U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Publishing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001

27–284 2017

OVERSIGHT OF THE ARCHITECT OF THE 

CAPITOL’S OFFICE OF INSPECTOR GENERAL 

HEARING 

BEFORE THE

COMMITTEE ON HOUSE 

ADMINISTRATION 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

FIRST SESSION 

MAY 24, 2017 

Printed for the use of the Committee on House Administration 

( 

Available on the Internet: 

www.gpoaccess.gov/congress/house/administration/index.html 


SSpencer on DSKBBV9HB2PROD with HEARING
(II) 

COMMITTEE ON HOUSE ADMINISTRATION

GREGG HARPER, Mississippi, Chairman 

RODNEY DAVIS, Illinois, Vice Chairman 

BARBARA COMSTOCK, Virginia 

MARK WALKER, North Carolina 

ADRIAN SMITH, Nebraska 

BARRY LOUDERMILK, Georgia 

ROBERT A. BRADY, Pennsylvania, 

Ranking Member 

ZOE LOFGREN, California 

JAMIE RASKIN, Maryland 


SSpencer on DSKBBV9HB2PROD with HEARING
(1) 

OVERSIGHT OF THE ARCHITECT OF THE 

CAPITOL’S OFFICE OF INSPECTOR GENERAL 

WEDNESDAY, MAY 24, 2017 

HOUSE OF REPRESENTATIVES, COMMITTEE ON HOUSE ADMINISTRATION, Washington, DC. 

The Committee met, pursuant to call, at 11:02 a.m., in Room 

1310, Longworth House Office Building, Hon. Gregg Harper [Chairman of the Committee] presiding. 

Present: Representatives Harper, Davis, Walker, Loudermilk, 

and Brady. 

Staff Present: Sean Moran, Staff Director; Kim Betz, Deputy 

Staff Director/Policy and Oversight; Bob Sensenbrenner, General 

Counsel; Erin McCracken, Communications Director; C. Maggie 

Moore, Legislative Clerk; Ed Puccerella, Professional Staff; Jeff 

Orzechowski, Professional Staff; Rob Taggart, Deputy Legislative 

Clerk/Oversight; Jamie Fleet, Minority Democratic Staff Director; 

Eddie Flaherty, Minority Democratic Chief Clerk; and Teri Morgan, 

Minority Democratic Deputy Staff Director/Counsel. 

The CHAIRMAN. I now call to order the Committee on House Administration, for purposes of today’s hearing, the examining of the 

Architect of the Capitol and its Office of the Inspector General. The 

hearing record will remain open for 5 legislative days so members 

may submit any materials they wish to be included. A quorum is 

present, so we may proceed. 

I would like to thank my colleagues and our witnesses for being 

here today. The Architect of the Capitol, Mr. Ayers, appeared before us in February. 

Mr. Ayers, as you know, with a full panel of witnesses, it was 

difficult to have a broad discussion, and I appreciate your willingness to reappear today. 

Mr. AYERS. Thank you. 

The CHAIRMAN. Before going into my opening statement, I would 

like to take a moment to send our thoughts and prayers to the entire Architect family and the family of Matthew McClanahan. As 

most of you know, Matthew died on April 18 of this year while 

serving the United States Capitol. He was one of more than 2,100 

Architect employees who work around the clock to maintain and 

preserve these historic buildings and grounds, and we all thank 

him for his service, and we pray for the family and their loss. 

Mr. Ayers, thank you again for being here. When you testified in 

February, the Committee focused on the future challenges and priorities of the Architect of the Capitol. Today, I would like to direct 

our attention to a November 2016 report issued by the General AcVerDate Sep 11 2014 07:15 Nov 08, 2017 Jkt 027284 PO 00000 Frm 00003 Fmt 6633 Sfmt 6602 E:\HR\OC\A284.XXX A284

SSpencer on DSKBBV9HB2PROD with HEARING
2 

countability Office highlighting problems with the Architect of the 

Capitol’s Office of the Inspector General. The report, as you know, 

led to the resignation of Mr. Mulshine, the former Inspector General, 1 month later. 

Prior to 2007, the Architect of the Capitol had a single-person, 

nonstatutory inspector general. In December of 2007, as part of the 

Consolidated Appropriations Act for fiscal year 2008, Congress established the Architect of the Capitol’s first Office of the Inspector 

General. Congress created the office in response to concerns about 

the delays and escalating construction costs associated with the 

Capitol Visitors Center. Congress established a statutory inspector 

general position to audit and report semiannually on management 

and operations issues and other issues as required. 

Last November, the General Accountability Office, the GAO, 

issued a report on the Architect of the Capitol’s Office of the IG operations, which raised some very serious concerns. GAO found that 

over a 4-year period, from 2012 through 2015, the Office of the IG 

completed only 14 audits, none of which included audits of large 

scale projects, such as the Cannon House Office Building’s renovations. 

As you know, the Cannon renovations are expected to occur over the next 10 years at a cost of approximately $750 million. As the 

GAO reported, and I quote: OIG provided little assurance that 

AOC’s most critical programs and contracts received adequate oversight, that audit resources were being applied to the most critical 

areas, and that the OIG’s efforts would fully inform AOC’s management of the Congress of any problems or deficiencies. 

In addition, GAO reported serious concerns with both the auditing and investigative functions of the Architect Office of the IG 

during this time period. Specifically, GAO noted, and I quote: The 

OIG’s lack of adequate audit planning, lack of criminal investigators, and reliance on AOC program offices to conduct investigations 

of alleged wrongdoing have contributed to a significant decline in 

its audit and investigative reports and reported monetary accomplishments. 

This lack of transparency concerns this Committee and calls into 

question the veracity and completeness of information presented to 

Congress about project management. 

GAO continued, as a result of the OIG’s minimal audit report 

coverage, the Architect and the Congress may not be fully and currently informed about the operations of AOC’s jurisdictions, offices, 

and major contracts. 

I look forward to hearing the GAO report, discussing that, and 

the diminishment of the Office of the IG with our witnesses today. 

I would also like to use this hearing to develop a strategy to move 

the Office of the IG forward under the direction of Mr. Failla. And, 

again, I thank each of you for your appearances before our Committee today. 

And I now recognize my colleague and the Ranking Member of 

this Committee, Mr. Brady, for an opening statement. 

[The statement of The Chairman follows:] 

Mr. BRADY. Thank you, Mr. Chairman. Again, it is a pleasure to 

be here with the Architect of the Capitol, Mr. Ayers, and the new 

Inspector General, and the GAO. 


SSpencer on DSKBBV9HB2PROD with HEARING
3 

When I became Chairman of this Committee, I inherited an overbudgeted and behind schedule Capitol Visitors Center. Working 

with my colleague and my excellent Ranking Member, Vern Ehlers, 

we were able to partner with the Architect’s office and get the 

project back on track. As a result of that work was the creation of 

the Inspector General’s Office. So I know from experience what the 

CVC, the Capitol dome renovations, and now the Cannon rehab, 

how important an independent set of eyes can be when you are 

spending billions of taxpayers’ dollars. 

I appreciate, Mr. Chairman, your leadership on having these 

issues, and I look forward to hearing from our witnesses. 

[The statement of Mr. Brady follows:] 

The CHAIRMAN. The gentleman yields back. Thank you, Mr. 

Brady. 

Does any other Member wish to be recognized for the purpose of 

an opening statement? 

Seeing none, I would now like to introduce our witnesses. 

First, let me introduce Stephen T. Ayers, who was officially appointed on May 13, 2010, to serve a 10-year term as the 11th Architect of the Capitol. The Architect is charged with the sizeable 

task of preserving historical buildings around the Capitol, throughout the Capitol Grounds, and ensuring the structural integrity and 

the safety for millions of visitors who travel here each year to experience firsthand the rich history of our Nation’s government. 

Under Mr. Ayers’ leadership, the Architect oversaw the restoration of the U.S. Capitol dome, restoring it to its original splendor. 

He also led the restoration of the Ulysses S. Grant memorial, a 

campus-wide effort to restore and repair deteriorating stone facades, and launched the renewal of the Cannon House Office Building. 

So we thank you, Mr. Ayers, for being with us today. 

Mr. AYERS. Thank you, Mr. Chairman. 

The CHAIRMAN. I also would like to introduce Christopher P. 

Failla, who was appointed on April the 17, 2017, a little more than 

a month ago, as the Architect of the Capitol’s Inspector General. 

Before his appointment as the IG, Chris completed a 26-year Naval 

career and retired as a Navy captain. And we thank you for your 

service to our country, as well as you, Mr. Ayers. His final assignment with the Navy included three positions within the Department of Defense’s IG Office, including director for the Technical Assessment Directorate, executive assistant for the deputy inspector 

general for Policy and Oversight, and the senior military advisor 

and office for DOD OIG. So thank you for being here today and for 

your service. 

Now I would like to introduce from GAO, Beryl H. Davis. She is 

the director of Financial Management and Assurance at the Government Accountability Office, where her responsibilities include 

audits related to improper payments, grant management, agency 

internal controls, and Federal inspectors general. Ms. Davis previously served as vice-president of the standards and guidance for 

the Institute of Internal Auditors, as well as the director of audit 

services and management support for the city of Orlando. Ms. 

Davis is the author of the GAO report on the Architect of the Capitol’s Office of Inspector General, which we will be discussing furVerDate Sep 11 2014 07:15 Nov 08, 2017 Jkt 027284 PO 00000 Frm 00005 Fmt 6633 Sfmt 6602 E:\HR\OC\A284.XXX A284

SSpencer on DSKBBV9HB2PROD with HEARING
4 

ther during today’s hearing. And so thank you, Ms. Davis, for being 

here today. 

Ms. DAVIS. Thank you. 

The CHAIRMAN. The Committee has received each of your written 

testimonies. You will each have 5 minutes to present a summary 

of that submission. As you know, to help keep the time, we have 

a timing device there on your witness table. The device will emit 

a green light for 4 minutes and then will turn yellow when 1 

minute remains. When the light turns red, it means that your time 

is out, and try to bring it in for a landing if you can at that time. 

Also, remember to hit your mike button to get started. And so, 

again, we thank each of you for joining us today. 

And at this time, the Chair will now recognize the Architect of 

the Capitol, Stephen Ayers, for his testimony. 

STATEMENTS OF HON. STEPHEN T. AYERS, ARCHITECT OF 

THE CAPITOL; CHRISTOPHER P. FAILLA, INSPECTOR GENERAL, ARCHITECT OF THE CAPITOL; AND BERYL H. DAVIS, 

DIRECTOR OF FINANCIAL MANAGEMENT AND ASSURANCE, 

U.S. GOVERNMENT ACCOUNTABILITY OFFICE 

STATEMENT OF HON. STEPHEN T. AYERS 

Mr. AYERS. Thank you, Mr. Chairman, and Ranking Member 

Brady, and Members of the Committee. I appreciate the opportunity today to testify and provide an overview of the Architect of 

the Capitol’s Office of Inspector General. And we are incredibly 

pleased to have recently welcomed Chris Failla as our new statutory Inspector General. I believe that Mr. Failla’s leadership and 

experience in several different roles, both in high pressure environments and others, perfectly aligns with my efforts to transform and 

strengthen our Office of Inspector General. And I can tell you, in 

his first 30 days, he has already made a positive impact. 

The AOC Inspector General Act of 2007 afforded us the opportunity to improve and expand IG operations, and I remain fully 

supportive of this effort. And over the years, I have ensured that 

adequate resources are available to support the IG and the functioning of his office. In addition to providing these resources, I support the IG by setting policy as well as setting the tone with my 

leadership team to ensure that we fully support the IG and respect 

their independence. 

I firmly believe that the IG’s value-added and independent audits, evaluations, and investigations positively impact my agency’s 

success. We empower all of our employees to join in the effort to 

improve our performance and the effectiveness of our agency. We 

require a high performing and engaged workforce to continue to deliver and improve upon the specialized services that we provide to 

the Congress and the American public. 


SSpencer on DSKBBV9HB2PROD with HEARING
5 

We use a variety of communication channels to encourage AOC 

employees to use the inspector general hotline as well as other avenues to ensure they avail themselves of the services of the IG. 

At a leadership level, when gaps or weaknesses in internal controls are identified or suggestions are made to improve our operations, we move quickly to address those in a timely manner. And 

I am proud to report to you today that we have addressed each and 

every one of the more than 360 recommendations put forth by our 

statutory inspector general to date. 

As an example, in the AOC’s fiscal year 2016 performance and 

accountability report, their inspector general identified that the 

management of concurrent construction projects is one of our key 

management challenges, and our leadership team understands the 

importance and complexity of this that is associated with managing 

more than a billion dollars in ongoing active construction work 

right now. 

We have implemented sound strategies and used the best tools 

available to incorporate planning, risk assessment and risk mitigation, quality control techniques into our disciplined project management approach. We will continue our commitment to closing out all 

management challenges and opportunities, and ensure the projects 

that we oversee remain on schedule, within budget, and free of 

waste, fraud, and abuse. 

Currently, we are working with the Inspector General on several 

ongoing audits and evaluations, as well as an agencywide risk assessment that recently kicked off. And by focusing on these types 

of efforts that increase our ability to mitigate risks, the IG is able 

to maximize its effectiveness and advance the agency’s goals and 

objectives. 

We believe that our partnership with the inspector general furthers our efforts to improve transparency and accountability, and 

reduce costs. And with your continued support and the support of 

our Inspector General, I am quite confident we can continue to 

carry out that mission. 

Thank you, Mr. Chairman. 

[The statement of Mr. Ayers follows:] 


SSpencer on DSKBBV9HB2PROD with HEARING
6 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 18 here 27284A.001

Statement of the Honorable Stephen T. Ayers, FAIA, LEED AP 

Architect of the Capitol 

Archltect of the Capitol 

Statement before the Committee on House Administration 

United States House of Representatives 

May 24,2017 

Architect of the Capitol I C.S. Capitol, RtxJm SB-16 I Washington, DC ZO'il'i I 202.22Rl"'93 1 \\'\vw.aoc.gov 
7 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 19 here 27284A.002

Chairman Harper, Ranking Member Brady, and members of the Committee, I 

appreciate the opportunity to testify today and to provide an overview of the 

Architect of the Capitol's (AOC) Office of Inspector General (OIG). 

I am pleased to have recendy welcomed Christopher P. Failla as the AOC's third 

statutory Inspector General (I G). As I have done for each of the three statutory IGs 

we have hired, I led a nationwide search to seek out the best talent available and 

sought the expert advice and judgment of peer agencies. I am confident that Mr. 

Failla will be a valuable addition to the AOC and a leading force in our efforts to 

fulfill our mission to serve Congress and the Supreme Court, preserve America's 

Capitol and inspire memorable experiences for all who visit the buildings and 

grounds. J\1r. Failla's leadership in several different roles and in high-pressure 

environments perfecdy aligns with my efforts to transform and strengthen the OIG. 

Before joining the AOC in 2017, Mr. Failla completed a 26-year naval career and 

retired as a Navy Captain. During his last assignment, he held three positions at the 

Department of Defense (DOD) Inspector General's office. He was detailed as the 

Director for the Technical Assessment Directorate, leading 19 engineers conducting 

inspections and evaluations on major acquisition defense programs, military facilities 

and overseeing hodine complaints and congressional inquiries in accordance with 

Council ofinspectors General on Integrity and Efficiency (CIGIE) guidelines. During 

his three years as Director, his directorate published 21 CIGIE Inspection and 

Evaluation reports on high-profile DOD programs such as the Joint Strike Fighter 

(JSl~), F-18 Super Hornet, C-5, military ejection seats, ammunition data cards, the 

Recovery of Chemical Weapons Program (RCWP) and the Evolved Expendable 

Launch Vehicle (EEL V) produced by ULA and Space X, along with inspecting nearly 

30 military facilities around the world for health and safety violations. He also served 

as the Executive Assistant for the Deputy Inspector General for Policy and Oversight 

and served as the Senior Military Advisor and Senior Military Officer in the DOD 

Inspector General's office, leading 38 active duty and reserve officers and one enlisted 

member from all four services. 

Fostering an Innovative and Empowered Workforce 

We are honored to be the builder and steward of the iconic landmarks of Capitol Hill, 

including the U.S. Capitol, U.S. Capitol Grounds, Capitol Visitor Center, House and 

Senate office buildings, Library of Congress, U.S. Supreme Court and the U.S. 

Botanic Garden. The AOC requires a high-performing and engaged workforce to 

continue to deliver and improve upon the services we provide. Transparency and 

accountability are tenets that require continuous improvement, and I believe that Mr. 

Failla has the leadership qualities needed to ensure that we continue to meet and 

exceed our high ethical and moral standards. 

Statement before the Committee on House Administration, United States House of Representatives 

1 
8 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 20 here 27284A.003

The AOC collaborated with Congress and strongly supported the Architect of the 

Capitol Inspector General Act of 2007 (AOC OIG Act). Prior to this statutory 

authority, the OIG lacked the efficiency and effectiveness to deter and prevent fraud, 

waste and abuse in AOC operations and programs. This AOC OIG Act afforded 

us the opportunity to expand OIG operations, and I have ensured that adequate 

resources arc available to support the IG and his office. The addition of a Deputy IG, 

a Senior Executive Service level position, has significantly improved the OIG's 

oversight capabilities. And we encouraged the recruitment of engineering and 

construction-related technical expertise needed to align with the AOC's 

specialized operations. 

The scope of OIG duties and responsibilities includes all AOC jurisdictions and 

programs. The OIG is independent in performing its duties to conduct audits, 

evaluations and reviews of AOC programs and activities. My leadership team fully 

supports the OIG. When the OIG identifies gaps or weaknesses in internal controls, 

or makes suggestions to improve AOC operations, we remain committed to moving 

quickly to address its fmdings and close out all recommendations in a timely 

manner. I also encourage l.Vlr. Failla to continue to work cooperatively with Congress' 

oversight role. 

Since the enactment of the AOC OIG Act, the OIG has issued more than 60 

reports and 120 investigations. I am proud to report that we have addressed each and 

every one of the more than 360 recommendations put forth by the OIG within the 

specified timeframe. I fully support these value-added and independent audits, 

evaluations, and investigations and believe that they can positively impact the agency's 

five-year strategic plan and build trust with Congress and the American taxpayer. 

The AOC empowers all employees to join in the effort to improve the performance 

and effectiveness of the agency. We encourage employees to use the OIG hotline, a 

confidential, toll-free hotline to report potential fraud, waste and abuse. In addition, 

we recently instituted a "Speak Up" program, a confidential communication channel 

for employees to suggest changes and ideas, ask questions, express concerns and 

contact the AOC OIG. 

Collaborating ·with agencies such as the Government Printing Office and the United 

States Equal Employment Opportunity Commission, the OIG participates in a peer 

review process to examine its investigative and audit operations. Most recently, in 

2015 the National Credit Union Administration undertook a review of the OIG audit 

operations. The report positively concluded that the OIG's system of internal 

controls complies with best practices. We support and encourage the OIG's 

involvement in this independent process that has resulted in valuable improvements. 

Statement before the Committee on House Administration, United States House of Representatives 

2 
9 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 21 here 27284A.004

Promoting a Culture of Transparency and Accountability 

Recognizing the trust placed in us by Congress and the American people, the talented 

men and women of the AOC 2,100 strong- proudly work 24 hours a day, seven 

days a week, 365 days a year to provide Congress and the U.S. Supreme Court with 

the facilities and infrastructure to conduct their business. The AOC OIG plays a 

valuable role in support of the core values -integrity, professionalism, teamwork, 

safety and pride - that drive our daily mission. 

In the last two decades, our footprint has increased substantially, and today we operate 

and care for more than 17.4 million square feet across 36 facilities and 570 acres of 

grounds. Along with the sheer growth in size, the complexity of operating these 

facilities has undergone significant change. The number of people that work here has 

grown, and the number of people that visit has skyrocketed. The Capitol campus is 

home to thousands of daily occupants and has hosted approximately 4.5 million visitors 

from throughout the U.S. and around the world in Fiscal Year (FY) 2016. 

Funded across 10 separate appropriations accounts within the Legislative Branch 

Subcommittee, each having specific facility and operational responsibilities, the 

AOC's annual budget is approximately $620 million per year. We manage more than 

$1 billion in active, concurrent construction projects and execute about 5,000 

procurement actions per year, including purchase card and large construction 

contracts. Over the last five years, we have obligated approximately $25 million in 

small business contracts as well. 

Many of our projects are high-value and high-risk, making proper oversight essential 

to their successful execution. 1be AOC OIG has and continues to play a prominent 

role in ensuring that we are effective stewards of taxpayer dollars. Currendy, we are 

coordinating with the OIG on several on-going audits and evaluations, as well as on 

an agency-wide risk assessment that will be used as an aid to future audit planning. By 

focusing on these types of efforts that increase our ability to mitigate risks, the OIG is 

able to maximize its effectiveness and advance the agency's goals and objectives. The 

OIG leads the agency's annual, independent fmancial audit, which received an 

unmodified or "clean" opinion on our financial statements for FY 2016. This marks 

the 12th consecutive year our expert management of federal funds received a clean 

audit opinion. 

The OIG is also coordinating with our project teams to oversee major projects such 

as the first major restoration of the U.S. Capitol Dome and Rotunda in more than 50 

years, the Cannon House Offlce Building Renewal project, the Rayburn House Offlce 

Building garage rehabilitation program and the Cogeneration project at the Capitol 

Power Plant. 

Statement before the Committee on House Administration, United States House of Representatives 

3 
10 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 22 here 27284A.005

Recently issued reports on the Cannon Renewal project and the Capitol Power Plant's 

Refrigeration Plant Revitalization project reinforced the AOC's effective management 

of these important and highly visible projects. The OIG provided recommended 

process improvements that will enhance our already robust management practices and 

be adopted and applied across our capital program. 

Managing Concurrent Projects 

In the AOC's FY 2016 Performance and Accountability Report, the OIG identified 

the management of concurrent AOC construction projects as a key challenge for the 

agency. Our leadership understands the importance of the risks associated in 

managing our portfolio of diverse projects. We will continue our commitment to 

closing out all management challenges and opportunities and ensure these projects 

remain on schedule, within budget and free of waste, fraud and abuse. 

The AOC's leadership uses the best tools available to incorporate effective 

planning, risk assessment and mitigation and quality control techniques into our 

disciplined approach to project management. We constantly monitor the status of key 

projects and ensure that clear and consistent communication among all parties takes 

place. In addition to regular updates to Congress, the AOC reports progress on key 

projects on our website and social media outlets to keep the public informed about 

what is completed, ongoing and planned. 

In FY 2016, the AOC continued to improve our project management process. In 

particular, planning was improved through the use of better tools that anticipate 

construction management staffing requirements and estimate the resources needed on 

major projects earlier in the process. The AOC continued to employ formal project 

partnering on major restoration projects to ensure open communications between the 

government and contractor project teams, conflrm shared project goal development 

and utilize timely issue resolution processes to solve problems, and identify effective 

and innovative solutions. Additional management challenges include: deteriorating 

condition of buildings and grounds; energy stewardship and sustainability; physical 

security of facilities; workplace safety and health; and retaining and attracting a skilled 

and engaged workforce. 

Conclusion 

The Congress recently tasked the United States Government Accountability Office 

(GAO) to assess the OIG's oversight of the AOC. Their November 2016 report titled 

"Improvements to IG Oversight Needed for Architect of the Capitol Operations" 

determined that the OIG's planning did not include risk assessments or assigned 

Statement before the Committee on House Administration, United States House of Representatives 

4 
11 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 23 here 27284A.006

priorities for conducting audits consistent \vith standards of the CIGIE. The OIG 

agreed with the GAO's two recommendations and is moving quickly to address these 

deficiencies. 

I believe the GAO report is another valuable tool that will further our efforts 

to improve transparency and accountability and reduce costs. The AOC strives to be a 

world-class organization providing superior service to our clients. We believe that our 

partnership with the AOC OIG furthers our goal to improve our operations and 

programs. 

The continued support of Congress and this Committee help enable us to carry out 

our important mission. 

Statement before the Committee on House Administration, United States House of Representatives 

5 
12 

The CHAIRMAN. Thank you, Mr. Ayers. 

The Chair now recognizes Christopher Failla for purposes of an 

opening statement. 

STATEMENT OF CHRISTOPHER P. FAILLA 

Mr. FAILLA. Thank you, Mr. Chairman. 

Chairman Harper, Ranking Member Brady, Members of the 

Committee, I am pleased to testify today regarding the Office of Inspector General’s oversight of the Architect of the Capitol. I am excited to be at the helm of the AOC OIG as its third statutory IG. 

Created in 2008, the OIG is a relative newcomer to the IG community, overseeing a legislative branch agency that is a hundred years 

old—excuse me—that is hundreds of years old. There is enormous 

potential to strengthen our organization to adeptly oversee the 

agency’s programs and operations with independence and objectivity. 

I joined the AOC after a 26-year career in Naval aviation, retiring as a Navy captain. My last assignment over the past 3 years 

was with the Department of Defense OIG, where I was the director 

for the Technical Assessment Directorate, leading 19 engineers who 

conducted CIGIE inspections and evaluations on major acquisition 

defense programs along with military facility safety inspections. I 

also oversaw hotline complaints and congressional inquiries. 

This experience taught me that effective oversight requires audits with clearly defined objectives and criteria. I also learned how 

a successful inspector general’s office should be staffed, run, and 

exercise its independence. This perspective, among others, will 

guide my efforts to have well-defined objectives and scope in order 

to increase the effectiveness of our audits and evaluations. While 

AOC projects are large, we will do our review work in smaller 

chunks and report earlier in the project or program lifecycle, providing recommendations that can still effect change. 

Rather than monitoring the agency through the practice of being 

embedded and attending program meetings, we will be shifting to 

performing well-defined field work, with timelines for deliverables 

and changing our process to ensure transparency in our work and 

also enlist the help of subject matter experts where needed to lend 

credibility to our findings. 

The OIG has done a tremendous amount of work in the absence 

of an IG to address the GAO recommendations. They have executed 

the acting IG strategic plan, contracted for an agencywide risk assessment, and a quality assurance review of the audit program. 

The OIG has scheduled a CIGIE peer review for the investigative 

program, while issuing a revised fiscal year 2017 and 2018 audit 

plan, thereby answering all the GAO’s concerns but one. That one 

issue concerns restoring criminal investigators with law enforcement authority. 

The AOC needs a program that can perform complex criminal investigations involving contracting and procurement fraud in major 

programs and contracts. However, I am awaiting the results of the 

CIGIE peer review to help provide the information to make this decision. 

In my first 30 days, I have noticed the need for realistic expectations in the face of our current resources and staffing. We are a 


SSpencer on DSKBBV9HB2PROD with HEARING
13 

small staff required to oversee the useful spending of approximately $1 billion of construction and improvements. This is a 

daunting task. I need to evaluate the leverage of contracting services, the need for additional staff, and prioritizing our work. 

Despite these challenges, my office will continue to be a vital resource at an important time in the lifecycle of the U.S. Capitol by 

making the following changes: I have adjusted plans to devote 

more resources to focusing on the high-risk and high-impact activities of the agency. The initiatives and plans developed will transform the office and expand our in-house expertise. This means developing the right expertise to perform oversight work and increase 

our use of subject matter experts. 

We will also perform stringent follow-up investigations of recommendations and embark on proactive evaluations. Additionally, 

I have committed to meeting regularly with committee staffers interested in OIG matters and with Speaker Ryan’s Director of 

House Operations to provide informational updates on our work. 

Currently, we have a number of exciting programs, audits, and 

initiatives underway. In April, we contracted with an independent 

certified public accountant firm to audit the AOC’s 2017 financial 

statements. In May, we initiated an agencywide risk assessment to 

help identify and appropriately consider the AOC’s risks. We will 

use the results of this risk assessment to assist us in future audit 

planning efforts. 

We will continue to provide quarterly project status reports on 

the Cannon renewal project and on the Capitol Power Plant to the 

Appropriations Committees, and we are also planning—are in the 

planning phase of a focused audit on contract change orders on the 

Cannon renewal project, and expect issuing a report by the end of 

the fiscal year. 

Additionally, with our review of the U.S. Capitol dome restoration project, payments completed are expected to be released this 

audit by the end of the third quarter. I am also planning an evaluation which will examine the possibility of product substitution on 

select projects. 

Our investigative program will continue to monitor the live hotline center we stood up 2 years ago. We have developed a new hotline poster, which is on display across the AOC, and recently we 

have seen an uptick in hotline complaints, along with seeing the 

first use of the AOC Speak Up program to make confidential contact with the OIG. 

My first 30 days has been a time of listening, constructive conversation with leadership, building on ongoing initiatives, and 

working to be responsive to stakeholder feedback. I will work hard 

to continue to improve our oversight capabilities to fight fraud, 

waste, and abuse. I see my office’s presence, oversight, and reports 

as a deterrent to abuses as much as it is an office to find abuses. 

My written statement provides expanded detail on the ongoing 

OIG work, and I will be happy to brief the Committee in further 

detail on any of our efforts. Thank you for the opportunity to address the Committee. 

[The statement of Mr. Failla follows:] 


SSpencer on DSKBBV9HB2PROD with HEARING
14 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 29 here 27284A.007

STATEMENT OF 

CHRISTOPHER P. FAILLA, INSPECTOR GENERAL 

ARCHITECT OF THE CAPITOL 

Regarding Oversight ofthe Architect of the Capitol's Office oflnspector 

General 

Committee on House Administration, U.S. House of Representatives 

May24,2017 

Introduction 

Chairman Harper, Ranking Member Brady, members of the Committee, I am pleased to submit 

this testimony regarding oversight of the Architect of the Capitol's Office of Inspector General 

(AOCOIG). 

I am excited to be at the helm of the AOC OIG as its third statutory Inspector General. Created in 

2008, the OIG is a relative newcomer to the Inspector General community, overseeing a 

legislative branch agency that is hundreds of years old. There is enormous potential to strengthen 

our organization to adeptly oversee the agency's programs and operations with independence and 

objectivity. 

Today I will discuss my background, provide an update on ongoing initiatives and projects, and 

lay out my early blueprint for the office. 

I joined AOC after a 26-year Career in Naval aviation, retiring as a Navy Captain. My last 

assignment over the past 3 years was with the Department of Defense OIG where I was the 

Director for the Technical Assessment Directorate, leading 19 engineers conducting inspections 

and evaluations on major acquisition defense programs, military facilities and overseeing hotline 

complaints and congressional inquiries. During these three years as Director, my directorate 

published 21 Council of the Inspector General on Integrity and Efficiency ( CIGIE) Inspection 

and Evaluation reports on high profile DoD programs such as the Joint Strike Fighter, F-18 

Super hornet, C-5, Military Ejection seats, Ammunition data cards, the Recovery of Chemical 

Weapons Program, and the Evolved Expendable Launch Vehicle produced by ULA and Space X 
15 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 30 here 27284A.008

along with inspecting nearly 30 military facilities around the world for health and safety code 

violations. During this same period I also served as the Executive Assistant for the Deputy 

Inspector General for Policy and Oversight and served as the Senior Military Advisor and Senior 

Military Officer in the DoD Inspector General's office. 

This experience taught me that effective oversight requires audits with clearly defined objectives 

and criteria. I also learned how a successful Inspector General's office should be staffed, run and 

exercise its independence even during the most difficult and pressure intensive audits. 

This perspective, among others, will guide my efforts to have well-defined objectives and scope 

in order to increase the effectiveness of our audits and evaluations. While AOC projects are 

large, we will do our review work in smaller chunks and report earlier in the project or program 

lifecycle, providing recommendations that can effect change. 

OIGs are most effective when they provide concrete recommendations to Congress and the 

agency on ways to improve the programs and operations they oversee. Rather than monitoring 

the agency through the practice of being embedded and attending program meetings we will be 

shifting to performing well-defined field work, with timelines for deliverables and changing our 

process to ensure transparency in our work and also enlist the help of Subject Matter Experts, 

where needed, to lend credibility to our fmdings and our staff. 

Over the last five months, the OIG has done a tremendous amount of work in the absence of an 

IG to address GAO recommendation and execute the acting IG's strategic plan. During this time, 

on the recommendation of GAO, the OIG contracted with a firm with expertise in organizational 

risk reviews to conduct an agency-wide risk assessment, and a quality assurance review of the 

OIG audit program while scheduling a CIGIE peer review for the investigative program. 

The OIG, on the recommendation of GAO, issued a revised FY 2017-2018 Audit Plan that better 

reflected AOC management challenges identified and Congressional requests. 

2 
16 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 31 here 27284A.009

In my first 30 days with the AOC OIG, I have noticed the need for realistic expectations in the 

face of our current resources and staffing. We are a small staff required to oversee the useful 

spending of about l Billion dollars of construction and improvements. This is a daunting task. I 

need to evaluate: leveraging contracting services, the need for additional staff, and prioritizing 

our work. We may need to be larger in staff and have additional expertise to provide a 

meaningful return on investment and to meet CIGIE standards. 

Despite these challenges, my office will continue to be a vital resource at an important time in 

the lifecycle of the U.S. Capitol with the restoration of the Capitol Dome; the ongoing renovation 

of the Cannon House Office Building; the Rayburn Garage Rehabilitation Project and the 

revitalization of the Capitol Power Plant. 

Since arriving a little over 30 days ago, I have been meeting with Jurisdiction heads and 

Committee Staffers, listening intently to their concerns, answering their questions and sharing 

with them my Inspector General ideologies while I try to restore their trust and confidence in the 

OIG. 

Thus far, I have seen a need to adjust plans that devotes more resources to focusing on high-risk 

and high-impact activities of the agency. The initiatives and plans we developed will transform 

the office and expand our in-house expertise. I talked earlier about being an independent and 

objective office. That means developing the right expertise to perform oversight work and 

increase our use of subject matter experts. We will also perform stringent follow up to 

recommendations and embark on proactive evaluations. 

These follow ups reminds all auditees that once a report is published the work is not completed 

and the Inspector General will be ensuring the recommendations agreed to are implemented. 

We are working to improve our investigative program and have requested that the CIGIE 

perform a peer review of the AOC's Investigative Program. This will better inform me on areas 

for improvement to this part of my office and also help me to make a number of decisions on the 

direction of the investigative program including whether to restore criminal investigators with 
17 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 32 here 27284A.010

law enforcement authority. As pointed out in the aforementioned GAO report, the AOC needs a 

program that can perform complex criminal investigations involving contracting and 

procurement fraud in major programs and contracts. This cannot be done by the U.S. Capitol 

Police in accordance with CIGIE investigative standards. 

With all of these challenges I am excited about the work ahead of us and I would like to 

highlight what you can expect from my office in the coming months. 

Ongoing Work and Major Initiatives in Progress 

Risk Assessment 

We initiated an agency-wide risk assessment to help identify and appropriately consider the 

AOC's risks that is, the events or matters that could keep the AOC from accomplishing its 

goals and objectives. We will use the results of the risk scan to assist us in future audit planning 

efforts. On March 27, 2017, we issued a revised Audit Plan for FY 2017-2018 in order to focus 

more on high-impact areas of AOC programs and operations. 

Quarterly Reports 

During this reporting period, we issued two quarterly project status reports. These reports were 

mandated by the Explanatory Statement accompanying the FY 2016 Legislative Branch 

Appropriations Act, P.L. 114-113, Division I, which requires the OIG to provide quarterly status 

updates on the Carmon Renewal Project to the House Committee on Appropriations and on the 

Capitol Power Plant to the Committees on Appropriations. 

o The first of these reports was issued on December 19, 2016, and covered the 

Cannon Renewal Project's activities from January I, 2014 through September 30, 

2016. This report contained a summary of the key project milestones and also 

provided the results of our first audit report for the Carmon Renewal Project 

issued June 24,2016. This audit focused on whether the AOC adequately 

designed the Partnering Fee Plan (PFP), Project Management Plan (PMP) and 

4 
18 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 33 here 27284A.011

Tower Crane Procurement Plan. We found that they were all appropriately 

executed and also made recommendations for improvements to the project 

management team's monitoring procedures for areas we identified as requiring 

improvements. 

o Our second quarterly report addressed the Refrigeration Plant Revitalization 

(RPR) Project, one of two major construction initiatives underway at the Capitol 

Power Plant. The AOC completed RPR Phases 1, 2A and 28, and 3S, and our 

status update provided a review of RPR Phase 3A, including the cost and 

schedule. In particular, the update focused on the AOC's Final Cost-Schedule 

Risk Analysis for RPR Phase 3A, dated June 13,2016. Our report recommended 

that once the project was fully funded, the AOC should review and update its 

milestones, taking the risk assessment into account, and review its risk analysis 

procedures to ensure that they provide the most accurate and up-to-date 

reconciled cost estimates to risk assessors. 

Fiscal Year 2016 Financial Statements Andit 

We contracted with the independent certified public accounting firm Kearney & Company 

(Kearney) to audit the AOC's financial statement for the year ending September 30, 2016. The 

contract required the audit be conducted in accordance with Government Auditing Standards 

issued by the Comptroller General of the United States. 

Kearney issued an unmodified opinion for the FY 2016 financial statements and identified four 

areas that needed improvements. Kearney identified a material weakness pertaining to 

improvements to project cost capitalization analysis; the AOC did not properly represent 

amounts that should be treated as operating expenses. Kearney also noted a significant deficiency 

in that the AOC did not have a system in place to detect reconciliation misstatements on the 

financial statements. We will continue to use Kearney to audit the FY 2017 AOC Financial 

Statements, which we initiated in April2017. 
19 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 34 here 27284A.012

Cannon House Office Building Renewal Project 

We are continuing to perform audit work of the AOC's efforts to complete the Cannon Renewal 

Project within the established time1ines and budget. The Cannon Renewal Project is a $752.7 

million multi-phase and multi-year (from 2015 through 2024) renovation project, requiring 

urgent work to replace major, outdated building systems and components, while preserving this 

historic building and improving its safety conditions. Dating back to 1908, the Cannon Building 

is the oldest congressional office building, other than the U.S. Capitol, on the Capitol campus. 

Cannon occupied by members of the U.S. House of Representatives and includes a combination 

of member suites, committee hearing rooms, support offices, food services, and facility and 

utility space. Over 2,000 people normally occupy the 800,000 square foot building that contains 

five stories, a full basement and a multi-level parking garage. 

Our current focus is to evaluate the project's contract modification procedures. We expect this 

report to be issued in the fourth quarter of FY 2017. 

Further, we will provide Congress with quarterly updates on cost, schedule, and barriers to 

completion if any. 

U.S. Capitol Dome Restoration Project- Payments 

The U.S. Capitol Dome Restoration Project was initiated to repair the deterioration of the Dome 

and Rotunda. The Dome Restoration Project includes three stages to repair the damage and 

deterioration: (i) the Dome exterior, (ii) the Dome interior (also known as the "Interstitial 

Space"), and (iii) the Rotunda. All three phases were substantially completed as of March 31, 

2017. 

Our overall objective is to review procedures to ensure that project costs are in accordance with 

contract specifications and that payments are accurate and adequately supported. We expect this 

report to be issued in the third quarter ofFY 2017. 

6 
20 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 35 here 27284A.013

Product Substitution 

Product substitution refers to vendors knowingly and willfully making substitutions of 

substandard, used, or counterfeit products or materials. Product substitution is particularly 

common in contracts that call for the use of expensive, high-grade materials where contractors 

might substitute less expensive, similar although inferior products in place of those that meet 

specifications. 

We are planning an evaluation that will review product substitution for select construction 

projects. Our primary objective is to examine contractor compliance with contract terms 

specifically related to equipment and materials furnished for the projects. We will also evaluate 

quality assurance related to the risks of product substitution and/or the use of substandard 

materials. An expected outcome of this review is the identification of practices that can be shared 

across the AOC to reduce, if not prevent, product substitution. 

Investigative Program 

We are working to improve our investigative program and scheduled a CIGIE, Investigation 

Committee perform a peer review of the AOC's Investigative Program. The review will 

commence in July 2017. 

Two years ago we stood up a live hotline center to receive complaints of suspected fraud, waste 

or abuse. With this program, the OIG provides a comprehensive experience for AOC employees, 

contractor employees and the public who can anonymously call in their complaints. The hotline 

center is operated by trained specialists provided through an OIG partnership with the Louisiana 

State University. Hotline specialists are online to gain a better understanding of callers' 

complaints to speed the OIG's consideration and response, and the center takes calls toll free at 

1.877.489.8583. All calls to the hotline are confidential, and callers have the option to remain 

anonymous. 

7 
21 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 36 here 27284A.014

Continuing Improvements in the OIG 

The orG has addressed the recent review of the organization by GAO. GAO made two 

recommendations and the recommendations and our actions to address the recommendations are 

as follows: 

GAO Recommendation: To provide increased oversight of AOC and to keep the Architect and 

Congress fully and currently informed, we recommend that the AOC OIG revise and implement 

policies and procedures to provide audit reports that are based on planning that includes an 

assessment of risk and the assignment of priorities, consistent with requirements in CIGIE 's 

Quality Standards for Federal Offices of Inspector General. 

OIG's Actions: The OIG took action to implement GAO's recommendation regarding 

development and planning of audits based on assessment of risk and the assignment of priorities 

that are consistent with the requirements ofCIGIE's Quality Standards for Federal Offices of 

Inspector General. 

Revised Audit Policy. The orG revised its audit policy to include a more detailed oro annual 

audit planning process that includes an assessment of risk and assignment of priorities. The OIG 

will meet this requirement by developing an audit plan that will take into consideration the OIG 

Strategic Plan, the AOC Strategic Plan, the AOC Annual Performance Plan, the annual financial 

statements audit, as well as other OIG audits and work products. New audit ideas may also be 

supported by discussions with Congressional staff, AOC program officials, research on new 

legislation or current events, and reviews of current and past work, including the status of 

significant recommendations. A memo will be sent to AOC Management in August of each year 

seeking their input on key programs or operations that may warrant OIG audit attention in the 

coming year. After the office of audits has developed the preliminary audit plan, they will 

collaborate with the AOC OIG office of investigations to ensure the audit plan considers risks 

identified in OIG investigations. 

8 
22 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 37 here 27284A.015

Updated Annual Audit Plan. The OIG issued and revised the FY 2017 and 2018 Annual Audit 

Plan to reflect changes in management challenges identified by AOC, Congressional requests, and 

results of audit and investigation work. 

Independent Risk Assessment of AOC Programs and Operations. As discussed earlier, the 

OIG contracted with an independent public accounting finn to conduct an agency-level risk 

assessment of AOC operations and programs. The IP A will provide the OIG a comprehensive 

list of risks ranked by impact upon the agency's overall mission and by each jurisdiction. The 

OIG will use this as one of its tools for developing future audit work based on risk. OIG plans to 

use this risk assessment when future audit plans are developed. 

GAO Recommendation: To reduce the risk that fraud, waste, and abuse and criminal activities 

are not detected or fully addressed, we recommend that (1) the AOC OIG work with CIGIE to 

obtain a peer review from another federal OIG of the AOC OIG's overall investigative 

operations, including consideration of the OIG's reliance on investigations performed by other 

entities, and (2) make any needed changes in its operating procedures based on the results of the 

review to help ensure that investigations of AOC are conducted in accordance with CIGIE 

standards for investigations and to AOC IG Act requirements. 

OIG's Actions: The OIG has scheduled to have an external peer review of AOC investigative 

operations by another OIG to begin in July 2017. This external peer review will also include 

assessing the AOC OIG's reliance on other OIGs and the U.S. Capitol Police to complete certain 

types of investigations. 

Conclusion 

My first 30 days has been a time oflistening, constructive conversations with leadership, 

building on ongoing initiatives, and working to be responsive to stakeholder feedback. I will 

work hard to continue to improve our oversight capabilities. I will be happy to brief the 

Committee in further detail on any of our efforts and I thank you for the opportunity to address 

the Committee. 

9 
23 

The CHAIRMAN. Thank you, Mr. Failla. 

And now we will hear testimony from Ms. Davis. You are recognized for 5 minutes. And thank you again for being here. 

STATEMENT OF BERYL H. DAVIS 

Ms. DAVIS. Thank you. 

Chairman Harper, Ranking Member Brady, and Members of the 

Committee, I am pleased to be here today to discuss GAO’s report 

issued in November 2016. This report addresses the extent to 

which the Office of Inspector General developed plans and policies 

for oversight of the Architect of the Capitol’s jurisdictions, offices, 

and major contracts during fiscal years 2012 through 2015, and the 

extent to which such oversight was provided. 

The Architect of the Capitol is responsible for the maintenance, 

operation, and preservation of the buildings and grounds that make 

up the U.S. Capitol complex. Overall, AOC programs are managed 

by 10 jurisdictions, supported by the Capitol Construction and Operations, which is made up of nine central offices. Contracting 

plays a central role in helping the AOC achieve its mission in managing projects. 

During the time of our audit, there were four large ongoing mega projects, with an estimated combined cost of over $1 billion. 

As the Chairman noted, the AOC Office of Inspector General was 

established by the AOC Inspector General Act of 2007 as an independent and objective office to conduct and supervise audits and investigations relating to the AOC and to keep the AOC and the Congress fully and currently informed about problems and deficiencies 

related to the administration of programs and operations of the 

AOC. The office was established in part because of congressional 

concerns about time delays and cost overruns during the construction of the Capitol Visitors Center, which was open to the public 

in 2008. 

GAO’s recent audit determined that the office’s audit planning 

during this period did not include an assessment of the AOC’s risks 

or the assignment of priorities for conducting audits consistent 

with standards of the Council of the Inspectors General on Integrity and Efficiency, also known as CIGIE. Instead, the inspector 

general at that time emphasized a continuous review of mega 

projects, which the inspector general defined as an effort to alert 

the Architect and the Congress of contract management issues as 

they occurred. This approach and the prior inspector general’s efforts did not result in any audit reports of Capitol mega projects 

during the 4-year period we reviewed. Further, the office provided 

only one audit report of a Capitol jurisdiction program during the 

4-year period. 

During this period, the office also reported a decline in total 

audit reports and monetary accomplishments and potential dollar 

savings. In large part, because of the office’s insufficient audit planning, a limited number of audit reports were produced and there 

was a lack of coverage of the Capitol’s mega projects. As a result, 

AOC management and the Congress may not have been fully and 

currently informed about potential problems and deficiencies relating to the administration of programs and operations of the AOC 

during the 4-year period. 


SSpencer on DSKBBV9HB2PROD with HEARING
24 

Our November 2016 report also addressed our view of the Inspector General’s changes to the office’s investigative operations. In fiscal year 2014, the Inspector General at the time removed the Office 

of Inspector General’s law enforcement authority and the investigators’ responsibility to complete criminal investigations. Instead, the 

office investigators had responsibility for administrative investigations and relied primarily on another entity to perform criminal investigations, and on occasion other AOC program offices to perform 

their own investigations. 

The Office of Inspector General has responsibility for ensuring 

the investigations comply with CIGIE standards for investigations, 

which other entities are not subject to. These office changes contributed in part to a significant decline in investigative reports and 

monetary accomplishments reported by the office. Monetary accomplishments for investigations declined from $445,000 in fiscal year 

2013 to $7,000 in fiscal year 2015. 

GAO made two recommendations to the Architect of the Capitol 

Office of Inspector General in its report. The first was to revise and 

implement policies and procedures to provide audit reports based 

on planning that include risk assessment and assignment of priorities consistent with CIGIE standards. The second was to obtain a 

peer review from another Federal Office of Inspector General of the 

office’s overall investigative operations, including consideration of 

its reliance on investigations performed by other entities, and to 

make any needed changes based on the results of such review. 

The former inspector general agreed with our recommendations 

and stated that the office would implement them. We were recently 

provided with information on the office’s efforts to address our recommendations, which we are in the process of analyzing. 

Chairman Harper, Ranking Member Brady, and Members of the 

Committee, this concludes my prepared remarks. I look forward to 

answering any questions you may have. 

[The statement of Ms. Davis follows:] 


SSpencer on DSKBBV9HB2PROD with HEARING
25 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 43 here 27284A.016

GAO 

For Release on Delivery 

Expected at 11:00 a.m. ET 

Wednesday, May 24, 2017 

GA0-17-666T 

United States Government Accountability Office 

Testimony 

Before the Committee on House 

Administration, House of 

Representatives 

INSPECTORS GENERAL 

Improvements Needed to 

I G Oversight of Architect of 

the Capitol Operations 

Statement of Beryl H. Davis 

Director, Financial Management and Assurance 
26 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 44 here 27284A.017

INSPECTORS GENERAL 

Improvements Needed to IG Oversight of Architect of 

the Capitol Operations 

What GAO Found 

In November 2016 GAO reported that the Architect of the Capitol (AOC) Office of 

Inspector General's (OIG) audit planning from fiscal year 2012 through 2015 did 

not include either risk assessments or assigned priorities for conducting audits 

consistent with Council of the Inspectors General on Integrity and Efficiency 

(CIGIE) standards. In addition, the OIG did not adopt the CIGIE standards in its 

policies and procedures. Instead, for fiscal years 2014 and 2015, the former 

AOC Inspector General (IG) emphasized "continuous review," which he defined 

as an effort to alert AOC and the Congress of contract management issues as 

they occurred. This approach and prior efforts did not result in any audit reports 

of AOC's mega projects during fiscal years 2012 through 2015. The OIG also 

reported a decline in total audit reports and monetary accomplishments during 

fiscal years 2014 and 2015 (see table). Further, the OIG provided only one audit 

report of an AOC jurisdiction program during the 4-year period. Because of 

incomplete plans, a limited number of audit reports, and the lack of audit reports 

of AOC's mega projects, AOC and the Congress did not have the full benefit of 

OIG findings and recommendations and were not kept fully and currently 

informed of possible AOC problems and deficiencies during the 4-year period. 

Therefore, GAO recommended that the OIG revise and implement policies and 

procedures to provide audit reports based on planning that includes risk 

assessment and assignment of priorities consistent with CIGIE standards 

In fiscal year 2014, the former IG removed the OIG's law enforcement authority 

and the OIG investigators' responsibility to complete criminal investigations. 

Instead, in November 2016, GAO reported that the OIG's investigators have 

responsibility for administrative investigations and rely primarily on the U.S. 

Capitol Police (USCP) to perform criminal investigations, and on occasion, other 

AOC offices perform their own investigations. USCP and AOC program offices 

are not subject to CIGIE standards for investigation. The OIG is required to 

follow CIGIE standards for investigations, which contain, among other things, 

explicit requirements for investigator independence, objectivity, and due 

professional care. These changes in investigative operations contributed in part 

to a decline in investigative reports and monetary accomplishments. As a result, 

GAO recommended that the IG obtain a peer review from another federal OIG of 

overall investigative operations, including consideration of the OIG's reliance on 

investigations performed by other entities on the OIG's behalf, and to make any 

needed changes based on the results of such review. 

Reports of Audits and Investigations, Other Reports, and Monetary Accomplishments, Fiscal 

Yea~2012J~~ro~u~g~h~20~1~5 ____________ __ "---------- Reported 

monetary 

Investigative accomplishments 

.cF'"is,_,c.,.ai'Jy..,ea,r ______ __,A,udit reports , ______ ,_,re..,p,orts"'-___ ,o.,th,.,eccrr"'e"'po"rts"'------'(Oolla~l_ 

2012_ ---------- , __ , __ ,,1_,,__ 23 7 1,032.485 

c2""0cc13e__ _______________ 5 30 444,930 

2014 _________________ L __ .__ 12 242,610 

2015 11 7,260 

Source GAO analys1s of Arctutect of the Ca~tol Office of Inspector General-reported data ! GA0-17 .OOST 

-------------United States Government Accountability Office 
27 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 45 here 27284A.018

Chairman Harper, Ranking Member Brady, and Members of the 

Committee: 

The Architect of the Capitol (AOC) is responsible for the maintenance, 

operation, and preservation of the buildings and grounds that make up 

the U.S. Capitol complex, including the Capitol Building, the House and 

Senate Office Buildings, the Library of Congress, the Supreme Court, and 

U.S. Botanic Garden, among other facilities. Overall, AOC programs are 

managed by 10 jurisdictions supported by its Capitol Construction and 

Operations, which is made up of nine central offices. All of the 

jurisdictions and offices report to the Architect. 1 Contracting also plays a 

central role in helping AOC achieve its mission. The AOC Office of 

Inspector General (OIG) was established by the AOC Inspector General 

Act of 2007 (AOC IG Act) as an independent and objective office to 

conduct and supervise audits and investigations relating to the AOC;' to 

provide leadership and coordination and to recommend policies to 

promote economy, efficiency, and effectiveness; and to keep AOC and 

the Congress fully and currently informed about problems and 

deficiencies relating to the administration of programs and operations of 

AOC. 3 The AOC OIG was established in part because of congressional 

concerns about time delays and cost overruns during the construction of 

the Capitol Visitor Center, which was opened to the public in 2008. 

Today, my statement will discuss the extent to which the AOC OIG 

developed plans and policies for oversight of AOC's jurisdictions, offices, 

and major contracts during fiscal years 2012 through 2015, and the extent 

to which oversight was provided. My statement is based on our 

November 2016 report on AOC OIG's oversight of AOC. 4 For the 

November 2016 report, we reviewed AOC OIG's statutory requirements, 

1

The Architect of the Capitol is the title of both the agency and the AOC head. For 

purposes of this testimony, Architect is used to refer to the head of AOC. 

2Audits are independent objective assessments of the stewardship, performance, or cost 

of an agency's policies, programs, or operations. Investigations can involve allegations of 

criminal, civil, or administrative misconduct, and can result in criminal prosecutions, fines, 

civil monetary penalties, administrative sanctions, and personnel actions. 

3Pub. L. No. 110-161. div. H. title 1. § 1301. 121 Stat. 1844.2240 (Dec. 26. 2007), 

classified at 2 U.S. C.§ 1808 

4

GAO, Inspectors General: Improvements to IG Oversight Needed for Architect of the 

Capitol Operations. GA0-17-25, (Washington. D.C: Nov. 4. 2016). 

Page 1 GA0-17-666T Inspectors General 
28 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 46 here 27284A.019

OIG's Insufficient 

Audit Planning and 

Changes to 

Investigative 

Operations Limited 

OIG Oversight 

the OIG's policies and procedures and applicable Council of the 

Inspectors General on Integrity and Efficiency (CIGIE) standards. More 

detailed information on our objectives, scope, and methodology for that 

work can be found in the issued report. We conducted the work on which 

this statement is based in accordance with generally accepted 

government auditing standards. Those standards require that we plan 

and perform the audit to obtain sufficient, appropriate evidence to provide 

a reasonable basis for our findings and conclusions based on our audit 

objectives. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on our audit objective. 

In our November 2016 report, we reported that the OIG's strategic and 

annual aud~ plans for the 4-year period we reviewed did not include an 

assessment of AOC's risks and did not establish priorities for providing 

audit reports. CIGIE standards state that because resources are rarely 

sufficient to meet all requirements, audit planning should include an 

assessment of risk and an assignment of priorities to help ensure 

optimum use of OIG resources. In addition, the former AOC Inspector 

General (IG) eliminated all criminal investigator positions, leaving the OIG 

investigators with no responsibility to complete investigations of 

allegations of criminal wrongdoing, which the former OIG instead referred 

to the U.S. Capitol Police (USCP) for investigation. 5 Also, although the 

OIG is responsible for addressing fraud, waste, and abuse under AOC 

policy, we found instances where other AOC offices investigated such 

allegations of wrongdoing within their own offices. The OIG's lack of 

adequate audit planning, lack of criminal investigators, and reliance on 

AOC program offices to conduct investigations of alleged wrongdoing 

contributed to a significant decline in its audit and investigative reports 

and reported monetary accomplishments. As a result, we found that AOC 

management and the Congress may not be fully and currently informed 

about potential problems and deficiencies relating to the administration of 

programs and operations of AOC. 

5

For purposes of this testimony, we are referring to the AOC IG who was appointed in 

September 2013 and retired December 2016, as the "fonmer' I G. In April2017. a new IG 

was appointed. 

Page 2 GA0~17..S66T Inspectors General 
29 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 47 here 27284A.020

Insufficient Planning 

Limited Audit Oversight 

The OIG's Audit Standard Operating Procedures Manual requires a risk 

analysis-using input from AOC management and the Congress, as well 

as audit leads developed during the past year-to identify the most viable 

audits based on risk and potential payback. However, we reported in 

November 2016 that the OIG's strategic and annual audit plans for the 4-

year period we reviewed did not include an assessment of risk6 In 

addition, neither the OIG's plans nor its policies included the assignment 

of priorities to help ensure the effective use of OIG resources in providing 

audit reports. While the OIG's policies included the CIGIE's standards for 

investigations, the OIG had not adopted CIGIE's Quality Standards for 

Federal Offices of Inspector General or developed comparable policies 

and procedures on planning that include both risk assessment and 

assigned priorities. In interviews with the former IG at the time of our 

review, he explained that instead of formal plans with an assessment of 

risk and an assignment of priorities, the OIG relied on a process of 

"continuous review" defined by him as an effort to alert AOC and the 

Congress to cost overruns, delays, and other contract management 

issues as they occurred. 

We also reported in November 2016 that, in large part because of the 

OIG's insufficient audit planning, the OIG provided no audit reports on 

AOC's "mega projects" - AOC's classification of its largest construction 

and rehabilitation projects, which, during the period we reviewed had an 

estimated combined cost of over $1.1 billion 7 - and the OIG provided 

limited audit oversight of AOC's jurisdictions and offices during the 4-year 

period we reviewed.' According to OIG officials, the OIG staff performed 

continuous review by attending AOC's weekly progress meetings for both 

the Capitol Dome restoration and Cannon House Office Building renewal 

mega projects. However, without audit reports developed from plans 

based on an independent assessment of AOC's risks and with assigned 

priorities, the OIG provided little assurance that AOC's most critical 

programs and contracts received adequate oversight, that audit resources 

7 According to AOC officials, at the end of fiscal year 2015 AOC had four ongoing mega 

projects with a combined estimated cost in total approximately $1.1 billion. 

8 After the 4-year period we reviewed, the OIG issued Audit of Capitol Dome Rehabilitation 

Project, A-2016-02 (Washington. D.C.: Nov. 23. 2015), which was reissued on July 11. 

2016, to include agency comments in accordance with Government Auditing Standards, 

and issued Cannon House Office BuUding Renewal Project, A-2016-01 (Washington, 

D.C.: June 24, 2016). 

Pagel GA0-17-666T Inspectors General 
30 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 48 here 27284A.021

were being applied to the most critical areas, and that the OIG's efforts 

would fully inform AOC management and the Congress of any problems 

or deficiencies. 

In addition, we reported that the lack of sufficient planning contributed to 

the minimal audit coverage of the jurisdictions and offices responsible for 

providing AOC's programs and support services during fiscal years 2012 

through 2015. (See table 1.) 

Table 1: Architect of the Capitol (AOC) Office of Inspector General (OIG) Audit Reports Issued Fiscal Years 2012 through 2015 

Fiscal year Fiscal year Fiscal year Fiscal year Total 

2012 2013 2014 2015 

AOC JUrisdictions 

Capitol Building 0 0 

Capitol Grounds 0 

Capitol Police Buildings, Grounds, and Security 0 

House Office Buildings 0 0 0 

Senate Office Buildings 0 0 0 0 

library Buildings and Grounds 0 0 0 0 0 

Supreme Court Building and Grounds 0 0 0 0 

Utl!ities and Capitol Power Plant 0 0 0 0 

U.S. Botanic Garden 0 

U.S. Capitol Visitor Center 

Total audits of AOC jurisdictions 0 

AOC Capitol Construction and Operations Offices 

Office of the Attending Physician 

Inspector General NA NA NA NA NA 

T a tal audits of Capitol Construction and Operations 13 

Total audits of AOC 14 

Legend; NA = not applicable. 

Source GAO analySls ofAOCO!G audit reports ISSU&ddurmgfiscaJ years 2012 through2015 I GA0-17.6661 

Note: OIG audit report coverage does not include OlG evaluations or other reviews not performed 

under Govemment Auditing Standards, 

Page4 GA0-17-666T Inspectors General 
31 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 49 here 27284A.022

Insufficient OIG Planning 

Contributed to a Decline in 

OIG Audits and Monetary 

Accomplishments 

~Audits of AOC's financial statements are perfonned by an independent pubtic accountant 

As a result of these findings, we recommended that the OIG revise and 

implement policies and procedures to provide audit reports that are based 

on planning that includes an assessment of risk and the assignment of 

priorities. consistent with requirements in CIGIE's Quality Standards for 

Federal Offices of Inspector General. In commenting on a draft of the 

November 2016 report, the AOC OIG acknowledged our findings on audit 

planning and the number of audit reports on AOC's major construction 

projects and jurisdictions and stated that the OIG had moved away from 

an approach that appeared to simply monitor projects and would 

incorporate a more formal risk assessment and prioritization process into 

its audit planning. 

In November 2016, we reported that due in part to the former IG's 

emphasis on performing continuous reviews rather than planned audit 

reports, the audit accomplishments reported by the AOC OIG had 

declined significantly in recent years. To illustrate, the OIG completed a 

total of nine audit reports and two evaluations in fiscal years 2012 and 

2013, with reported monetary accomplishments of approximately 

$324,000. In fiscal years 2014 and 2015, the OIG, completed five audit 

reports and three other reviews, with reported monetary accomplishments 

of approximately $54,000, or approximately 14 percent of the 4-year 

total 9 (See table 2.) 

9

The first statutory AOC IG was appointed by the Architect in August 2008 and retired in 

August 2013. The former IG was appointed September 2013 and retired December 2016. 

The OIG's evaluations are not performed under Government Auditing Standards. 

According to OIG policies, evaluations are completed under CIGIE Quality Standards for 

Inspection and Evaluation and are defined as systemic and independent assessments of 

the design, implementation, or results of an agency's operations, programs, or policies. 

Other OIG reviews were completed without any specified standards. 

Page 5 GA0-17-666T Inspectors General 
32 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 50 here 27284A.023

IG Changes to 

Investigative Operations 

Resulted in Limited 

Oversight 

Table 2: Office of Inspector General Audit Reports and Reports of Evaluations and 

Other Reports Issued and Related Reported Monetary Accomplishments, Fiscal 

Years 2012 through 2015 

Fiscal year Audit Reports of Total Reported monetary 

reports evaluations and reports accomplishments 

other reviews (dollars) 

2012 324,000 

2013 5 

2014 54,000 

2015 2 0 

Total 14 19 378,000 

Source GAO analySIS of Arch1tect of the Cap1tol Office of Inspector General semarmual reports I GA0-17-66fH 

Note: Monetary accomplishments include potential savings amounts from audits and other reviews. 

In our November 2016 report, we reported that in fiscal year 2014 the 

former IG removed the OIG's law enforcement authority and eliminated 

criminal investigator positions. As a result, the OIG no longer has staff 

with the explicit responsibility to complete investigations of potential 

criminal wrongdoing and refers such cases to USCP for investigation. 

Also, we found instances where the OIG referred certain allegations of 

wrongdoing involving potential fraud, waste, and abuse to the AOC 

program offices for investigation. Neither USCP nor AOC program offices 

are subject to CIGIE's Quality Standards for Investigations when 

performing investigations or to AOC IG Act requirements for protecting 

complainants' identities. The OIG is subject to CIGIE's standards that 

require investigations to be objective, independent, and consistent with 

due professional care, and to AOC IG Act requirements that 

complainants' identities be protected. The Standards contain, among 

other things, explicit requirements for investigator independence, 

objectivity, and due professional care. USCP officials stated at the time of 

our review that USCP personnel have extensive training in performing 

criminal investigations. Although USCP is not subject to CIGIE's 

investigative standards, USCP officials stated that the requirements in 

CIGIE's investigative standards are required for all of its criminal 

investigations and are integral to USCP directives, processes, policies, 

and procedures. 10 

1

0We did not assess and therefore made no conclusions regarding whether USCP's 

policies and procedures align with GIG IE standards or how referrals were handled. Our 

November 2016 report focused on the AOC O!G's responsibilities for investigations of 

potential criminal allegations. 

PageS GA0~17~666T Inspectors General 
33 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 51 here 27284A.024

In November 2016, we reported that although the OIG continues to 

perform investigations, the former IG's changes in investigative 

operations have contributed in part to a significant decline in the 

investigative reports and monetary accomplishments reported. 

(See table 3.) 

Table 3: Decline in Architect of the Capitol Office of Inspector General Investigative 

Reports and Related Reported Monetary Accomplishments, Fiscal Years 2012 

through 2015 

Fiscal Investigative Management Reported Percentage of 4·year 

year reports advisories investigative total of monetary 

monetary accomplishments 

accomplishments 

Source GAO analysis of Architect of the Cap1lol Office of Inspector General serruannual reports I GA0-17-666T 

Note: Monetary accomplishments are savings to the Architect of the Capitol as specified in individual 

investigative reports. 

In addition, these changes have increased the risk that (1) criminal and 

other improper activities may not be detected and (2) potential cases of 

fraud, waste, and abuse may not be fully and independently investigated 

and may not be reported to AOC management and the Congress. Based 

on these findings, we recommended that (1) the AOC OIG work with 

CIGIE to obtain a peer review from another federal OIG of the AOC OIG's 

overall investigative operations, including consideration of the OIG's 

reliance on investigations performed by other entities, and (2) make any 

needed changes in its operating procedures based on the results of the 

review to help ensure that investigations of AOC are conducted in 

accordance with CIGIE standards for investigations and AOC IG Act 

requirements. In commenting on a draft of our November 2016 report, the 

AOC OIG agreed with our recommendation and stated that the OIG 

would implement it. 

AOC OIG has provided us additional information on its efforts to address 

our recommendations, which we are in the process of analyzing. 

Page7 GA0·17·666T Inspectors General 
34 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 52 here 27284A.025

GAO Contacts and 

Staff 

Acknowledgments 

(102083) 

Chairman Harper, Ranking Member Brady, and Members of the 

Committee, this completes my prepared statement. I would be pleased to 

respond to any questions that you may have at this time. 

If you or your staff have any questions about this testimony, please 

contact Beryl H. Davis, Director, Financial Management and Assurance at 

(202) 512-2623 or davisbh@gao.gov. Contact points for our Offices of 

Congressional Relations and Public Affairs may be found on the last page 

of this statement GAO staff who made key contributions to this testimony 

are Kim McGatlin, Assistant Director; Jason Kirwan; Lisa Motley; and, 

Lisa Rowland. 

PageS GA0-17-666T Inspectors General 
35 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 53 here 27284A.026

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. The publlshed product may be reproduced and distributed in its entirety 

without further permission from GAO. However, because this work may contain 

copyrighted images or other material, permission from the copyright holder may be 

necessary if you wish to reproduce this material separately 
36 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 54 here 27284A.027

GAO's Mission 

Obtaining Copies of 

GAO Reports and 

Testimony 

Order by Phone 

Connect with GAO 

To Report Fraud, 

Waste, and Abuse in 

Federal Programs 

Congressional 

Relations 

Public Affairs 

Strategic Planning and 

External Liaison 

The Government Accountability Office, the audit, evaluation, and investigative 

arm of Congress, exists to support Congress in meeting its constitutional 

responsibilities and to help improve the performance and accountability of the 

federal government for the American people. GAO examines the use of public 

funds; evaluates federal programs and policies; and provides analyses, 

recommendations, and other assistance to help Congress make informed 

oversight, policy, and funding decisions. GAO's commitment to good government 

is reflected in its core values of accountability, integrity, and reliability. 

The fastest and easiest way to obtain copies of GAO documents at no cost is 

through GAO's website (http://www.gao.gov). Each weekday afternoon, GAO 

posts on its website newly released reports, testimony, and correspondence. To 

have GAO e-mail you a list of newly posted products, go to http://www.gao.gov 

and select "E-mail Updates." 

The price of each GAO publication reflects GAO's actual cost of production and 

distribution and depends on the number of pages in the publication and whether 

the publication is printed in color or black and white. Pricing and ordering 

information is posted on GAO's website, http://www.gao.gov/ordering.htm. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or 

TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card, MasterCard, 

Visa, check, or money order. Call for additional information. 

Connect with GAO on Facebook, Flickr, Linkedln, Twitter, and You Tube. 

Subscribe to our RSS Feeds or E-mail Updates. Listen to our Podcasts 

Visit GAO on the web at www.gao.gov and read The Watchblog. 

Contact: 

Website: http://www.gao.gov/fraudnetlfraudnet.htm 

E-mail: fraudnet@gao.gov 

Automated answering system: (800) 424-5454 or (202) 512-7470 

Katherine Siggerud, Managing Director, siggerudk@gao.gov, (202) 512-4400, 

U.S. Government Accountability Office, 441 G Street NW, Room 7125, 

Washington, DC 20548 

Chuck Young, Managing Director, youngc1@gao.gov, (202) 512-4800 

U.S. Government Accountability Office, 441 G Street NW, Room 7149 

Washington, DC 20548 

James-Christian Blackwood, Managing Director, spel@gao.gov, (202) 512-4707 

U.S. Government Accountability Office, 441 G Street NW, Room 7814, 

Washington, DC 20548 

..... 

... ~ 

Please Print on Recyded Papec 
37 

The CHAIRMAN. Thank you very much, Ms. Davis, for your testimony, and each of you for the testimony that you have given. 

We now have a time for our Committee Members to ask questions of each of you. Each Member is allotted 5 minutes to question 

the witness. To help each Member track their time, we will use the 

same timing device that you have seen. And I will now begin by 

recognizing myself for 5 minutes. 

There is so much raised in this report and things that are here. 

And just to kind of set the parameters, nobody ever likes surprises, 

and so when you go into the report and you read things that you 

weren’t aware of, that is something that causes a little bit of concern. But I will start, if I may, with you, Mr. Ayers, to ask you 

some questions on some of the things that are here. 

I want to talk for a moment about the decision that is in the report about removing the criminal investigators. Did that—how was 

that decision made? Was that—obviously, you knew about the decision being made, I assume. Were you informed by the previous IG 

that that was going to be the new plan? 

Mr. AYERS. Yes, Mr. Chairman, I was. And from a big picture 

perspective, you know, Mr. Failla’s our third statutory Inspector 

General. And I can recall our first statutory Inspector General, Ms. 

Carol Bates, initially told me upon her arrival that she did not believe that deputization of our investigators was appropriate. I know 

about a year into her term, she changed her mind on that and informed me that she changed her mind, and sought deputization of 

our investigators from the Justice Department, and received it. 

And then our second statutory Inspector General rescinded that. So 

I am aware of all of those comings and goings. 

And I believe, whether they are criminal investigators or administrative or whether they carry weapons or don’t is solely and completely an Inspector General decision, and I haven’t influenced 

them or asked them to take one action or another. 

The CHAIRMAN. So do you—Mr. Failla, at this point, do you support having criminal investigators, or you said that is something 

you are evaluating now? 

Mr. FAILLA. Yes, sir, I am evaluating that. I am leaning in that 

direction. I believe that the AOC needs those folks to do proper 

fraud, bribery, et cetera, types of investigations that are in accordance with CIGIE standards for investigations. 

The CHAIRMAN. Okay. 

Mr. FAILLA. I want to see what the peer review says about my 

investigators. I am obviously new and I am still—— 

The CHAIRMAN. Sure. 

Mr. FAILLA [continuing]. Learning my people, and I think it is 

wise to understand the folks that you have doing that job before 

making that decision. And I will—it is not a decision I take lightly, 

especially with the carrying of firearms around folks here at the 

Capitol and also the people within the AOC, but at the same time, 

I think there are mitigating things I can do as the IG to ensure 

the safety of people and also not an intimidation factor, if you will, 

be present. 

The CHAIRMAN. You know, one of the concerns and one of the 

things that you have raised, Mr. Ayers, in your testimony, certainly 

in your written testimony and certainly your job, is you worry 


SSpencer on DSKBBV9HB2PROD with HEARING
38 

about waste, fraud, and abuse. Now, waste is more negligent, 

abuse could be negligence or some criminal, but fraud is criminal. 

So how do you properly go to see if there is any fraud without a 

criminal investigator? So that is—I know that is going to be part 

of your understanding and your thought process here. 

Ms. Davis, did you find in your report that one of the key reasons 

to not have criminal investigators or do away with them was because other employees were uncomfortable with the weapons in the 

office, or did I misread something? 

Ms. DAVIS. There was some information that we came across 

about, you know, concerns about having firearms, but that really 

was not the focus of our recommendation—— 

The CHAIRMAN. Sure. 

Ms. DAVIS [continuing]. And the reason we made the recommendation. 

The CHAIRMAN. Right. 

Ms. DAVIS. Our reason was, of course, the responsibility of the 

Inspector General to look at issues related to fraud, waste, and 

abuse. 

The CHAIRMAN. Is it your opinion that the office would be more 

properly run, better oversight by the IG, if they had criminal investigators? Is that your opinion? 

Ms. DAVIS. We could not provide that opinion. And, in fact, our 

recommendation really focuses on having a peer review. 

The CHAIRMAN. Sure. 

Ms. DAVIS. And that peer review would be—the peer reviewers 

would be in a better position to really make that determination. 

The CHAIRMAN. Gotcha. And we may come back to this, but my 

time is almost expired. 

So I will now recognize the Ranking Member, Mr. Brady, for 5 

minutes for questions. 

Mr. BRADY. Thank you, Mr. Chairman. First of all, for the record, 

I need to say I am a big fan of Mr. Ayers. I think you are doing 

a great job, and I thank you for your service. 

Mr. AYERS. Thank you. 

Mr. BRADY. Could you just tell me a little update on the Cannon 

Office Building, you know, what the phases are and how we are— 

how far we have to go and when will it be completed? 

Mr. AYERS. I would be happy to, Mr. Brady. Thank you. So the 

complete renewal of the Cannon House Office Building is essentially scheduled to be complete in five different phases. The first 

phase was work in the basement level, and that took about a year 

and a half to 2 years. That work is now complete. It was complete 

on budget and on schedule. 

We now moved into Phase 1 on the congressional election cycle, 

and we are well into Phase 1. Phase 1 is progressing on budget and 

on schedule as well. All of our indicators and all of our analysis tell 

us that that trend of remaining on budget and on schedule will 

continue. 

The next phase of that—of course, the phase we are currently in 

is the west wing of the Cannon building. And we will see some important work come up in the next month where a temporary roof 

will go over the fifth floor, and we will then demolish the entire 


SSpencer on DSKBBV9HB2PROD with HEARING
39 

fifth floor of the building and construct a new fifth floor over the 

next year and a half or so. 

The next phase, during the next congressional move cycle, will 

happen on the north side of the building. That will take 2 years, 

2 years on the east side, and then 2 years on the south side, and 

we will be complete. It is going very well for us. 

Mr. BRADY. So a total of maybe like 4 years? 

Mr. AYERS. Eight years. 

Mr. BRADY. Eight years. Well, I hope it is—I hope it works out. 

I guess we will have to have a—I know it is a major headache for 

you because you have to move all the offices back and forth, but 

I guess it will be a prime piece of real estate to move back into once 

it is done. But you are moving them back in, phasing people back 

in, though, right, as you are working? 

Mr. AYERS. That is correct. So we are—the west phase now is 

completely abandoned and we are demolishing all of the mechanical, electrical systems in the west wing of that building. When that 

is finished, we will move Members from Cannon, Longworth, and 

Rayburn back into that phase, and at the same time, we will empty 

the north wing of the building. 

Mr. BRADY. Thank you. 

Mr. Failla, are you auditing that? Are you—do you have your 

eyes on that, making sure that everything is being done properly 

and correctly? 

Mr. FAILLA. Yes, sir. We are—— 

Mr. BRADY. I mean, that is a pretty big project for you to jump 

right into, right? I mean—— 

Mr. FAILLA. There was—before I got here, there was some oversight of the Cannon renewal project. We do provide quarterly updates to the approps committees on that, so I have folks that are 

in there providing quarterly reports. And we are preparing to kick 

off an audit of contract change reports, which often drive costs, 

often drive schedule, making changes to the contract. So we are 

going to look at that currently and hopefully have a report done by 

the end of the fiscal year on the contract change process. 

Mr. BRADY. Thank you. 

And, Ms. Davis, thank you for your service. I have no questions 

for you, but I don’t want to leave you out. Thank you. 

Ms. DAVIS. Thank you. 

Mr. BRADY. Thank you, Mr. Chairman. 

The CHAIRMAN. The gentleman yields back. 

The Chair will now recognize the gentleman from North Carolina, Mr. Walker, for 5 minutes for questions. 

Mr. WALKER. Thank you, Mr. Chairman. I would like to thank 

the panel for being here today for questions. 

Let me start with Mr. Ayers, if I could, please. The purpose in 

creating the independent IG within the Architect of the Capitol office was to keep Congress and the AOC informed of risk, issues, 

and management challenges. During the fiscal years of 2012 

through 2015, the AOC OIG, let me shell that out, Architect of the 

Capitol Office of the Inspector General, failed to issue a single 

audit on any of the mega projects under construction by the AOC, 

which have an estimated combined cost of over $1.5 billion, as I am 

not telling you anything you don’t know here. 


SSpencer on DSKBBV9HB2PROD with HEARING
40 

But my question for you is, were you concerned about the lack 

of independent audits, and did you raise these concerns with anyone during those times? 

Mr. AYERS. Thank you, Mr. Walker. I certainly did, and I certainly have concern about that. And so let’s talk about the big picture for a moment, the 8 years that we have had a statutory Inspector General. During the first 5 years of having a statutory Inspector General, no major projects, in fact, no construction projects, 

no projects at all were reviewed or audited or investigated by the 

IG. 

When our second statutory Inspector General came into office, I 

challenged him, you have to turn this ship away from the variety 

of small, important but small financial audits and churn that you 

are doing and move this office to follow the money and start auditing major construction projects, as I believe that the Congress desired in setting up this act. 

I know that Inspector General worked hard to move in that direction. It was a very difficult transition from auditing financial 

work and credit card purchases to doing multimillion-dollar contracts, and we are now beginning to see the results of righting that 

ship. And we have the Capitol Power Plant cogeneration system 

audit under our belt, two on the Capitol dome under our belt, on 

the Cannon building under our belt. And our new Inspector General fully embraces this focus of auditing major projects. 

Mr. WALKER. Thank you. Thank you for that answer. And to use 

your words as you were talking, you said it was a very difficult 

transition. Was that due in any part because you were hindered in 

your ability to prioritize these projects? 

Mr. AYERS. I think it was due in part to the skill set of the people that worked there at the time. I think it was due in part to lack 

of leadership and direction and really pushing this agenda forward 

in a strong way. 

Mr. WALKER. Okay. I appreciate your answer there. 

Mr. Failla, what changes are necessary with respect to the OIG’s 

current audit or investigative processes? Could you speak to that? 

Mr. FAILLA. So as Mr. Ayers said, I don’t—when the office was 

set up, its focus was not on producing mega project audits. It was 

set up very differently than it is acting today. It focused much on 

the fraud investigations, the investigations in that arm, and not 

solely on mega project audits. 

Today, we are trying to bring in the folks that can do that work, 

viz the people that were hired. I currently have two vacancies in 

my office, one for an auditor, and I am advertising for that person 

to be a construction auditor so they can do proper audit work in 

the large construction areas. 

Mr. WALKER. All right. Well, you are making a nice transition. 

We seem to be talking a lot about the past. Let’s have a question 

about the future. 

How do you intend to partner with other stakeholders and oversight entities, such as this Committee, in conducting your work 

moving forward? Do you have a vision forecast? Can you share a 

little bit of that? 

Mr. FAILLA. Yes, sir. So I have—in my first 30 days here, I have 

met with all the Committee’s staffers, I have met with all the jurisVerDate Sep 11 2014 23:37 Nov 07, 2017 Jkt 027284 PO 00000 Frm 00042 Fmt 6633 Sfmt 6602 E:\HR\OC\A284.XXX A284

SSpencer on DSKBBV9HB2PROD with HEARING
41 

diction heads within the AOC. I have worn holes in my shoes walking around the AOC to get to know people, understand the issues, 

find out what projects are going on, and also to discuss with the 

Committee Members what their expectations of me are. I plan to 

meet monthly and quarterly with some and provide updates as requested, but in my meetings, I will always have an agenda, I will 

go over what we are currently investigating or looking at and provide them updates on the Cannon project and any other projects 

that we are currently in the process of doing. 

Mr. WALKER. Thank you, panel. 

Mr. Chairman, I yield back. 

The CHAIRMAN. The gentleman yields back. 

The Chair will now recognize the gentleman from Georgia, Mr. 

Loudermilk, for 5 minutes. 

Mr. LOUDERMILK. Thank you, Mr. Chairman. I appreciate all the 

witnesses being here today. 

Mr. Ayers, just a couple of questions to clarify. I have heard a 

lot of numbers out here. How much was the cost overrun to the 

CVC? I have read $400 million, I have read $200 million. How 

much was that? 

Mr. AYERS. I would suspect it was $200 million, approximately. 

Mr. LOUDERMILK. Okay. And how behind schedule was it in the 

completion? 

Mr. AYERS. Approximately 2 years. 

Mr. LOUDERMILK. Two years? Okay. I have read several. I just 

wanted to be clear to make sure that we were on that. 

With that information in mind, $200 million over, 2 years behind 

schedule, what is different now to ensure that the Cannon renewal 

project, which is already $752.7 million, is going to stay within 

budget, hopefully under budget, hopefully on schedule? How are 

you going to ensure that? And what is different between now and 

the CVC? 

Mr. AYERS. I think there are a number of factors that go into 

that. First, every project’s success, I believe, is first determined on 

developing what the project is, the scope of the project. And once 

you have that scope nailed down and don’t change it until construction is complete, that ensures success. 

Mr. LOUDERMILK. So were there changes mid—— 

Mr. AYERS. There were—— 

Mr. LOUDERMILK [continuing]. Midway through the CVC project? 

Mr. AYERS. Hundreds of millions of dollars of changes on the 

Capitol Visitors Center project throughout the job. 

Mr. LOUDERMILK. Was this because of structural design or you 

encountered things that you didn’t anticipate, rocks, you know, 

things—I grew up in a construction family, so—okay. 

Mr. AYERS. All of those things, number one; and, two, I think the 

most seminal change in that project was 9/11 happened after we 

were already—we had already awarded all of our construction 

projects and started construction. That required a complete redesign of all mechanical, electrical, and security systems in the building. 

Mr. LOUDERMILK. Okay. 

Mr. AYERS. It was a massive change after we had already awarded contracts. That is the worst thing that could happen. 


SSpencer on DSKBBV9HB2PROD with HEARING
42 

Mr. LOUDERMILK. So with that significant change, it would seem 

it would be—because you are changing a major project midstream, 

effective auditing and oversight seems to be it would be more important then. 

What I was looking for is a more active IG is—in your opinion, 

will that play a factor in helping to complete this project, with providing Congress and you with what may be happening, not at the 

surface level, but be able to audit, be able to investigate? 

Mr. AYERS. Yes, Mr. Loudermilk, I think it absolutely will. Not 

only our inspector general is reviewing the project, but the Government Accountability Office is fully embedded on this project and 

keeping the Congress and me informed of what is going on. And 

so making sure that leadership and management is fully aware of 

the challenges that are present and the budget and schedule 

metrics on a job is important to the success of it. 

Mr. LOUDERMILK. Is there more transparency now than there 

was maybe with the Capitol Visitors Center? 

Mr. AYERS. I think that is probably a true statement, and let me 

give you a couple of examples of that. We meet every 30 days with 

the relevant committees and stakeholders on this project. That 

committee makes the important decisions of what happens on the 

job. We also issue all of the relevant committees a very detailed 

monthly report on all of the activities on the project. You can clearly see where money goes, what the risks are, how we are abating 

those risks, what the schedule is, and what the budget is in that 

monthly report, and we send to this Committee leadership as well 

as the Appropriations Committee. So everyone is fully and concurrently aware of what is happening. 

Mr. LOUDERMILK. Okay. And, of course, for Mr. Failla, this is in 

preparation if we have another round of questioning, because as I 

heard multiple numbers on CVC, I have heard three different pronunciations of your name. What is the proper pronunciation? 

Mr. FAILLA. The proper pronunciation is Failla. 

Mr. LOUDERMILK. Failla. All right. 

Mr. FAILLA. I go by a lot of nicknames. Failla works also, sir. 

Mr. LOUDERMILK. Well, I have found out after being in this office, I have a whole lot more names out there, a lot of them that 

we can’t speak of in this Committee. But thank you for your service. 

And I will yield back at this time, anticipating some more questions. 

The CHAIRMAN. The gentleman from Georgia yields back. 

I now recognize the Vice Chairman of the Committee, Mr. Davis, 

for 5 minutes. 

Mr. DAVIS. Thank you, Mr. Chairman. And I can also reiterate, 

many do call him names that we can’t pronounce here. 

But, Mr. Failla, Failla. Right? Thank you. Failla. There goes my 

time. Glad you asked that question, Barry. I will come back to you, 

Mr. Failla. 

But, Mr. Ayers, thank you for what your office does. You have 

so many good employees. A few were up in my office yesterday, and 

they are always very responsive. And I would like you to relay my 

thanks to the many men and women who work for the AOC for the 

job that they do keeping this campus as up-to-date and as beautiful 


SSpencer on DSKBBV9HB2PROD with HEARING
43 

as it is for, not just Members of Congress, but for the millions of 

people who come to our Nation’s Capitol each year. 

With that in mind, we see the CVC as a great, wonderful opportunity to bring many tourists in each year, but not without its 

problems in the building process, not without its problems as we 

move ahead and look at other projects like Cannon. And that is 

where we come in as the House Administration Committee. You 

have been the AOC and the deputy before that, right? 

Mr. AYERS. That is correct. 

Mr. DAVIS. Okay. Were you surprised? I mean, please, were you 

surprised by the GAO findings that we have talked about today? 

Mr. AYERS. This particular GAO report? 

Mr. DAVIS. Yeah. 

Mr. AYERS. I certainly wasn’t surprised by the law enforcement 

discussion. I was certainly fully aware of that, and I know the back 

and forth of—— 

Mr. DAVIS. What about—— 

Mr. AYERS [continuing]. Deputizing. On the other portion—— 

Mr. DAVIS. What the information, the quality of information that 

you were receiving from the OIG? 

Mr. AYERS. I am certainly aware that our past IG took a completely different approach than the previous IG, and so it was no 

surprise to me to see that an accounting of the number of reports 

issued was very significantly different. That was not a surprise to 

me. 

It was a surprise to me to learn that perhaps some of our stakeholders are not being fully informed and kept up-to-date on the activities of the Office of Inspector General. 

Mr. DAVIS. Did you express any concerns? 

Mr. AYERS. Absolutely. Yes. 

Mr. DAVIS. Who did you express those concerns to? 

Mr. AYERS. To the Inspector General. 

Mr. DAVIS. To the Inspector General? To this Committee at all? 

Mr. AYERS. Not to this Committee, no. 

Mr. DAVIS. Okay. The last Inspector General came from where? 

Mr. AYERS. He was the Deputy General Counsel in the Architect’s Office of General Counsel. 

Mr. DAVIS. So somebody that worked within your agency under 

your supervision? 

Mr. AYERS. Correct. 

Mr. DAVIS. Did you select him? 

Mr. AYERS. I did select him. 

Mr. DAVIS. Okay. Okay. 

Mr. AYERS. He was not selected—he was not the first selectee. 

That is an important point. I have heard some criticism about that 

in the past, and not many people know that we actually offered 

that job to someone different than that IG, and we were not able 

to seal a deal with that applicant and we went to this one. 

Mr. DAVIS. Okay. When you saw a precipitous decline of monetary accomplishments associated with the changing practices of the 

last IG, did that alarm you? 

Mr. AYERS. It certainly alarmed me when I saw that in the GAO 

report. And I also would see that in the semiannual reports to Congress that the IG submitted every 6 months. 


SSpencer on DSKBBV9HB2PROD with HEARING
44 

Mr. DAVIS. Okay. 

Mr. AYERS. So I was aware of that, I saw that, but I also know 

I don’t—I urged the IG—as you know, I can’t direct the IG to do 

anything—but I urged them to stop looking at all of the things you 

were looking at in the past and look at the big construction projects 

and the more than 5,000 procurement actions that we take every 

year. 

Mr. DAVIS. Sure. And that is exactly what we want your focus 

to be. And we also want you to communicate with us. We are here 

to help. We appreciate what you do, but it is frustrations we have 

with the process that we are talking about today and that was 

mentioned in the GAO study that bring you here today—— 

Mr. AYERS. Yes. 

Mr. DAVIS [continuing]. And cause frustration, I am sure, for you 

too. But we want to work with you and we need open communication. 

Mr. Failla, thank you. I am not going to subpoena your shoes you 

wore out. Okay? But they told me I could, but I am not going to 

do that. 

Mr. FAILLA. It is true. 

Mr. DAVIS. You have got a tough job in front of you. Obviously, 

there wasn’t much communication with this Committee from your 

predecessor. We just established that. I would urge you to understand that we are here to work with you to make sure projects get 

finished on time, but to also make sure that if there are concerns, 

there are issues, that we get them addressed. And I don’t think 

that happened in the past, and I would urge you in your new position to make sure it happens in the future. 

And with that, I saw my red light. I yield back no balance of my 

time. 

The CHAIRMAN. The gentleman yields back. 

I would like to ask a couple of follow-up questions, if I may, in 

this. And as we go through that, and, Mr. Ayers, you have said 

that you—while you don’t obviously interfere with what the work 

of the IG is, you do express concerns that you have. But you are 

the person who appoints or names that person to be the IG and you 

also have removal authority if they aren’t doing their job. Is that 

correct? 

Mr. AYERS. That is correct. 

The CHAIRMAN. Okay. And so you expressed some of these issues 

with the previous—Mr. Mulshine, the previous IG. And what was 

his response when you had those conversations with him? 

Mr. AYERS. He fully understood the concerns, and often spoke 

about the challenges that he might be facing in his ability to move 

the office in this direction and righting the ship towards that goal. 

And we would have open conversations about the challenges and 

the expectations of me and the expectations of Congress. 

The CHAIRMAN. This, of course, was obviously a pattern or a 

problem for a number of years. Did it never rise to the level that 

you felt removal was necessary? 

Mr. AYERS. It did not. 

The CHAIRMAN. Okay. All right. 

Ms. DAVIS. I had another question I wanted to ask you. In that 

November 2016 report, GAO noted that because of the OIG’s insufVerDate Sep 11 2014 23:37 Nov 07, 2017 Jkt 027284 PO 00000 Frm 00046 Fmt 6633 Sfmt 6602 E:\HR\OC\A284.XXX A284

SSpencer on DSKBBV9HB2PROD with HEARING
45 

ficient audit planning, the OIG provided no audit reports of the 

AOC’s mega projects with an estimated combined cost of over $1.1 

billion, and the OIG provided limited audit oversight of the AOC’s 

jurisdictions and offices. So we know we have discussed that in this 

hearing. 

I guess the biggest thing would be is, do you have any sense at 

this point whether or not those have been corrected in the followup 

and whether or not the OIG has adopted the CIGIE quality standards for Federal inspectors general? 

Ms. DAVIS. I do not have that information. I will say that the inspector general at the time did agree with the recommendations 

that we made. And based on some comments that have been made 

here today, I understand that progress is being made in addressing 

our recommendations, but we have not done an analysis of the operations or the activities at this point. 

The CHAIRMAN. And you do anticipate to do an analysis or further review. Would that be correct? 

Ms. DAVIS. We will do a followup of the recommendations, yes. 

The CHAIRMAN. And when might that be? 

Ms. DAVIS. With—I would say in the next few months would be 

reasonable. 

The CHAIRMAN. Okay. Certainly, before the end of the year, you 

would have looked at this—— 

Ms. DAVIS. Yes. 

The CHAIRMAN [continuing]. And done another—— 

Ms. DAVIS. Yes. Absolutely. 

The CHAIRMAN [continuing]. Review. Would that be correct? 

Let me ask you how—for you, how important are those—are 

those standards to an office? 

Ms. DAVIS. They are standards that are established by CIGIE for 

looking at the risk assessment or performing a risk assessment and 

determining, you know, what jobs need to be placed in priority, is 

extremely important. And I say that because often offices will have 

a peer review, the peer review will be based on particular engagements, and those engagements will only be reviewed during a peer 

review. However, when GAO goes in to conduct an audit, we look 

a little bit more broadly at whether or not the audit coverage that 

is intended is actually there and effective. So that is important to 

make sure that the audit coverage is based on prioritization of 

risks and that, you know, that work is being done. 

The CHAIRMAN. Well, we will look forward to a future followup 

on these issues as well. 

And certainly, I can think of incredible responsibilities that your 

office has, Mr. Ayers. This is—you know, it is a daunting task that 

you have to juggle these even multiple mega projects, but all of the 

things that have to be done. Our objective here is to provide our 

oversight that we need to do. We are also here to help, and it is 

better for us if we know when there is an issue, rather than read 

about it in a GAO report. I think that is best for everybody. 

And, Mr. Failla, if you have any questions, we are all available 

to help in any way we can. We wish you the best. You are almost— 

you are like the person that—almost like the dog that caught the 

car, you know. So here you are. So we wish you the best. That is 

a very challenging job you have. 


SSpencer on DSKBBV9HB2PROD with HEARING
46 

Mr. Brady, any followup for you? 

Mr. Loudermilk, do you have any follow-up questions before we 

adjourn? 

Mr. LOUDERMILK. Yes, if I may, Mr. Chairman. 

Mr. Failla, or Failla. I even asked, and then I pronounced it 

wrong. Just a couple questions for you and one for Ms. Davis. As 

I was looking at the numbers on the CVC, originally anticipated to 

be $295 million, ended up being $600 million, I mean, that is almost enough to build another structure. I mean, that is a significant increase. 

Considering the Cannon renewal and other major projects, we 

have the Rayburn parking, there are several other things going on, 

do you feel in your current position, do you have the proper amount 

of tools, resources, authority, and flexibility to do your job properly? 

Mr. FAILLA. When I first came onboard here, looking at the number of FTE that we have to do, the work that we need to do and 

the oversight that we need to do, I do not feel that we have enough 

personnel to do it. 

Mr. LOUDERMILK. Okay. 

Mr. FAILLA. Currently, my office, and this is no fault of anyone 

else’s, but we had a death before I arrived. We lost one of our more 

experienced auditors, so we are trying to fill that position now. My 

deputy and lead counsel has accepted a position at AbilityOne as 

the next IG there, so that position is vacant. So I have no second 

nor counsel. And my AIG for audit had back surgery last Thursday, 

and he is going to be convalescing up to 6 weeks. 

I have a very small office to begin with, and I am already well 

behind in trying to do the things that I am being asked to do. So 

that is where the reprioritization comes in. I am trying to take on 

the things that are important, continue to do the quarterly audits 

that have been mandated by us, but also trying to get a project or 

two out, and do them in smaller scoped projects that my folks that 

I have onboard can handle, get things done that we can effect 

change on and show results and bring back stuff. 

I think what happened in the—previously, in the way the process 

was working with the IG, I don’t want you to think that he wasn’t 

and the folks in my office weren’t doing their job or doing work. 

They were. They were just doing it in a different way. They were 

reporting on things as of running kind of project and commentary. 

If they saw something, they would tell project managers that this 

seemed to be a problem and they had a recommendation for them, 

but they weren’t putting it into reports. I think that is what the 

change has to be and is going to be with my office. 

Mr. LOUDERMILK. Does the lack of criminal investigatory powers 

inhibit your ability to effectively do the job? 

Mr. FAILLA. I think it concerns me, for sure, to fight fraud and 

to look at the criminal aspects that could be taking place, bribery, 

et cetera, things like that, where we could stop it. And I am leaning in that direction to bringing back criminal investigators. 

Mr. LOUDERMILK. Thank you. 

Mr. FAILLA. I would like to say that a criminal investigator is not 

a gun. 

Mr. LOUDERMILK. Right. Exactly. 


SSpencer on DSKBBV9HB2PROD with HEARING
47 

Mr. FAILLA. And that is the kind of big point I would like to 

make about it. It doesn’t necessarily mean it is a gun. And my 

folks, you know, when I get to know them a little better and after 

this peer review and I can make that decision freely and wisely, 

I will have things in place that ensure that folks within the AOC 

are not—never intimidated nor see a gun. 

Mr. LOUDERMILK. Well, and I would reemphasize that many investigators in the criminal field, especially forensic investigators 

dealing with information technology never carry a gun, never—they 

are digging through computer files, they are digging—their investigation is done tracking documents. And so I appreciate you bringing that up. 

Ms. Davis, basically the same question, but from your opinion, 

does Mr. Failla have, or Failla, have the tools, the resources, the 

authority, and the flexibility he needs to ensure that his job can be 

done effectively? 

Ms. DAVIS. I would like very much to answer that question, but 

I don’t have the knowledge to answer that question, or we have not 

done research in that area. 

Mr. LOUDERMILK. Okay. If you would let us know at the point 

that you have the opportunity to do that, I appreciate it, because 

our objective is to see the success of these projects and of the office. 

And I may close with this, Mr. Chairman: Recently, we had a 

bridge that made national news in Georgia, in Atlanta, burned 

down. The initial estimates—and it was a major interstate, created 

a lot of problems. The original estimate is that it was going to take 

6 months to build that. It is open. It was just a matter of weeks 

to not only repair it, but actually do other road improvements. 

I was on the phone with a contractor, I said, how did we do this 

so fast? He said, basically the Federal Government got out of the 

way. 

I would hope that maybe we would take a look at some of the 

restrictions and obstacles that we face, and maybe a 10-year project 

could end up being a 5-year project if we didn’t restrict our own 

selves. 

So with that, Mr. Chairman, I thank you. I yield back. 

The CHAIRMAN. The gentleman yields back. 

Without objection, all Members will have 5 legislative days to 

submit to the Chair additional written questions for the witnesses, 

which we would forward to you and ask that you respond as 

promptly as you can to those so that those answers can be made 

a part of the record. 

[The information follows:] 


SSpencer on DSKBBV9HB2PROD with HEARING
48 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 81 here 27284A.028

Question for the Record 

Committee on House Administration 

U.S. House of Representatives 

Oversight of the Architect of the Capitol's Office of Inspector General 

May 24,2017 

Questions from the Majority: 

1. How often were you briefed on the status of audits and investigations by the previous IGs 

and are you expecting to be briefed regularly by Mr. Failla? 

a. Did the previous IG brief you on the IG's strategic and/ or annual work plan? 

b. Did you ever request an annual work plan? 

c. Have you been briefed on the work plan developed by Mr. Failla? 

&sponse: Maintaining a strong working relationship with the Inspector General (I G) is important to 

me. The IG and I have regularly scheduled monthly meetings to discuss the status of audits and 

investigations. This has been my practice since the first IG selection in 2008 and a practice that will 

continue. In addition to these meetings, the IG and I regularly update each other when an important 

Issue anses. 

The OIG is independent in performing its duties to conduct audits, evaluations and reviews of AOC 

programs and activities. Every year the IG solicits input and prepares and distributes an audit plan. 

Their approach is to use information based on audits, evaluations and investigations; Congressional 

mandates and priorities; challenges AOC has identified; and government-wide areas the Government 

Accountability Office has identified as high-risk. The last audit plan was issued on March 27, 2017. 

The current IG has informed me that he plans to make adjustments to the plan after a risk assessment 

is complete. The risk assessment is currently underway. 

2. Does the IG have access to copies of your internal planning documents, including any 

master plans for the campus, long-range construction plans or other long-term plans as they 

prepared their audit plans? 

&sponse: Yes, the Inspector General has access to any and all documents needed to conduct their 

business. 
49 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 82 here 27284A.029

3. In your testimony to the Committee, you stated you were not surprised by many of the 

GAO findings on the OIG's lack of criminal investigators. Did you also have prior concerns 

with the quality and consistency of the information you were receiving from the OIG? 

Response: The previous Inspector General invested time and resources to transform the office by 

conducting strategic planning sessions and producing a three-year strategic business plan designed to 

move this office in a different direction. The strategic plan was a tool that he hoped would guide 

their work and priorities. I recognized this would take time, realignment of resources, training and 

personnel changes. As a result, I expected fewer reports from his office but believe this effort can 

help to improve the quality and consistency of the OIG's audits, investigations and reports. Most 

importantly, this transformation will enable the office to undertake the work intended by Congress. 

4. In your testimony before the Committee, you acknowledged you were aware of the 

precipitous decline of monetary accomplishments associated with the changing practices of 

the former IG. 

a. Did the decline in monetary accomplishments by the OIG alarm or concern you? 

b. Have you discussed with Mr. Failla a process for improving communication 

between the OIG and your office? 

Response: I challenged the pre,·ious lG to increase the OlG's focus on auditing major construction 

projects that ha\e bigger risks for the agency. \Vc ha,·c started to sec this shiit, and I beliew that ;'\[r. 

Failla will continue this essential transformation effort. Communication with the IG remains strong 

and my leadership team fully supports the OIG and is committed to maintaining a strong working 

relationship. 

5. You testified before the Committee that you urged the I G to look at the big construction 

projects and the more than 5,000 procurement actions the AOC takes each year, but testified 

you believed you were not empowered to direct the IG to do anything. Did you share your 

concerns with anyone inside or outside the AOC? How do you intend to ensure the AOC is 

a steward of taxpayer dollars? 

Response: Regular communication with Congressional stakeholders is extremely important to 

maintain effective operations. Twice a year, I transmit the Architect of the Capitol Inspector 

General's Semiannual Report to Congress. The report provides updates on current or dosed audits 

and investigations as well as important policy or strategic issues. Once the reports are transmitted, I 

follow up with committees of jurisdiction to ensure they received copies and to see if they have any 

questions or concerns. In addition, the ()I c; ha5 been n1ccting regularly \vith congressional 

stakeholders. 
50 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 83 here 27284A.030

6. When the former IG eliminated criminal investigations and investigators and instead 

decided to rely on the USCP to do all AOC criminal investigations of wrongdoing, you 

served as both the direct supervisor of the I G and Member of the USCP Board. 

a. Did you see this as a potential conflict of interest? If not, why not? 

b. As a Member of the Capitol Police Board, were you briefed, consulted, or 

informed of any ongoing or active USCP investigation of the AOC or any AOC 

employee or contractor? 

c. Do you believe you should recuse yourself from any USCP investigations of the 

AOC that come before the USCP Board should that occur? 

Response: I do not consider the IG's increased reliance on the USCP to be a potential conflict of 

interest for me as a member of the Capitol Police Board (Board). The USCP has the legal duty to 

enforce the criminal laws and make arrests on the Capitol campus, which includes any Architect of 

the Capitol (AOC) employee caught violating the law. Accordingly, the potential has always existed 

for the USCP to conduct a criminal investigation of an AOC employee regardless of whether the 

OIG employs criminal investigators. 

I do not recall ever being briefed, consulted or informed of any ongoing/ active USCP investigation of 

the AOC, any AOC employee or contractor while I was a member of the Board. 

The Architect has long served as both the agency head of the AOC and as a member of the Board, 

and I believe the Architect can continue to fulfill both roles effectively and consistent with one 

another. Of course, I would recuse myself from any matter if I felt that I could not be objective. 

7. In cases of suspected waste, fraud, or abuse, do you think such cases are best addressed 

by the individual program offices, by the OIG, or by the AOC Office of General Counsel? 

Response: In cases of suspected fraud, waste and abuse, I think it is best addressed by the Inspector 

General. 
51 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 84 here 27284A.031

8.How does your office determine when an issue should be referred to the OIG rather than 

handled within an AOC program office? Were you aware audits conducted during 2014, 

2015, and 2016 were conducted using a process of"continuous review," which is not a 

Generally Accepted Government Auditing Standards (GAGAS) approved form of audit? 

a. Who approved this practice? Did you notify Congress? 

b. Did you see this process as consistent with the AOC IG's statutory authority to 

conduct audits and investigations? 

c. Were you or Congress ever alerted to issues identified by continuous review? 

d. How will you ensure that the current IG follows audit and investigation standards 

set by GAGAS and the Council of the Inspectors General on Integrity and Efficiency 

(CIGIE)? 

R£sponse: The OIG has complete and total independence in what and how they conduct reviews and 

investigations. Employees at all levels are encouraged to report allegations of waste, fraud and abuse 

or criminal conduct to the OIG. 

The OIG has had successful Council ofinspector General on Integrity and Efficiency (CIGIE) peer 

reviews of their audit program and plans to have a peer review of their investigative program. In 

addition, the Government Accountability Office made a commitment at the hearing to follow-up on 

the recommendations in their report. I believe these efforts will help the OIG follow generally 

accepted government auditing standards. 

9. Not one of the audits initiated between 2012 and 2016 was based on a risk analysis. How 

will you ensure this practice does not continue? What polices or procedures are in place to 

ensure that risk is appropriately integrated into audit planning? 

a. As a consumer of OIG audit information, what areas would you like the AOC-OIG 

to focus on, and where do you think the OIG audits can affect and improve AOC 

operations? 

R£sponse: The OIG is currently conducting a risk assessment of AOC operations. The current 

Inspector General has informed me that the risk assessment will be used to help the OIG identifY 

work and prepare for their annual work plan. 

I think the OIG should continue to look at high-value and high-risk projects to ensure the 

successful execution of these projects. 

10. Given that the AOC has the ability to terminate the Inspector General, what would give 

you cause to exercise this authority? 

R£sponse: Generally speaking, I would consider removing the IG from office ifi concluded that the 

IG had lost independence or objectivity, was not operating ethically, had become ineffective without 

reasonable prospects of improvement or if Congress had lost confidence in the IG. In the event it 

became necessary to remove the IG from office, I would promptly inform Congress of my reasons 

for such removal in accordance with 2 U.S.C. § 1808(c)(2). 
52 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 85 here 27284A.032

11. At what point would you notifY Congress if you had concerns about the OIG, but the 

concerns did not rise to the level warranting removal of the IG? 

Response: [ regularly update congressional stakeholders on AOC operations, and immediately raise 

any concerns I have. 

12. What were your observations of the Office of the Inspector General prior to Mr. Failla's 

arrival? 

Response: The AOC collaborated with Congress and strongly supported the Architect of the Capitol 

Inspector General Act of 2007 (AOC OIG Act). Prior to this statutory authority, the OIG lacked 

the efficiency and effectiveness to deter and prevent fraud, waste and abuse in AOC operations and 

programs. This AOC OIG Act afforded us the opportunity to expand OIG operations, and I have 

ensured that adequate resources are available to support the IG and his office. The AOC requires a 

high-performing and engaged workforce to continue to deliver and improve upon the services we 

provide. Transparency and accountability are tenets that require continuous improvement, and I 

believe that Mr. Failla has the leadership qualities needed to ensure that we continue to meet and 

exceed our high ethical and moral standards. 

13. What changes would you like to see in the OIG to improve the products you receive from 

the OIG? 

Response: The Office of the Inspector General should continue to refocus their work on design and 

construction projects to ensure we complete our projects on time and within budget. 

Questions from the Minority: 

1. Part of your responsibilities include maintenance of the Capitol grounds. Would it be 

possible for a bike share program such as Capital bikeshare to be able to establish bike 

docks in locations on the grounds of the Capitol complex? Do you see any impediments to 

allowing such a program on Capitol complex grounds? Are there any plans to allow for the 

establishment of a bike share program on the grounds of the Capitol complex? 

Response: The AOC is committed to improving bicycling access to the U.S. Capitol campus. Recently, 

we installed several new bike racks on the House and Senate oval lawn panels on the East Front of 

the U.S. Capitol that increased available space for bike parking. We will continue to work with 

stakeholders such as the Congressional Bike Caucus and the U.S. Capitol Police to identify 

additional measures that may be feasible for furthering our shared goals. 
53 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 86 here 27284A.033

ARCHITECT 

"'""CAPITOl 

July 12,2017 

Office of tn,orcrtu,- Ceo.~.:r.1I 

I'}') "'<~l•lh C.!pi!ol :0.\n,:~·t. ~\'C :-.n•t.• "ill-> 

\\·a,);Hlf.ti<JIL l'C,!ifo;!..; 

,!0.!"-'>.U'}·IH 

The Honorable Gregg Harper 

Chainnan 

Committee on House Administration 

U.S. House of Representatives 

Washington, DC 20515 

Dear Mr. Chainnari: 

It was my pleallute testifying during the Committee on House Administration's May 24, 2017 

hearing entitled, "Oversight of the Architect of the Capitol's Office oflnspector General". It is an 

honor to have the Committee interested io the work of the Office of the iospector General and to 

answer the Committee's additional questions for the record. Please find below my answers for the 

record. 

Questions from the Majority: 

1. How much of the AOC OIG work has been initiated because of either statutory requirements for 

ongoing audits or at the request of others in the AOCmanagement under theprevious AOC 

Inspector General, and do you expect this percentage to change goingfonvard? 

The Architect of the Capitol (AOC) Office oflospector General (OIG) was established by statute in 

2007 for the purpose of conducting and supervising audits and investigations relating to the AOC 

while providing leadership and coordination and recommendlog policies to promote economy, 

efficiency and effectiveness and provide a means of keeping the Architect and the Congress fully 

and currently informed about problems and deficiencies related to the.administration of programs 

and operations of the AOC. Therefore, all of the ongoing audits being conducted are statutorily 

required. Additionally, the AOC OIG provides qlJ!lrterly reports as .mandated by the Explanatory 

Statement accompanying the Fiscal Year (FY) 2016 Legislative Branch Appropriations Act, P.L. 

114-113, Division I, which requires the OIG to provide quarterly status updates on the Cannon 

Renewal Project to the House Coinmittee on Appropriations and on the Capitol Power Plant to the 

Committees. on Appropriations. Although no further language was repeated in the FY 2017 

Legislative Branch Appropriations Act, we are continuing to provide updates to the appropriate 

Committees on these two projects. 

Annually, the AOC OIG has conducted oversight of the AOC! s fiscal year financial statement audits 

conducted by the inde~ndent certified public accounting film Kearney and Company {Kearney) and 
54 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 87 here 27284A.034

will continue to supply that support to the AOC for each financial statement audit conducted in the 

future. 

It is yery hard to put a percentage on audits that will becohductedin the future that are received 

froin AOC management. To my knowledge, one previous audit. with-in the last year was conducted 

at the behest.ofAOC management. That audit was the recently released ''Audit oflnformation 

Technology (IT) Property Accoimtability" OIG Report A-2017 -02 of May 8, 2017. However, I 

welcome suggestions and collal:,oration from AOC management that point out areas of possible 

fraud, waste, and abuse or areas where economy and efficiencies can be found and will continue to 

accept these suggestions and weigh the additional work with the current audit annual plan and the 

benefit and impact that the audit would bring to the AOC. As well, I appreciate and will consider 

suggestions and collaboration from Committee staffs that point out areas of possible fraud, waste, 

and abuse or areas where economy and efficiencies can be found and will weigh those audits equally 

against iny annual Audit Plan and the benefrts and impact that the audit would bring to the AOC. 

2. Comidering the size qfyour current org(lnization and ihe scope and size of the work perforined by 

the A OC, do youfeel you have the resources neces:mry to ejj'ectively and independently combat 

waste. fraud; and dbuse~in the programs and operation.; of the AOC 

Due to tll.e amount of oversight required ofthis office, I do not feel it is properly staffed and the use of the given Full Time Equivaleilt (PTE) employees and the hired employees' talents dfd not have 

!he forethought for the types of audits .the office is now expected to perform. In order to fill this gap, I 

have changed the position description (PD) for my open audit position and I am attempting to hire an 

auditor wit~ greater construction audit experience. Also, 1 have asl;.e<:l fox helpfl'Om other agency 

Inspector.General's and advertised for a detail opportunity with the AOC OIG, I have been contacted by 

Mr. Wayne Stone, the Acting IG from the Intelligence Community, who is. willing to· provide me an 

auditor for a one year detail at no cost to the AOC. We are in the process of compleiing all administrative 

requirements to finalize this detail, but I do not see this as a pennanent solution to the lack of audiJ;ors at 

the AOC OIG. Additionally, the lack of a Quality Assurance SpeCialist to perform lndependenJ: 

Reference Reviews (IRR) and to provide additional quality assurance of products and Yellow, Blue. and 

Silver book standards adherence, which is required by the CIGJE, is lacking. This has also l:,een noted in 

my office's independent Quality Assurance Audit review. In ordetto remedy this gap, l have created the 

pooition and it is currently being advertised, however the funding for this.position is coming out of my 

operations budget and I will be required to request additional funding in the future to till this necessaty 

position. 

Questions from the Minority: 

!. What steps /iave you taken ar can you take that s<ifeguard the independent nature of your office since the 

AOC appointed YPII and can terminate yo11;' 

As a 26 year military offic~r and veterari I hold my integrity as one of iny most treasured attributes and I 

will never tarnish that reputation by not being independent. Thus, l have. made it my poli~y that every 

Hotline cOmplaint, or contact made to this office concerning fraud, waste, or abuse or economies and 

emciencies will be tested for validity and either closed, referred, or investigated. Additionally; I am 

meeting regularly with all Committees that have oversight of the ACiC and keeping them infurmed on all 

Architt>ct .of t-h~ Capitol Office of ln~p-(."Ctor General 

tiN :-.'1i!Ih CaJll.rPl.htrl''-'1. S\\'. ~UHt; "'IH j \){; .!(J"ili ! 2025'};;_!•.1,11-=i \\\Y\\.;lil("}:!Jl\ 
55 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 88 here 27284A.035

audits and actions I am taking and will alert these Committee.s immediately of any independence issue ! 

e><perience. 

Since arriving at the AOC in Aprll, I have not felt any independence issues or pressures from AOC 

leadership and I have been given free rein to develop my Audit Plans, pick the AOC projects to audit and 

provide Committees with infonnation. The Architect has been very accommodating of all changes I have 

begun to.make and when I alerted him to what I felt was the appearance of a lack of independence in our 

Semiannual Report titling he accepted the change wi!hout hesitation. Additionally, as required in the JG 

Empowerment act of 2008, l ani working to post Audit reports that have recommendations to the AOC 

website along with posting oftl1e Semiannual report to Congress to provide transparency in the work 

being accomplished at the AOC I G. 

J. What is the current organizational structure rind how does that ;structure fiirther the mission qfyour office 

and how doe~ It dfjferfromyour predecessor> 

Currently, the AOC OIG has 10 FTE positions including ·111yself, These positions are: Deputy 

Inspector General & Counsel SR, AssiStant Inspector General for Audits (ATGA) GS-15, two 

auditors GS-14, Investigator-In-Charge GS-lS, Investigator GS-14, Administrative Officer GScl2, 

Management & Program Analyst GS-13, and General Engineer GS-15. This struct.ure d,oes not differ 

from my predece~sor's organizational structure. However, I do not feel it is properly staffed and the 

use of the given FfE and the hired employee~· talents did not have the foresight for the types of 

audits the office is now expected to perform. 

In order to further the mission ofthe.AOCOIG, r have changed the PD for my open audit position 

and I am attempting to hire an auditor with greater construction audit experience. My review of the 

work required, leads me to assess that iheAOC OIO needs twoadditioillll auditors. As a temporary 

solution, I have asked for help from other Inspector General's and advertised u detail opportunity 

through the Council of the Inspectors General on Jntegrity at\d Efficiency {CIGIE). I have b.een 

contacted by Mr. Wayne. Stone, the acting IG from the lnteliigence Community, who is willing to 

provide me an auditor for a one year detail at no cost to the AOC. I am in the process of completing 

all administrative requirements to finalize this detail, but I do hot see this as a permanent solution to 

the lack of auditors at the AOC OIG. 

Addi~onally, 1 have assessed that a QualiW Assurance SpecialiSt (QAS) to perform Independent 

Reference Reviews and to ·provide additional quality assurance of products to adherence to Yellow, 

Blue and S,ilver book standards is needed. This missing FTE has also been noted in my office's 

independent Quality Assurance Audit review. In order to remedy this gap, I have created the position 

and it js currently advertised, however the funding for this position is coming out of my operations 

budget and T "ill he required to request additional funding in the future to fill this necessary position, 

I have also required Ct)ITent employees to tak.e on other assigned roles and I am making the office 

less stove-piped; The General Engineer now has .the respmisibility to. provide the·quatterlyreports on 

the Canno.n Renewal Project and the Capitol Power Plant in addition .to his technical advice and 

silppoit to audits and iilVesligations. AOC OIG investigators are completing CIGIE Inspection and 

Evaluation clllsses to assist in conducting those evaluations along with the QAS, while the 

M"'hitcct of the ·capitol l o·ffice of lnllp<~tor.GetJeral 3 1tJ\,l Snmh (~q-,itd Stn:·ct ~1X • S1Jit<.· ~ J.~ ! \\'it,.hin~tnn, l)G 2{J">t~ I 2!H59:-I_ l•J.tl; ~ \\'\1'\">.,\PCP,<"l\ 
56 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 89 here 27284A.036

Management Program Analyst is conducting follow-up investigations of past audits to ensure 

compliance with previously agreed to audit recommendations. 

3. Are yot1 planning to. reinstate your offices law enforcement authority and ability to complete 

criminal investiga!ions instead of relying on the Capitol Polite? !j not. •<•hy imd ho)l! daes that 

square with the Capitol Poltce not having to abide by the standards set forth by the Council of 

the Inspectors General on Integrity and Efficiency? ).re these not the same standards tha!you 

qre required to follow for investigations? · 

I am considering the reinstatement ofniy investigators to allow them to have law enforcement 

authority. Cuirently, these investigators can only conduct administrative investigations and have to 

tefet any crinlinal activities such as theft or drug use in the AOC to the U.S. Capitol Police but they 

are unable to have them conduct fraud, waste or abuse criminal investigations because they do not 

follow CIGIE standards for investigations. This hampers my office's ability to combat serious fraud, 

waste and abuse within the A OC. As [ have stated in niy testimony, although I am 90 percent sure 

lhatthis is the direction I will go, l an\ waiting on the results of a peer review of the Investigative 

program that is scheduled with the Federal Housing Finance Agency OIG and the completion of a 

safety assessment ofmy office spaces for storing oflaw enforcement equipment. I will also have to 

niake this. decision based what funds are provided in my operations budget, as the cmTent budget 

does not account for law enforcement equipment and training. If I cannot support it financially, l 

cannot reinstate them until I have the budget fur iL 

4. Do. you have Auditing Experience? 

I would not consider myself an auditor, however during my three years as a. Director·and the Senior 

Military Advisor to the Department of Defense Inspector General. my directorate ~onducted nver 20 

Investigations and Evaluations to CIGIE Standards (Blue book standards). These standards do not 

differ very much from the Generally Accepted Govemment Auditing Standards (GAG AS) standards 

(Yellow book standards). Being dual hatted in iny roles at the DOD OJG, f. sat in on audit reviews by 

the IG and was often asked my opinion on findings and recommendations to the military services. 

Additionally,.l was qualified as an Aerospace 9100 Lead Auditor for Quality Assurance Standards 

(AS9100) and reviewed numerous quality assurance·audits conducted by my office. I feel very 

cotnfortable in my ability to oversee my office's audits. 

How many people in your organization have auditing experience or are auditors? Do yi;u fed you 

have enough auditors to carry oiityour duties? 

The AOC OIG has three auditor _positions; AlGA GS-15 and two GS-14 auditors. My review of the 

work required of the AOC OIG leads me to assess the AOC .OIG needs two additional auditors. As a 

temporary solution, I have asked for help froni other agency Inspector Generals and advertised a 

detail opportupliy. I have been contacted by Mr. Wayne Stone, the acting IG frotn the Intelligence 

Comniunity, who is 'villing to provide me an auditor for a one year detail at no cost to the AOC. I 

am in the process of completing all administrative requirements to finalize this detail, but I do not 

see this a~ a permanent solution to the lack of auditors at the AOC OIG. 

Architect of th~ Capitul I ot\kc -ot ln~pect().f Gt."n~ril~ 4 ~~~9 S>'tllh C~lpitnl ..;r:., .. ~~. S\\~, "-Hit....-':01~ 1 \X::~.:..!·in}-:f<OJ). nc lll"'l" ' .2fl2 'W5.l9·l:'o> ! 'YW\\ .• iPC-p)l 
57 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 90 here 27284A.037

5. I see that you have an engineer within your organizational structure, how does that fit within 

your organization? What is their purpose and how is that position necessary to fulfilling yow 

duties? 

The AOC OIG engineer provides independent technjcal advice and support to audits and 

investigations of the construction, restoration and maintenance of the buildings and other 

infrastructure under the AOC's jurisdiction. Having this position adds expert credibility to OIG 

findings and recommendations, especially when these are challenged by the consultants and 

contractors that AOC engages. For example, the OIG engineer may rcvjew project feasibility studie's, 

plans, specifications .or mawials testing to determine whether a project meets its functional, quality 

or safety requirements. Further, the OIG et1gineer may review construction schednles, cost estimates, 

contract modifications.and progress data to determine if a project is on track and within budget, !l,[ld 

how contractors mitigate the potential construction.risks. 

Since arriving as the AOC IG, I have increased the role of the AOC OlG engineer to be more than 

just a consultant (which cotlld have been just as easily contracted for each construction audit). I have 

assigned this person in.dividu.al construction related audits that they will head and this position will 

be responsible to compile, review and produce the quarterly reports as mandated by the Explanatory 

Statementaccompanyingthe FY 2016 Legislative Bmnch Appropriations Act, P.L. 114-113, 

Division I, which requires the AOC OIG to provide quarterly status updates on the Cannon Renewal 

Project to the House Committee on Appropriations and on the Capitol Power Plant to the 

Committees on Appropriations. 

6. Have you devdoped an a!ldit plan for thisftscal year? 

Upon my arrival at the AOC OTG f inherited a2017-18 Audit Plan created by the Acting IG tha:t was 

developed following the Government AccoUiltability Office report on my offi•• that noted the lack 

of an adequate yearly Audit Plan that was developed utilizing an assessment of AOC risks and that 

did not establish priorities for providing audit reports. The Audit Plan was conceived by the Acting 

TG arid the OIG staff on what they felt would be the most impactful auditsto the AOC that could be 

accomplished with the number of auditors and type of auditors el.JlPloyed in the AOC I have 

reviewed this Audit Plan and have had to make aqjustinerits based on my own assessment of risk to 

the AOC and what would bring value to theAOC and also what could he accomplished with the 

number of vacancies in the OIG Audit department due to the unforttmate death of one of the 0 I G 

auditor~. This AuditP!an will take us to the end of the FY. 

How do you prioritize audit projects? 

l prioritize all audits ba~ed on risk to the AOC, value ofthe audit to the AOC, OJG employee 

availability and ability and if UJ.lavailability or inability exist, if the work can be contracted to 

outside audit agencies better able to. conduct the work. These factors along with budget availability 

and proper lhning of audit and impact to the auditee contribute to my audit prioritization. 

Atdtikct tif the ~aphoJ ~ OffiCe: o! lf"!spt:i::tu~· Gcn$;'mr 

.tt)l) ..;rmlh <-::.tpirol ~tl~..._·l. ~W. Snit\~.~ IS ! \'i··,\_,hin~f<11L J)(~ 11~1.; I 201. ;:;:')jJ (} JR ""'.\-"\\'.~ln<.".,I!O\' 
58 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 91 here 27284A.038

7. Does your Audit plan Include risk assessments? 

By October 1, 2017, I eil:pect to develop an Audit Plan for FY18-J9 that will.t!!ke into account our 

currently underway contracted Independent Risk Assessment that will help highlight AOC risk areas 

and rnnk them based on risk <pid.impact. Th.; current FYJ7-18 Audit Plan is ha•e<;l on both my OV.'ll 

assessment of risk and that of the previous Acting IG' s. 

8. Are any audits being conducted on any u[lhe AOC's mega projects~ 

TheAOC OIG is completing an audit on the Capitol Dome Renovation Project that reconciles 

payments. An exit briefing was given to AOC management on 26 June and a final report should be 

issued in August 2017. 

On May 30, 2017, the AOC OIG rumouhced an auqit ofthe Cannon Rene1"1ll Project's 

preconstruction service to Phase 0. This audit will assesses the effectiveness of contract 

modifications. We expect our audit to provide assurances that change orders are reasonable, 

authorized, supported and comply with contract requirements. 

Additionally, I have added to the Audit Plan the follow~up evaluation of the "Ev&luation of 

Compliance with Internal Management Controls for Contractor Security Credentials (E-11-1 ), issued 

March 30,2011. Out overall objectives for this follow-up are to w;sess the Human Capital 

Management Division's implementation ofrecommeridations made in E-11-1 and whether these 

implementations have resirlted in improve<;! contractor badge .return rates and to assess the 

Acquisition and.Materials Management Division's revision of its Contracting Officer Representative 

(COR) designation memoranda language for sufficiency regar<ling COR responsibilities for return of 

contractor badges, and whether changes have resulted in improved contractor badge retum rates. 

Concurrently, the AOC OIG is in the planning stages for conducting an evaluation ofProdilct 

Substitution. This evaluation will most likely require outside Su~ject Matter Experts in Product 

Substitution recognition. 

9. How will you ensure that the recommendation~ ihat your office lays out in its audit report of IT 

pt:oper/)1 ac~ountability for the AOC will be fulfilled? 

We will perfortn a follow up audit to determine wbether AOC implemented the recommendations 

and these recoinmendations corrected the issues. 

llaveyou asked the AOC for a time line on when they plan to have the recommendations iinplemented? If 

not, will your o.tfice be conducting a follow up? 

Our· Audit Policy requires AOC Management to provide a Management Decision no later than six 

months after the date the final report is issued. Further, AOC Management has .to submit notice of 

final action within one year of issumice of final report. 

Atdtitect ot' th~ CapitOl 1 Office- of In~Pecto:t Gen<!t'.d 

19t) Sourh Capir.~! SII<.'L't. S\X', "nitl; :; l~ ! \\:hl1ill~lOl'. nc 2!!:;,1' f 20?:.~CJ,~.)(})f{ [ ~1"-\ '(\,',;U~C;~Il\ 
59 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 92 here 27284A.039

I 0. You mention in the same audit report issued lvfoy of this year that a contractor is being used to assist 

the invento1ycontrol division Do you knmv if the contracto1" mentioned in your mOst reCent report is the 

same contractor described in the GIGs 2014 management challenges? 

Y ~s. AOC awarded the contract to Evolver in FY 2011 with 4 option years (5 yr. contrac\). Using a 

re-compere process, AOC awarded Evolver the contract base contract again in. 2016 with four. option 

years. 

if sa, why didn't your office make any recommendations concerning the AOCs usaJ;e of an entity that has 

clearly not /Jeen e./foctive? The conlrac/or mentioned in 2014 was flagged by the OIG for inaccuracies 

and inadequate tracking leading to lost assets. 

AOC man!lgeme.nt stated they had made progress in inventory management and· used interns to 

conduct a physical inventory. We focused our audit pbjective on determining wh~ther accountable 

Infonnation Technology (IT) property had been properly identified and recorded. We found that the 

property database was not accurate or up to date because of inaccurate, missing or incomplete 

information and lnformation.Technology Division {lTD's} ability to implement the requirements of 

AOC Order 8-4, which establishes the appointment of jurisdiction staff to track and accotmt.for IT 

assets. Our recommendations were made to AOC as they provide oversight over the contractor's 

action. During our follow up if we identify that this problem still exists, we will look at oversight 

over the contract as well as contractor performance in meeting the requirements established in the 

contract statement of work. 

Do yau know how much money the AOC spends on the oms/de contractor to assist with ifs·JT asset 

management? 

The contract with Evolver is for performance managementinvolving IT services, this covers IT asset 

management, as well as operating the IT help desk. The contract is for a base year beginning 

February 2016 and four option years through January 2021 for a total amount of$15,052,044.09. 

However, the agreeable ceiling for this Blanket Purchase Agreement is $26.5M, a slight increase 

from the $26.4M from 2011 to 2016. 

AOC: .Information Technolpgy Technical Senices Support 

Date ofAward & Completion 2 January 2011 to 2 January 2016 

Project Name & Contract Type Information Technology Support Services; FFP 

Client/ Agency Architect uf the Capitol, InforrilationTechnolo&'Y 

Division 

Name: Angela Clark, AOC lTD Deputy C!OIDirector 

Client Project Manager/Point of Contact Phone Nmnber: 202-226-9105 

Email Ad.dress: aclark@aoc.gov 

Dollar Value of Contract $ 26.4 million 

Archih~L"l o~ tht• Capih•l ! Office at' lnspt-ct~r General 

I(N ."Oi!lh C;lpltol 1'->U\.'\'L ,'i\\", ·:'tliR'. "~18 i W;!:.h1!1J.?Pl1 .. nt: 2l!i 1-'t I 2.lU:)'J">.l~J!.~ \\1\\\\.!\Ht'._i.!(l\' 
60 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 93 here 27284A.040

-- Year I Ye.2:1Y Pric.4! ---

Base Year Total Price $2,719,536.29 

Option Year l Total Price $2,956,614.91 

Option Yeai 2 Total Price $~.039;400.13 

Option Year 3 Total Price $3, !?4,503.3:1 

QQtion Y ~ar 4 Total Price $3,211,989.43 

GRAND TOTAL $15,052,044,09 

ll. Do you Jmow when was the last semiannual report from the OIG to Congress? 

The AOC OIG submitted the last Semiannual Report (SAR) to Congress on May I, 2017. This 

report covered the period from October 1, 2017, through March 30, 2017. As requested and agreed 

to by the Council oflnspcctor Generals, a copy was sent to Senator Orassley and Senator Jolmson's 

office one day after the. end of the period. The Architect sent copies of the SARto the Chairman of 

the AOC oversight Committees on May 12 •. 2017. 

12. Will you submit. a semiannual report to congress on October 31st of this year? 

Yes . .Asithas every six months, my office. will submit the SARto the Architect of the Capitol and to 

Senator Grassley and Senator Johnson. The Architect will then submit the r<;;port to the AOC 

oversight·committees. 

13. Arc you ctO'I"ently looking to.fill any additional positions in the· OIG and ifso what a~e the 

positions? Al·e these positions fit!! time employees or outside contractors? When did you startyour 

search and when do you hope to have these positions filled? 

Yes, the AOC OIG had two-full time vacancies upon my arrival. These vacancies were due to the 

death of an AOC 01G auditor and the departure of the Deputy Inspector General & Counsel. l 

inutiediately began revising the position description (PD) foi the auditor to hire an employee with 

skills and talents to conduct construction audits. Over the last two weeks 1 have been conducting 

interviews for these position with interview panels made up of myself and o(her Legislative IG 

employees, The auditor position has not yet been filled, however I expect to have ail employee on 

board .by August 2017. Unfortunately, the selected candidate for Deputy Inspector General and 

Counsel has declined the offer and [will need to advertise this position once again. 

My review of the worktequired by the AOC OIG led me to ·assess the AOC OIG needs two 

additional auditors; As a temporary solution, I have asked for help from.other Inspector General 

agencies and advertised a detail oppqrtunity. I have heen contacted by Mr. Wayne Stone, the acting 

IG from the Intelligence Community, who is. willing to provide me an auditor for a omiyeat detail at 

no cost to the AOC. I am in the process of completing all administrative requirements to finalize. this 

detail, but I do not see this. as a permanent solution to the lack ofauditors at theAOC OIG. With an 

An.:JJ.~tcd ur th~ C;~pjtQI I 9HJU., t:.J:Or~ptX't:IJi. -Geucl"'.d 

ji]<J .st-llllh C:!plrn;·sr~·.:·-~· ~w. >:.ttit(' 'ii~ l \'\:;,:-hit~.t;ton. n<: !ll'il') ]l)~59't..l9!H : W\n\".:l.nt .,::<}~' 
61 


SSpencer on DSKBBV9HB2PROD with HEARINGInsert offset folio 94 here 27284A.041

FTE plus up or additional operational funding for these positions in future budgets, 1 will start a 

se~U"ch for tvro additional auditors. 

Additionally, a Quality Assurance Specialist to perform Independent Reference Reviews and 

provided additional quality assurance of products and adherence to Yell ow, Blue aitd Silver book 

standards is needed. This missing FTE has alffo been noted in my office's independent Quality 

Assurance Audit review. In order to remedy this gap, 1 have created the position and it is currently 

advertised., howc.·ver the funding for this position is corning out of my op.::rations budget and I will be 

required to request additional funding .in the future to fjll this necessary position. I hope to.conduct 

interviews mid-July and have this employee as an AOC OIG employee by mid-August2017. 

Chrjstopher P. Failla 

Inspector General 

cc: The Honorable Stephen T.Ayers, FA{,<\, LEED AP, Architect ofthe Capitol 

Christine A. Merdon, PE, CCM, Chief Operating Officer 

Arddfi..-"<l ~fth~O.lpitol_ I Officeooflnspl':!ctct"Gent!r:tl 

1'N S1li1rh Capaoi'Tl\.'l'T •. 'IW. !'>HilL' "il"l I \\'ol.~hinp:ttO!l. DC ~u:;.J.; I 201· ~~~~.!Qifl.· l \~ww:tn,·.t:m: 

9 
62 

The CHAIRMAN. Before I adjourn the hearing, I want to take a 

moment to congratulate one of our Committee Members. This week 

marks the 10th anniversary of Mr. Brady’s service as the Ranking 

Democratic Member or Chairman of this Committee. While Mr. 

Brady and I, maybe sometimes we need an interpreter, but we— 

we may disagree, we come from obviously different political backgrounds, but I can think of no one that I respect more or we—even 

when we disagree, it is friendly, and he has become a dear friend. 

So we want to congratulate you, Mr. Brady, on that service. Thank 

you so much. 

Mr. BRADY. No pizza? 

The CHAIRMAN. And all—thank you. 

Mr. BRADY. Thank you. 

The CHAIRMAN. But thank you all for being here. 

Without objection, the hearing is adjourned. 

[Whereupon, at 12:02 p.m., the Committee was adjourned.] 


SSpencer on DSKBBV9HB2PROD with HEARING