actions needed to implement 5 of 16 recommendations. We
referred one of the recommendations to DOI for tracking of
implementation and requested that DOI reinstate the other 4
recommendations.

For our four status reviews, we concluded that bureau managers had not
taken timely or sufficient action to implement 8 of our 11
recommendations. For 5 of the 8 recommendations, we requested that
bureau directors provide DOI with new or revised plans of action that
identify target dates. For 3 of the 8 recommendations, we determined
that new legal restrictions prevented the bureaus from implementing
these recommendations. We concluded that these 3 recommendations should
be considered closed.

Scrutiny of Single Audits Identifies Deficiencies

The Single Audit Act Amendments of 1996 require nonfederal entities that
expend federal awards equal to or greater than \$500,000 (in any fiscal
year) to obtain a single audit for that year. One responsibility of
agencies is to conduct quality control reviews of selected audits made
by nonfederal auditors. As part of our responsibility for single audits,
we recently completed 91 reviews and one comprehensive Quality Control
Review with various results, including the following:

 Four auditor referrals were made to the American Institute of
Certified Public Accountants and various state boards of accountancy for
substandard work.

 Thirteen reviews resulted in the auditors reissuing the reports to
correct deficiencies.

 Seven reviews found that the auditor did not conduct sufficient tests
of major programs or that the level of testing did not meet federal
requirements.

In addition, the OIG continued its participation in the National Single
Audit Sampling Project. Federal agencies have been analyzing the quality
of single audits by conducting Quality Control Reviews, using a
comprehensive project instrument developed by the Project Management
Team.

Manager and Director Indicted on 15 Counts

Janice Hughes, a former personnel manager with the National Plastering
Industry's Joint Apprenticeship Trust Fund, and former Trust Fund
Executive Director Gilbert Wolf were indicted on 15 counts -- 6 for bank
fraud, 5 for mail fraud, 1 for conspiracy, 2 for money laundering, and 1
for forfeiture of property -- for embezzling \$917,000 from DOI and
Department of Labor contracts that had been awarded to benefit
disadvantaged youths through Job Corps training.

As first reported in our April 2005 Semiannual Report, the defendants
created fictitious accounts and bills to cover the conversion of federal
funds to personal use. They accomplished this by writing checks to
current, former, and, in some instances, fictitious vendors with whom
the Trust Fund purportedly conducted business. These checks for
fictional expenses were then deposited in a hidden account. The
embezzlers also prepared false invoices from the supposed vendors and
altered checks so that they appeared to have been deposited by the
vendor. The embezzled funds paid for monthly mortgage payments for their
primary residence, their\
vehicle expenses, a country club membership, credit card accounts, and
other expenses.

Bureau of Indian Affairs

Fond du Lac Tribal and Community College\
Loses Funding Due To Misrepresentation

An investigation of the Office of Indian Education Programs (OIEP)
revealed improper disbursement of federal funds to the Fond du Lac
Tribal and Community College in Cloquet, MN. OIEP's former
post-secondary education program manager and his supervisors failed to
properly administer federal funds to the college from 1992 to 2004,
resulting in a series of unjustified payments amounting to \$6.9 million
(including \$5.7 million distributed after the manager assumed program
responsibility in 1995).

Demand for Indian Arts and Crafts\
Attracts Many Non-Indians to Pirate Profits

In response to allegations of a counterfeit Indian art market, we
assessed the issues of misrepresentation and counterfeiting in the
Indian arts and crafts industry. Our evaluation confirmed that an
imitation Indian art market exists and negatively impacts Indian
artisans and communities. We found that current laws, while
well-intended, do little to protect Indian artisans from the unfair
competition created by low-priced, mass-produced imitations of their
work. The primary law, the Indian Arts and Crafts Act, is practically
unenforceable and does not provide adequate authority to the Indian Arts
and Crafts Board. As a result, enforcement largely depends upon the
cooperation of agencies outside DOI's control, such as the FBI and U.S.
Customs and Border Patrol.

The Indian Arts and Crafts Board has focused most of its enforcement
efforts on criminal prosecution, which has produced no identifiable
results by way of either criminal convictions or a measurable decrease
in counterfeit activity. Our report presented an alternative approach to
criminal enforcement, by which the Indian Arts and Crafts Board could
pursue action through steadily increasing levels of severity, and an
industry best practice. We provided four suggestions that DOI, in
cooperation with the Indian Arts and Crafts Board, can implement to
mitigate the current situation.

\$52 Million Inappropriately Used for School Construction

During fiscal years 2000 through 2002, BIA violated statutory
requirements by funding appromixately \$52 million in new or replacement
school facility construction with major facilities improvement and
repair funds. The Congress authorized the use of facilities improvement
and repair funds for school construction projects only for "tribally
controlled" schools and required a 25-percent, cost-share contribution
for these projects. BIA used \$11.6 million of the funds for school
construction projects at four BIA-operated schools. Further, BIA did not
request or collect the required 25-percent cost-share of \$10.2 million
from tribally\
controlled schools that received \$40.6 million of the funds to pay for
the construction projects.

We recommended that BIA do the following:

 Discontinue the practice of using facilities improvement and repair
program funds for school construction at BIA-operated schools.

 Discontinue the practice of funding school construction with
facilities improvement and repair program funds at grant and contract
schools without the required 25-percent funding contribution.

 Determine whether BIA has the authority to collect the required
25-percent, cost-share contributions from tribes using facilities
improvement and repair program funds for replacement school
construction. If BIA does have the authority, seek payment of the \$10.2
million.

Engineer Charged for Tampering With Evidence

Kenneth Young, a BIA petroleum engineer, was charged in a superseding
indictment for deleting files and images from his computer. As reported
in our October 2004 Semiannual Report, Young was indicted by a federal
grand jury in the U.S. District Court of Colorado for knowingly
receiving child pornography transported in interstate commerce. Young
allegedly possessed at least 50 child pornography images on his
government computer. Young's trial is scheduled for October 31, 2005.

This is a cooperative investigation with the FBI.

Former Kickapoo Tribe Health Director Sentenced

Maricela Mendoza, a former community health director for the Kickapoo
Traditional Tribe of Texas, was sentenced in the U.S. District Court for
the Western District of Texas to 180 months in federal prison and 36
months of probation. She was ordered to pay \$103,940 in restitution,
along with a \$300 fine for money laundering and embezzlement.

As we reported in our April 2005 Semiannual Report, a federal jury
convicted her of embezzling federal funds from the tribe's health care
program, as well as for money laundering. These embezzled funds would
have been used to pay for the medical treatments and necessary medicines
for tribal members. The jury also awarded the federal government a
monetary judgment against Mendoza in the amount of \$102,000.

Executive Director Sentenced for Theft of Tribal Monies

Wanda Warren, the executive director for the Catawba Indian Nation, has
been sentenced to 2 years of probation and ordered to pay approximately
\$24,700 in restitution after entering a plea of guilty to theft of
tribal monies.

Referred to as "the people of the river," the Catawba Indian Nation is
South Carolina's only federally recognized tribe. Warren ran the tribe's
operations for 11 years in her capacity as tribal director. She also
served on the tribal executive committee. Our investigation revealed
that Warren filed false claims and received monies she was not entitled
to, among them reimbursement for deferred salary and a trip to Geneva,
Switzerland.

Director Indicted for Theft of Tribal Child Care Monies

Crystal Owle Lambert, the director of child care services for the
Eastern Band of Cherokee Indians in North Carolina, embezzled at least
\$153,100 from 1998 through 2004. The embezzled funds came from monies
intended for the Cherokee Center for Family Services. These monies
should have been made available for child care services to benefit
tribal members.

Former Commissioner Indicted for Embezzlement

Alvina Howard, former planning commissioner for the Running Antelope
District of the Standing Rock Sioux, was indicted and pleaded guilty in
U.S. District Court to embezzlement and theft for her role in the
misappropriation of thousands of dollars from the Running Antelope
District. As part of her plea agreement, Howard is expected to testify
against Susie Long Elk and other Running Antelope District officials,
who are expected to be charged as a result of this investigation. Long
Elk, the former treasurer of the Running Antelope District, was indicted
earlier for her role in embezzling approximately \$100,000 from the
district. She is currently awaiting trial. Sentencing for Howard is
pending.

Attorney and Four Members of Tribe Plead Guilty

In further developments concerning our investigation of the Skull Valley
Band of Goshute Indians, Leon D. Bear, band chairman, pled guilty to
embezzling tribal funds for personal use. He was sentenced to 36 months
of probation and ordered to repay \$73,542. Tribal members Sammy
Blackbear, Marlinda Moon, and Miranda Walsh, as well as their attorney,
Duncan Steadman, also pled guilty to embezzling money from tribal
accounts. Blackbear was sentenced to 36 months of supervised probation
and ordered to repay \$17,300. Moon, Walsh, and Steadman await
sentencing.

Problems began when Bear contractually agreed with Private Fuel Storage
to house 40,000 metric tons of high-level nuclear waste on reservation
land located 45 miles from downtown Salt Lake City, UT. Learning of the
arrangement, Moon, Blackbear, and Walsh held an unauthorized tribal
election to gain control of tribal funds and subvert the contract with
Private Fuel Storage. With Steadman's help, they created false documents
to ratify the election and then used those documents to access
approximately \$833,000 in tribal bank accounts. As reported in our
April 2005 Semiannual Report, they spent \$45,800 before the accounts
were frozen. Steadman was actually the one who first requested the OIG
investigation, supporting his request with a 3-inch binder containing
numerous allegations of corruption and embezzlement.

Consultant Pleads Guilty in Pharmaceutical Scheme

Wilbur "Bill" Swift, Jr., a former pharmaceutical consultant to the Ft.
Sill Apache Tribe of Oklahoma, pled guilty in U.S. District Court in
Missouri to interstate transportation of property obtained by fraud. He
awaits sentencing. His partner and accomplice, Fred Solmor, has been
sentenced in U.S. District Court, Texas, to 51 months in federal prison
and 36 months probation after pleading guilty to a similar charge. Both
men diverted approximately \$1.8 million in pharmaceuticals from the
tribe by secretly selling them to shell companies they controlled and
then reselling the drugs at a profit on the pharmaceutical wholesale
black market.

Bureau of Land Management

Manager Pleads Guilty to Possession\
of Stolen Government ID and Records

Bureau of Land Management (BLM) Air Tanker Base Manager Dan Boechler
pled guilty to possession of a stolen government ID as well as stolen
records after a search of his residence turned up voluminous amounts of
stolen government property. The stolen records included copies of BLM
employees' Notification of Personnel Action forms, which contained
social security numbers and dates of birth. He pled guilty following a
plea agreement with the U.S. Attorney's Office.

Employee Pleads Guilty to Fraudulent Credit Charges

Robert Beehler, a BLM field manager in Holister, CA, pled guilty to
embezzlement in U.S. District Court in Sacramento, CA. Our investigation
determined that Beehler made fraudulent charges to his government credit
card, as well as convenience check purchases, all in excess of \$30,000.
At the conclusion of our investigation, the Sacramento U.S. Attorney's
Office accepted the case for prosecution. Beehler appeared in U.S.
District Court, where he agreed to pay \$17,000 in fraudulent charges
and pleaded guilty to one felony count of embezzlement.

This case underscored the importance of thorough administrative
oversight of all credit card purchases. Investigators recommended that
managers conduct a monthly review of all purchase activity.

Bureau of Reclamation

Analyst Pleads Guilty to Embezzlement

Janice Kuester, a Bureau of Reclamation (BOR) Job Corps administrative
services analyst in Moses Lake, WA, conspired with her son, Shep David
Kuester, and two others to steal approximately \$150,000, using
Kuester's government credit card and convenience checks. The Kuesters
appeared in U.S. District Court in Spokane, WA, following a plea
agreement. Janice Kuester pled guilty to two felony counts of
embezzlement and conspiracy and was sentenced to serve 24 months of
imprisonment and 3 years of supervised release. She was ordered to pay
approximately \$144,000 in restitution to the government. Her son also
pled guilty to two felony counts of embezzlement and conspiracy. He
received a sentence of 18 months of imprisonment, 3 years of supervised
release, and restitution of \$64,800 to the government.

Minerals Management Service

Shell Agrees to Pay \$4,870,000 to Recover Damaged 18th Century
Shipwreck

Based on the results of our investigation, Shell/BP Okeanos Gas
Gathering Company, LLC, reached a financial settlement with the Minerals
Management Service (MMS) in which it agreed to pay Texas A&M University
\$4,870,000 to salvage, restore, and curate the archeological remains of
a circa 1800 shipwreck, damaged by the company, as well as to provide
for an educational outreach program. The wreck was discovered by
Shell/BP subcontractor Magellan Marine, Inc., hired to determine the
best route for the Okeanos Lateral Pipeline. The decision to conceal the
discovery from MMS, which controls the right-of-way, not only violated
30 CFR 250.194c, but also resulted in destruction of antiquities, among
them an 18th Century navigational tool, by a Shell/BP underwater team.
The shipwreck is one of the most significant archeological finds from
the 18th Century in the Gulf of Mexico. The Discovery Channel plans to
document the raising of the vessel.

National Park Service

Employee Convicted for Theft of Entry Fees

A jury convicted Genevieve Segura, a former St. John National Park fee
collection supervisor, of 14 counts of embezzlement and theft of money
collected from visitors to Virgin Islands National Park. Our\
investigation revealed embezzlement of approximately \$7,640 in entrance
fees over a 3-year period.

Our investigation uncovered management weaknesses with the fee
collection process, which helped support Seguara's opportunities for
embezzlement. The employee who counted the daily cash receipts also
filled out the deposit slips and purchased cashier checks for the cash
collected. Then the fee deposits were permitted to accumulate in the
safe for several days prior to a deposit being made. Finally, the person
making the deposit carried large sums of cash to the bank alone without
the benefit of another park official who could serve as a witness. The
OIG recommended program oversight and management changes to help reduce
potential opportunities for fraud.

Manager Sentenced for Possession of Pornography

Vincent Mullally, a former manager of the Administrative Operations
Center, and a special assistant to the comptroller for the National Park
Service, used his government and home computers to access and store
child pornography. Following a guilty plea, he was sentenced in U.S.
District Court, Eastern District of Virginia, to 21 months of
incarceration and 24 months of probation. The investigation occurred
when a computer specialist examined his computer for a virus and
discovered some of the images. Our forensic investigation later
uncovered several hundred images.

Office of Insular Affairs

Strong Partnership Between ASG and OIA Needed\
to Break Cycle of Fiscal Crisis in American Samoa

Over the past two decades, the American Samoa Government (ASG) has
operated in a constant state of fiscal crisis, moving from one failed
fiscal reform effort to another. Our audit revealed that the latest
reform, the 2001 Reform Plan, will also fail unless top leadership in
ASG and the Office of Insular Affairs (OIA) forge an active partnership
dedicated to (1) developing a comprehensive plan that addresses both
short- and long-term fiscal reform for the entire government and
(2) adopting the best practices critical to the success of any financial
reform.

The 2001 Reform Plan was not a comprehensive plan in that it set only
short-term goals to meet an immediate fiscal crisis and noticeably
lacked goals for long-term solvency, namely a balanced budget that
includes all ASG entities; aggressive revenue enhancement and
cost-cutting measures; and options for restructured operations,
privatization, expanded economic development, and direct foreign
investment. ASG's failure to accomplish fiscal reform was evidenced in
OIA's June 9, 2005 letter to the Governor of American Samoa, which
designated ASG as a "high-risk" grantee under 43 CFR 12.52, and not in
compliance with the 2001 Fiscal Reform Plan. ASG, for example, did not
meet Reform Plan goals of controlling expenditures, developing realistic
budgets, or completing seriously delinquent financial statements and
reports, all of which have been identified as long-standing
deficiencies.

We made five recommendations focusing on an active partnership between
OIA and ASG to effect true fiscal reform, as well as the need for OIA to
coordinate with other agencies providing federal financial assistance to
resolve cross-cutting management control deficiencies and hold ASG
accountable if agreed-upon fiscal reform goals and milestones are not
met. In addition to designating ASG a high-risk grantee, OIA was
aggressively monitoring the progress of the reform plan and had
increased reporting requirements, while restricting access to funds. OIA
is also developing a plan that identifies the actions ASG must complete
to remove the high-risk designation.

Based on the responses of OIA and ASG, we consider the recommendations
directed to OIA to be resolved and implemented and those directed to ASG
to be unresolved.

Leadership Needed to Improve VI Accountability

Our four audits of U.S. Virgin Island programs and activities during
this reporting period revealed that DOI must continue to exercise strong
leadership in helping the Government of the\
Virgin Islands improve its business management practices and
accountability for federal funds. One area that has improved is the
government's response to our recommendations. In our March 2003
Semiannual Report, for example, more than\
80 percent of audit recommendations directed to the Government of the
Virgin Islands remained unresolved, whereas for this reporting period,
more than 70 percent of our audit recommendations are resolved. Despite
this progress, much work remains to be done, particularly in the area of
ensuring the accountability of federal monies. Specifically:

 Our audit of contracts for facility improvements, Virgin Islands Fire
Service, revealed problems in documenting grant expenditures and costly
failures in monitoring construction projects, as well as the use of
grant equipment. Redesigned bays at one fire station, for example, could
not adequately accommodate a new fire truck.

 Our audit of U.S. Fish and Wildlife (FWS) grants for boating access
facilities, Government of the Virgin Islands, likewise revealed failures
in the awarding and monitoring of a construction contract that resulted
in more than a 2-year delay in rebuilding an essential fisherman's pier
and boat ramps on the island of St. Croix. Based on our recommendations,
FWS, which awarded the grant, gave the Government of the Virgin Islands
a firm deadline of September 30, 2005, to either complete the project or
return the grant funds.

 Our audit of the Indirect Cost Fund, Government of the Virgin Islands,
concluded that the lack of a sound overall approach for administering
indirect costs resulted in an under-recovery of these costs by as much
as \$5.9 million, thereby jeopardizing the Government of the Virgin
Islands' ability to adequately finance the administrative functions that
support grant programs. An additional \$3.6 million in indirect cost
reimbursements were not allocated equitably among central service and
program agencies or were used for non-grant purposes.

 Our audit of grants for waste disposal projects, Government of Virgin
Islands, found problems with the documentation of the award of
construction contracts, as well as the overcharging of salaries to grant
funds and the lack of adequate safeguarding of grant-funded equipment.
Our recommendations to the Deputy Assistant Secretary for Insular
Affairs resulted in the implementation of actions to improve the
Government of the Virgin Islands administration of OIA grants.

Director, Manager Sentenced in Theft of Oil Scheme

Frederick A. Cochran, the director of an oil service company, and Frank
S. Santos, the general manager of an oil distribution company, stole oil
from the Guam Power Authority and then sold it back to that company.
Both men later were sentenced in the U.S. District Court of Guam to 60
months of probation and were fined \$500,000 and \$100,000,
respectively. Their sentences were diminished due to the substantial
assistance they had provided the government in other cases. Cochran and
Santos had pled guilty to conspiracy to commit wire fraud and conspiracy
to commit money laundering.

We conducted the investigation jointly with the FBI, and the case was
prosecuted by the U.S. Attorney's Office in Guam.

OIG Reports on Work and Training for Insular Areas

Our Insular Areas field liaison for the Pacific reported progress in
several areas, such as increased capacity of the Insular Areas Public
Auditors Offices to perform audits and investigations over the use of
Compact and local funds and the review of related accounting systems and
controls, and reporting processes.

We continued efforts to provide improved training opportunities to the
Public Auditors Offices, which resulted in eight auditors and three
investigators attending stateside training. The staff came from the
Public Auditors Offices in Guam, Republic of the Marshall Islands,
American Samoa, Federated States of Micronesia, and the Commonwealth of
the Northern Mariana Islands. We are currently developing additional
training opportunities in early fiscal year 2006.

We also performed evaluations and assessments for several Insular Areas
governments, which resulted in the preparation of 4 project reports, as
follows:

1\. Evaluation Report: Compact Implementation, Republic of the Marshall
Islands\
2. Memorandum: Hospital Needs Corrosion Inspection and Repair, Republic
of Palau\
3. Memorandum: Maintenance Issues for Compact-Funded Road System,
Republic of Palau\
4. Memorandum: Status of Compact Trust Fund, Republic of Palau

Several Insular Areas governments requested that we provide training on
Compact grant management processes and system improvements. In addition,
we provided similar training to OIA's Honolulu-based program specialists
and are scheduled to provide further training. We also continued our
efforts to resolve outstanding internal audit recommendations. As of
September 30, 2005, a total of 181 recommendations -- 92 percent -- were
processed and closed.

U.S. Fish and Wildlife Service

Audits of State Grants Identify\
\$4.3 Million in Questionable Costs\
and Unreported Income

Audits of grants that the FWS awarded to 11 states and one Insular Area
government for sport fish and wildlife restoration projects revealed a
potential savings of \$4.3 million. The grants finance up to 75 percent
of state-sponsored projects, such as developing sites for boating access
and acquiring and managing natural habitats.

During audits of grants in eight states and one territory, we questioned
the eligibility for reimbursements of approximately \$4,017,360 and
identified income of \$320,970 from grant-supported activities. The
income could be used to defray grant costs or to fund additional grant
activities. We also identified a recent law in one state that could
result in the diversion of license revenues of up to \$1.6 million.

Manager Guilty of Possession of Child Pornography

Eric Smith, an FWS program manager, appeared before the U.S. District
Court in Atlanta, GA, where he signed a waiver of indictment, agreeing
to plead guilty to the felony count of possession of child pornography.
Investigators had uncovered thousands of photographs on Smith's home and
work computers that they determined to be child pornography. A court
date has yet to be set.

Employee Faces 10 Years for Computer Pornography

Gary Heet, a former Seney National Wildlife Refuge employee, pled guilty
to possessing pictures of minors engaged in sexually explicit conduct. A
computer virus with a sexually suggestive title found on Heet's computer
caused his supervisor to become suspicious. When an OIG computer
forensics specialist examined Heet's hard-drive, he identified more than
2,000 pornographic images, of which a substantial number pertained to
children. Based on this information, the OIG and the FBI obtained a
search warrant for Heet's residence, where investigators seized
additional evidence. Heet confessed to the crime and now faces a maximum
penalty of 10 years of imprisonment, 3 years of supervised release, and
a fine of not more than \$250,000.

Biology Technician Pleads Guilty to Wire Fraud

Scott Rickettson, a biological science technician at Medicine Lake, MT,
submitted two fraudulent wildlife extension agreements that helped the
Ft. Peck tribes successfully apply for two FWS grants totaling \$36,500.
Rickettson then appropriated the money by submitting four fraudulent
invoices when neither Rickettson nor Wildlife Veterinary Consulting, the
fictitious company he created, provided any of the services detailed in
those invoices.

OIG investigators also discovered that Rickettson provided false
statements on his application for federal employment. Rickettson pled
guilty to multiple violations of wire fraud, theft of government funds,
forgery of government contracts, theft by a government employee, and
false claims.

U.S. GEOLOGICAL SURVEY

University Professor Pleads Guilty to Stealing \$45,000

Dewitt Davis, a geography professor at the University of the District of
Columbia, Washington, D.C., pled guilty to interstate transportation of
stolen property. From 1997 to 2000, Davis embezzled approximately
\$45,000 in grant funds awarded to the university by the U.S. Geological
Survey for water resource research. He siphoned funds from the grant
into his personal account, using a direct deposit form. Following his
guilty plea, Davis received 6 months of home detention and 36 months of
probation. The court also required him to make full restitution of the
\$45,000, plus interest.

SUMMARY OF SIGNIFICANT ONGOING OIG ACTIVITIES

OIG Continues Investigation into Lobbying Activities

Our office continues to conduct an investigation, initiated in 2004
along with the FBI, of prominent Washington, D.C., lobbyists concerning
lobbying activities for at least 15 Indian tribes paying astonishing
fees for imperceptible services.

Under the direction of the Public Integrity Section of the Department of
Justice, our office has joined a task force of OIG, FBI, and IRS agents
to strategically focus on any potential criminal violations committed in
conjunction with Indian lobbying activities.

Assessment Underway of BOR Dam Protection

As part of our ongoing effort to promote actions taken by DOI to protect
its facilities, we are finalizing an assessment of BOR's security and
law enforcement program for its dams.\
After the terrorist attacks on\
September 11, 2001, BOR faced the challenge of developing a formal
security and law enforcement program in an agency that formerly had
limited responsibilities for these functions.

BOR dams are a major component of the nation's critical infrastructure
systems, distributing water and power throughout the western United
States. Failure of critical dams could lead to significant property
damage with consequences for the nation's economy as well as public
safety. Given these risks, BOR found it essential to develop a
comprehensive program to assess and manage security risks. Our office is
conducting an assessment of BOR dam security that extends from top
management to field activities.

Summary of Audit and Related Activities\
From April 1, 2005, Through September 30, 2005

OIG Staff OIG Staff Single Audit

Internal, Grant, and Contract Audits Quality Control Reviews Total

> Reports Issued To
>
> Department/Office\
> of the Secretary 11 0 11
>
> Fish and Wildlife\
> and Parks 18 1 19
>
> Indian Affairs 3 0 3
>
> Insular Affairs 5 0 5
>
> Land and Minerals\
> Management 5 0 5
>
> Water and Science 1 0 1
>
> Other Federal\
> Agencies 3 0 3

Total Reports\
Issued 46 1 47

**Reports Issued During the 6-Month Period\
Ended September 30, 2005**

This listing includes all internal reports (internal audits, advisory
reports, assessments, and evaluations),\
contract and grant audits, and single audit quality assurance review
reports issued during the 6-month period ended September 30, 2005. It
provides report number, title, issue date, and monetary amounts
identified in each report (*\* Funds To Be Put To Better Use, \*\*
Questioned Cost, \*\*\* Unsupported Cost, and \*\*\*\* Lost or Potential
Additional Revenues*).

**Internal Reports**

**American Samoa**

P-IN-AMS-0117-2003 American Samoa: Top Leadership Commitment Needed to
Break\
the Cycle of Fiscal Crisis (09/19/05)

**Bureau of Indian Affairs**

X-IN-MOI-0005-2003 Review of the Bureau of Indian Affairs (BIA) Process
for Estimating the Cost of Transporting Indian Children to BIA-Funded
Schools (06/02/05)

C-IN-BIA-0015-2004 Bureau of Indian Affairs Use of Facilities
Improvement and Repair Funds (08/29/05); \* \$10,200,000

E-EV-BIA-0063-2003 Process Used To Assess Applications to Take Land Into
Trust\
for Gaming Purposes (09/01/05)

**Bureau of Land Management**

C-ST-BLM-0011-2005 Status Review of Recommendations 1 and 2 From Our May
1992 Audit\
Report No. 92-I-828, Titled, "Onshore Geophysical Exploration Program,\
Bureau of Land Management" (09/28/05)

C-VS-BLM-0014-2005 Verification Review of Six Recommendations From Our
September 1999\
Audit Report No. 99-I-917, Titled, "Special Drug Reduction Funds,\
Bureau of Land Management" (09/28/05)

C-FL-BLM-0096-2004 Status Review of Six Recommendations From Our March
1995 Audit Report No. 95-I-747, Titled, "Right-Of-Way Grants, Bureau of
Land Management" (09/30/05)

C-VS-BLM-0010-2005 Verification Review of Six Recommendations From Our
September 1996\
Audit Report No. 96-I-1267, Titled, "Inspection and Enforcement Program
and Selected Related Activities, Bureau of Land Management" (09/30/05)

**U.S. Geological Survey**

A-VS-GSV-0006-2005 Verification Review of One Recommendation Considered
Implemented From Audit Report No. 2003-I-0042, Titled, "Improvements
Needed in Security Over Information Technology Systems Critical to the
Scientific Objectives\
of the U.S. Geological Survey" (09/16/05)

**Minerals Management Service**

C-VS-MMS-0012-2005 Verification Review of Three Recommendations
Considered Implemented From Our March 2000 Audit Report No. 00-I-279,
Titled, "Small Refiners Program, Minerals Management Service" (09/20/05)

**Multi-Office Audits**

E-IN-MOA-0008-2004 Department of the Interior Workers' Compensation
Program (05/09/05)

X-IN-MOA-0027-2004 U.S. Department of the Interior, Interior Trust Funds
Management (06/06/05)

E-EV-MOA-0016-2005 District of Columbia Water and Sewer Authority
Payments for\
January 1, 2005, Through March 31, 2005 (06/10/05)

C-IN-MOA-0049-2004 Department of the Interior Concessions Management
(06/13/05)

E-EV-MOA-0024-2005 District of Columbia Water and Sewer Authority
Payments for April 1, 2005, Through June 30, 2005 (07/22/05)

C-IN-MOA-0040-2004 U.S. Department of the Interior Hazardous Materials
Site Management (08/22/05)

W-IN-MOA-0052-2004 Framework Needed to Promote Accountability in
Interior's Grants\
Management (08/24/05)

A-EV-MOA-0001-2005 The Department of the Interior's Process To Manage
Information Technology Security Weaknesses (09/23/05)

W-IN-MOA-0085-2004 Managing Land Acquisitions Involving Nonfederal
Partnerships --\
Department of the Interior (09/29/05)

**National Park Service**

A-ST-NPS-0005-2005 Status Report on One Recommendation From the Audit
Report, Titled,\
"Improvements Needed in Managing Information Technology System Security,
National Park Service" (08/29/05)

**Office of the Secretary**

E-EV-OSS-0003-2005 Indian Arts and Crafts: A Case of Misrepresentation
(06/01/05)

**U.S. Fish and Wildlife Service**

C-IN-FWS-0004-2005 Management Issues Identified During the Audit of the
U.S. Fish and Wildlife Service's Fiscal Years 2004 and 2003 Financial
Statements (04/07/05)

X-IN-FWS-0017-2005 Audit of U.S. Fish and Wildlife Service
Administrative Costs to Support\
Wildlife and Sport Fish (08/29/05)

X-EV-FWS-0016-2005 Observations on the Condition of the Fuel Farm at
Midway Atoll National Wildlife Refuge (08/30/05)

W-IN-MOA-0119-2003 Payments to Counties to Acquire Waterfowl Production
Areas in Minnesota and Wisconsin -- U.S. Fish and Wildlife Service
(09/29/05)

C-ST-FWS-0008-2005 Status Review of Two Open Recommendations, A.3 and
A.4 From Audit\
Report No. 97-I-1305, Titled, "Automated Law Enforcement System,\
U.S. Fish and Wildlife Service" (09/30/05)

**U.S. Virgin Islands**

V-IN-VIS-0072-2004 Grants for Waste Disposal Projects, Department of
Public Works, Government of the Virgin Islands (05/11/05); \*\* \$4,401

V-IN-VIS-0110-2003 Indirect Cost Fund, Government of the Virgin Islands
(06/22/05); \*\*\*\*696,530

V-IN-VIS-0078-2004 Fish and Wildlife Grants for Boating Access
Facilities, Government of the Virgin Islands (08/19/05); \*\$30,600

V-IN-VIS-0100-2004 Contracts for Facility Improvements, Virgin Islands
Fire Service, Government of the Virgin Islands (09/20/05); \* \$153,980;
\*\*\* \$24,000

**Contract and Grant Audits**

**Office of the Secretary**

E-CX-OSS-0013-2005 Costs Billed by Quapaw Information Systems, Inc.,
From June 2004\
Through November 2004, Under the Department of the Interior Contract No.
NBCHC040140, Office of Historical Trust Accounting (09/26/05);\
\*\* \$10,151; \*\*\* \$303,318

**U.S. Fish and Wildlife Service**

R-GR-FWS-0023-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of Rhode Island, Department of
Environmental Management, Division of Fish and Wildlife, From July 1,
2001, Through June 30, 2003 (05/19/05)

R-GR-FWS-0006-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of Arkansas, Game and Fish Commission,
From July 1, 2001,Through June 30, 2003 (05/20/05); \*\*\$147,013

R-GR-FWS-0003-2005 U.S. Fish and Wildlife Service Federal Assistance
Motorboat Access Grants Administered by the State of California,
Department of Fish and Game, From July 1, 2001, Through June 30, 2003
(07/15/05); \*\*\$445,944; \*\*\*\$205,664

R-GR-FWS-0018-2003 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of California, Department of Fish and
Game, From July 1, 2001, Through June 30, 2003 (07/15/05); \*\*
\$138,342; \*\*\* \$2,539,917

R-GR-FWS-0009-2005 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the Commonwealth of Pennsylvania, Fish and Boat
Commission, From\
July 1, 2002, Through June 30, 2004 (09/01/05)

R-GR-FWS-0001-2005 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of New Mexico, Department of Game and
Fish, From July 1, 2002, Through June 30, 2004 (09/02/05)

R-GR-FWS-0012-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of Oregon, Department of Fish and
Wildlife, From July 1, 2001, Through June 30, 2003 (09/02/05)

R-GR-FWS-0002-2005 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of Alabama, Department of Conservation
and Natural Resources, Wildlife and Fresh Water Fisheries Division and
Marine Resources Division, From October 1, 2002, Through September 30,
2004 (09/07/05); \*\$182,170

R-GR-FWS-0006-2005 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the Commonwealth of Massachusetts, Executive
Office of Environmental Affairs, Department of Fish and Game, Division
of Marine Fisheries, From\
January 1, 2003, Through December 30, 2004 (09/08/05)

R-GR-FWS-0014-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the Commonwealth of Puerto Rico, Department of
Natural and Environmental Resources, From July 1, 2001, Through June 30,
2003 (09/19/05)

R-GR-FWS-0007-2005 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the Commonwealth of Massachusetts, Executive
Office of Environmental\
Affairs, Department of Fish and Game, Division of Fisheries and
Wildlife, From July 1, 2002, Through June 30, 2004 (09/30/05); \*
\$130,296;\
\*\* \$16,779; \*\*\* \$12,740

R-GR-FWS-0008-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of Idaho, Department of Fish and Game,
From July 1, 2001, Through June 30, 2003 (09/30/05); \* \$8,504; \*\*
\$310,000; \*\*\* \$200,965

**Single Audit Quality Control Reviews**

B-QC-MOA-0009-2005 American Bird Conservancy, Year Ending December 31,
2003 (08/30/05)

**Other Reports^1^**

R-GR-FCC-0007-2003 Review of FCC E-Rate Benefits Received by St. Mary's
Catholic School, Christiansted, VI (08/18/05)

R-GR-FCC-0008-2003 Review of FCC E-Rate Benefits Received by St.
Joseph's High School,\
St. Croix, VI (08/18/05)

R-GR-FCC-0009-2003 Review of FCC E-Rate Benefits Received by St. Patrick
School, Frederiksted,\
St. Croix, VI (08/18/05)

^1^ The reports were issued to the Inspector General of the Federal
Communications Commission, whose office is responsible for all actions
on these reports.

Monetary Impact of Audit Activities\
From April 1, 2005, Through September 30, 2005

Activity Questioned Costs\*\* Funds to be Put To Better Use Revenues
Total

Bureau of\
Indian Affairs 0 \$10,200,000 0 \$10,200,000

Bureau of Land\
Management 0 0 0 0

Bureau of\
Reclamation 0 0 0 0

U.S. Fish and\
Wildlife Service \$4,017,384 \$320,970 0 \$4,338,354

Insular Areas:\*

U.S. Virgin\
Islands \$28,401 \$153,980 \$696,530 \$878,911

Multi-Office 0 0 0 0

Office of the\
Secretary \$313,469 0 0 \$313,469

National Park\
Service 0 0 0 0

Total \$4,359,254 \$10,674,950 \$696,530 \$15,730,734

\* Includes monetary impact of nonfederal funds.\
\*\* Unsupported costs are included in questioned costs.

**Nonfederal Funding Included in Monetary Impact\
of Audit Activities During the 6-Month Period\
That Ended September 30, 2005**

V-IN-VIS-0110-2003 "Indirect Cost Fund, Government of the Virgin
Islands," dated June 22, 2005. The report identified \$696,530 as
monetary impact consisting of \$696,530 in unrealized revenues. All of
the funds were Insular Funds.

V-IN-VIS-0100-2004 "Contracts for Facility Improvements, Virgin Islands
Fire Service, Government of the Virgin Islands," dated September 20,
2005. The report identified \$177,980 as monetary impact consisting of
\$24,000 in unsupported costs (\$24,000 federal) and \$153,980 in funds
to be put to better use (\$72,331\
federal and \$81,649 Insular).

Audit Resolution Activities

Table 1: Inspector General Audit Reports With Questioned Costs\*

**Number of Reports Questioned Costs Unsupported Costs**

A. For which no management\
decision had been made by the\
commencement of the reporting\
period.^1^ 35 \$14,094,790 \$1,261,946^1^

B. Which were issued during the\
reporting period. 7 \$4,359,254 \$3,286,604

**Total (A+B) 42 \$18,454,044 \$4,548,550**

C. For which a management decision\
was made during the reporting\
period. 5 \$1,233,891 \$315,598

\(i\) Dollar value of\
recommendations that\
were agreed to by\
management. 4 \$456,038 \$299,064

\(ii\) Dollar value of\
recommendations that\
were not agreed to by\
management. 1 \$777,853 16,534

D. For which no management\
decision had been made by the\
end of the reporting period.^2^ 39 \$17,220,153 \$4,232,952

E. For which no management\
decision was made within\
6 months of issuance. 31 \$12,868,401 \$946,348

Audit Resolution Activities

Table II: Inspector General Audit Reports With Recommendations\
That Funds Be Put To Better Use

**Number of Reports Dollar Value**

A. For which no management\
decision had been made by the\
commencement of the reporting\
period.^1^ 12 \$53,693,826^1^

B. Which were issued during the\
reporting period. 5 \$10,623,901

**Total (A+B) 17 \$64,317,727**

C. For which a management decision\
was made during the reporting period. 3 \$3,469,012

\(i\) Dollar value of recommendations\
that were agreed to by management. 2 \$3,462,755

\(ii\) Dollar value of recommendations\
that were not agreed to by management. 1 \$6,257

D. For which no management decision\
had been made by the end of the\
reporting period.^2^ 15 \$60,848,715

E. For which no management decision\
was made within 6 months of issuance. 11 \$50,303,402

Audit Resolution Activities

Table III: Inspector General Audit Reports\
With Lost or Potential Additional Revenues

**Number of Reports Dollar Value**

A. For which no management\
decision had been made by the\
commencement of the reporting\
period. 8 \$217,365,640

B. Which were issued during the\
reporting period. 0 0

**Total (A+B) 8 \$217,365,640**

C. For which a management decision\
was made during the reporting period. 0 0

\(i\) Dollar value of recommendations\
that were agreed to by management. 0 0

\(ii\) Dollar value of recommendations\
that were not agreed to by management. 0 0

D. For which no management decision\
had been made by the end of the\
reporting period. 8 \$217,365,640

E. For which no management decision\
was made within 6 months of issuance. 8 \$217,365,640

**Summary of Audit Reports Over 6 Months\
Old Pending Management Decisions at\
September 30, 2005**

This listing includes a summary of internal, contract (except
pre-awards), and grant audit reports that were over 6 months old on
September 30, 2005, and still pending a management decision. It provides
report\
number, title, issue date, number of unresolved recommendations, and
unresolved amount of monetary\
benefits identified in the audit report.

**Internal Audits**

**Bureau of Indian Affairs**

W-FL-BIA-0047-2002 School Construction Program, Bureau of Indian Affairs
(2/24/04);\
2 Recommendations; \$2,100,000 Unresolved

**Bureau of Land Management**

W-IN-BLM-0009-2003 Audit of Oil and Gas Permitting Process, Bureau of
Land Management (2/13/04); 1 Recommendation

C-IN-BLM-0062-2004 Independent Auditors' Report on the Bureau of Land
Management's Financial Statements for Fiscal Years 2004 and 2003
(1/12/05); 4 Recommendations

C-IN-BLM-0013-2005 Public Safety Issues at the Saginaw Hill Property,
Bureau of Land\
Management (3/15/05); 4 Recommendations

**Bureau of Reclamation**

C-IN-BOR-0063-2004 Independent Auditors' Report on the Bureau of
Reclamation's Financial\
Statement for Fiscal Years 2004 and 2003 (1/31/04); 3 Recommendations

**Multi-Office Audits**

2001-I-0297 Stripper Oil Well Property Royalty Rate Reduction
(3/30/01);\
2 Recommendations

A-EV-MOA-0006-2004 Annual Evaluation of the Information Security Program
of the Department of the Interior (10/6/04); 2 Recommendations

A-IN-MOA-0004-2004 Department of the Interior's Use of Wireless
Technologies (12/6/04);\
6 Recommendations

X-IN-MOA-0004-2005 Management Issues Identified During the Audit of the
Department of the Interior's Fiscal Years 2004 and 2003 Financial
Statements (3/14/05);\
1 Recommendation

**National Park Service**

A-IN-NPS-0074-2003 Improvements Needed In Managing Information
Technology System Security, National Park Service (3/29/04); 1
Recommendation

C-IN-NPS-0001-2005 Public Safety Concerns At Floyd Bennett Field,
Gateway National\
Recreational Area (11/18/04); 2 Recommendations

E-IN-NPS-0056-2004 Independent Auditors' Report on the National Park
Service's Financial\
Statements for Fiscal Years 2004 and 2003 (12/10/04); 2 Recommendations

E-IN-NPS-0007-2005 Management Issues Identified During the Audit of the
National Park\
Services' Fiscal Years 2004 and 2003 Financial Statements (1/5/05);\
4 Recommendations

**U.S. Fish and Wildlife Service**

C-IN-FWS-0064-2004 Independent Auditors' Report on the U.S. Fish and
Wildlife Service's\
Financial Statements for Fiscal Years 2004 and 2003 (2/14/05);\
4 Recommendations

**Office of Surface Mining Reclamation and Enforcement**

C-IN-OSM-0005-2005 Management Issues Identified During the Audit of the
Office of Surface\
Mining Reclamation and Enforcement's Fiscal Years 2004 and 2003
Financial Statements (2/11/05); 1 Recommendation

**Contracts and Grants**

**Bureau of Indian Affairs**

1994-E-0784 Audit of Costs Incurred by Diversified Business Technologies
Corporation Under Bureau of Indian Affairs Contract No. CBM000047
(6/10/94);\
1 Recommendation; \$825,170 Unresolved

1994-E-0919 Audit of Costs Incurred by Diversified Business Technologies
Corporation Under Contract No. CBM000174 (6/30/94); 1 Recommendation;\
\$247,414 Unresolved

**Bureau of Land Management**

C-CX-BLM-0044-2003 Costs Claimed by Sletten Construction of Wyoming,
Inc., Under Contract\
No. NDC000037 to Build the National Historic Trails Interpretive\
Center, Bureau of Land Management (5/19/04); 1 Recommendation; \$256,526
Unresolved

**National Park Service**

2000-E-0289 JCM Control Systems, Inc., Costs Billed From January 1,
1997, Through July 16, 1999, Under National Park Service Contract No.
1443CX300094906 (3/24/00); 1 Recommendation; \$83,125 Unresolved

2000-E-0607 Costs Billed By Harrison & Palmer, Inc., From April 1, 1996,
Through\
June 23, 1999, Under National Park Service Contract No. 1443CX300094906
(8/8/00); 1 Recommendation; \$52,703 Unresolved

2000-E-0706 Audit of Costs Billed by Southern Insulation, Inc., From
November 21, 1994, Through June 1, 1999, Under National Park Service
Contract No. 1443CX300094906 (9/29/00); 1 Recommendation; \$86,262
Unresolved

2001-E-0035 Audit of Costs Billed by Callas Contractors, Inc., From\
January 1, 1997, Through June 1, 1999, Under National Park Service
Contract No. 1443CX300094906 (11/7/00); 1 Recommendation; \$16,425
Unresolved

2001-E-0036 Audit of Costs Billed by Capitol Mechanical Contractors,
Inc., From\
January 1, 1997, Through June 1, 1999, Under National Park Service
Contract No. 1443CX300094906 (11/7/00); 1 Recommendation; \$98,194
Unresolved

2001-E-0244 Audit of Costs Billed by E.M.S. Consultants, Inc., From May
1, 1996, Through June 1, 1999, Under National Park Service Contract No.
1443CX300094906 (2/27/01); 1 Recommendation; \$327,330 Unresolved

2001-E-0336 Audit of Costs Billed By JCM Control Systems, Inc., From\
January 1, 1994, Through July 16, 1999, Under National Park Service\
Contract No. 1443CX300094906 (4/23/01); 1 Recommendation;\
\$109,865 Unresolved

2002-E-0002 Audit of Amounts Billed by the Community Central Energy
Corporation From October 1, 1993, Through September 30, 2000, Under
National Park Service Contract No. CX-4000-0-0023 (12/19/01); 1
Recommendation; \$779,274 Unresolved

C-CX-NPS-0027-2004 Costs Claimed by Remediation Constructors, Inc., to
Construct an Access Road and Parking Area at Sequoia Kings National Park
in California,\
Contract No. 1443C8000010903 (7/8/04); 2 Recommendations; \$348,792
Unresolved

C-CX-NPS-0039-2004 Costs Claimed by The Ryan Company, Inc., Under the
Horizontal Directional Drilling Portion of National Park Service
Contract No. 1443C4500000906 (2/9/05); 1 Recommendation; \$3,427,887
Unresolved

**U.S Fish and Wildlife Service**

2003-E-0022 Costs Claimed by the State of Missouri, Department of
Conservation, Under Federal Aid Grants From the U.S. Fish and Wildlife
Service From July 1, 1997, Through June 30, 1999 (6/11/03); 2
Recommendations

R-GR-FWS-0025-2003 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of New York, Department of
Environmental Conservation, Division of Fish, Wildlife and Marine
Resources, From April 1, 2000, Through\
March 31, 2002 (5/6/04); 8 Recommendations; \$1,649,120 Unresolved

R-GR-FWS-0010-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of New Jersey, Department of
Environmental Protection, Division of Fish and Wildlife, From July 1,
2001, Through June 30, 2003 (3/8/05);\
21 Recommendations; \$824,325 Unresolved

R-GR-FWS-0004-2004 U.S. Fish and Wildlife Service Federal Assistance
Grants Administered by the State of North Carolina, Wildlife Resources
Commission, From\
July 1, 2001, Through June 30, 2003 (3/31/05); 8 Recommendations;
\$3,753,535 Unresolved

**Summary of Internal Audit and Evaluation Reports Over 6 Months Old
Pending Corrective Action at\
September 30, 2005**

This is a listing of internal audit and evaluation reports over 6 months
old with management decisions for which corrective action has not been
completed. It provides report number, title, issue date, and the number
of recommendations without final corrective action. These audits and
evaluations continue to be monitored by the Focus Leader for Management
Control and Audit Follow-up, Assistant Secretary for Policy, Management
and Budget, for completion of corrective action.

**Bureau of Indian Affairs**

2003-I-0055 Evaluation of the Bureau of Indian Affairs Process to
Approve Tribal Gaming Revenue Allocation Plans (6/11/03); 3
Recommendations

E-IN-BIA-0059-2004 Independent Auditors' Report on the Bureau of Indian
Affairs' Financial Statements for Fiscal Years 2004 and 2003 (12/29/04);
22 Recommendations

E-IN-BIA-0004-2005 Management Issues Identified During the Audit of the
Bureau of Indian\
Affairs' Fiscal Years 2004 and 2003 Financial Statements (2/28/05);\
36 Recommendations

**Bureau of Land Management**

1992-I-0828 Onshore Geophysical Exploration Fees (5/26/92); 2
Recommendations

1995-I-0379 Follow-up of Recommendations Relating to Bureau of Land
Management User Charges for Mineral Related Document Processing
(1/23/95);\
2 Recommendations

1995-I-0747 Right of Way Grants, Bureau of Land Management (3/31/95);\
6 Recommendations

1997-I-1300 Issuance of Mineral Patents, Bureau of Land Management and
the Office of\
the Solicitor (9/30/97); 1 Recommendation

1999-I-0808 Cultural Resource Management, Bureau of Land Management
(9/30/97);\
2 Recommendations

C-IN-BLM-0076-2003 Independent Auditors' Report on the Bureau of Land
Management's\
Financial Statements for Fiscal Years 2003 and 2002 (12/10/03);\
11 Recommendations

C-IN-BLM-0021-2004 Management Issues Identified During the Audit of the
Bureau of Land\
Management's Fiscal Year 2002 Financial Statements (12/31/03);\
2 Recommendations

W-IN-BLM-0009-2003 Audit of Oil and Gas Permitting Process, Bureau of
Land Management (2/13/04); 4 Recommendations

C-IN-BLM-0062-2004 Independent Auditors' Report on the Bureau of Land
Management's Financial Statements for Fiscal Years 2004 and 2003
(1/12/05); 6 Recommendations

C-IN-BLM-0002-2005 Management Issues Identified During the Audit of the
Bureau of Land Management's Fiscal Years 2004 and 2003 Financial
Statements (2/10/05);\
6 Recommendations

**Bureau of Reclamation**

C-IN-BOR-0063-2004 Independent Auditors' Report on the Bureau of
Reclamation's Financial\
Statement for Fiscal Years 2004 and 2003 (1/31/05); 2 Recommendations

C-IN-BOR-0003-2005 Management Issues Identified During the Audit of the
Bureau of Reclamation's Fiscal Years 2004 and 2003 Financial Statements
(2/11/05);\
4 Recommendations

**Minerals Management Service**

E-IN-MMS-0066-2003 Independent Auditors' Report on the Minerals
Management Service's\
Financial Statements for Fiscal Years 2003 and 2002 (12/9/03);\
5 Recommendations

E-IN-MMS-0055-2004 Independent Auditors' Report on the Minerals
Management Service's\
Financial Statements for Fiscal Years 2004 and 2003 (2/3/05);\
18 Recommendations

E-IN-MMS-0006-2005 Management Issues Identified During the Audit of the
Minerals Management Service's Fiscal Years 2004 and 2003 Financial
Statements (2/3/05);\
10 Recommendations

**Multi-Office Audits**

2000-I-0300 Supporting Documentation for Operators Participating In the
Stripper Oil Well Property Royalty Rate Reduction Program, Bureau of
Land Management and Minerals Management Service (3/27/00); 1
Recommendation

X-IN-MOA-0080-2003 Independent Auditors' Report on the U.S. Department
of the Interior's Fiscal Year 2003 Annual Report on Performance and
Accountability (11/28/03);\
39 Recommendations

C-IN-MOA-0042-2003 Fleet Management Operations, U.S. Department of the
Interior (2/9/04);\
6 Recommendations

X-IN-MOA-0043-2004 Management Issues Identified During the Audit of the
Department of the Interior's Fiscal Year 2003 Financial Statements
(2/12/04);\
19 Recommendations

C-EV-MOA-0094-2003 Department of the Interior Contracting for Temporary
and Critical Staffing Needs (9/30/04); 5 Recommendations

X-IN-MOA-0054-2004 Independent Auditors' Report on the Fiscal Year 2004
Annual Report on Performance and Accountability of the U.S. Department
of the Interior (11/15/04); 66 Recommendations

X-IN-MOA-0004-2005 Management Issues Identified During the Audit of the
Department of the Interior's Fiscal Years 2004 and 2003 Financial
Statements (3/14/05);\
1 Recommendation

**National Park Service**

1998-I-0406 Follow-up of Recommendations Concerning Utility Rates
Imposed by the National Park Service (4/15/98); 5 Recommendations

2002-I-0045 Recreational Fee Demonstration Program -- National Park
Service and Bureau of Land Management (8/19/02); 4 Recommendations

2003-I-0013 Yosemite National Park's Museum Collection, National Park
Service (3/31/03); 2 Recommendations

E-IN-NPS-0067-2003 Independent Auditors' Report on the National Park
Service's Financial Statements for Fiscal Years 2003 and 2002
(12/22/03); 11 Recommendations

E-IN-NPS-0037-2004 Management Issues Identified During the Audit of the
National Park Service's Fiscal Year 2003 Financial Statements (1/7/04);
15 Recommendations

A-IN-NPS-0074-2003 Improvements Needed In Managing Information
Technology System Security, National Park Service (3/29/04); 12
Recommendations

E-IN-NPS-0056-2004 Independent Auditors' Report on the National Park
Service's Financial Statements for Fiscal Years 2004 and 2003
(12/10/04); 26 Recommendations

E-IN-NPS-0007-2005 Management Issues Identified During the Audit of the
National Park\
Service's Fiscal Years 2004 and 2003 Financial Statements (1/5/05);\
30 Recommendations

C-IN-NPS-0013-2004 The National Park Service's Recording of Facility
Maintenance Expenditures (1/26/05); 7 Recommendations

**Office of the Secretary**

2003-I-0056 Evaluation Report on the Department of the Interior Working
Capital Fund (6/16/03); 2 Recommendations

E-IN-OSS-0058-2004 Independent Auditors' Report on the Departmental
Offices' Financial Statements for Fiscal Years 2004 and 2003 (12/6/04);
18 Recommendations

E-IN-DMO-0068-2003 Independent Auditors' Report on the Departmental
Offices' Financial Statements for Fiscal Years 2003 and 2002 (12/19/03);
18 Recommendations

E-IN-DMO-0034-2004 Management Issues Identified During the Audit of the
Departmental Offices' Fiscal Year 2003 Financial Statements (1/21/04); 7
Recommendations

E-IN-OSS-0008-2005 Management Issues Identified During the Audit of
Departmental Offices'\
Fiscal Years 2004 and 2003 Financial Statements (2/24/05);\
30 Recommendations

**Office of the Special Trustee for American Indians**

1997-I-1169 Judgment Funds Awarded to the Papago Tribe of Arizona
(9/15/97);\
2 Recommendations

1997-I-1167 Judgment Funds Awarded to the Turtle Mountain Band of
Chippewa Indians (9/22/97); 1 Recommendation

1997-I-1168 Judgment Funds Awarded to the Navajo Nation (9/22/97);\
1 Recommendation

2002-I-27 Independent Auditors' Report on the Office of Special Trustee
for American Indians' Tribal and Other Trust Funds and Individual Indian
Monies Trust Funds Financial Statements for Fiscal Years 2001 and 2000
Managed by the Office of Trust Funds Management (4/25/02); 3
Recommendations

Q-IN-OST-0075-2003 Independent Auditors' Report on the Tribal and Other
Trust Funds and\
Individual Indian Monies Trust Funds Financial Statements for Fiscal
Years 2003 and 2002 Managed by the Office of the Special Trustee for
American Indians (12/9/03); 3 Recommendations

Q-IN-OST-0025-2004 Management Issues Identified During the Audit of the
Office of the\
Special Trustee for American Indians' Fiscal Year 2003 Financial
Statements (12/22/03); 3 Recommendations

Q-IN-OST-0066-2004 Independent Auditors' Report on the Tribal and Other
Trust Funds and\
Individual Indian Trust Funds Financial Statements for Fiscal Years 2004
and 2003 Managed by the Office of the Special Trustee for American
Indians (11/29/04); 8 Recommendations

Q-IN-OST-0004-2005 Management Issues Identified During the Audit of the
Office of the\
Special Trustee for American Indians' Fiscal Year 2004 Financial
Statements (1/10/05); 4 Recommendations

**Office of Surface Mining Reclamation and Enforcement**

C-IN-OSM-0024-2004 Management Issues Identified During the Audit of the
Office of Surface\
Mining Reclamation and Enforcement's Fiscal Year 2003 Financial
Statements (12/30/03); 3 Recommendations

S-IN-OSM-0087-2003-D Evaluation Report on State Operated Coal Regulatory
Programs (10/27/04);\
2 Recommendations

C-IN-OSM-0005-2005 Management Issues Identified During the Audit of the
Office of Surface\
Mining Reclamation and Enforcement's Fiscal Years 2004 and 2003
Financial Statements (2/11/05); 3 Recommendations

**U.S. Fish and Wildlife Service**

1997-I-1305 Automated Law Enforcement System, U.S. Fish and Wildlife
Service (9/30/97); 2 Recommendations

2000-I-0050 Miscellaneous Receipts, U.S. Fish and Wildlife Service
(11/9/99);\
4 Recommendations

C-IN-FWS-0078-2003 Independent Auditors' Report on the U.S. Fish and
Wildlife Service's\
Financial Statements for Fiscal Years 2003 and 2002 (12/22/03);\
8 Recommendations

C-IN-FWS-0023-2004 Management Issues Identified During the Audit of the
U.S. Fish and\
Wildlife Service's Fiscal Year 2003 Financial Statements (12/23/03);\
1 Recommendation

C-IN-FWS-0064-2004 Independent Auditors' Report on the U.S. Fish and
Wildlife Service's\
Financial Statements for Fiscal Years 2004 and 2003 (2/14/05);\
5 Recommendations

**U.S. Geological Survey**

E-IN-GSV-0057-2004 Independent Auditors' Report on the U.S. Geological
Survey's Financial\
Statements for Fiscal Year 2004 (11/24/04); 7 Recommendations

E-IN-GSV-0005-2005 Management Issues Identified During the Audit of the
U.S. Geological\
Survey's Fiscal Year 2004 and 2003 Financial Statements (3/21/05);\
35 Recommendations

**Summary of Insular Area Reports With Open\
Recommendations Over 6 Months Old**

Note: These Insular Area reports contain recommendations made
specifically to Insular Area governors and other Insular Area officials,
who do not report to the Secretary and are not subject to the policy,
guidance, and administrative oversight established by the Assistant
Secretary for Policy, Management and Budget.

**INTERNAL AUDITS**

**Guam**

> 2002-I-0016 Bond Services, Trust Fund Activities, Guam Economic
> Development Authority,\
> Government of Guam (02/28/02); 4 Recommendations; \$68,018,988

**U.S. Virgin Islands**

> 1993-I-0363 Inmate Care, Rehabilitation and Safety, Bureau of
> Corrections, Government of the\
> Virgin Islands (12/31/1992); 1 Recommendation
>
> 1997-I-0040 Division of Agriculture, Department of Economic
> Development and Agriculture,\
> Government of the Virgin Islands (10/21/96); 1 Recommendation
>
> 1998-I-0468 Follow-up of Recommendations Relating to the Bureau of
> Corrections, Department\
> of Justice, Government of the Virgin Islands (05/29/98); 1
> Recommendation
>
> 1999-I-0365 Follow-up of Recommendations Relating to Personnel
> Management Practices,\
> Division of Personnel, Government of the Virgin Islands (03/26/99);\
> 1 Recommendation; \$8,300,000
>
> 2001-I-0107 Administrative Functions, Legislature of the Virgin
> Islands, Government of the Virgin Islands (12/29/00); 8
> Recommendations; \$1,320,293
>
> 2002-I-0001 Virgin Islands Fire Service, Government of the Virgin
> Islands (10/30/01);\
> 2 Recommendations; \$2,014,994
>
> 2002-I-0009 Virgin Islands Housing Finance Authority, Government of
> the Virgin Islands (12/31/01); 1 Recommendation
>
> 2002-I-0010 Administrative Functions, Virgin Islands Police
> Department, Government of the Virgin Islands (02/13/02); 5
> Recommendations; \$2,592,873
>
> 2002-I-0042 Federal Highway Grants, Department of Public Works,
> Government of the Virgin\
> Islands (08/16/02); 5 Recommendations; \$462,747
>
> 2002-I-0046 Professional Service Contracts, Government of the Virgin
> Islands (09/30/02);\
> 1 Recommendation; \$1,019,791
>
> 2003-I-0002 Public Finance Authority, Government of the Virgin Islands
> (11/22/02);\
> 9 Recommendations; \$30,524,687
>
> 2003-I-0003 Compliance With the Memorandum of Understanding Between
> the Governor of the\
> Virgin Islands and the Secretary of the Interior (01/06/03); 6
> Recommendations
>
> 2003-I-0067 Emergency Service Surcharge Collections by Innovative
> Telephone Corporation on Behalf of the Government of the Virgin
> Islands (09/26/03); 1 Recommendation; \$256,380
>
> V-IN-VIS- Procurement Activities Virgin Islands Port Authority,
> Government of the Virgin Islands
>
> 0001-2004 (03/28/05); 10 Recommendations; \$852,013

**List of Reports Issued on Information Security**

NSM-EV-BLM-0020-2005 Penetration Testing, External Penetration Testing
of the Bureau of Land\
Management (04/06/05)

NSM-EV-OSS-0025- Penetration Testing, External Penetration Testing of
the

2005-NBC National Business Center (07/13/05)

NSM-EV-MMS-0021-2005 Penetration Testing, External Penetration Testing
of the Minerals Management Service (08/05/05)

NSM-EV-OSM-0017-2005 Penetration Testing, External Penetration Testing
of the Office of Surface\
Mining Reclamation and Enforcement (09/06/05)

NSM-EV-FWS-0022-2005 Penetration Testing, External Penetration Testing
of the U.S. Fish and Wildlife Service (09/06/05)

NSM-EV-MOI-0003-2005 Information Security Assessment: Central Valley
Operations, Sacramento, California, National Critical Infrastructure
Information Systems, Bureau of Reclamation (09/06/05)

NSM-EV-MOI-0003-2005 Information Security Assessment: Hoover Dam,
National Critical\
Infrastructure Information Systems, Bureau of Reclamation,\
(09/06/05)

NSM-EV-MOI-0003-2005 Information Security Assessment: Grand Coulee Dam,
National Critical\
Infrastructure Information Systems, Bureau of Reclamation,\
(09/06/05)

> NSM-EV-OSS-0026-2005 National Business Center Penetration Testing,
> External Penetration Testing of the National Business Center
> (09/06/05)

NSM-EV-NPS-0023-2005 Penetration Testing, External Penetration Testing
of the National Park\
Service (09/06/05)

Cross References to the Inspector General Act

Review of Legislation and Regulations

Significant Problems, Abuses, and Deficiencies

Recommendations for Corrective Action With Respect to Significant
Problems, Abuses, and Deficiencies

Significant Recommendations From Agency's Previous Reports on Which
Corrective Action Has Not Been Completed

Matters Referred to Prosecutive Authorities and Resulting Convictions

Matters Reported to the Head of the Agency

List of Audit Reports Issued During the Reporting Period

Summary of Significant Reports

Statistical Table -- Questioned Costs

Statistical Table -- Recommendations That Funds Be Put to Better Use

Summary of Audit Reports Issued Before the Commencement of the Reporting
Period for Which No Management Decision Has Been Made

Significant Revised Management Decisions Made During the\
Reporting Period

Significant Management Decisions With Which the Inspector General Is in
Disagreement

Information Described Under Section 05(b) of the Federal Financial
Management Improvement Act of 1996

By Mail

U.S. Department of the Interior\
Office of Inspector General

1849 C St. NW

Mail Stop 5341, MIB

Washington, DC 20240

By Phone

202.208.4618

By Internet

www.oig.doi.gov

By Fax

202.208.4998