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Message from the Inspector General

I

am pleased to present the Office of Inspector General’s Strategic Plan covering

Fiscal Years 2009-2013. The Strategic Plan offers a glance at our long term effort to

work with the Department of Energy’s leadership to improve the management and

performance of the Department’s programs and operations.

As we implement this Strategic Plan, our objective is to continue to play a critical role

in protecting and preserving the Department’s assets and resources. We will focus on

mitigating those management challenges facing the Department through continued

collaboration and cooperation with the Secretary and Department senior management.

An equally important goal is aggressively exercising our statutory law enforcement authority

to prevent and detect those attempting to defraud the Department. Unfortunately, given

the complexity of the Department’s operations and the associated spending levels, the risk

of fraud is a constant challenge, one which receives our utmost attention.

Finally, execution of this Plan is not possible without the efforts of each member of my

staff. They consistently demonstrate a commitment to public service and, specifically, to

protecting taxpayer interests. Together with our stakeholders, we will continue our efforts

to facilitate positive change within the Department. 

Gregory H. Friedman

Inspector General
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STRATEGIC PLAN FY 2009-2013

iii

Table of Contents

I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

II. Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

III. Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

IV. Authority and Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

V. Other Mandates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

VI. Our Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

VII. Relationship Between the Department and OIG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

VIII. Our Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

IX. Linkage of OIG Strategic Plan to Annual Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

X. Critical External Influences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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STRATEGIC PLAN FY 2009-2013

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I. Introduction

The Department of Energy (Department)

Organization Act created the Department in

October 1977. That law brought together for the

first time, not only most of the government’s

energy programs, but also science and technology

programs and defense responsibilities that included

the design, construction, and testing of nuclear

weapons. Over its history, the Department has

shifted its emphasis and focus as the energy and

security needs of the Nation have changed. Today,

the Department stands at the forefront of helping

the Nation meet our energy, scientific,

environmental, and national security goals.

The responsibility of the Office of Inspector

General (OIG) is to ensure that the

Department is:

■ Fulfilling its program and operational

goals effectively; 

■ Using its resources efficiently in this pursuit;

■ Operating within the scope of its

legislative mandates; 

■ Meeting the President’s Management

Agenda; and, 

■ Addressing Departmental priorities

established by the Secretary. 

The OIG accomplishes this by performing audits,

investigations, and inspections of the Department’s

programs and operations seeking to uncover

existing or potential weaknesses that could result

in fraud, waste, and abuse.

This strategic plan reflects the vision for how the

organization will move forward in the 21st century

to ensure the Department continues to serve the

American public safely, effectively, and efficiently.

Through its strategic planning efforts, the OIG

will continue to play a critical role in assisting the

Department’s leadership and the Congress by

identifying opportunities for improving

management, program performance, and

accountability. The OIG’s strategic goal is to

perform a robust review program that provides

timely, relevant performance information and

recommendations to improve the performance of

the Department’s programs and operations,

facilitate positive change, and combat unlawful

activities within the Department. 

II. Vision

To be a highly effective organization that

promotes positive change by identifying

opportunities for improvements in the

performance and efficiency of the Department’s

programs and operations. 

III. Mission

To promote the effective, efficient, and

economical operation of the Department

through audits, investigations, inspections,

and other reviews to detect and prevent waste,

fraud, abuse, and violations of law.
STRATEGIC PLAN FY 2009-2013

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IV. Authority and

Responsibilities

The Inspector General Act of 1978, as amended,

requires the OIG to:

■ Conduct independent and objective audits

and investigations;

■ Promote economy, efficiency, and

effectiveness;

■ Prevent and detect waste, fraud, and abuse;

■ Review pending legislation and regulations;

and,

■ Keep the Secretary and Congress fully and

currently informed.

V. Other Mandates

■ Government Performance and Results Act

(GPRA) of 1993. Continuous review of the

Department's implementation.

■ Executive Order 12863, "President's

Foreign Intelligence Advisory Board,"

1993. Reports to the Intelligence

Oversight Board as required quarterly and

"as necessary or appropriate." This includes

reviews to ensure the Department's

intelligence activities are conducted in

accordance with existing requirements of

Executive Order 12333, "United States

Intelligence Activities."

■ Government Management Reform Act

(GMRA) of 1994. Annual audit of

Department-wide and designated

component financial statements. This effort

currently requires approximately 24 percent

of the OIG’s resources, including contractual

assistance from an external audit firm.

■ National Defense Authorization Act

of 2000. Annual review of Department

policies and procedures with respect to the

export of sensitive U.S. military technologies

and information to countries and entities

of concern. 

■ Reports Consolidation Act of 2000.

Annual audit to identify the most significant

management and performance challenges

facing the Department. 

■ Federal Information Systems Management

Act (FISMA) of 2002. Annual review of

Department information security systems. 

■ Section 522 of the Consolidated

Appropriations Act of 2005. Biennial

review of the actions of the Department’s

Chief Privacy Officer. 

■ Department of Energy Orders. Audits of

statements of costs incurred and claimed by

the Department’s integrated contractors. 
STRATEGIC PLAN FY 2009-2013

3

VI. Our Organization

As mandated by the Inspector General Act of

1978, as amended, the OIG is an independent

and objective office that promotes the effective

operation of the Department, including the

National Nuclear Security Administration

(NNSA) and the Federal Energy Regulatory

Commission (FERC).

Specifically, as part of its independent status,

the OIG:

■ Provides the Secretary with an impartial

set of "eyes and ears" to evaluate

management practices;

■ Acts as fact-finders in high profile,

controversial matters;

■ Apprehends those attempting to defraud the

Government and the people of the United

States; and,

■ Ensures the taxpayers have a "seat at the

table" when decisions are made as to how

their money is spent.

The OIG consists of the Immediate Office of the

Inspector General and the following components:

Office of Audit Services (OAS) concentrates its

efforts on economy, efficiency and program

reviews, while maintaining sound oversight of the

financial statement audit. OAS strives to provide

reliable, credible financial and performance

information to senior management, the Congress,

and the taxpayers. OAS is organizationally aligned

with the Department’s programmatic lines in

national security and energy; as well as in

environment, science, financial, technology, and

corporate operations. 

Office of Investigations (OI) conducts

investigations into alleged violations of law that

impact Department programs, operations,

facilities, and personnel. Priority is given to

investigations of suspected violations of criminal

and civil statutes, as well as serious administrative

misconduct. Criminal investigators within the

OI work closely with Department of Justice

prosecutors and other Federal, State and local law

enforcement organizations utilizing a full range of

law enforcement authorities, such as carrying

firearms, applying for and executing search

warrants, and making arrests. The work of

OI, however, extends beyond the conduct

of investigations – namely, OI identifies

opportunities for improving the economy

and efficiency of Department programs and

operations by issuing reports that recommend

positive change. 

Office of Inspections (INS) conducts

performance and allegation-based inspections,

as well as special inquiries in response to

concerns raised by Congress, senior managers

of the Department, and others. INS also

manages the OIG Hotline and Management

Referral Systems. INS facilitates management

reform in the Department by evaluating and

providing recommendations to improve

program performance. 

Office of Counsel provides legal advice and

assistance to the Inspector General on a wide range

of issues.

Office of Resource Management provides

administrative and management support to the

OIG. It also formulates and executes the budget

and is responsible for all human resource support

activities, information technology, strategic

planning, performance reporting, and property

management.
STRATEGIC PLAN FY 2009-2013

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Office of Inspector General Organizational Chart

Inspector General 

Principal Deputy

Inspector General Counsel

In addition to the Headquarter offices, OIG offices are located at key Department sites around the nation.

Audit Services Investigations & Inspections Resource Management

Investigations Inspections

Location of OIG Field Offices
STRATEGIC PLAN FY 2009-2013

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VII. Relationship Between

the Department

and OIG

Since 1997, the OIG has provided the Secretary

and Congress with an annual assessment of the

most serious management challenges confronting

the Department. These challenges parallel a

number of key Department priorities and

Presidential initiatives around which the OIG plans

much of its work. The following are the OIGidentified Management Challenges for FY 2009:

● Contract and Project Management 

● Safeguards and Security

● Environmental Cleanup

● Stockpile Stewardship

● Cyber Security

● Energy Supply

In addition to responding to requests for special

reviews or investigations from the Secretary and

Congress, the OIG continuously performs reviews

at the Department through various planned audits

and inspections utilizing a risk-based methodology

to focus our efforts on the most important issues

and concerns critical to the administration, the

Congress, and the U.S. Taxpayer.

VIII. OIG Strategic Plan

Our work is important to the Department’s success

in fulfilling its Strategic Plan to address the energy,

science, environmental, and nuclear security

challenges and mission-related goals. The OIG

must ensure that its resources and activities cover

the issues and concerns most critical to the

Department. 

Goal 1: 

Promote the President’s Management

Agenda and the Mission Priorities of the

Secretary and Congress. 

Objective 1: 

Conduct reviews seeking positive change in the

Department relating to the implementation of

the initiatives in the President’s Management

Agenda, the Secretary’s Priorities, and the

OIG-identified Management Challenges. 

Performance Measures: 

■ Complete reviews that address each

Presidential, Secretarial, and OIG initiative,

priority, and/or challenge.

■ At least 50 percent of inspection reports will

address security-related topics. 

Goal 2: 

Improve economy and efficiency and

reduce waste, fraud, and abuse within

the Department. 

Objective 2: 

Concentrate OIG efforts on issues that

have the greatest impact and usefulness to

the Department. 
STRATEGIC PLAN FY 2009-2013

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Performance Measures: 

■ Ensure that every performance review includes

an analysis of program accomplishments and

the use of metrics to measure results.

■ Ensure that 57 percent of all performance

audits include recommendations leading to

demonstrable cost savings, program

efficiencies, and/or funds put to better use.

■ Complete five follow-up reviews annually to

determine the status and efficacy of

corrective actions. 

■ Complete an annual risk-based

programmatic assessment that considers OIG

institutional knowledge; past program

performance; funding levels; Presidential,

Secretarial, and congressional concerns; and,

input from Department program managers. 

■ Ensure that 80 percent of all planned

performance audits address high-risk areas as

identified in the OIG annual risk-based

programmatic assessments. 

■ Strive for the Department to accept at least

79 percent of OIG report recommendations.

Objective 3: 

Provide timely information to the Department

so that prompt action can be taken to improve

program performance. 

Performance Measures: 

■ Issue 80 percent of audit reports no later

than 60 days following receipt of

management comments. 

■ Ensure that the average time to issue

Investigative Reports to Management is

55 days or less following final resolution of

criminal and civil investigations. 

■ Complete the field work for 70 percent of

inspections within 60 work days. 

Objective 4: 

Strengthen financial management and cyber

security through completion of mandatory

reviews in accordance with Office of

Management and Budget and other

applicable requirements. 

Performance Measures: 

■ Complete annually the Department’s

consolidated financial statement audits to

determine whether the financial statements

are free from material misstatement. 

■ Review the Department’s classified and

unclassified information security system

programs in accordance with the Federal

Information Security Management Act

of 2002. 

■ Initiate 10 “Statement of Costs Incurred and

Claimed” audits annually to assess internal

controls over costs claimed by the

Department’s major contractors. 

Objective 5: 

Concentrate investigative efforts on allegations

of criminal and civil violations of law that

adversely impact major Department programs

and operations, with emphasis on maximizing

the recovery of public resources and deterring

future wrongdoing. 
STRATEGIC PLAN FY 2009-2013

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Performance Measures: 

■ Achieve an annual acceptance rate of 72

percent for cases presented for prosecutorial

consideration. 

■ Ensure 75 percent of all cases opened focus

on key areas of Department vulnerability,

specifically procurement and grant fraud,

environmental violations, Qui Tams, or

computer crimes. 

Objective 6:

Coordinate with other law enforcement

agencies to establish effective networks in order

to identify areas that are most vulnerable to

waste, fraud, and abuse. 

Performance Measure: 

■ Ensure 25 percent of all cases opened are

joint agency/task force investigations with

external law enforcement agencies, such as

the Federal Bureau of Investigation and

other OIGs. 

Objective 7: 

Heighten awareness of potential fraud among

internal and external customers. 

Performance Measure: 

■ Provide 28 fraud awareness briefings

annually to Department and contractor

employees and managers. 

Goal 3: 

Support the Taxpayer. 

Objective 8: 

Provide the Department and the public with

an effective and efficient mechanism to report

waste, fraud, and abuse. 

Performance Measures: 

■ Operate the OIG Hotline in a manner that

ensures 90 percent of Hotline complaints

warranting further action begin processing

within 7 days of receipt. 

■ Forward 90 percent of the complaints

identified for referral to Department or other

agency management within 14 days of

initiation of the case. 

Objective 9: 

Make the public aware of OIG reports. 

Performance Measure: 

■ Ensure that all OIG public reports that were

identified for inclusion on the Internet are

posted within three working days of

submission to the Secretary, unless otherwise

specified by the Inspector General. 
STRATEGIC PLAN FY 2009-2013

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Objective 10: 

Provide a structure for ensuring a skilled and

efficient workforce. 

Performance Measures: 

■ Ensure that all auditors meet the training

requirements as specified by generally

accepted Government Auditing Standards. 

■ Ensure that all investigators meet the

training requirements as specified by Federal

law enforcement and other related

investigative standards. 

■ Ensure that all inspectors meet the training

requirements as specified by the President’s

Council on Integrity and Efficiency “Quality

Standards for Inspections.” 

IX. Linkage of OIG

Strategic Plan to

Annual Plan

This strategic plan is the blueprint for the annual

planning process. The OIG Annual Plan sets

specific targets for each of our performance

measures for the coming fiscal year, planned audits

and inspections priorities, and presents projects

that will be performed, incremental target level

increases, and expected target dates. Additionally,

OIG accomplishments will be reported in our

Semiannual Report to Congress bi-annually –

April and September.

X. Critical External

Influences

Each year, the OIG is requested to conduct quick

turnaround, unplanned, and resource intensive

reviews. These requests directly impact the OIG’s

workload, formulating budgets, evaluating

procedures, and establishing priorities. Examples

include:

■ Secretarial/Congressional Priorities.

Emerging mission-related priorities require

the Secretary to request the OIG to conduct

related reviews. Also, the OIG regularly

receives requests from various members of

Congress and their staffs to conduct reviews

and provide information and to participate

in briefings and hearings. These requests are

usually unanticipated and require immediate

attention. Satisfying these requests often

affects the OIG’s progress in achieving its

strategic planning goals.

■ New Statutory Requirements.

New legislative mandates and unfunded

audit, investigative, inspection, or special

inquiry requirements divert resources away

from other critical areas, including evaluating

the performance of the Department’s

programs and operations as they relate to

the President's Management Agenda, the

Secretary’s mission priorities, and the most

serious management challenges facing

the Department.
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