Fiscal Year 2000 Results 

of OIG Efforts

The work of more than 11,000 employees of 

Offices of Inspector General governmentwide 

during FY 2000 contributed to results that include:

◆ Potential savings of $9.5 billion 

◆ Recovery actions of almost $5.5 billion

◆ More than 5,500 successful prosecutions

◆ Suspensions or debarments of nearly 7,000 

individuals or businesses

◆ More than 2,600 civil or personnel actions

◆ More than 120 testimonies before the 

Congress on issues of national interest

These accomplishments reflect the work of the 

57 Offices of Inspector General,whose combined 

FY 2000 budgets totaled about $1.3 billion.
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Top Management Challenges Identified by IGs – December 2000 . . . . . . . . . . . . . . 9

The Inspector General Community . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Committee Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Performance Profile – Fiscal Year 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Statistical Summaries of Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

A Compendium of OIG Activities in FY 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Top Management Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

High Profile or Sensitive OIG Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Consulting or Advising Agency Management in the Handling of Programs . . 47

Detecting and Deterring Fraud, Waste, and Abuse . . . . . . . . . . . . . . . . . . . . . . . . . 52

Information Technology Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Government Performance and Results Act Activities . . . . . . . . . . . . . . . . . . . . . . . 65

Grants Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

PCIE Membership Addresses and Hotline Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

ECIE Membership Addresses and Hotline Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Glossary of Acronyms and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Table of Contents

i

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The members of the President’s Council on Integrity and Efficiency (PCIE) and the

Executive Council on Integrity and Efficiency (ECIE) are pleased to issue their annual

report to the President. This year’s report highlights the impressive accomplishments of

the individual Offices of Inspector General (OIG) during Fiscal Year (FY) 2000 and focuses

attention on several initiatives that the community has addressed.

By virtue of its mission and those charged with upholding it, the Inspe ctor Ge n e ral (IG)

co m m u n i ty co ntinues to be a po s i t i ve fo rce for improving the eco n o my, e f f i c i e n cy, a n d

e f fe ct i veness of fe d e ral prog rams and ope rations and preve nting and dete cting fra u d,

wa s te, a b u s e, and mismanagement . Th rough thousands of audits, eva l u at i o n s, i nve s t i g at i o n s, and other activities co n d u cted during FY 2000, individual OIGs focused their 

at te ntion on the challenges facing the agencies they ove r s e e. I n fo rm ation te c h n o l ogy,

g ove rn m e nt pe rfo rm a n ce, financial management, and inte g ri ty headline the list of 

challenges our gove rn m e nt is facing. Th e Exe c u t i ve Su m m a ry and A Co m pendium of OIG

Act i v i t i e s exemplify the breadth of kn owledge and insights the co m m u n i ty brings to be a r

on these and other issues. The stat i s t i cal acco m p l i s h m e nts highlighted throughout the

re po rt po i nt to a notable re t u rn on the taxpaye r s’ i nve s t m e nt .

The collective findings of the IG community corroborate the importance of the

Administration’s stated determination to improve the management of the Executive

Branch. Across the full spectrum of government operations and programs, IGs have

encountered deficiencies common to a host of agencies that require the combined

resources and attention of the IG community, Administration leadership, and agency

managers. Many of the challenges discussed in this report are consistent with the

Administration’s Government Reform initiatives, as described in the President’s “budget

blueprint,“ A Blueprint for New Beginnings– A Responsible Budget for America’s Priorities,

February 2001. Although our report lists several serious management challenges, we

emphasize four vital ones here:

◆ Federal organizations must improve the acquisition and management of their

information technology, exploit the capacities these systems offer to enhance

communications and performance, and vigilantly protect them as part of our

nation’s critical infrastructure.

◆ Federal agencies need to develop appropriate performance measures and apply

them to agency budget and management decision-making.

◆ The federal government must maintain its emphasis on having federal financial

management systems that provide timely, accurate, and useful information for

the Administration and agency managers.

◆ We must support efforts to strengthen the federal workforce’s capability to

oversee its programs and operations in a manner that fosters public trust and

confidence in the integrity of the federal government.

Foreword

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A Progress Report to the President • Fiscal Year 2000 

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

We are proud of the individual accomplishments presented in this report and prouder still

of the IG community’s progress in fostering cooperation and forging alliances to leverage

resources. Through forums and other communication vehicles, we have shared “best 

practices“ with one another, our agencies’management, and the public. Information on

the IG community’s initiatives and the activities of its committees is further detailed in 

this report and can be accessed through the community’s website, IGnet (www.ignet.gov),

which also contains links to our members’ websites.

As individual IGs and as a community, we are committed to continuing to work together

to carry out the mission established for us more than 22 years ago. We also look forward

to working with the new Administration and the Congress in addressing the current and

future challenges facing our government.

Gaston L. Gianni,Jr., Vice Chair Barry R. Snyder, Vice Chair

President’s Council on Executive Council on

Integrity and Efficiency Integrity and Efficiency

2
A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Introduction

The ove ra rching mandate for fe d e ral IGs has not changed since the first IGs we re appo i nte d

in 1978,but the issues confronting their agencies and entities (hereinafter “agencies“ for

ease of reference) are, in fundamental ways, radically different than they were 20 years

ago. In the late 1970s, very few IGs were conducting computer security testing, agencywide financial statement audits, and validation of agency performance and accountability

measures – tasks that today consume a great deal of an IG’s resources.

One need only look to the eight most recent management challenges identified by the IG

community to measure the rapid pace of change in the federal government’s priorities

during the past two decades. In December 2000, every one of the 27 OIGs responding to

a congressional request for a list of the top challenges facing their agencies highlighted

Information Technology (IT) Management and Security. At least 20 of the OIGs cited

Government Performance and Results Act (GPRA) implementation,financial management,

and procurement and grant management as significant challenges.

The challenges related to Human Capital and Staffing saw the most dramatic shift from

the previous year. In the information reported in December 2000,18 OIGs, compared with

7 from the prior year, cited human capital as a top agency challenge. Competing with

other sectors to hire a qualified and diverse workforce,maintaining proficiency and 

competencies through training opportunities, and preparing for the loss of technical

expertise through the wave of predicted retirements headline the human capital issues

facing these agencies. Many OIGs have planned reviews in this area to examine ways to

avert a potential human capital crisis over the next several years.

Many of the challenges identified by the OIGs are consistent with the Administration’s

government reform initiatives, as described in the President’s “budget blueprint,“ 

A Blueprint for New Beginnings: A Responsible Budget for America’s Priorities. Government

reform initiatives,such as ensuring financial accountability and linking budget and 

management decisions to performance, further illustrate the importance of these 

management challenges. These challenges are real and require the concerted attention

of the Co n g re s s, the Ad m i n i s t rat i o n , fe d e ral managers and employe e s, and the IG co m m u n i ty.

As for the IG community,our attention is focused on these issues, and we stand ready to

offer insights and solutions to help address our government’s greatest challenges.

The PCIE and the ECIE strive to “continually identify, review, and discuss areas of weakness

and vulnerability in Federal programs and operations . . . [and] develop plans for coordinated, Governmentwide activities that address these problems and promote economy

and efficiency[.]“ While the programmatic challenges facing the federal government have

changed dramatically during the last 20 years,so have the demands on IGs to adapt to

these changes in order to stay relevant, helpful,and faithful to the mandate of the

Inspector General Act of 1978 (IG Act). As a community and as individual OIGs, we have

learned that the most effective way to achieve the IG Act’s goals has been to develop

partnerships with our agencies, the Administration,and the Congress.

During the past year, we have continued to combine forces with each other to more

effectively and efficiently address common challenges. Our multi-phase effort to assess

3

Executive Summary: Helping Federal Agencies

Meet Their Top Management Challenges
and co rre ct shortcomings in the fe d e ral gove rn m e nt’s pro te ction of its cri t i cal infra s t ru ct u re 

is an example of this kind of joint commitment. We continue to seek opportunities to

improve our communications with one another and our agency management as we

pursue solutions to the complex issues facing this dynamic institution called the federal

government. We believe the specific examples of our activities highlighted throughout

this annual report reflect, in a tangible way, our commitment to these goals and to

the value IGs have provided in helping improve the efficiency and effectiveness of 

government programs and operations.

Although the IG community can assist in identifying and addressing the challenges,

support is needed not only from the agencies but also the Administration,the Congress,

and the public. The IG community believes that support at the highest echelon of leadership not only raises awareness but also triggers action at other levels of government.

Information Technology

The first quarter of the fiscal year marked the successful conclusion of a co m m u n i tyw i d e

e f fo rt by OIGs to ensure that the fe d e ral gove rn m e nt’s auto m ated info rm ation infra s t ru ct u re

was pre p a red for any Year 2000 co m p u te r - re l ated pro b l e m s. This effo rt co n s t i t u ted one of

the most time-cri t i ca l ,w i d e s p read challenges the IG co m m u n i ty has face d. OIGs devo te d

s u b s t a ntial po rtions of their re s o u rces to provide management with indepe n d e nt and

o b j e ct i ve assessments of its readiness and remedial effo rt s.

Having successfully met this challenge, OIGs and agency managers together have turned

to other, equally critical challenges to the government’s information technology.

Gl o b a l i z at i o n ,te rro ri s m ,c ri m i n a l s, and hackers all pose a thre at to the auto m ated dat a b a s e s,

telecommunications, and information systems upon which the government depends.

Examples of OIG work in this area include:

◆ An OIG assessment of command and co nt rol co m m u n i cations on the Inte rn at i o n al

Space Station (ISS) found that the National Aeronautics and Space Administration

(NASA) did not fully consider all possible alternatives in developing its strategy

for upgrading the security of space station communications to ensure that the

ISS would only obey commands sent by official sources.

◆ An OIG review found weaknesses in key Internal Revenue Service (IRS) computer

operations, including security certification and accreditation of sensitive systems,

v i rus pro te ct i o n , and mainframe ope rating sys tem co nt ro l s. Until these we a kn e s s e s

are resolved, IRS systems and taxpayer data remain vulnerable to tampering, loss,

or unauthorized disclosure.

◆ An OIG follow-up report found that serious problems previously identified at the

U.S. Customs Service had not been corrected and consequently left the agency

vulnerable to a range of cyber-related attacks. The Treasury OIG reported these

deficiencies to the Se c re t a ry of the Tre a s u ry who, in turn ,re po rted the deficiencies

to the Congress together with actions taken to mitigate the risks caused by the

deficiencies.

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A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
During the past year, OIGs also collaborated with each other by sharing techniques and

technology to examine the security of computer systems through penetration testing,

by independent verification of corrective actions, and by assessments of system and 

information contingency plans, physical security, and personnel integrity.

A working group of OIGs was formed during FY 2000 as part of a PCIE and ECIE effort to

assess the government’s response to Presidential Decision Directive 63 (PDD 63). This

directive ordered a national effort to protect physical and cyber-based systems that

m a i ntain the essential ope rations of gove rn m e nt and the eco n o my. Twe nty-one OIGs be g a n

individual rev i e ws to assess the adequacy of agency cy ber-based plans, asset ident i f i cat i o n

e f fo rt s, and initial vulnera b i l i ty assessment s. In addition to issuing their individual reports,

the 21 OIGs pooled their results to issue a joint PCIE and ECIE report in March 2001. This

joint report highlighted agencies’misunderstanding as to the applicability of PDD 63,

untimely identification of critical infrastructures, failure to advance beyond the planning

stage, and imprecise performance measures. The next phase of this planned 4-phase

review is assessing the federal government’s planning and assessment activities for 

protecting critical physical infrastructures, including the adequacy of agency plans,

asset identification efforts, and vulnerability assessments. Future phases will assess 

implementation of security plans for cyber-based and physical assets.

As the fiscal year ended,the Congress passed and the President signed the Government

Information Security Reform Act (GISRA),a bill that vests additional responsibilities in the 

IG community to help protect federal government information systems from cyber-attack.

Among other things,the GISRA directs OIGs to conduct annual,independent evaluations

of their agencies’ information security programs and practices. During FY 2000,the 

PCIE and ECIE formed a working group to coordinate and assist the OIGs in addressing

GISRA requirements.

GPRA Compliance and Accountability

O penness and acco u nt a b i l i ty – the re l ated co n cepts that the public’s business is open to

i n s pe ction and its managers are answe rable for its achieve m e nts or failures – are embe d d e d

in the GPRA. The GPRA requires each federal agency to develop a strategic plan that

defines its mission and goals, an annual performance plan to implement those strategies,

and measurable objectives that permit the comparison of planned accomplishments to

actual results. The IG community continues to play a vital role measuring and assessing

government operations by their results.

In the Fall/Winter 2000 issue of The Journal of Public Inquiry, Senator Fred Thompson 

wrote about oversight of government agency activities by the Executive Branch and the

Congress and the need to apply “results-oriented, performance-based thinking to our

activities. Using the key Results Act questions as a framework, we need to conduct

systemic oversight of existing agencies and programs. We need to scrutinize the design

and effectiveness of these programs and make appropriate adjustments.“ The IG 

community is committed to serving as a partner in these oversight and remedial efforts.

The GPRA stresses the need for “s pecific and measurable“ goals in agencies’ annual 

pe rfo rm a n ce plans. Se n ator Thompson challenged OIGs and the Ge n e ral Ac co u nting Of f i ce

5

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
(GAO) to assess the extent to which agencies were setting such goals to address their

long-standing management challenges. “Without specific and measurable performance

goals, it is difficult, if not impossible, to assess programs in addressing major management

problems and to hold agencies accountable,“ Senator Thompson wrote.

Working in partnership with their respective agencies to respond to this call,OIGs have

advanced the implementation of the GPRA by independent assessment,measurement,

and analysis. In fact,many OIGs are making the assessment of GPRA-related performance

measures a standard part of every program audit. In addition,the PCIE and the ECIE have

a GPRA Roundtable working group, which serves as an arena for discussing and sharing

information to address the challenges of meeting the GPRA requirements within the IG

community and its respective agencies.

In addition,the IG community has provided insight and advice to agency staff who will

implement the GPRA and share its knowledge and experience in order to advance the

utility of the IG Act. Of critical importance have been the OIG audits and other reviews

that have tested the accuracy and reliability of the data and systems to be used to define

and measure results under the GPRA. OIGs have invested substantial resources in an

e f fo rt to ensure the utility of gove rn m e nt data sys tems and the effe ct i veness of their re l ate d

internal controls in order to strengthen the government’s ability to effectively measure

the outcomes from its activities and operations.

Financial Management

One of the most extended and concerted efforts in the recent history of public administration has been the attempt to develop government accounting systems capable of 

producing auditable consolidated financial statements. A decade ago, a governmentwide

financial statement did not exist;FY 2000 marks the fourth production of such an annual

governmentwide statement. The PCIE and the ECIE are integral to this ambitious task,

both because of the audit expertise their member OIGs bring to the assignment and

because of their institutional dedication to the proposition that sound management

decision-making requires reliable financial systems.

Much of the focus the past several years has centered on agencies’ attempts to obtain

unqualified or “clean“ audit opinions. In March 2001,18 of the 24 executive agencies

received clean opinions on their FY 2000 financial statements. Moreover, all the audits

were completed on time. By comparison,11 agencies received unqualified opinions in 

FY 1997 and only 6 agencies in FY 1996. This significant accomplishment reflects the

increased collaboration among agency managers and OIGs to perform the extensive

gathering of accounting information and data for testing and analysis under stringent

deadlines. Also, representatives of the IG community and agencies’ Chief Financial Officers

met to enhance working relationships and to establish “best practices“ for conducting

financial statement audits. The success realized over the past years is a tribute to the

cooperative contributions of all participants.

The broader benefit of OIG invo l ve m e nt has been to uncover major financial management

and acco u nting sys tem deficiencies and ensure sys te m atic tra c king of agency re m e d i a l

a ctions to co rre ct the we a kn e s s e s. As the auditors on the fro nt line of this effo rt, h owever,

6

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
the PCIE and the ECIE must sound a note of caution amidst these significa nt achieve m e nt s.

In some agencies, at t a i n m e nt of a clean opinion is a fragile and somewhat artificial achievem e nt be cause it results from ext ra o rd i n a ry end-of-year effo rts rather than re g u l a ri ze d

a c co u nting ope rat i o n s. Mo re ove r, the achieve m e nt – on Ma rch 1 – of an accurate financial

s t ate m e nt of an agency’s financial condition as of Se p te m ber 30 does not ensure that 

m a n a g e m e nt has curre nt and reliable financial data during the course of the year to help in

its key decisions. Much more remains to be done to bo l s ter agency acco u nting ope rat i o n s

and financial info rm ation sys te m s.

Workforce and Program Integrity

Sound government operations depend upon the capability of the federal workforce to

oversee the integrity of programs and operations. The OIGs have contributed to this

effort through the audits, evaluations, inspections, investigations, and other activities 

they conduct. Over the past year,the OIGs have addressed a wide range of concerns 

related to the ce n s u s, illegal bo rder act i v i ty, public safe ty, f ra u d,b ri be ry, co rru p t i o n ,h e a l t h

care abuses, banking irregularities, and many other programmatic activities that may have

a dversely affe cted our live s. This extensive effort by the OIGs has not only resulted in

many improvements for implementing and overseeing federal programs and operations

but also real financial and investigative results.

During FY 2000,the work of more than 11,000 diverse and dedicated OIG employees

nationwide has produced the following tangible results:

◆ Uncovered potential savings of $9.5 billion

◆ Identified recoveries of almost $5.5 billion

◆ Contributed to more than 5,500 successful prosecutions

◆ Suspended or debarred nearly 7,000 individuals or businesses

◆ Initiated more than 2,600 civil or personnel actions

Additionally, as a community we testified more than 120 times in front of congressional

committees on a broad range of matters that were of national interest. These results 

represent a tremendous accomplishment for a 1-year effort by the 57 OIGs whose 

collective budget in FY 2000 totaled about $1.3 billion.

Conclusion

IGs across government continue to face several enduring challenges as we work with

agencies to address the myriad of issues confronting the federal government. The first is

to continue to approach our work as problem solvers. Over the years, OIGs have sought to

work more collaboratively with agency managers and, although IGs know it is unlikely

that their decision to conduct an audit, inspection,or program review will ever be met

with enthusiasm, we want OIG reviews to be perceived as objective, fair, and reasonable.

We will continue to pursue this as a central goal during the coming year as individuals

and as a co m m u n i ty.

7

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Se co n d, OIG inve s t i g ations should lead to a narrowing of the oppo rtunities for misco n d u ct

and co rruption within the fe d e ral gove rn m e nt . The challenge for OIGs and agency 

managers is to find ways to leve rage each criminal and administrat i ve inve s t i g ation to 

p rod u ce proce d u ral and sys temic re fo rms that make similar kinds of misco n d u ct less 

l i kely in the future. Such prog ress is not as easily measured as arre s t s, co nv i ct i o n s, and 

the imposition of administrat i ve discipline but is ce nt ral to the mission of OIGs.

Fi n a l l y, as individual IGs and as a co m m u n i ty, we look fo rwa rd to building on our coo pe rat i ve

wo rking re l ationship with agency management, the Ad m i n i s t rat i o n , and the Co n g ress so that

together we can address the top management challenges facing the fe d e ral gove rn m e nt .

8

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
In December 2000,OIGs from 27 agencies shared with key congressional leaders, for the

third consecutive year,the “Top Management Challenges“ faced by their agencies. The

OIGs identified these agency challenges and discussed how the issues unique to their

agencies would be addressed. For the Congress and the rest of the oversight community,

this compilation can be useful in identifying possible governmentwide projects that

warrant high-level attention and review. The eight challenges indicated below have

applicability across government.

Top Management Challenges Identified by IGs

December 2000

9

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

I n fo rm ation G P RA 

Te c h n o l ogy Co m p l i a n ce, Fi n a n c i a l Proc u re m e nt Human Pu b l i c

Ma n a g e m e nt I m p l e m e nt at i o n , Ma n a g e m e nt & & Gra nt Capital & Se rv i ce to Health & Phys i ca l

Ag e n cy & Se c u ri ty & Ac co u nt a b i l i ty CFO St ate m e nt s Ma n a g e m e nt St a f f i n g the Pu b l i c Sa fe ty I n f ra s t ru ct u re

AID x x x x

USDA x x x x x

DOC x x x x x

DoD x x x x x x

ED x x x x x

DOE x x x x x

HHS x x x x x x

HUD x x x x x x

DOI x x x x x x

DOJ x x x x x x

DOL x x x x x

DOS x x x x x x x

DOT x x x x x x x x

Tre a s u ry x x x x

VA x x x x x

EPA x x x x x x

FEMA x x x x x x

FDIC x x x x

GSA x x x x x x x

IRS x x x x x

NASA x x x x x x

NSF x x x x x

NRC x x x x x x x

OPM x x x x x

SBA x x x x x

SSA x x x x

USPS x x x x x

TOTAL 27 23 21 20 18 17 15 7
In Octo ber 1978, the Co n g ress passed and the Pre s i d e nt signed the IG Act, which cre ate d

i n d e pe n d e nt audit and inve s t i g at i ve offices within 12 fe d e ral agencies. Be fo re that time,

most fe d e ral audit and inve s t i g at i ve re s o u rces we re under the management of spe c i f i c

federal program offices – meaning that federal auditors and investigators were frequently

under the dire ction of the prog rams they we re rev i e w i n g. This splinte red sys tem also

made it hard for these small audit and inve s t i g at i ve offices to see pat te rns of abuse in

their agencies’ p rog ra m s.

The IG co n cept has proved to be of significa nt benefit to the gove rn m e nt . Each year billions

of dollars are re t u rned to the fe d e ral gove rn m e nt or be t ter spe nt based on the re co m m e nd ations from IG re po rt s. Be cause of this succe s s, the IG co n cept has been gradually ex p a n d e d

to most of the fe d e ral gove rn m e nt . In FY 2000,t h e re we re 57 OIGs providing ove r s i g ht to 

59 fe d e ral agencies.

The modern civilian IG was derived from the military custom of having an “Inspector

General“ to provide an independent review of the combat readiness of the Continental

Army’s troops. Today’s civilian IGs are charged with a similar mission: to independently

review the programs and operations of their agencies; to detect and prevent fraud, waste,

and abuse;and to promote economy, efficiency, and effectiveness so that their agencies

can best serve the public.

Independence

The major way IGs are diffe re nt from other fe d e ral officials is their indepe n d e n ce. This 

s t at u to ry indepe n d e n ce is intended to ensure the impart i a l i ty of IG audits and inve s t i g at i o n s.

The IG Act authorizes IGs to:

◆ Conduct such audits and investigations and issue such reports, as they believe

appropriate (with limited national security and law enforcement exceptions).

◆ Issue subpoenas for information and documents outside the agency (with the 

same limited exceptions).

◆ Have direct access to all records and information of the agency.

◆ Have ready access to the agency head.

◆ Administer oaths for taking testimony.

◆ Hire and control their own staff and contract resources.

◆ Request assistance from any federal,state, or local government.

IGs report both to the head of their respective agencies and to the Congress. This dual

reporting responsibility is the framework within which IGs perform their functions.

Unique in government, it is the legislative safety net that protects the IGs’ independence

and objectivity.

The Inspector General Community

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A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
IGs are inte re s ted in input on what pro j e cts they should pursue. E xcept in special 

c i rc u m s t a n ce s, IGs share dra fts of their re po rts with their agencies and re s pond to agency

co m m e nts in final re po rt s. IGs also fre q u e ntly provide “te c h n i cal adv i ce“ on a particular 

issue or piece of legislation to officials within their agencies and to the Co n g re s s. Ma ny IGs

p a rt i c i p ate in their agencies’senior co u n c i l s, and OIG staff fre q u e ntly provide adv i ce on 

m a n a g e m e nt policies as they are deve l o pe d.

Mission

In simple terms, the IGs have two basic roles – to find and report on current problems and

to foster good program management to prevent future problems. This report describes

many examples of how the OIGs meet their specific statutory mission to:

◆ Conduct and supervise audits, investigations, and inspections relating to the 

programs and operations of their agencies.

◆ Review existing and proposed legislation and regulations relating to the 

programs and operations of their agencies.

◆ Provide leadership for activities designed to promote economy, effectiveness, and 

efficiency and promote efforts to reduce fraud, waste, and abuse in their agencies’

programs.

◆ Inform their agency heads and the Congress of problems in their agencies’

programs and operations and the necessity for and progress of corrective actions.

In performing this mission,the OIGs prepare a variety of reports. During FY 2000,the 

OIGs collectively issued more than 8,500 reports and provided more than 120 testimonies

before congressional committees. In addition,these OIGs closed more than 20,000 

investigations and processed almost 200,000 complaints.

Audit Reports

OIG audits evaluate:

◆ Pe rfo rm a n ce of agency prog rams and suppo rting administrat i ve and financial sys te m s.

◆ Compliance with relevant laws and regulations.

◆ Whether there are ways that funds could be put to better use.

◆ Whether contractors and/or grantees have met their responsibilities to the 

government.

◆ Whether individuals or firms doing business with or re ceiving benefits from the 

g ove rn m e nt have re ce i ved funds to which they are not entitled and should 

m a ke re s t i t u t i o n .

By law, OIG audits are performed under auditing standards set by the GAO.

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A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
OIGs devote the bulk of their resources to audits and related services. This work is 

performed by OIG audit staff, other federal auditors under cost-reimbursable agreements,

or nonfederal auditors under various contracting or partnering arrangements.

Inspection Reports

I n s pe ctions include po l i cy and prog ram eva l u at i o n s. Seve ral OIGs have adopted inspe ct i o n s

as a quick way to spot test the effectiveness of agency programs or to do a broad review

on issues that affect agency programs. The PCIE and ECIE have adopted professional 

standards to promote the validity and independence of OIG inspections.

Investigation Reports

In accordance with professional standards and guidelines established by the Department

of Ju s t i ce (DOJ) ,OIGs pe rfo rm inve s t i g ations of both criminal and administrat i ve wro n g d o i n g

against agency programs. When they deem necessary, IGs investigate beneficiaries,

contractors or grantees, or federal officials. IGs are empowered to investigate anyone 

who may have defrauded their agencies’ programs. IGs are required to report suspected

v i o l ations of criminal law dire ctly to the At to rn ey Ge n e ral and fre q u e ntly wo rk coo pe rat i ve l y

with the DOJ’s Un i ted St ates At to rn eys on criminal inve s t i g at i o n s.

Semiannual Reports to the Congress

These reports,specifically mandated by the IG Act, require IGs to summarize their most

significant recent reports and management’s action on significant IG recommendations.

The resulting semiannual reports provide a useful overview of OIG activity and 

demonstrate the contributions of each IG.

IG Appointments

IGs are appo i nted on the basis of their personal inte g ri ty and ex pe rtise in acco u nt i n g,

a u d i t i n g, financial analys i s, l aw,m a n a g e m e nt analys i s, public administrat i o n , or inve s t i g at i o n s.

The IGs serving at the ca b i n e t - l evel depart m e nts and major sub-cabinet agencies are 

n o m i n ated by the Pre s i d e nt and co n f i rmed by the Se n ate. These IGs can be re m oved only

by the Pre s i d e nt . IGs at smaller, i n d e pe n d e nt agencies, co rpo rat i o n s, and other fe d e ral 

e ntities – called “d e s i g n ated fe d e ral entities“ – are appo i nted by the heads of those ent i t i e s,

who can also re m ove the IGs from office. In either ca s e, both houses of the Co n g ress must

be notified of the reasons for re m ova l .

President’s Council on Integrity and Efficiency

The presidentially appointed IGs work together and coordinate their professional 

activities through the PCIE. This Council,which was created by Executive Order 12301,

Integrity and Efficiency in Federal Programs, dated March 26,1981,and updated in 1986 

by Executive Order 12625 and in 1992 by Executive Order 12805, works to promote

collaboration on integrity, economy, and efficiency issues that transcend individual 

governmental agencies and to increase the professionalism and effectiveness of OIG 

personnel throughout the government.

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A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The De p u ty Di re ctor for Ma n a g e m e nt of the Of f i ce of Ma n a g e m e nt and Budget (OMB)

chairs the PCIE and is re s ponsible for re po rting to the Pre s i d e nt on its act i v i t i e s. In addition

to the pre s i d e ntially appo i nted IGs,m e m bers include the Co nt roller of the Of f i ce of Fe d e ra l

Financial Ma n a g e m e nt at OMB, the Special Counsel of the Of f i ce of Special Counsel (OSC),

the Di re ctor of the Of f i ce of Gove rn m e nt Ethics (OGE), the De p u ty Di re ctor of the Of f i ce of

Personnel Ma n a g e m e nt (OPM), and a re p re s e nt at i ve of the Di re ctor of the Fe d e ral Bu reau of

I nve s t i g ation (FBI). The Vi ce Ch a i r, who is re commended by the members and approved by

the Ch a i r, manages the Co u n c i l’s day - to - d ay act i v i t i e s.

Executive Council on Integrity and Efficiency

The ECIE co m p rises pri m a rily the IGs appo i nted by designated fe d e ral ent i ty heads. Th i s

Co u n c i l , also cre ated by Exe c u t i ve Order 12805 on May 11,1 9 9 2 , has the same mission as the

PCIE – to address inte g ri ty and efficiency issues that tra n s cend individual gove rn m e nt 

agencies and to increase the pro fessionalism and effe ct i veness of OIG personnel thro u g h o u t

the gove rn m e nt . The De p u ty Di re ctor for Ma n a g e m e nt of OMB chairs the ECIE. In addition

to the IGs,m e m bers include the Co nt roller of the Of f i ce of Fe d e ral Financial Ma n a g e m e nt at

O M B ;the Special Counsel of OSC; the Di re ctor of OGE; the De p u ty Di re ctor of OPM; and a 

re p re s e nt at i ve of the Di re ctor of the FBI. The Vi ce Ch a i r, who is re commended by the 

m e m bers and approved by the Ch a i r,manages the Co u n c i l’s day - to - d ay act i v i t i e s. The ECIE

also has re p re s e nt at i ves on PCIE co m m i t te e s.

Activities by the PCIE and the ECIE

The PCIE and the ECIE rely on the Vice Chair offices and the PCIE standing committees to

oversee their many activities. During the past fiscal year, the PCIE began several initiatives

to build upon its past collaboration with its members as well as members of the ECIE. At

its annual retreat, The Evolving Role of the IG in a New Millennium,the PCIE kicked off its

strategic planning activities and initiated a dialogue whereby the IG community could

add value to the pending presidential transition. As part of the transition efforts, the IG

community produced two special editions of The Journal of Public Inquiry. The first edition

focused on the community’s past work and the second edition,issued in January 2001,

focused on the important issues, from the IG community’s viewpoint, facing the new

Administration. In July 2000,the Vice Chair offered the community’s view on the IG Act

and other legislative issues in testimony before the Senate Committee on Governmental

Affairs. Finally, during the September 2000 PCIE and ECIE awards program,the community

re cog n i zed 500 individuals for their outstanding pe rfo rm a n ce and co m m i t m e nt to fulfilling

the IG mission. The work of the six standing committees is summarized in a later section

of this report.

In addition,the PCIE maintains two training ce nters for OIG staff:the Inspe ctors Ge n e ra l

Au d i tor Training Institute at Fo rt Be l vo i r,Vi rg i n i a , and the Inspe ctor Ge n e ral Cri m i n a l

I nve s t i g ator Aca d e my at the Fe d e ral Law Enfo rce m e nt Training Ce nter at Gl y n co, Ge o rg i a .

Council members also join together in a number of substant i ve wo rking groups to address a

wide range of re l eva nt issues, including auditing standards and alte rn at i ve dispute re s o l u t i o n .

You can find information on PCIE, ECIE, and individual OIG activities on the IG community

website, IGnet, at http://www.ignet.gov.

13 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The PCIE, in conjunction with the ECIE,maintains six standing committees to examine

important issues and assist the Councils in their ongoing efforts to promote integrity,

accountability, and excellence in government.

Audit Committee

Gregory Friedman,IG for the DOE, chairs the Audit Committee. During FY 2000,the

Co m m i t tee co ntinued its leadership role and served as a re s o u rce for the audit co m m u n i ty

by promoting the following initiatives within the OIG community:

◆ IG-CFO (Chief Financial Officers) Best Practices – Began the process of developing 

“best practices“ for agency financial statement auditing.

◆ “Best Practices“ Compendium – Collected, consolidated, and published a 

compendium of audit “best practices“ from federal OIGs. The best practices guide 

can be accessed on IGnet.

◆ No n - Tax De l i n q u e nt Debt Re po rt – Spo n s o red a gove rn m e ntwide audit of non-tax 

delinquent debt. Sixteen OIGs participated in the review. The resulting report,

which included a number of re co m m e n d ations to enhance fe d e ral debt co l l e ct i o n ,

is available on IGnet. At the time of the report, an estimated $46.4 billion of 

non-tax debt was over 180 days delinquent.

◆ Critical Infrastructure Initiative – Established a working group to examine the 

security of the nation’s critical infrastructures. Critical infrastructures, as described

in PDD 63,are the physical and cyber-based systems essential to the minimum 

operations of the economy and government and include telecommunications,

banking and finance, energy, transportation,and essential government services.

The working group initiated a multi-phase governmentwide audit of critical 

infrastructure protection programs. (See the Executive Summary for additional 

information.) The audit plan and schedule can be accessed on IGnet.

◆ Auditor Training – Provided oversight to the Inspectors General Auditor Training 

Institute (IGATI). Established in 1991,IGATI is the primary source of basic training 

for federal auditors and the only organization whose sole purpose is to address 

that unique need. Auditors from over 100 organizations regularly attend IGATI 

programs. During FY 2000,IGATI trained 1,400 auditors.

◆ Financial Audit Manual – Worked with the GAO to revise the Financial Audit 

Manual. A joint GAO/PCIE working group was established to update the manual 

chapters. Upon completion of this project,the PCIE community and the GAO will 

have, for the first time, a single reference for auditing agency financial statements.

Inspection and Evaluation Committee

June Gibbs Brown,IG for the HHS,chaired the Inspection and Evaluation Committee until

her retirement in January 2001. The Committee’s association with the Inspections and

Evaluation Roundtable, the organization of Assistant Inspectors General (AIGs) with

Committee Accomplishments

14

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
responsibility for evaluations and inspections within their respective agencies,made 

FY 2000 a productive year as described below:

◆ Inspection & Evaluation Survey – Issued in final the second Survey of Inspection 

and Evaluation Units in the OIG Community. The survey is available on IGnet.

◆ Child Support Enforcement Report – Completed the first phase of the project

entitled “Child Support Enforcement – Ensuring Federal Employees’ Compliance.“

The DOJ OIG issued its report entitled Federal Bureau of Investigation Compliance

with Federal Agency Child Support Efforts, which can be found on IGnet.

◆ Manuals – Issued in draft the manual entitled Advisory and Assistance Services:

A Practical Reference Guide and produced and posted on IGnet a manual entitled 

Core Competencies for Evaluators.

◆ Paperwork Control – Published and disseminated voluntary guidelines for control 

of public paperwork and reporting burdens within the evaluation community.

◆ Outreach – Presented information at conferences of the American Evaluation

Association and the Eastern Evaluation Research Society on such topics as

“Making Effective Presentations of Evaluation Results, Core Competencies,

Contracting for Evaluations, and Achieving Impact through Evaluations.“

Guidance and advice were provided to various OIGs on how to organize an 

evaluation and inspection function,and evaluation methodologies were shared

with the Federal Taskforce on Alternative Disputes Resolution.

Investigations Committee

The mission of the Investigations Committee is to advise the federal OIG community on

issues involving criminal investigations, criminal investigative personnel,training, and the

establishment of criminal investigative guidelines. In addition,the Investigations

Committee is the Board of Directors of the Inspector General Criminal Investigator

Academy (IGCIA). The Investigations Committee relies on the Investigations Advisory

Subcommittee, composed of AIGs for Investigations (AIGIs), to assist in these efforts.

Patrick McFarland, IG for the OPM,chairs the Investigations Committee. In FY 2000,the

Committee, with the assistance of the Investigations Advisory Subcommittee, established

working groups to address the following:

◆ NASA v. FLRA Guidelines – Collaborated with the DOJ OIG and the Council of

Counsels, an organization of OIG counsels, to prepare and publish the Guidelines

for Application of the Supreme Court’s Decision in NASA v. FLRA, Regarding Union

Representation During OIG Interviews. The Supreme Court decision states that if a

bargaining unit employee reasonably believes that an OIG investigation may

result in disciplinary action,the employee has the right to have a union 

representative present during an interview. The guidelines, which suggest 

prudent policies that OIGs should follow regarding union representation 

during employee interviews, were distributed to all OIGs.

15

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
◆ Statutory Law Enforcement – During FY 2000, continued to oversee efforts to

obtain permanent law enforcement authority for OIG criminal investigators.

On behalf of the IG community,the DOJ submitted a legislative proposal to the

106th Congress to amend the IG Act by providing statutory police powers for

agents engaged in official duties in the offices of 23 presidentially appointed IGs

and an ove r s i g ht mechanism for the exe rcise of those powe r s. OIG agents exe rc i s e

police powers under regularly renewed blanket deputation issued by the 

U.S. Marshals Service. The co-chairs of the Investigations Advisory Subcommittee

conducted more than 45 briefings to congressional staff members regarding this

legislation. A further discussion of the law enforcement authority efforts is 

discussed under the Legislation Committee.

◆ IG Criminal Investigator Academy/Forensic Science Laboratory – Discussed with

congressional staff the need to authorize the IGCIA,which in FY 2000 revised its

t raining prog ram and trained 260 OIG special agents as well as 78 hotline ope rato r s,

and the Inspector General Forensic Laboratory, to perform forensic service for the

community. Public Law 106-422,which also elevated the IG at the Tennessee

Valley Authority (TVA) to a presidentially appointed-Senate confirmed position,

was signed into law by the President on November 1,2000.

◆ Qualitative Assessment Review Guide – Began drafting a Qualitative Assessment 

Review Guide that will outline standards to be used to assist the OIG community

in conducting external peer reviews of investigative functions.

◆ Investigative Statistics Reporting – Began evaluating and recommending 

standard definitions and guidelines for reporting criminal investigative data (e.g.,

successful prosecutions and investigative recoveries). These data are currently

incorporated in OIGs’semiannual reports to the Congress and the annual PCIE

and ECIE progress report to the President.

◆ Violence in the Workplace – Began examining what role, if any, OIGs should play

in issues involving violence in the workplace in their agencies.

Integrity Committee

As cre ated by the PCIE and the ECIE Chair and fo rmally established by Exe c u t i ve Ord e r

1 2 9 9 3 , Ad m i n i s t ra t i ve Allegations Against Inspe ctors Ge n e ra l, the Inte g ri ty Co m m i t te e

re ce i ve s, rev i e ws, and re fers for inve s t i g at i o n ,w h e re appro p ri ate, a l l e g ations of wro n g d o i n g

by IGs and, in limited ca s e s, OIG staff. The membership of this Co m m i t te e, which includes

re p re s e nt at i ves from the FBI, the OSC, the OGE, and at least three IGs appo i nted by the PCIE

and the ECIE Ch a i r, is dict ated by the exe c u t i ve ord e r. The FBI official, as designated by the

Di re ctor of the FBI,s e rves as the Chair of the Inte g ri ty Co m m i t te e. Ru ben Ga rc i a ,As s i s t a nt

Di re ctor of the FBI’s Criminal Inve s t i g at i ve Di v i s i o n , chairs the Inte g ri ty Co m m i t te e.

The FBI continues to show its support by staffing the Committee’s working group. The

working group, which includes two special agent supervisors, an attorney from the FBI’s

Office of General Counsel,and one analyst, ensures that all Committee matters receive

thorough analysis and that complaints are presented appropriately. Further,the working

group ensures that all complaints are processed as expeditiously as possible.

16

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
With the help of the working group, the IG community is continuing to see tremendous

improvements in the efficient processing of these complaints. To realize these improvements, the Committee meets bimonthly and has established time limits (i.e.,30 days)

when soliciting IGs or complainants for information. While the number of new complaints

received continues to increase, the time spent processing the cases continues to decrease

significantly. In FY 1990,when the Committee opened 22 new cases,the average case

processing time was 28.1 months;in FY 2000,when the Committee opened 34 new cases,

the average case processing time was down to 1.9 months. Since 1990,the Committee

has processed and brought to closure 326 cases.

During FY 2000,the Committee successfully managed its responsibilities, as evidenced by

the statistics below. At the close of FY 2000,the Committee had nine pending cases and

one active investigation. The statistics are as follows:

◆ Reviewed 34 new complaints

◆ Processed and brought to closure 43 separate complaint matters, which included

cases opened in previous years but not closed until FY 2000

◆ Determined that,of the 43 complaints, 22 were outside its purview and referred

to other agencies for consideration and 16 were unsubstantiated, frivolous,

and/or lacking in sufficient detail to warrant further action

◆ Closed four cases with the finding that the complaints were, at least in part,

substantiated 

◆ Supervised five separate investigations into allegations of IG misconduct and

referred the investigative reports for these cases to the PCIE and the ECIE Chair

and/or affected IG for appropriate action

Legislation Committee

The Legislation Committee ensures that the PCIE and the ECIE are kept abreast of matters

in the congressional arena of interest to the IG community as a whole or that could

impact OIG statutory authority, duties, and organization as provided under the IG Act. The

Committee also develops, coordinates, and represents official PCIE and ECIE positions with

regard to particular legislative issues. Additionally, the Committee serves as a resource

base for the IG community on congressional rules, operation,and procedures. Kenneth

Mead, IG for the DOT, chairs the Legislation Committee.

Primarily through its legislative alert electronic mail system,the Committee provided

more than 50 updates to the IG community on various issues affecting the community.

The Committee monitored developments on 21 different pieces of legislation and,

pursuant to requests from the OMB, provided PCIE and ECIE views on 17 legislative

matters. Per requests from the Congress, the Committee compiled community

comments on four specific measures.

17

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
There were several legislative highlights during this session of the Congress:

◆ Elevation of the TVA OIG and Authorization of IGCIA and IG Forensic Laboratory.

Legislation was enacted to elevate the OIG at the TVA from a designated federal

entity (DFE) position to one appointed by the President and confirmed by the

Senate. As previously discussed,the Congress authorized the IGCIA and the

Inspector General Forensic Laboratory by enacting this law (Public Law 106–422).

◆ IG Act Amendments of 2000. The Senate Committee on Governmental Affairs

held an oversight hearing on issues facing IGs, focusing primarily on the question

of statutory law enforcement authority and the provisions of S. 870,the IG Act

amendments. S. 870 would require management reviews of OIG operations,

change current reporting requirements, and mandate a study by the GAO of

options for potential consolidation of DFE OIGs. This legislation was favorably

reported by the Committee and passed by the full Senate. However,the House

did not act on the bill prior to adjournment.

◆ Law Enforcement. Following the hearing,the Chairman of the Senate

Governmental Affairs Committee introduced legislation (S. 3144) to provide 

permanent law enforcement authority to 23 OIGs with presidentially appointed

Senate confirmed IGs. These OIGs currently exercise such powers – seek and 

execute search warrants,make warrantless arrests, and carry firearms in the

course of their official duties – through special deputation agreements from the

DOJ and the FBI. Significantly,the legislation had the support of both the OMB

and the DOJ. It was unanimously reported out of Committee. However, the

Congress did not act on the bill prior to adjournment.

◆ Co m p u ter Se c u ri ty. On Octo ber 30, 2 0 0 0 ,the GISRA was signed into law as part of

the FY 2001 De fense Au t h o rization Act ( Public Law 106–398). Designed to enhance

the effe ct i veness of fe d e ral agency info rm ation securi ty sys te m s, the law, in part,

provides for IGs to conduct an annual evaluation of their agencies’security

programs and pra ct i ce s. This includes testing the effe ct i veness of securi ty co nt ro l s

for agency info rm ation sys tems and making an assessment of their co m p l i a n ce

with applicable po l i c i e s, p roce d u re s, and guidelines. The Co m m i t tee fo rmed a

wo rking group to provide the Co n g ress with OIG views and co m m e nt s,m a ny of

which we re included in the bill as signed into law. A major object i ve of this effo rt

was to ensure that IGs are an inte g ral part of the agencies’ re po rting process fo r

s e c u ri ty incident s.

◆ Re cove ry Act. The Co m m i t tee provided exte n s i ve input during House co n s i d e rat i o n

and passage of the Government Waste Corrections Act of 2000 (H.R. 1827) and the

Senate’s consideration of the companion bill (S. 3030). This legislation would

require federal agencies to conduct audits on major program activities to

recover erroneous payments made to contractors. The Committee made

recommendations pertaining to IG authority and oversight responsibilities;

contractor objectivity and independence;fraud detection,reporting, and 

referrals;and collection of recovered funds. Most of those suggestions were

subsequently incorporated in the House-passed version.

18

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Professional Development Committee

Chaired by Martin Dickman,IG for the Railroad Retirement Board (RRB),the Professional

Development Committee has responsibility for exploring and providing educational

opportunities for members of the federal OIG community.

During FY 2000,the Committee organized and hosted three forums with speakers from

PCIE agencies:

◆ Electronic Fraud. In January, Danny L. Barkley, Financial Crimes Section,FBI,

shared his expertise and experiences concerning electronic fraud. He provided

in-depth descriptions of the types of electronic fraud and discussed ways to

combat such offenses.

◆ Electronic Audit Management. In June, Russell A. Rau, AIG for Auditing, NASA OIG

Office of Audits, delivered a presentation on “Internet-based Electronic Audit

Management.“ Mr. Rau addressed the use of electronic technology in managing

an overall audit program and conducting individual audit assignments.

He encouraged all OIGs to move toward implementing electronic audit 

management as soon as possible.

◆ Evaluations as a Tool. In August, George F. Grob, Deputy IG for Evaluation and

Inspections, HHS,discussed the importance of evaluations as effective tools for

the OIG community. Mr. Grob presented various evaluation methods and

explained the relationship of evaluations to OIG audits and investigations.

19 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Summary of Combined Accomplishments 

of PCIE and ECIE Members

Recommendations that Funds Be Put to Better Use . . . . . . . . . . . . . . . . . .$15,615,571,720 

Management Decisions on Recommendations That Funds 

Be Put to Better Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,524,264,728

Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,207,002,648

Management Decisions on Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . .$2,188,429,374

Investigative Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,279,272,066

Successful Criminal Prosecutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,542

Civil Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,279

Suspensions/Debarments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,996

Personnel Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,361

Performance Profile – FY 2000

20

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The tables on the fo l l owing pages demonstrate the impact the OIGs have in their agencies

and summari ze key acco m p l i s h m e nts for FY 2000. The statistics included in this re po rt are

based on submissions from the re po rting OIGs. The data re po rted are defined in most

i n s t a n ces by the provisions of the IG Act, 5 U.S.C. a p p. § 5, by which the Co n g ress 

established unifo rm re po rting cate g o ries for each IG’s semiannual re po rt to the Co n g re s s.

Be cause of data limitations or fe at u res peculiar to individual OIGs, h oweve r, some va ri at i o n s

oc c u r, as explained in the acco m p a nying foo t n o te s. In addition, OIGs often part i c i p ate in

m u l t i - a g e n cy task fo rces or join with another OIG to accomplish a common object i ve. Wi t h

this joint act i v i ty, the po te ntial exists for duplicate re po rt i n g. An effo rt has been made to

p reve nt duplicate re po rting here. A PCIE wo rking group is curre ntly addressing ways to

be t ter preve nt duplicate re po rting of multi-agency and task fo rce pro j e ct s.

Recommendations That Funds Be Put To Better Use 

(Tables I-P and I-E)

The IG Act defines a re co m m e n d ation that funds be put to be t ter use as “a re co m m e n d at i o n

by the Of f i ce that funds could be used more efficiently if management of an establishment

took actions to implement and co m p l e te the re co m m e n d at i o n , including (1) re d u ctions in

o u t l ays ;(2) de-obligations of funds from prog rams or ope rat i o n s ; (3) withdrawal of inte re s t

s u b s i dy costs on loans or loan guara nte e s, i n s u ra n ce, or bo n d s ; (4) costs not incurred 

by implementing re commended improve m e nts re l ated to the ope rations of the 

e s t a b l i s h m e nt, a co nt ra cto r, or gra nte e ; (5) avo i d a n ce of unnece s s a ry ex pe n d i t u res 

n o ted in pre - awa rd rev i e ws of co nt ra ct or gra nt agre e m e nt s ; or (6) any other savings 

which are spe c i f i cally ident i f i e d. “

For FY 2000,including Defense Contract Audit Agency (DCAA) audits performed

in agreement with OIGs or agencies, PCIE member agencies recommended that

approximately $15.4 billion be put to better use;ECIE member agencies recommended

that approximately $214.6 million be put to better use.

Management Decisions on OIG Recommendations That Funds Be Put To

Better Use (Tables II-P and II-E)

In FY 2000, PCIE member agency management agreed with approx i m ately $9.3 billion in 

re co m m e n d ations that funds be put to be t ter use; ECIE member agency management agre e d

with approx i m ately $210.3 million in re co m m e n d ations that funds be put to be t ter use.

Questioned Costs (Tables III-P and III-E)

The IG Act defines questioned costs as “a cost that is questioned by the Office because of 

(1) an alleged violation or provision of law, regulation, contract, grant, or cooperative

agreement, or other agreement or document governing the expenditure of funds;

(2) a finding that at the time of the audit,such cost is not supported by adequate

documentation;or (3) a finding that the expenditure of funds for the intended purpose is

unnecessary or unreasonable.“

During FY 2000,including DCAA audits performed in agreement with OIGs or agencies,

PCIE member agencies questioned costs of approximately $4.8 billion,while ECIE member

agencies tallied approximately $365.1 million in questioned costs.

Statistical Summaries of Accomplishments

21 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Management Decisions on Audits With Questioned Costs 

(Tables IV-P and IV-E)

For FY 2000,PCIE member agency management agreed with approximately $1.9 billion 

in questioned costs;ECIE member agency management agreed with approximately

$296.2 million in questioned costs.

Both funds to be t ter use and questioned costs can be re s o l ved without an actual monetary

recovery or reduction in outlays. In many cases, it will be possible for management to

take other corrective action to remedy or remove the condition that led to the auditor’s

finding. Consequently, the totals reported in these two categories will not represent a

monetary savings to the Treasury in like amount.

Successful Criminal Prosecutions (Table V)

A prosecution is considered successful when the person or entity charged is found guilty

or pled guilty in a court of law or was accepted for pre-trial diversion agreements by the

DOJ. PCIE and ECIE member agencies had 5,542 successful prosecutions in FY 2000.

Civil Actions (Table VI)

Civil actions are the total number of matters arising from OIG investigations, audits, and

reviews other than criminal prosecutions that are successfully resolved during the year.

They include civil judgments and settlements and administratively imposed penalties and

assessments. Personnel actions and suspensions/debarments are not reported as civil

actions. In FY 2000,PCIE and ECIE member agencies had 1,279 civil actions.

Suspensions/Debarments of Individuals/Entities Doing Business with the

Federal Government (Table VII)

This cate g o ry is the total number of debarm e nts and suspensions of co nt ra cto r s, g ra nte e s,

and other entities or individuals doing business with the gove rn m e nt . Th e re we re 6,996 individuals and entities suspended and debarred by PCIE and ECIE member agencies in FY 2000.

Personnel Actions (Table VIII)

Personnel actions are the total number of re p ri m a n d s,s u s pe n s i o n s,d e m o t i o n s, or te rm i n ations of fe d e ra l ,s t ate, and local (and fe d e ral co nt ra cto r / g ra ntee) employees as a result of IG

a ct i o n s. Du ring FY 2000, PCIE and ECIE member agencies initiated 1,361 personnel act i o n s.

Investigative Recoveries (Table IX)

Investigative recoveries are the total dollar value of (1) recoveries during the course of an

investigation (before any criminal or civil prosecution);(2) court (criminal or civil) ordered

fines, penalties, and restitution;and (3) out-of-court settlements, including administrative

actions resulting in non-court settlements. PCIE and ECIE member agencies tallied 

investigative recoveries totaling $3,279,272,066 in FY 2000.

22

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Collections from Audits and Investigations (Table X) 

Collections from audits and investigations are the total dollars collected/recovered during

the fiscal year that have been returned to the Treasury or the DOJ. In FY 2000,PCIE and

ECIE audits collected $634,976,853,while PCIE and ECIE investigations collected

$693,432,927.

Joint Investigations (Table XI)

This table lists the percent of investigations PCIE and ECIE member agencies conducted

with other OIGs. It also lists the percent of investigations conducted with other federal

investigative entities, not including OIGs.

23 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
24

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table I-P

PCIE - Recommendations That Funds Be Put To Better Use

Agency OIG DCAA* Totallllllll

AID (Agency for International Development) $202,437 $0 $202,437

CNS (Co rpo ration for National and Co m m u n i ty Se rv i ce ) $0 $0 $0

DOC (Department of Commerce) $2,107,989 $0 $2,107,989

DoD (Department of Defense) $931,100,000 $5,400,400,000 $6,331,500,000

DOE (Department of Energy) $639,270,206 Not Available $639,270,206

DOI (Department of the Interior)1 $262,804,804 $820,214 $263,625,018

DOJ (Department of Justice) $11,295,360 $0 $11,295,360

DOL (Department of Labor) $22,437,129 $0 $22,437,129

DOS (Department of State) $0 $0 $0

DOT (Department of Transportation) $1,509,000,000 $0 $1,509,000,000

ED (Department of Education) $4,600,000 $0 $4,600,000

EPA (Environmental Protection Agency) $0 $0 $0

FDIC (Federal Deposit Insurance Corporation) $3,000,329 $0 $3,000,329

FEMA (Federal Emergency Management Agency) $156,243,019 $232,014 $156,475,033

GSA (General Services Administration) $366,352,647 $0 $366,352,647

HHS (Department of Health & Human Services) $3,336,499,000 $0 $3,336,499,000

HUD (De p a rt m e nt of Housing & Urban Deve l o p m e nt ) $4,604,000 $0 $4,604,000

NASA (National Ae ronautics and Sp a ce Ad m i n i s t rat i o n ) $ 4 0 , 6 0 0 , 0 0 0 $ 1 1 4 , 3 6 8 , 0 0 0 $ 1 5 4 , 9 6 8 , 0 0 0

N RC (Nuclear Re g u l ato ry Co m m i s s i o n ) $ 0 $ 0 $ 0

OPM (Of f i ce of Personnel Ma n a g e m e nt ) $ 0 $ 0 $ 0

RRB (Ra i l road Re t i re m e nt Bo a rd ) $ 2 3 5 , 0 0 0 $ 0 $ 2 3 5 , 0 0 0

S BA (Small Business Ad m i n i s t rat i o n ) $ 1 0 , 9 8 2 , 6 2 2 $ 0 $ 1 0 , 9 8 2 , 6 2 2

SSA (Social Se c u ri ty Ad m i n i s t rat i o n ) $ 1 , 2 9 0 , 8 0 8 , 9 4 5 $ 0 $ 1 , 2 9 0 , 8 0 8 , 9 4 5

Treasury (Department of the Treasury)2 $51,211,000 $8,511,000 $59,772,000

T I G TA (Tre a s u ry IG for Tax Ad m i n i s t rat i o n ) $ 1 1 1 , 5 1 1 , 0 0 0 $ 0 $ 1 1 1 , 5 1 1 , 0 0 0

USDA (Department of Agriculture) $832,202,283 $96,596 $832,298,879

VA (Department of Veteran’s Affairs) $246,400,000 $43,000,000 $289,400,000

TOTA L S $ 9 , 8 3 3 , 4 6 7 , 7 7 0 $ 5 , 5 6 7 , 4 2 7 , 8 2 4 $ 1 5 , 4 0 0 , 8 9 5 , 5 9 4

1

Includes $8,283,343 for Indire ct Cost Pro posals negotiated by the DOI OIG.

2 Am o u nt includes revenue enhance m e nts of $8,802,440.

* DCAA - De fense Co nt ra ct Audit Ag e n cy pe rfo rms audits of gove rn m e nt co nt ra cts by agre e m e nt with the re s pe ct i ve OIGs or agencies.
25 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table I-E

ECIE - Recommendations That Funds Be Put To Better Use

Agency Total lfffll 

Amtrak $2,606,926

ARC (Appalachian Regional Commission) $1,867,000

CFTC (Commodity Futures Trading Commission) $0

CPB (Corporation for Public Broadcasting) $192,444

CPSC (Consumer Product Safety Commission) $0

EEOC (Equal Employment Opportunity Commission) $0

FCA (Farm Credit Administration) $223,485

FCC (Federal Communications Commission) $0

FEC (Federal Election Commission) $0

FHFB (Federal Housing Finance Board) $0

FLRA (Federal Labor Relations Authority) $0

FMC (Federal Maritime Commission) $84,000

FRB (Federal Reserve Board) $29,070

FTC (Federal Trade Commission) $7,031,000

GPO (Government Printing Office) $4,753,705

ITC (International Trade Commission) $3,836

LSC (Legal Services Corporation) $0

NARA (National Archives and Records Administration) $0

NCUA (National Credit Union Administration) $0

NEA (National Endowment for the Arts) $0

NEH (National Endowment for the Humanities) $0

NLRB (National Labor Relations Board) $0

NSF (National Science Foundation) $431,800

PBGC (Pension Benefit Guaranty Corporation) $0

PC (Peace Corps) $30,546

SEC (Securities and Exchange Commission) $0

SI (Smithsonian Institution) $217,093

TVA (Tennessee Valley Authority) $18,157,904

USPS (U.S. Postal Service) $179,047,317

TOTAL $214,676,126
26

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table II-P

PCIE - Management Decisions On Recommendations That Funds Be Put To Better Use

No Ma n a g e m e nt R e co m m e n d at i o n s R e co m m e n d at i o n s No Ma n a g e m e nt 

Decision St a rt R e co m m e n d ations Ag reed to by Not Ag reed to by Decision End 

Ag e n cy FY 2000 Issued in FY 2000 Ma n a g e m e nt Ma n a g e m e nt i i i i iFY 2000i i i i

AID1 $15,286,100 $202,437 $9,482,748 $6,005,789 $0

CNS $0 $0 $0 $0 $0

DOC $18,631,904 $2,107,989 $13,750,000 $6,831,904 $157,989

DoD 2 $8,229,700,000 $6,331,500,000 $2,795,600,000 $1,556,300,000 $10,209,300,000

DOE $406,094,160 $639,270,206 $412,601,136 $196,205,672 $436,557,558

DOI 3 $385,381,273 $263,625,018 $248,371,373 $3,822,492 $396,812,426

DOJ $4,136,748 $11,295,360 $14,821,611 $345,287 $265,210

DOL 4 $6,804,698 $22,437,129 $20,403,528 $850,821 $7,987,478

DOS 5 $1,447,000 $0 $0 $0 $1,447,000

DOT

6 $680,202,000 $1,509,000,000 $2,051,500,000 $0 $137,702,000

ED 7 $48,910,180 $4,600,000 $34,500,000 $8,600,000 $10,410,180

EPA $95,115 $0 $0 $95,115 $0

FDIC $0 $3,000,329 $3,000,329 $0 $0

FEMA $42,978,458 $156,475,033 $16,012,381 $7,485,481 $175,955,629

GSA 8,9 $18,246,522 $366,352,647 $113,291,702 $4,965,801 $277,281,369

HHS 10 $1,466,327,000 $3,336,499,000 $1,245,341,000 $3,194,378,000 $363,107,000

HUD $5,608,000 $4,604,000 $1,753,000 $0 $8,459,000

NASA 11 $616,741,000 $154,968,000 $243,549,600 $116,540,400 $411,619,000

NRC $0 $0 $0 $0 $0

OPM $0 $0 $0 $0 $0

RRB $0 $235,000 $235,000 $0 $0

SBA

12,13 $10,615,023 $10,982,622 $9,762,700 $10,969,126 $967,364

SSA $269,716,442 $1,290,808,945 $1,383,764,801 $99,695,976 $77,064,610

Treasury $60,072,000 $59,722,000 $77,318,000 $25,354,000 $17,122,000

TIGTA

14 Not Available $111,511,000 $54,025,000 $48,300,000 $9,186,000

USDA 15 $253,312,909 $832,298,879 $267,482,535 $13,623,804 $808,846,056

VA $116,200,000 $289,400,000 $297,400,000 $32,600,000 $75,600,000

TOTALS* $12,656,506,532 $15,400,895,594 $9,313,966,444 $5,332,969,668 $13,425,847,869

1

“Start FY 2000“ includes an increase of $1,236,562 from the end of FY 1999 due to adjustments in audit findings.

2 Reflects a variance of $2,944,200,000 between the end of FY 1999 and “Start FY 2000“ balances due to contracts not awarded 

and revised audit findings and recommendations.

3

“Start FY 2000“ was revised to include DCAA audits.

4

“Recommendations Issued“ and “Recommendations Agreed to“ include $9,896 in additional savings identified by the contracting officer.

5

“Start FY 2000“ differs from the end of FY 1999 due to the consolidation of USIA OIG into DOS OIG.

6

“Start FY 2000“ reflects a decrease of $30,000 from the end of FY 1999. This decrease consists of an adjustment to

“Recommendations Not Agreed to by Management,”which was increased by $30,000.

7

“Start FY 2000“ figure was decreased by $500,000 due to re-evaluation of an audit issued in the prior period.

8 No management decision for $19,322 from prior period adjustments and $10,920,381 returned to the resolution process.

9

“Start FY 2000“ differs from the end of FY 1999 because dollars were posted after year-end closing.

10 “Start FY 2000“ differs from the end of FY 1999 because of amendments.

11 “Start FY 2000“ differs from the end of FY 1999 due to updated DCAA data.

12 Management identified $101,545 in additional savings during audit resolution.

13 “Start FY 2000“ differs from the end of FY 1999 due to a $174,000 recommendation that was reopened.

14 TIGTA did not track this information prior to FY 2000.

15Reflects a variance of $4,340,607 between the beginning and ending balances due to the inclusion of excess amounts.

* The sums of the reported statistics do not add due to variances repor ted in the footnotes.
27 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on In tegrity and Efficiency

Table II-E

ECIE - Management Decisions On Recommendations That Funds Be Put To Better Use

No

No Ma n a g e m e nt R e co m m e n d at i o n s R e co m m e n d at i o n s Ma n a g e m e nt

Decision St a rt R e co m m e n d ations Ag reed to by Not Ag reed to by De c i s i o n

Ag e n cy FY 2000 Issued in FY 2000 Ma n a g e m e nt Ma n a g e m e nt End FY 2000

Amtrak $312,468 $2,606,926 $551,831 $2,367,563 $0

ARC $689,000 $1,867,000 $860,000 $1,398,000 $298,000

CFTC $0 $0 $0 $0 $0

CPB $70,000 $192,444 $192,444 $70,000 $0

CPSC $0 $0 $0 $0 $0

EEOC $0 $0 $0 $0 $0

FCA $0 $223,485 $110,437 $87,948 $25,100

FCC $0 $0 $0 $0 $0

FEC $0 $0 $0 $0 $0

FHFB 1 $10,000 $0 $0 $0 $10,000

FLRA $0 $0 $0 $0 $0

FMC $0 $84,000 $84,000 $0 $0

FRB $0 $29,070 $0 $0 $29,070

FTC $0 $7,031,000 $7,031,000 $0 $0

GPO $0 $4,753,705 $4,065,705 $0 $688,000

ITC $0 $3,836 $3,836 $0 $0

LSC $0 $0 $0 $0 $0

NARA $0 $0 $0 $0 $0

NCUA $0 $0 $0 $0 $0

NEA $0 $0 $0 $0 $0

NEH $0 $0 $0 $0 $0

NLRB $0 $0 $0 $0 $0

NSF 2 $4,795,890 $431,800 $3,599,575 $1,628,115 $0

PBGC $0 $0 $0 $0 $0

PC $0 $30,546 $30,546 $0 $0

SEC $0 $0 $0 $0 $0

Sl $0 $217,093 $77,078 $30,754 $109,261

TVA $789,010 $18,157,904 $18,007,780 $939,134 $0

USPS 3 $104,768,853 $179,047,317 $175,684,052 $0 $108,132,118

TOTALS $111,435,221 $214,676,126 $210,298,284 $6,521,514 $109,291,549

1 The “No Management Decision End FY 1999“ figure reported in the FY 1999 report was in error.

2

“Start FY 2000“ includes an increase of $300,000 in adjustments related to prior recommendations.

3 The “No Management Decision End FY 1999“ figure reported in the FY 1999 report was in error.
28

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table III-P

PCIE - Questioned Costs

Agency OIG DCAA* Totallllllll

AID $30,656,606 $56,138,984 $86,795,590

CNS $8,558,000 $0 $8,558,000

DOC $6,079,833 $0 $6,079,833

DoD $0 $1,625,200,000 $1,625,200,000

DOE $1,257,530 Not Available $1,257,530

DOI $16,170,735 $3,980,512 $20,151,247

DOJ $38,489,681 $0 $38,489,681

DOL 1 $68,676,953 $0 $68,676,953

DOS $2,828,000 $0 $2,828,000

DOT $1,144,000 $0 $1,144,000

ED $72,903,801 $0 $72,903,801

EPA

2 $51,931,968 $3,405,517 $55,337,485

FDIC $11,525,788 $0 $11,525,788

FEMA $43,980,133 $0 $43,980,133

GSA $16,300,132 $0 $16,300,132

HHS $387,139,000 $0 $387,139,000

HUD $56,621,000 $0 $56,621,000

NASA $0 $105,323,000 $105,323,000

NRC $0 $113,797 $113,797

OPM $150,746,734 $0 $150,746,734

RRB $0 $0 $0

SBA $8,313,768 $0 $8,313,768

SSA $76,991,654 $0 $76,991,654

Treasury $0 $1,191,000 $1,191,000

TIGTA $5,508,000 $116,000 $5,624,000

USDA $1,982,820,584 $84,615 $1,982,905,199

VA $7,700,000 $0 $7,700,000

TOTALS $3,046,343,900 $1,795,553,425 $4,841,897,325

1

Includes $23,244,292 of additional costs disallowed by the contracting officer during resolution of audit findings.

2

Includes $12,319,657 from investigative work that is not reported in Table IV-P because it was not captured in EPA’s audit tracking system.

* DCAA – Defense Contract Audit Agency performs audits of government contracts by agreement with the respective OIGs or agencies.
29 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table III-E

ECIE - Questioned Costs

Agency OIG DCAA* Total

Amtrak $10,375,412 $0 $10,375,412

ARC $155,000 $0 $155,000

CFTC $0 $0 $0

CPB $2,602,330 $0 $2,602,330

CPSC $0 $0 $0

EEOC $19,265 $0 $19,265

FCA $6,999 $0 $6,999

FCC $0 $0 $0

FEC $0 $0 $0

FHFB $0 $0 $0

FLRA $0 $0 $0

FMC $0 $0 $0

FRB $0 $0 $0

FTC $0 $0 $0

GPO $389,254 $0 $389,254

ITC $0 $0 $0

LSC $0 $0 $0

NARA $349,275 $0 $349,275

NCUA $0 $0 $0

NEA $309,174 $0 $309,174

NEH $0 $0 $0

NLRB $0 $0 $0

NSF $17,430,932 $0 $17,430,932

PBGC $0 $0 $0

PC $0 $0 $0

SEC $0 $0 $0

Sl $0 $0 $0

TVA $2,752,539 $0 $2,752,539

USPS $274,562,898 $56,152,245 $330,715,143

TOTALS $308,953,078 $56,152,245 $365,105,323

* DCAA – Defense Contract Audit Agency performs audits of government contracts by agreement with the respective

OIGs or agencies.
30

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table IV-P

PCIE - Management Decisions on Audits With Questioned Costs

No Ma n a g e m e nt R e co m m e n d at i o n s R e co m m e n d at i o n s No Ma n a g e m e nt 

Decision St a rt R e co m m e n d ations Ag reed to by Not Ag reed to by Decision End 

Ag e n cy FY 2000 Issued in FY 2000 Ma n a g e m e nt Ma n a g e m e nt FY 2000i i i

AID 1 $21,571,573 $86,795,590 $23,019,226 $25,748,588 $59,599,349

CNS $2,883,000 $8,558,000 $220,000 $813,000 $10,408,000

DOC 2 $2,038,460 $6,079,833 $1,764,278 $2,100,996 $4,675,622

DoD 3 $8,036,300,000 $1,625,200,000 $967,600,000 $596,800,000 $8,097,100,000

DOE $6,552,760 $1,257,530 $111,411 $47,132 $7,651,747

DOI 4 $196,791,823 $20,151,247 $26,018,684 $5,024,216 $185,900,170

DOJ $12,202,161 $38,489,681 $40,178,059 $303,017 $10,210,766

DOL 5 $86,379,431 $68,676,953 $94,052,962 $7,522,618 $53,480,804

DOS 6 $6,920,000 $2,828,000 $0 $47,000 $9,701,000

DOT

7 $5,629,000 $1,144,000 $6,775,000 $1,545,000 $427,000

ED 8 $171,102,885 $72,903,801 $87,360,066 $37,910,411 $118,736,209

EPA

9 $100,104,534 $43,017,828 $23,091,818 $19,065,155 $100,965,389

FDIC $0 $11,525,788 $10,760,501 $765,287 $0

FEMA $29,521,153 $43,980,133 $32,476,267 $5,123,923 $35,901,096

GSA 10,11 $3,836,492 $16,300,132 $13,553,055 $4,427,110 $2,802,975

HHS 12 $319,454,000 $387,139,000 $182,808,000 $10,121,000 $513,664,000

HUD $21,044,000 $56,621,000 $31,806,000 $2,144,000 $43,715,000

NASA 13 $266,040,020 $105,323,000 $67,071,350 $35,685,936 $268,605,734

NRC $0 $113,797 $113,797 $0 $0

OPM 14 $56,088,300 $150,746,734 $101,502,135 $39,659,329 $65,673,570

RRB $0 $0 $0 $0 $0

SBA $1,792,265 $8,313,768 $1,153,535 $4,269,738 $4,682,760

SSA 15 $79,423,650 $76,991,654 $75,211,576 $54,921 $81,148,807

Treasury $4,919,000 $1,191,000 $501,000 $1,577,000 $4,032,000

TIGTA

16 Not Available $5,624,000 $5,624,000 $0 $0

USDA 17,18 $246,748,747 $1,982,905,199 $91,801,160 $37,896,207 $2,101,833,748

VA $0 $7,700,000 $7,700,000 $0 $0

TOTALS* $9,677,343,254 $4,829,577,668 $1,892,273,880 $838,651,584 $11,780,915,746

1

“Start FY 2000“ figure includes a decrease of $302,758.

2

“Recommendations Agreed To“ includes $422,603 in questioned costs identified during the resolution process.

3

“Start FY 2000“ reflects an increase of $73,300,000 from the end of FY 1999 due to contracts not awarded and revised audit findings 

and recommendations.

4 Beginning balance was revised to include DCAA audits.

5

“Recommendations Issued“ and “Recommendations Agreed To“ include $23,244,292 of additional costs disallowed by the contracting 

officer during resolution of audit findings.

6 The “No Management Decision End FY 1999“ figure reported in the FY 1999 report was in error.

7

“Recommendations Agreed To“ includes $1,547,000 that management decided to seek above recommended amounts. Additionally,

there is $427,000 on which management has made no decision.

8

“Start FY 2000“ reflects adjusting entries of $2,648,518.

9

“Start FY 2000“ differs from the end of FY 1999 due to post-reporting period adjustments.

10 “Recommendations Agreed To“ includes $665,839 that management decided to seek above recommended amounts.

11 “Start FY 2000“ differs from the end of FY 1999 because dollars are posted after year-end closing.

12 “Start FY 2000“ differs from the end of FY 1999 due to amendments.

13 “Start FY 2000“ differs from the end of FY 1999 due to updated DCAA data.

14 “Recommendations Issued in FY 2000“ includes $6 million resulting from joint efforts of the OPM Office of Audits and Office of 

Investigations. This amount is reported in both the Management Decision on Audits and the Investigative Recoveries charts.

15 These totals reflect the value unsupported in addition to questioned costs.

16 TIGTA did not track this information prior to FY 2000.

17 “Start FY 2000“ includes an increase of $2,314 over the end of FY 1999 due to adjustments made after the semiannual period.

18 Reflects a variance of $1,877,169 between the beginning and ending balance because of the inclusion of excess amounts.

* The sums of the reported statistics do not add due to variances reported in the footnotes.
31 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table IV-E

ECIE - Management Decisions on Audits With Questioned Costs

No Ma n a g e m e nt R e co m m e n d at i o n s R e co m m e n d at i o n s No Ma n a g e m e nt

Decision St a rt R e co m m e n d ations Ag reed to by Not Ag reed to by Decision End 

Ag e n cy FY 2000 Issued in FY 2000 Ma n a g e m e nt Ma n a g e m e nt FY 2000i i i

Amtrak $3,897,447 $10,375,412 $9,015,950 $4,333,235 $923,674

ARC $77,000 $155,000 $0 $99,000 $133,000

CFTC $0 $0 $0 $0 $0

CPB $268,419 $2,602,330 $2,580,000 $180,780 $109,969

CPSC $0 $0 $0 $0 $0

EEOC $0 $19,265 $19,265 $0 $0

FCA $0 $6,999 $6,999 $0 $0

FCC $265,180 $0 $0 $0 $265,180

FEC $0 $0 $0 $0 $0

FHFB $0 $0 $0 $0 $0

FLRA $0 $0 $0 $0 $0

FMC $0 $0 $0 $0 $0

FRB $0 $0 $0 $0 $0

FTC $0 $0 $0 $0 $0

GPO $0 $389,254 $28,153 $0 $361,101

ITC $0 $0 $0 $0 $0

LSC $0 $0 $0 $0 $0

NARA $2,805 $349,275 $349,275 $2,805 $0

NCUA $0 $0 $0 $0 $0

NEA $0 $309,174 $0 $0 $309,174

NEH $0 $0 $0 $0 $0

NLRB $0 $0 $0 $0 $0

NSF $5,047,055 $17,430,932 $10,344,685 $6,132,766 $6,000,536

PBGC $0 $0 $0 $0 $0

PC $0 $0 $0 $0 $0

SEC $0 $0 $0 $0 $0

SI $0 $0 $0 $0 $0

TVA $1,134,902 $2,752,539 $1,198,363 $1,279,366 $1,409,712

USPS $24,446,816 $330,715,143 $272,612,804 $5,658,157 $76,890,998

TOTALS $35,139,624 $365,105,323 $296,155,494 $17,686,109 $86,403,344
32

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table V

PCIE and ECIE - Successful Criminal Prosecutions

PCIE ECIE

Agency Total Agency Total

AID 3 Amtrak 11

CNS 5 ARC 0

DOC 6 CFTC 0

DoD 339 CPSC NA

DOE 9 CPB 0

DOI 26 EEOC 0

DOJ 123 FCA 0

DOL 240 FCC 0

DOS 23 FEC 0

DOT 235 FHFB 0

ED 60 FLRA NA

EPA 26 FMC 0

FDIC 20 FRB 0

FEMA 38 FTC 0

GSA 32 GPO 2

HHS 414 ITC 0

HUD 200 LSC 0

NASA 37 NARA 0

NRC 4 NCUA 0

OPM 15 NEA 0

RRB 66 NEH 0

SBA 38 NLRB 0

SSA 1 2,604 NSF 3

Treasury 3 PBGC 2

TIGTA 231 PC 2

USDA 459 SEC 0

VA 247 Sl 1

TVA 14

USPS 2 4

SUBTOTAL 5,503 SUBTOTAL 39

TOTAL 5,542

NA = Not Applicable 

1

Includes 283 illegal alien apprehensions and 1,051 fugitive felon apprehensions.

2 During FY 2000,the USPS Inspection Se rv i ce had 9,393 successful prosecutions that are re po rted in the Postal Se rv i ce OIG’s semiannual 

re po rts to Co n g re s s. These prosecutions include mat ters where co n c u rre nt juri s d i ction ex i s te d, as well as mat ters for which the Inspe ction 

Se rv i ce has pri m a ry re s po n s i b i l i ty.
33 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table VI

PCIE and ECIE - Civil Actions

PCIE ECIE

Agency Total Agency Total

AID 9 Amtrak 2

CNS 6 ARC 0

DOC 1 CFTC 0

DoD 202 CPSC NA

DOE 9 CPB NA

DOI 15 EEOC 0

DOJ 4 FCA 0

DOL 24 FCC 0

DOS 0 FEC 0

DOT 49 FHFB 0

ED 74 FLRA 0

EPA 13 FMC 0

FDIC 3 FRB 0

FEMA 2 FTC 0

GSA 15 GPO 1

HHS 357 ITC 0

HUD 15 LSC 0

NASA 14 NARA 0

NRC 1 NCUA 0

OPM 42 NEA 0

RRB 45 NEH 1

SBA 4 NLRB 0

SSA 45 NSF 0

Treasury 0 PBGC 1

TIGTA NA PC 0

USDA 81 SEC 0

VA 235 SI 0

TVA 7

USPS 2

SUBTOTAL 1,265 SUBTOTAL 14

TOTAL 1,279

NA = Not Available/Not Applicable
34

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table VII

PCIE and ECIE - Suspensions/Debarments

PCIE ECIE

Agency Total Agency Total

AID 0 Amtrak 0

CNS 0 ARC 0

DOC 0 CFTC 0

DoD 218 CPSC 0

DOE 7 CPB NA

DOI 0 EEOC 0

DOJ 2 FCA 0

DOL 0 FCC 0

DOS 0 FEC 0

DOT 25 FHFB 0

ED 8 FLRA NA

EPA 19 FMC 0

FDIC 1 FRB 0

FEMA 16 FTC 0

GSA 87 GPO 14

HHS 3,350 ITC 0

HUD 207 LSC 0

NASA 49 NARA 0

NRC 0 NCUA 0

OPM 1 2,706 NEA 0

RRB 0 NEH 2

SBA 0 NLRB 0

SSA 0 NSF 2

Treasury 1 PBGC 0

TIGTA NA PC 0

USDA 241 SEC 0

VA 4 SI 0

TVA NA

USPS 37

SUBTOTAL 6,941 SUBTOTAL 55

TOTAL 6,996

NA = Not Available/Not Applicable

1 OPM debarments represent health care providers debarred from participating in the Federal Employees Health Benefits Program.

All of these providers were also debarred by the HHS OIG from participating in Medicare and Medicaid programs.
35 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table VIII

PCIE and ECIE - Personnel Actions

PCIE ECIE

Agency Total Agency Total

AID 21 Amtrak 35

CNS 6 ARC 0

DOC 19 CFTC 0

DoD 38 CPSC 0

DOE 8 CPB NA

DOI 30 EEOC 2

DOJ 46 FCA 0

DOL 7 FCC 3

DOS 14 FEC 0

DOT 58 FHFB 0

ED 11 FLRA 0

EPA 13 FMC 0

FDIC 4 FRB 9

FEMA 6 FTC 1

GSA 29 GPO 11

HHS 5 ITC 0

HUD 5 LSC 0

NASA 42 NARA 2

NRC 27 NCUA 0

OPM 6 NEA 0

RRB 1 NEH 1

SBA 4 NLRB 2

SSA 31 NSF 10

Treasury 18 PBGC 1

TIGTA 569 PC 16

USDA 70 SEC 6

VA 152 SI 8

TVA 14

USPS 0

SUBTOTAL 1,240 SUBTOTAL 121

TOTAL 1,361

NA = Not Applicable
36

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table IX

PCIE and ECIE - Investigative Recoveries

PCIE ECIE

Agency Total Agency Totallll

AID $37,641,939 Amtrak $367,774

CNS $308,939 ARC $0

DOC $106,812 CFTC $0

DoD $980,684,331 CPSC $0

DOE $40,018,711 CPB Not Applicable

DOI $284,116,225 EEOC $0

DOJ $2,334,871 FCA $0

DOL $105,600,000 FCC $0

DOS $403,383 FEC $0

DOT $70,409,933 FHFB $0

ED $29,536,157 FLRA $0

EPA $71,000,000 FMC $0

FDIC $26,790,906 FRB $0

FEMA $1,520,000 FTC $0

GSA $42,997,514 GPO $300,100

HHS $1,232,720,056 ITC $0

HUD $32,914,307 LSC $0

NASA $37,830,443 NARA $0

NRC $49,385 NCUA $0

OPM 1 $9,783,787 NEA $0

RRB $3,528,835 NEH $0

SBA $7,555,827 NLRB $0

SSA $30,037,959 NSF $1,517,005

Treasury $242,525 PBGC $71,678

TIGTA $12,886,000 PC $11,581

USDA 2 $172,868,140 SEC $0

VA $28,252,671 SI $5,490

TVA 3 $3,965,553

USPS $10,893,229

SUBTOTAL $3,262,139,656 SUBTOTAL $17,132,410

TOTAL $3,279,272,066

1 This includes $6 million resulting from joint efforts of the OPM Office of Audits and Office of Investigations. This amount is reported 

in both the Management Decisions on Audits and the Investigative Recoveries charts.

2 Reflects adjustments made after the semiannual period.

3 Reflects adjustments made after the semiannual period.
37 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table X

PCIE and ECIE - Collections From Audits and Investigations*

From From From From 

P C I E Au d i t s I nve s t i g at i o n s E C I E Au d i t s I nve s t i g at i o n s

AID $6,507,668 $37,495,800 Amtrak $0 $0

CNS $0 $26,983 ARC $0 $0

DOC Not Available Not Available CFTC $0 $0

DoD Not Available Not Available CPSC $0 $0

DOE Not Available $39,303,214 CPB $0 Not Applicable

DOI Not Available Not Available EEOC $0 $0

DOJ $24,438,682 $806,525 FCA $0 $0

DOL $77,400,000 Not Available FCC $0 $0

DOS Not Available Not Available FEC $0 $0

DOT $0 $4,112,670 FHFB $0 $0

ED $59,033,994 $999,205 FLRA $615 $0

EPA Not Available Not Available FMC $0 $0

FDIC $0 Not Available FRB $0 $0

FEMA $36,986,228 $4,600,000 FTC $0 $0

GSA Not Available Not Available GPO $0 $300,000

HHS $228,515,000 $529,951,175 ITC $0 $0

HUD $8,373,576 $3,020,767 LSC $0 $0

NASA $0 $34,444,562 NARA $0 $0

NRC $0 $49,385 NCUA $0 $0

OPM $132,199,000 Not Available NEA $0 $0

RRB $0 $1,038,134 NEH $0 $0

SBA $2,090,000 Not Available NLRB $0 $0

SSA $4,174 $2,232,424 NSF $120,027 $0

Treasury $42,580,307 $225,042 PBGC $0 $0

TIGTA Not Available $255,000 PC $0 $0

USDA $16,727,582 $14,665,041 SEC $0 $0

VA $0 $17,084,408 Sl $0 $0

TVA $0 $2,822,592

USPS Not Available Not Available

S U BTOTA L $ 6 3 4 , 8 5 6 , 2 1 1 $690,310,335 SUBTOTAL$120,642 $3,122,592

TOTAL Au d i t TOTAL I nve s t i g ation 

P C I E / E C I E $ 6 3 4 , 9 7 6 , 8 5 3 P C I E / E C I E $ 6 9 3 , 4 3 2 , 9 2 7

* The funds reported in this table are only those funds that have been returned to the Treasury or the DOJ.
38

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency

Table XI

PCIE and ECIE - Joint Investigations*

Pe rce ntage of Pe rce ntage of 

I nve s t i g at i o n s I nve s t i g at i o n

Pe rce ntage of co n d u cted with Pe rce ntage of co n d u cted with 

I nve s t i g ations other Fe d e ral I nve s t i g ations other Fe d e ral 

co n d u cte d I nve s t i g at i ve Of f i ce s co n d u cte d I nve s t i g at i ve Of f i ce s

P C I E with other OIGs not including OIGs E C I E with other OIGs not including OIGs

AID 0% 2% Amtrak 5% 10%

CNS 2% 2% ARC 0% 0%

DOC 1% 2% CFTC 0% 0%

DoD 19% 36% CPSC 0% 0%

DOE 10% 22% CPB 0% 0%

DOI 4% 13% EEOC 0% 13%

DOJ 0% 24% FCA 0% 0%

DOL 6% 42% FCC 0% 4%

DOS 0% 32% FEC 0% 0%

DOT 6% 28% FHFB 0% 0%

ED 17% 48% FLRA 0% 0%

EPA 7% 2% FMC 0% 0%

FDIC 1% 21% FRB 0% 0%

FEMA 5% 20% FTC 0% 0%

GSA 17% 18% GPO 5% 0%

HHS Not Available Not Available ITC 0% 0%

HUD Not Available 60% LSC 0% 0%

NASA 25% 34% NARA 0% 0%

NRC 8% 2% NCUA 0% 0%

OPM 55% 40% NEA 0% 0%

RRB 2% 5% NEH 0% 0%

SBA 3% 12% NLRB 8% 0%

SSA Not Available 3% NSF 15% 7%

Treasury 1% 1% PBGC 0% 0%

TIGTA Not Available Not Available PC 0% 0%

USDA 1% 12% SEC 0% 3%

VA 12% 28% Sl 5% 5%

TVA 3% 2%

USPS 7% 17%

* In some cases,the above statistics may reflect the participation of a state, local,or foreign entity in an investigation,

or limitations in data that do not permit a precise application of the column criteria stated above.
OIGs gove rn m e ntwide provide a valuable serv i ce by co n d u cting audits, i nve s t i g at i o n s, a n d

i n s pe ct i o n s. Th e re are many exce l l e nt examples of the cri t i cal wo rk pe rfo rmed by OIGs.

This co m pendium includes only a small sample of wo rk co m p l e ted during this re po rt i n g

pe ri od. The many acco m p l i s h m e nts of the OIGs are too numerous to include in this re po rt .

A re p re s e nt at i ve sample was selected for inclusion. These examples focus on issues that

re f l e ct curre nt pri o rities of the fe d e ral gove rn m e nt or inte rests of the general public.

The examples of OIG audits, inspections, and investigations presented in this section are

grouped into the following seven categories:

◆ Top Management Challenges 

◆ High Profile or Sensitive OIG Matters

◆ Consulting or Advising Agency Management in the Handling of Programs 

◆ Detecting and Deterring Fraud, Waste, and Abuse

◆ Information Technology Issues

◆ GPRA Activities

◆ Grants Management

Top Management Challenges

OIGs across gove rn m e nt re po rt a re m a rkably co n s i s te nt series of top management 

challenges co n f ro nting their agencies: i n fo rm ation te c h n o l ogy re s o u rce s, d ata inte g ri ty and

s e c u ri ty, financial management,G P RA acco u nt a b i l i ty, p roc u re m e nt and gra nts management,

and human capital and staffing. Du ring the past ye a r, OIGs have paid special at te ntion to

these and other agency - s pecific pri o ri ty areas when co n d u cting audits, eva l u at i o n s, a n d

i nve s t i g ations of agency prog ra m s.

DOC OIG Reviews Decennial Census Operations

Be cause of the size, co m p l ex i ty, and significa n ce of the 2000 De cennial Ce n s u s, the DOC OIG

made ove r s i g ht of decennial planning and execution one of its top pri o ri t i e s. Du ring FY 2000,

the OIG co m p l e ted ten audits and inspe ctions of va rious aspe cts of decennial ope rat i o n s.

Some of these rev i e ws cove red major decennial ope rations such as the cri t i cally impo rt a nt

Ma s ter Ad d ress Fi l e, the address list used to suppo rt decennial ope rat i o n s ;the Te l e p h o n e

Qu e s t i o n n a i re As s i s t a n ce prog ra m , which enabled re s po n d e nts to call to l l - f ree to ask 

questions or co m p l e te their Census fo rm over the te l e p h o n e ; and special po p u l ation 

e n u m e rat i o n s, which at te m p ted to co u nt people who live in non-traditional housing or have

no usual re s i d e n ce. Other rev i e ws examined log i s t i cal activities suppo rting the dece n n i a l ,

such as the leasing effo rt needed to establish a netwo rk of more than 1,000 te m po ra ry field

A Compendium of OIG Activities in FY 2000

39 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
offices and the warehousing activities that provided the myriad of forms and supplies

needed for various decennial operations. Still other reviews looked at how well the

Bureau of the Census (Bureau) handled the personnel and payroll operations for 860,000

temporary workers.

In all of these reports, the OIG made recommendations designed to ensure that the 

2000 Decennial Census achieved the highest possible accuracy at the lowest possible

cost. And, in virtually every instance,the Bureau took immediate, decisive action to

address OIG concerns. (DOC)

EPA OIG Questions Quality of Laboratory Data

The quality of some scientific analyses generated by the EPA and contract laboratories is

questionable and should not be used to support environmental decisions,the EPA OIG

found. The EPA relies on the testing data provided by contract laboratories to assess

threats to public health and the environment and to determine where and when remedial

action is needed. OIG reviews disclosed weaknesses and fraud in laboratory management

practices resulting in data quality and integrity problems that impact environmental and

enforcement decisions in several EPA program areas including: Superfund, Resource

Co n s e rvation and Re cove ry Act, National Po l l u t a nt Di s c h a rge El i m i n ation Sys te m , air tox i c s,

and pesticides. For example, the OIG’s investigative work at one EPA contract laboratory

resulted in the indictment of a vice president and 12 former employees on charges of

conspiracy,mail fraud, wire fraud, and presenting false claims against the United States.

As a result of the OIG’s work at another contract laboratory, key employees were convicted

for falsely certifying that gas chromatograph/mass spectrometer analyses on samples

t a ken from hazardous wa s te sites nationwide complied with all EPA co nt ra ct re q u i re m e nt s.

The OIG re commended va rious actions for improving management, a c co u nt a b i l i ty, and

oversight of the laboratory, including independent technical reviews. The EPA responded

by deploying technical review teams around the country. (EPA)

Impact of the Global Economy on Tax Administration

The acceleration of world trade and e-commerce in the business world exceeds the 

government’s capacity to administer taxes. The GAO and the TIGTA have previously

reported serious internal control and systemic weaknesses in the IRS’s administration of

its international programs. The IRS continues to struggle to increase compliance in an

ever-growing international economy. Significant improvements are needed in international compliance programs to focus on non-filing, transfers of assets by U.S. citizens to

foreign trusts, foreign tax credit claims, and foreign-sourced income.

The IRS has undertaken several international tax administration and compliance programs

to address the TIGTA’s concerns in the areas of transfer pricing, tax credits, foreign trusts,

non-filers, and foreign-sourced income reporting issues. The TIGTA has two reviews in 

process that evaluate compliance by foreign investment partners and taxpayers receiving

foreign-sourced income. (TIGTA)

40

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
DOE Needs to Develop Infrastructure Restoration Plan

The DOE,t h rough its Stoc kpile Ste wa rdship Prog ra m , is re s ponsible for ensuring the safe ty,

s e c u ri ty, and re l i a b i l i ty of the nat i o n’s nuclear we a pons stoc kp i l e. In 1998, the DOE co n c l u d e d

t h at aging and dete ri o rating we a pons prod u ction facilities had cre ated a $422 million 

m a i nte n a n ce and repair backl og. In light of this situat i o n ,the DOE OIG co n d u cted an 

audit to determine whether the DOE had maintained the nuclear weapons production

infrastructure to meet curre nt and future goals of the Stoc kpile Ste wa rdship Pl a n . The audit

disclosed that d e s p i te data suggesting that curre nt military re q u i re m e nts we re being met,

the dete ri o rat i o n of the infra s t ru ct u re re s u l ted in delays in we a pons mod i f i cat i o n ,re m a n uf a ct u re, d i s m a nt l e m e nt, and surve i l l a n ce testing of nuclear we a pons co m po n e nt s. The audit

also dete rmined t h at curre nt and future goals of the Stoc kpile Ste wa rdship Prog ram we re at

ri s k . DOE officials within the National Nuclear Se c u ri ty Ad m i n i s t ration (NNSA) estimated that

the DOE must invest $5 billion to $8 billion more than curre nt budgeted amounts over the

n ext ten years to offset the effe cts of delayed or neglected infra s t ru ct u re.

The OIG re commended that the administrator of the NNSA develop an ove rall infra s t ru ct u re

re s to ration plan based on individual site plans and curre nt and planned stoc kpile wo rkl o a d

re q u i re m e nt s. The administrator co n c u rred with the OIG re co m m e n d ations and adv i s e d

t h at Phase II of the NNSA’s Facilities and Infra s t ru ct u re Initiat i ve study, n ow underway, wo u l d

a d d ress each of the OIG’s re co m m e n d at i o n s. ( D O E )

DOI OIG Identifies Royalty Underpayments on Oil, Coal,and Gas Leases

The DOI OIG and the DOJ have re cove red more than $330 million since 1998 in an ongoing

effort to recover underpaid royalties on gas, crude oil,and coal extracted from federal and

Indian lands. Recently, Shell Oil Company agreed to pay $56 million to resolve claims

under the False Claims Act that it underpaid royalties owed on natural gas produced from

August 1986 to De ce m ber 1999. In other settlement s, BP Am oco agreed to pay $32 million;

Pennzoil Company - $11.9 million;Sunoco, Inc. - $200,000; Union Pacific Resources

Company - $2.7 million; Texaco - $43 million; Chevron-USA,Inc. - $95 million;and Conoco

I n c. - $26 million, for their sys te m atic underre po rting of the value of oil that they ext ra cte d

from federal and Indian lands. (DOI)

GSA OIG Cites Operational Breakdowns in Contract Guard Program

As part of the ongoing review of the GSA’s efforts to improve the safety and security of

federal employees and buildings, the OIG performed an analysis of the GSA’s Contract

Security Guard Program. The GSA has experienced a significant increase in the need for

security guards at federal facilities,with the number of guards more than doubling to

about 7,000 nationwide since 1995. The GSA contracts with private security firms to meet

its need for both armed and unarmed guards. Before a prospective employee can be

assigned under a GSA contract,the individual must undergo a limited criminal history

background check and pass a written examination.

41

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The OIG report found that an absence of programmatic controls and oversight has led to

operational breakdowns and questionable practices at the regional level. The report

noted, among other things, that:

◆ Hundreds of guards were on post without valid suitability determinations.

◆ There is a high failure rate occurring under the new National Contract Guard

Examination implemented in May 1999.

◆ Guards lacked the training necessary to perform their duties.

◆ Armed guards were on post without valid firearm qualifications.

◆ Contract enforcement and oversight were not consistent. (GSA)

FDIC OIG Maximizes Returns From Failed Institutions

The OIG helps ensure that the FDIC’s inte rests in securi t i z ations are adequately pro te cte d.

When the Resolution Trust Co rpo ration reached its sunset on De ce m ber 31, 1 9 9 5 ,the FDIC

i n h e ri ted a total of 72 securi t i z ation tra n s a ctions with an initial credit re s e rve balance of 

$7.8 billion. As of July 25, 2 0 0 0 ,the FDIC re po rted a remaining inve nto ry of 33 act i ve 

s e c u ri t i z ations with a credit re s e rve balance of approx i m ately $1.8 billion. Over the last ye a r,

the OIG co m p l e ted ten audits that focused on the effe ct i veness of securi t i z ation serv i ce r s.

Co l l e ct i ve l y, these audits re s u l ted in questioned costs of approx i m ately $7.1 million, l a rg e l y

due to unsuppo rted or unallowable ex penses on the serv i ce r s’p a rt . ( F D I C )

DOS OIG Reviews Overseas Security Challenges

The most significant security challenge for the DOS is protection of the United States’

global and diplomatic infrastructure and the protection of overseas employees. An OIG

review found that none of the 42 embassies evaluated met all of the DOS’s physical 

security standards. The lack of a 30-meter setback was the most prevalent deficiency. The

OIG found that addressing adequate setback and other security deficiencies will require a

major, long-term construction effort. The DOS is correcting those items that it can fix

quickly,such as improving the local guard service and upgrading the lighting and alarms

at its chanceries. The OIG concluded personnel everywhere are now better protected

than before the August 1998 bombings of the two embassies in Africa. However, the OIG

review found that a program of sustained capital investment will be essential to ensure

the safety of the diplomatic infrastructure in the future. (DOS)

USDA OIG Undertakes Food Safety Initiative

The USDA OIG initiated a series of audits to determine whether the USDA’s Food Safety

and Inspection Service’s (FSIS) meat and poultry inspection program remains effective

under the science-based Hazard Analysis and Critical Control Point (HACCP) System. The

OIG reviewed HACCP, laboratory analyses, foreign imports, and the compliance program

that carried over from the previous system. The FSIS has taken positive steps, but more

needs to be done in all four areas reviewed. The FSIS needs to take maximum advantage

of the expanding role science now plays as a control over the meat, poultry, and egg 

42

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
products that enter the marketplace. Moreover,the FSIS has reduced its oversight short of

what is prudent and necessary for the protection of the consumer.

The OIG found that the FSIS allowed establishments to limit or re d u ce the number of cri t i ca l

co nt rol po i nts identified in their HACCP plans and there by limit gove rn m e nt ove r s i g ht . Al s o,

the FSIS database did not list all establishments subject to tests for pat h ogens and re s i d u e s.

Fu rt h e r, the FSIS did not list all firms subject to co m p l i a n ce rev i e ws and did not always targ e t

rev i e ws at major metro politan and geog raphic areas or at firms that could be re g a rded as

high risk. In addition,the FSIS approved equivalency status to foreign countries without 

a d e q u ate proce d u res or doc u m e nt at i o n . The OIG made seve ral re co m m e n d ations to co rre ct

the cited shortcomings and ensure the inte nt of the HACCP prog ram is met. ( U S D A )

USPS OIG Reviews Electronic Commerce Effects on First-Class Mail

Electronic commerce presents opportunities for the USPS to enhance customer service,

increase operational efficiencies,streamline business processes, and provide avenues for

new revenue. At the same time, electronic commerce threatens first-class mail volumes.

The USPS OIG has conducted a number of reviews in the electronic commerce area.

Most recently,the OIG reviewed the USPS’s online bill presentment and payment service,

eBillPay, to determine if it met privacy and security requirements before bringing the 

system online. The OIG’s review disclosed that the USPS needs to adjust its policies and

procedures on electronic commerce partnerships and alliances and better address 

computer network security and privacy issues. (USPS)

High Profile or Sensitive OIG Matters

Th roughout FY 2000, the OIG co m m u n i ty co n f ro nted difficult issues of national impo rt a n ce,

ranging from the murder of gove rn m e nt officials to a serious breach of safe ty at a nuclear

f a c i l i ty. Not limited by subject mat ter juri s d i ct i o n ,OIGs must re s o l ve a broad and 

ever-changing spe ct rum of problems and crisis situat i o n s. The fo l l owing cases re p re s e nt a

small po rtion of the high profile mat ters addressed by OIGs during the re po rting pe ri od.

USDA OIG Un covers Wi d e s p read Public Co rruption at New Yo rk’s 

H u nts Po i nt Ma rke t

Pursuant to a USDA OIG public corruption investigation in New York City, nine USDA

Agricultural Marketing Service (AMS) employees responsible for grading the quality of

f ruit and vegetables pled guilty to charges of bri be ry. In addition, 15 owners or employe e s

of produce wholesalers located at the Hunts Point Market in the Bronx,the largest fruit

and vegetable distribution center in the United States, were indicted on bribery charges.

Eight have pled guilty.

During the 21⁄2-year investigation,the OIG uncovered a scheme by which the AMS graders

accepted bribes from wholesalers to downgrade produce. The wholesalers then used the

lower grades to negotiate downward the price they paid growers for the produce. The

scheme, detailed in a 65-count racketeering and bribery indictment, took place over two

decades and was so pervasive that some of the AMS graders took more than $100,000 a

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year in illegal payo f fs. Seven of the AMS graders we re sente n ced to impri s o n m e nt ra n g i n g

from 15 to 30 months and ordered to pay fines of $4,000 to $70,000. Three owners or

employees of produce wholesalers received sentences ranging from 6 months’home 

confinement to 15 months in prison and ordered to pay a total of more than $45,000 in

fines and restitution. (USDA)

Doctor Pleads Guilty to Murder of Veterans

For seven years, VA OIG agents and healthcare inspectors, in conjunction with the 

U.S. Attorney’s Office and the FBI, worked to prosecute a doctor for the murder of several

U . S . ve te ra n s. On Se p te m ber 7, 2 0 0 0 ,the doctor pled guilty to the murder of three ve te ra n s

in his care at the VA Medical Center (VAMC) in Northport, New York. He was sentenced to

three consecutive life terms without the possibility of parole for the VAMC murders.

The doctor stated in court that, in July 1993,he killed a veteran patient in his care by

intentionally a d m i n i s te ring a lethal injection of epinephri n e ; in Se p te m ber 1993, he 

i nte ntionally injected a lethal dose of a toxic substance into another ve te ran pat i e nt ; and 

in Octo ber 1993, he inte ntionally injected a third ve te ran pat i e nt with a lethal dose of 

s u c c i ny l c h o l i n e. The doctor also pled guilty to fraud charg e s, admitting that, be tween 

1990 and 1997, he engaged in a scheme to fra u d u l e ntly obtain employ m e nt as a phys i c i a n

at hospitals in the Un i ted St ates and abroad by submitting fra u d u l e nt ce rt i f i cation doc um e nt s. He further admitted in co u rt that, in 1984, he poisoned a 19-year-old pat i e nt at a

u n i ve r s i ty hospital by injecting her with a toxic substance and that he assaulted other

p at i e nts under his ca re at a fo reign hospital by injecting them with a toxic substance. (VA )

Illinois Teamsters Pension Trustee Pleads Guilty to Receiving Kickbacks 

Pursuant to a joint investigation conducted by the DOL OIG,the FBI,the DOL Pension and

Welfare Benefits Administration,and the U.S. Attorney’s Offices for the Northern District

of Illinois and the District of Massachusetts, a trustee for the funds of International

Brotherhood of Teamsters (IBT) Locals 710 and 701 in Chicago, Illinois, pled guilty on 

June 2, 2 0 0 0 ,to charges of re ceiving ki c kb a c k s,m o n ey launderi n g, and aiding and abe t t i n g.

The trustee accepted $1 million in payoffs through a money laundering operation 

conducted in the Cayman Islands, Great Britain,and the Isle of Man between 1994 and

1997. In exchange for the money, the trustee and a now-deceased associate (a former

Local 710 official) used their positions as trustees to select investment advisors who

would orchestrate pension fund trades to benefit East West Institutional Services (EWIS),

a brokerage firm in Harper Woods, Michigan. Also indicted with the trustee in April 2000

we re two EWIS owners on charges of re ceiving ki c kbacks and ra c ke te e ri n g. The inve s t i g at i o n

alleged that Shawmut Investment Advisors, Inc.,a Boston-based investment firm holding a

$600 million account with Local 710’s pension plan,gave one of the owners kickbacks for

assisting the company in securing the Teamster account. (DOL)

FEMA OIG Examines Costs for Structures Damaged by Hurricane Floyd

At the request of the Subcommittee on VA,HUD and Independent Agencies of the Senate

Committee on Appropriations, the FEMA OIG conducted a review of the $265 million

home buyout program enacted in the aftermath of Hurricane Floyd. The OIG focused on

the process used to identify buyout structures, the method used to estimate the total cost

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of the buyout, consideration of insurance and other sources of disaster assistance, the 

process developed for allocating appropriated funds, and whether decisions made to

buyout structures were supported by benefit-cost analyses. In June 2000,the OIG 

presented a report to the Subcommittee outlining the following flaws in the program 

and cost savings totaling approximately $135 million:

◆ The process used to identify stru ct u res eligible for buyout was not defined, ca u s i n g

s t ates to submit stru ct u res outside the sco pe of the appro p ri ation eligibility cri te ri a .

◆ Cost estimates used for stru ct u res in the buyout included “additional“ costs 

for demolition; d e b ris and slab re m ova l ;“s o ft“ administrat i ve, d u m p i n g, a n d

a s be s tos analysis and abate m e nt co s t s ; and inflated estimates of Fair Ma rket Va l u e

for stru ct u re s.

◆ Insurance, SBA loans, and other sources of disaster assistance that may duplicate

buyout costs were not considered in determining funding requirements. (FEMA)

NRC OIG Investigates Accident at Indian Point Nuclear Plant

The NRC OIG conducted an Event Inquiry (EI) to address concerns raised by the public and

the Congress as a result of an incident at the Indian Point Unit 2 Power Plant (IP2) in

Bu c h a n a n ,New Yo rk ,on Fe b ru a ry 15, 2 0 0 0 . In that incident, I P 2 , a pre s s u ri zed water nuclear

reactor plant, experienced a steam generator tube rupture in one of its four steam 

g e n e rato r s. Du ring this inquiry, the OIG dete rmined that the NRC and the nuclear industry

had long-standing concerns about a variety of degradation mechanisms that compromise

the integrity of the steam generator tubes used in pressurized water reactors. Particular

attention focused on the degradation problems unique to steam generators such as those

in use at IP2. Because of this degradation,all plants with this model replaced their steam

generators except IP2. The OIG concluded that, had the NRC staff or contractors with

technical expertise evaluated a 1997 inspection report of the steam generator conducted

by IP2,the NRC could have identified the flaw in the steam generator that resulted in the

tube rupture on February 15,2000. This flaw was recently determined to have been nearly

100 percent through the tube wall in 1997.

During the EI,the OIG also found that the NRC considered IP2 to be a plant that struggled

with various challenges in the area of emergency preparedness. The OIG learned that

recurring weaknesses that had gone uncorrected appeared to play a role in the poor

emergency response performance of IP2 during the February 15,2000,incident. The OIG

also found that communication between off-site emergency preparedness officials and

the NRC was non-existent. (NRC)

DOJ OIG Examines INS’s Use of IDENT Fingerprint System

A March 2000 DOJ OIG report examined the manner in which the Immigration and

Naturalization Service (INS) handled encounters with Rafael Resendez-Ramirez

(Resendez),a Mexican national accused of committing several murders in the United

States. Resendez became known as the “railway killer“ because he allegedly traveled the

United States by freight train and committed murders near railroad lines.

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In early 1999, Texas police issued a warrant for Resendez in connection with a brutal 

murder in Houston. As part of their search for Resendez,local and state police contacted

INS officials in Houston. However,the OIG found that none of the INS employees who

were contacted by law enforcement agents had placed a lookout for Resendez in IDENT,

the automated fingerprint identification system used by Border Patrol and other INS

employees to identify and track recidivist and criminal aliens. Consequently, when INS

agents apprehended Resendez as he attempted to illegally cross the border, nothing

alerted them to the fact that Resendez was wanted or had an extensive criminal record.

After his release by the INS, Resendez committed at least four more murders in the United

States before surrendering on July 13,1999.

The DOJ OIG concluded that the problems in the Resendez case were indicative of, and

partly caused by, larger failings in the INS’s design and implementation of IDENT. The final

report made 25 recommendations to address the systemic problems found during the

review, including recommendations to improve IDENT training and to integrate IDENT

with the FBI’s Integrated Automated Fingerprint Identification System. (DOJ)

DOT OIG Finds That Stronger Controls Are Needed To Ensure Airport Security

The DOT IG testified before the Congress that the Federal Aviation Administration (FAA),

airport operators, and air carriers had not controlled unauthorized access to secure airport

areas and aircraft. For example, at eight major airports,OIG staff successfully accessed

secure areas in 68 percent of the tests. Once secure areas were entered, aircraft were

bo a rded 117 times. The majori ty of airc ra ft bo a rdings would not have oc c u rred if employe e s

had taken the prescribed steps,such as making sure doors closed behind them. As a

result of the OIG’s tests and other security tests,the FAA required airports to take action 

to correct specific problems,such as posting security guards at doors to ensure only

a u t h o ri zed individuals access secure are a s. The FAA also plans to issue re g u l ations maki n g

individuals accountable for noncompliance with access control requirements. This will

permit the FAA to take enforcement action against an employee, instead of the air carrier

or airport, when the employee does not follow access control requirements. (DOT)

FRB OIG Reviews Critical Infrastructure

During 2000,the FRB OIG completed Phase I of the review of the FRB’s implementation of

PDD 63. The OIG conducted this review as part of a multi-phase, governmentwide effort

organized by the PCIE and the ECIE. The Phase I review objective was to evaluate the 

F R B’s planning and assessment activities for pro te cting cri t i ca l , cy ber-based infra s t ru ct u re s.

Subsequent review phases will focus on planning and assessment activities for physical

infrastructures, and on implementation activities for cyber-based and physical 

infrastructure assets.

The FRB OIG found that, ove ra l l ,the FRB has taken numerous steps to improve info rm at i o n

security that will help to meet many of the PDD 63 requirements. The OIG also found that

steps have been taken to implement protection efforts across the Federal Reserve System

and to issue information security guidance to regulated financial institutions. Significant

work remains, however, for the FRB to complete the planning and assessment activities

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associated with the presidential directive. The OIG’s Phase I review report provided three

recommendations designed to help the FRB complete this effort and to help ensure that

the directive’s requirements are adequately fulfilled within the Federal Reserve System

and the banking industry. Management generally agreed with FRB OIG recommendations

and identified actions that have been or will be taken. (FRB)

Consulting or Advising Agency Management

in the Handling of Programs

Du ring the past ye a r, the IG co m m u n i ty co ntinued to assist agency managers by co n d u ct i n g

hundreds of audits, evaluations, and investigations of federal programs and activities.

Through this work,OIGs effectively promote financial management accountability and

help ensure the integrity of federal programs. Examples of OIGs’ consulting and advising

role are described below.

VA OIG Audits Costs of Veterans’ Prescriptions 

An audit by the VA OIG found that the Veterans Health Administration (VHA) needs to

increase the pharmacy co-payment levels for priority group 7 veterans who currently

pay $2 for each 30-day supply of prescription drugs filled. The OIG found that a 

$10 co-payment level will allow the VHA to increase its annual pharmacy co-payment

collections VA-wide from $75 million in FY 1999 to more than $567 million in FY 2001.

This will provide the opportunity to recover a greater proportion of the average direct

cost of each prescription,which the OIG estimated to be approximately $20 per fill.

The audit also found that the VHA needs to streamline its current process of filling 

prescriptions written by enrolled veterans’ private physicians. Veterans with Medicare

eligibility and/or private insurance coverage who choose to be treated by private, non-VA

health care providers must frequently submit to duplicate exams, tests, and procedures by

the VHA in order to receive their prescriptions. As a result,VA medical centers expend

scarce resources to perform duplicate exams, tests, and procedures. The costs of 

re-examining veterans in order to fill the privately written prescriptions totaled as much

as $879 million VHA-wide in FY 1999. For FY 2001,the OIG estimates that the VHA-wide

costs for re-examining these veterans will increase to $1.3 billion. (VA)

SSA OIG Assesses the Use of Biometric Technologies to Combat Fraud

The SSA OIG assessed whether biometric technologies could benefit the SSA. Biometrics,

the science of measuring unique physical characteristics,such as fingerprints, for purposes

of identification,is used to combat fraud and identify ineligible recipients for state social

service programs. As of December 1998,11 states were using or had plans to adopt 

biometric technologies in their social service programs. The OIG reviewed 500 out of

12,615 Aid to Families with Dependent Children cases that were terminated for failure to

cooperate with New York State’s finger-imaging requirement from October 1995 to July

1997. Of the 500 cases, 488 had a social security number and name that agreed with SSA’s

system of record. Of the 488 cases, the OIG found 64 (13 percent) were also receiving

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Social Security benefits. Based on these facts, the OIG estimated that, as of January 1998,

about $45 million in benefits were paid to approximately 1,615 individuals within the

population of 12,615,and an additional $16.3 million in benefits will be paid to individuals

within this po p u l ation be tween Fe b ru a ry 1998 and Fe b ru a ry 2001. The OIG re co m m e n d e d

that the SSA: (1) pursue a matching agreement with New York so that the Agency can use

the results of the state’s biometric technologies, and (2) initiate pilot reviews to assess the

co s t - e f f i c i e n cy of matching data with other states that use biometrics in their social serv i ce

programs. In response to the recommendations,the SSA agreed to conduct a pilot

matching agreement with New York and consider expanding the program to other 

states if the New York pilot proves beneficial. (SSA)

DoD OIG Conducts Survey on Homosexual Conduct Policy

The Secretary of Defense asked the DoD OIG to assess the environment at representative

military installations with respect to the homosexual conduct policy that has been in

place since 1993 and is commonly referred to as the “Don’t Ask, Don’t Tell“ policy. In their

largest evaluation effort of FY 2000,OIG staff randomly surveyed service members from

38 installations wo rl dw i d e. At each locat i o n ,the OIG surveyed act i ve duty serv i ce membe r s

from randomly selected units and active duty service members assigned to selected Navy

ships and submarines, collecting 71,570 usable surveys.

The OIG reported that 80 percent of the respondents stated they had heard offensive

speech,derogatory names, jokes, or remarks about homosexuals in the last 12 months.

Eighty-five percent believed such comments were tolerated to some extent. Thirty-seven

percent of the service members responded that they had witnessed or experienced an

event or behavior toward a service member that they considered to be harassment based

on perceived homosexuality. About 78 percent of the respondents indicated they would

feel free to report harassment of perceived homosexuals. Overall,97 percent of the

respondents believed they had at least some understanding of the military’s homosexual

conduct policy, but approximately 57 percent stated they had not received training on the

policy. Finally,50 percent of the respondents stated the policy was moderately or very

effective at preventing or reducing harassment, 46 percent stated it was slightly or not

effective, and 4 percent did not provide a response. (DoD)

DOJ OIG Inspects Illegal Activity Along the Northern Border

The DOJ OIG examined the amount of illegal activity that occurs along the U.S.-Canadian

border,the allocation of Border Patrol resources to the northern border, and how the U.S.

Border Patrol collects, assesses, and responds to information about illegal activity. The OIG

found that, be tween FYs 1993 and 1998, the Bo rder Pat rol apprehended 81,285 depo rt a b l e

individuals, including 5,704 smuggled aliens, along the northern border. Although the

total number of incidents is low, the OIG found that, proportionately,northern border 

sectors are encountering organized criminal activity more often than Border Patrol sectors

along the southwest border. The OIG also found that the level of illegal activity along the

northern border is likely much greater than the Border Patrol can document given the

general lack of intelligence information relating to the northern border and the limited

number of agents available to patrol the area.

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The OIG re commended that the INS Commissioner dire ct the Bo rder Pat rol to outline the

a p p roach it will take to secure the nort h e rn bo rder and supply inte rim re po rts to the OIG.

The OIG also recommended that the INS Commissioner evaluate whether there is a 

continuing need to detail Bo rder Pat rol agents out of nort h e rn secto r s. INS management

concurred with the OIG’s findings and recommendations and proposed corrective actions.

(DOJ)

GPO OIG Reviews EEO Complaint Processing

During FY 2000,the GPO OIG continued to review the processing of formal Equal

Employment Opportunity (EEO) complaints by the GPO’s Office of Equal Employment

Opportunity’s Counseling and Complaints Processing Division (CCPD). In response to a

request from the Deputy Public Printer,the OIG audited the EEO Office and found that the

CCPD was not fulfilling its mission with respect to the processing of formal complaints. Of

51 open ca s e s, the OIG found that the CCPD had exceeded the 180-day limit for proce s s i n g

formal complaints in every case. The range of delinquency for processing individual EEO

cases was 235 days to 2,289 days, with 3 cases more than 2,000 days old, and an additional

17 cases more than 1,000 days old. The OIG also found that the CCPD was not timely in

assigning formal complaints to contract investigators or in monitoring the completion of

investigations, and was not always verifying the accuracy of invoices submitted by the

contract investigators.

An OIG follow-up found that management had implemented or was implementing most

of the OIG recommendations and that EEO complaints processing had significantly

improved since the OIG audits. Of the 51 formal complaints pending at various stages in

the complaints process at the time of the OIG’s follow-up audit report, 31 had been

resolved. An additional 20 of the complaints had been processed by the GPO and were

pending hearings. Moreover, efforts to improve timeliness resulted in 58 percent of new

formal complaints being handled within the prescribed time limits. (GPO)

FTC Needs Better Management of Cash Balances

As part of its audit of the FTC’s FY 1999 financial statements, the OIG reviewed cash 

balances held by the agency’s three redress contractors and by the FTC in a Treasury

suspense account. The OIG found that the longer the delay in providing redress, the fewer

the number of consumers who ultimately receive any redress. As of September 30,1999,

the agency’s three redress contractors were holding $29.9 million in funds on FTC cases –

a 63 percent increase in funds held by contractors compared to the previous year.

Similarly,the OIG found a 23 percent increase (from $4.3 million to $5.3 million) in funds

held in the Treasury’s suspense account during the same period.

Based on an aging analysis of these cash accounts and discussions with case managers,

the OIG found that these funds were unnecessarily sitting in accounts instead of flowing

to either consumers or the Treasury. The OIG found that staff attrition,new case demands,

receiver control of assets, and delays in defendant payments contributed to these delays.

The OIG identified $6.5 million that could have been turned over to consumers or deposited in the Treasury General Fund more quickly had more aggressive management oversight of these cases occurred. The OIG recommended that the agency centralize the

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authority to monitor and set deadlines for staff to dispose of redress funds. In addition,

the OIG recommended that reasons for redress distribution delay should be documented

and routinely reported to senior agency management. (FTC)

PC OIG Reco m m e n d ations Improve Sa fe ty for Vo l u nteers in Papua New Gu i n e a

The PC OIG undertook an extensive review of safety and security in Papua New Guinea

(PNG) where 56 volunteers were serving. While the OIG review confirmed that the nature

of crime in PNG posed co n ce rn for vo l u nte e r s, the team found that co ntinued prog ra m m i n g

was possible if the PC implemented changes such as vigilant monitoring of the crime in

PNG, restrictions on where volunteers were placed, continuity of staff to ensure effective

support, and the implementation of a system to report safety and security incidents. (PC)

DOC Needs to Improve Its Handling of Interagency Agreements

The DOC relies heavily on inte ra g e n cy and other special agre e m e nts to pe rfo rm its mission.

In FY 1997, for example, the DOC had more than 4,700 agreements involving more than

$1 billion in funds received for reimbursable activities or obligated to acquire goods or

services from other parties. Although such agreements involve significant federal

resources,they are not subject to the same administrative controls as procurement

contracts, grants, or cooperative agreements.

Du ring FY 2000, the OIG issued the last in a series of re po rts on the handling of inte ra g e n cy

and other special agre e m e nts at ten DOC ope rating units. In addition to identifying co m m o n

p roblems that units have had with such agre e m e nt s, the re po rt highlighted best pra ct i ce s.

The OIG, while noting that most agre e m e nts appe a red to serve impo rt a nt and appro p ri ate

functions, emphasized the importance of maintaining diligent oversight to prevent

potential problems. Among the problems identified were bureaus using agreements

when contracts or financial assistance awards would have been more appropriate,

inadequate tracking and control of agreements, and failure to account for or recover the

full costs incurred under agreements. The DOC agreed with the OIG recommendations

and began immediate corrective actions. (DOC)

Review of FRB Publications Sets the Stage for Change

The FRB’s publications prog ram suppo rts its mission by making info rm ation about the FRB

accessible to the federal government, regulated entities, legal and business communities,

libraries and research entities,economists and other scholars, consumers, and the public.

A Publications Committee composed of senior officials from several FRB divisions and

offices oversees the program. Drawing on a mutual interest to review this area,the 

committee chairperson and the FRB OIG initiated a collaborative project to identify 

o p po rtunities to streamline proce s s i n g, p ro m o te efficient ope rat i o n s, i m p rove pe rfo rm a n ce,

implement best practices, and optimize the use of technology. The FRB OIG issued a 

two-part report to the Committee that presented an overall assessment of the program,

outlined actions for Committee consideration,and provided detailed supporting data and

analyses. The Committee’s response to the OIG’s findings has been positive, and the OIG is

working with Committee members as they implement the recommendations. (FRB)

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OIG Advises PBGC Management on Program Efficiency

At the request of two congressional committees, the PBGC OIG followed up on a previous

multi-year review on how long it takes the PBGC to issue initial determination letters

(IDLs) to participants. An IDL informs a pension plan participant who is to receive a 

payment from the PBGC about the conditions of benefit entitlement. The OIG conducted

follow-on evaluation work to review IDLs issued in FYs 1994-1999.

The OIG found that the PBGC had significa ntly improved its timeliness in issuing IDLs. In a

p revious re po rt, the OIG found that only 39 pe rce nt of the IDLs we re issued within one ye a r

of the act u a rial va l u ation completion date. Du ring FY 1999, the OIG noted that approx im ately 86 pe rce nt of IDLs we re issued within one ye a r. Howeve r, the OIG review also fo u n d

t h at the PBGC co ntinues to issue approx i m ately half of the IDLs more than seven ye a r s

a fter the date of tru s teeship (DOT R ) . In FY 1998, 51.9 pe rce nt of IDLs we re issued more

than seven years after the DOT R , co m p a red to 49.1 pe rce nt in FY 1999. ( P B G C )

OIG Assists in CFTC’s Systems Modernization Efforts

The OIG has been an essential part of the CFTC’s effort to modernize the systems 

supporting its largest division,the Division of Enforcement. Enforcement is a critical 

program activity for the CFTC,accounting in FY 2000 for more than 30 percent of its total

budget and 28 percent of its staff.

Working with the CFTC’s Division of Enforcement, the OIG is helping to define the

Division’s information needs and identify hardware and software to meet those needs.

The first priority in this collaboration was to develop a system to track documents in the

Division. The second phase was devoted to installing a system to track production within

the Division and to report this information to management. Phase three will concentrate

on automating information from attorneys and investigators to improve sharing of 

information within the Division and to better track productivity. (CFTC)

FHFB OIG Assists Management in Implementing Financial Integrity Act

The FHFB OIG continues to work closely with the FHFB to ensure compliance with the

Federal Managers’ Financial Integrity Act (FMFIA). Given that the management officials

responsible for FMFIA implementation at the FHFB frequently change,the OIG helps 

management assess programs’ vulnerabilities and the adequacy of internal controls.

As a result of this continued coordination,managers have an opportunity to correct

vulnerabilities and weaknesses before the OIG’s annual financial review. (FHFB)

SEC OIG Reviews Securities Investor Protection Corporation

The Securities Investor Protection Act of 1970 (the Act) created the Securities Investor

Protection Corporation (SIPC) to protect customers from losses resulting from brokerdealer failure, thereby promoting investor confidence in the securities markets. The SIPC

protects customers whose securities were misappropriated, never purchased, or stolen.

The OIG eva l u ated the efficiency and effe ct i veness of the SEC’s ove r s i g ht of the SIPC and

whether its ove r s i g ht was in co m p l i a n ce with the Act . Ove ra l l ,the OIG found that the SEC’s

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ove r s i g ht was generally efficient and in co m p l i a n ce with the Act . The OIG also found that

the Division of Ma rket Re g u l ation had a co n s t ru ct i ve wo rking re l ationship with SIPC staff

and that SIPC tru s tees and officials we re generally co m p l i m e nt a ry of the SEC’s ove r s i g ht

e f fo rt s. The OIG made seve ral re co m m e n d at i o n s, including that the SEC delegate authori ty

to its Of f i ce of Ge n e ral Counsel to enter appe a ra n ces in SIPC cases on a 1-year pilot basis

and that the SEC enhance its inte rnal co m m u n i cations re g a rding the SIPC. ( S E C )

SI OIG Helps Develop Risk Management System

The OIG spearheaded the SI’s effort to develop an SI-wide risk management system. Early

in his administration,the Secretary expressed his intention to develop a risk management

system and asked the OIG to head the effort. In response to this request,the OIG met

with the Secretary, Under Secretaries, and other senior officials to identify and categorize

the top risks to the SI. The OIG summarized a preliminary listing of high-risk areas and

provided it to management for further refinement and implementation. (SI)

Detecting and Deterring Fraud, Waste, and Abuse

Departments and agencies throughout the government look to the IGs for guidance

in deterring waste, fraud, and abuse. OIGs regularly conduct audits, inspections, and 

i nve s t i g ations both to co rre ct immediate deficiencies and to identify sys temic we a kn e s s e s.

Often,OIGs use this knowledge to draft policy reform recommendations intended to help

departments and agencies improve specific and overall operations.

USPS OIG Investigation Leads to Indictment for Bribery and Fraud

A joint investigation by the USPS OIG,the Postal Inspection Service, and the IRS disclosed

that two former USPS managers devised a scheme to defraud the USPS of several million

dollars. The USPS employees, a married couple, allegedly conspired with the owner of two

co m p u ter companies to submit fra u d u l e nt invo i ces to the USPS for co m p u ters and supplies

not received. While under investigation,the couple fled from the United States to

Venezuela. Venezuelan authorities apprehended them in Caracas where they had been

traveling under false Venezuelan identification documents. The Venezuelan government

immediately deported them to the United States, and they were arrested in Miami,

Florida. The couple had laundered almost a half million dollars through banks in

Venezuela and the Bahamas. The couple was indicted on bribery and fraud charges.

As of September 30,2000,the OIG had recovered more than $496,000 in cash. (USPS)

USCS Internal Affairs Senior Executive Service Official Indicted for Perjury

Treasury OIG agents investigated allegations that a U.S. Customs Service (USCS) Internal

Affairs (IA) Senior Exe c u t i ve Se rv i ce (SES) official obstru cted an IA inve s t i g ation by adv i s i n g

the target (a personal friend of the IA official assigned as a USCS special agent in San Di e g o,

California) that she was under investigation,which subsequently caused her to alter her

criminal activities. Additionally, the SES official allegedly violated USCS policy by failing to

recuse himself from the supervision of a case in which he had a personal interest and by

continuing to have contact with the target of an IA case. Further, the SES official allegedly

made false statements to USCS officials and to the Merit Systems Protection Board in a

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deposition about his relationship with the target of the IA case. The target was convicted

and sentenced for her criminal activities in 1999. On June 16,2000,the SES official was

arrested by OIG agents at the U.S. District Courthouse, Greenbelt, Maryland, pursuant to a

grand jury indictment in the Southern District of California on perjury and false statement

charges. (Treasury)

SBA OIG Investigates Former District Director

Investigations of two Los Angeles-area loan brokerages resulted in criminal charges being

filed against seven individuals, with four pleading guilty and two being sentenced during

FY 2000. Among those charged in FY 2000 was a former SBA district director (DD) who

l ater headed the SBA division of a bank and was invo l ved with dozens of loans re p re s e nte d

by the two brokerages. According to his plea agreement, in the early 1990s he improperly

accepted a $24,000 automobile from one broker. Also, in his official capacity,the former

DD received money both directly and indirectly from proceeds of a $1 million SBAguaranteed loan made to the brokerage to purchase a gas station. The former DD failed

to disclose that he owned 50 percent of the business or that he would receive at least

$65,000 of the loan proceeds for his personal use. He received approximately $2 million 

in incentive bonuses and commissions from the bank’s secondary market sales of SBAguaranteed loans plus a base salary that eventually reached $250,000. During the former

DD’s years at the bank, at least 17 borrowers seeking SBA-guaranteed loans submitted

fraudulent documents, including falsified “copies“ of tax returns. (SBA)

USDA OIG’s Operation Talon Arrests Continue to Climb

O pe ration Talon was designed and implemented by the USDA OIG to locate and appre h e n d

fugitives by matching law enforcement agencies’ felony fugitive files with state social 

services agencies’ food stamp recipient files. During FY 2000,Operation Talon resulted in

2,350 arrests of fugitive felons during joint OIG,state, and local law enforcement operations throughout the country. Serious crimes perpetrated by those arrested included

murder, attempted murder,manslaughter,sex offenses, kidnapping/abduction,assault,

robbery, and drug/narcotics violations. Operation Talon’s outstanding success was 

recognized when the OIG won the Hammer Award for making government work better

and achieving results Americans care about. (USDA)

OPM OIG Investigation Confirms Laboratory Billing Scheme

The OPM OIG co ntinued its inve s t i g at i ve wo rk in the area of labo rato ry billing fra u d. In one

ca s e, a national co rpo ration with headquarters in Bo s to n ,Ma s s a c h u s e t t s, had engaged in

“unbundling“ labo rato ry tests for ki d n ey dialysis pat i e nt s. Unbundling occurs when, i n s te a d

of charging for a group of tests custo m a rily pe rfo rmed at the same time under one billing

cod e, the labo rato ry delibe rately uses a separate billing code for each test to increase pro f i t s.

The OIG conducted an extensive computerized review of payments to the corporation by

Federal Employees Health Benefits Program (FEHBP) health plans and found that tests for

ki d n ey dialysis had been unbundled. Fo l l owing negotiations with the DOJ, the co rpo rat i o n

agreed to a settlement of approximately $385 million to cover the financial losses to the

FEHBP, Medicare, the VA,DoD’s TRICARE program,and various states. (OPM) 

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President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Task Forces Investigate Social Security Number Misuse and Identity Theft

The SSA OIG Philadelphia Field Division conducted an investigation as part of a multiagency task fo rce focusing on two individuals who used the Inte rnet to obtain and adopt

the names and social securi ty numbers of more than 100 high-ra n king U.S. m i l i t a ry officials.

The subjects used the info rm ation to fra u d u l e ntly obtain credit ca rds that they applied fo r

t h rough the Inte rn e t . The individuals we re co nv i cted and ord e red to pay restitution of more

than $287,000 to the companies vict i m i zed by the scheme. ( S S A )

Investigation Results in $120 Million Suit Against AID Grantee

On September 26,2000,the U.S. Attorney for the District of Massachusetts filed a 

$120 million civil fraud lawsuit against a major AID grantee organization and two of the

organization’s employees and their spouses. The suit was the culmination of a 3-year AID

OIG investigation that began with allegations that the grantee’s employees and their

spouses were engaged in personal financial activities that conflicted with the employees’

contractual obligations under AID-sponsored cooperative agreements.

Th rough a wide array of inve s t i g at i ve techniques and audit suppo rt, the OIG uncove re d

n u m e rous personal financial dealings and business inve s t m e nts in Russia by the individuals

named in the co m p l a i nt while these individuals we re being paid for their wo rk on the 

AID pro j e ct . Examples of the alleged co n f l i cts of inte rest included the trading of Ru s s i a n

g ove rn m e nt debt, i nve s t m e nts in pri vat i zed Russian equities, c re ation of a Russian re a l

e s t ate management co m p a ny, and financial inte rest in a pri vate business that is a part of

the Russian financial marke t . This financial market was re g u l ated by the same Russian 

g ove rn m e nt ent i ty to which the individuals we re providing adv i ce under the AID pro j e ct .

( A I D )

GSA OIG Helps Resolve Breach of White House Telephone Security

In cooperation with a multi-agency task force, the GSA OIG successfully resolved a case in

which two individuals fraudulently accessed the White House Communications Agency

(WHCA) Private Branch Exchange (PBX) telephone system. Both individuals pled guilty to

related charges. One individual,a U.S. Army sergeant assigned to the WHCA,supplied

another individual with access numbers to the WHCA PBX. These numbers allowed that

individual to access and make telephone calls from the WHCA system. (GSA)

EPA Contractor Enters Settlement Worth $24 Million

Kaiser Group International,Inc. entered into a settlement with the U.S. Attorney’s Office

under which the government will realize $24 million in contract savings. The agreement

settled a federal False Claims Act case that involved the EPA and 17 other federal departments and agencies and was the culmination of a lengthy investigation initiated following

an audit. The investigation disclosed that Kaiser may have billed government contracts 

for computer center costs in excess of costs actually incurred. In addition,the EPA OIG

questioned costs relating to the allocability, allowability, and reasonableness of Kaiser’s

direct and indirect costs dating back to February 1985. Under the terms of the settlement,

the gove rn m e nt’s po te ntial co nt ra ct savings could reach $390.1 million pending ve ri f i cat i o n

of unbilled obligated fund balances by the 17 other fe d e ral depart m e nts and agencies. In

settling the final rates, the EPA to date will realize $23.2 million in contract savings due to

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Kaiser’s agreement to relinquish all rights in potential claims in the form of retainages, rate

variances, costs, profits, and fees accrued or otherwise owed in connection with services

provided under a schedule of government contracts from March 1985 through December

1999. Additionally, Kaiser agreed to forgo more than $800,000 in repudiated claims

against two Navy contracts. This investigation was conducted jointly by the EPA and the

NRC OIGs. (EPA)

Investigation into the Maritime Industry Reveals Widespread Corruption

A 4-year undercover investigation into the maritime industry identified widespread 

corruption in the repair and maintenance of ships in the DoD Military Sealift Command

(MSC) fleet and the DOT Maritime Administration fleet. Allegations focused on one of 

the largest private ship management companies in the United States, which held a 

$200 million contract with MSC for maintenance and repair of eight Navy ships. This

multi-agency investigation,which included the DoD OIG,led to more than 55 indictments

against 39 companies and individuals, including government employees and high-level

contractor personnel. Violations involved the Anti-Kickback Act,money laundering, fraud,

bribery, and antitrust. Several subjects have been convicted and sentenced to jail time

and ordered to pay fines and restitution totaling more than $3.2 million. Other results

include suspensions, debarments, and a $3.6 million civil settlement. (DoD) 

HHS OIG Achieves Success in Health Care Cases and Prevention Efforts

During FY 2000,the HHS OIG conducted or participated in more than 586 investigations

involving all aspects of the health care industry. One example of the OIG’s success in this

a rea included a global settlement with the wo rl d’s largest provider of ki d n ey dialysis prod u ct s

and services for $486 million, at that time the largest amount ever recovered by the

United States in a health care fraud investigation. In another case, the nation’s largest

operator of nursing homes agreed to pay the government $175 million and also entered

into one of the most comprehensive corporate integrity agreements established to date

with the OIG. (HHS)

Investigation Leads to Conviction for Sexual Abuse in Prisons

In the Western District of Texas, a former federal Bureau of Prisons (BOP) correctional

counselor was arrested and convicted in a jury trial of sexually abusing female inmates

while he was employed at the Federal Transfer Center in Oklahoma City. A DOJ OIG 

investigation led to an 11-count indictment alleging that on numerous occasions the 

correctional counselor engaged in sexual abuse,sexual abuse of a ward, and abusive

sexual contact with multiple female inmates. He was convicted on all counts and was 

sentenced to more than 12 years’ incarceration. This case represents one of the first 

felony convictions against a BOP correctional counselor for abusive sexual contact

with an inmate. (DOJ)

Foreign Service Officer Arrested for Bribery

A joint undercover inve s t i g ation by the DOS OIG and the DOS’s Bu reau of Di p l o m atic Se c u ri ty

re s u l ted in the arrests of a Fo reign Se rv i ce officer and a fo reign national for selling visas at a

U . S . e m b a s s y. Th ree fo reign nationals employed by the embassy who we re invo l ved in the

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visa sale scheme we re te rm i n ated from employ m e nt . Ag e nts seized more than $1.8 million

in ca s h ,gold bars,and other assets re p re s e nting the proceeds of the visa sales. ( D O S )

Government Purchase Cards Used to Buy Personal Goods and Services

An NSF OIG inve s t i g ation revealed that an agency employee used gove rn m e nt purc h a s e

ca rds to buy more than $10,000 in personal goods and serv i ce s, including spo rts equipment,

m e m berships to Inte rnet site s, and the serv i ces of a law firm . The employee was te rm i n ate d

from government service and charged with one count of conversion of government

property. In July 2000,the employee pled guilty, was sentenced to three years’ probation,

and was ordered to make full restitution to the NSF.

S u b s e q u e nt l y, the dire cto rate where the employee wo rked re q u e s ted an audit of its use of

p u rchase ca rd s. The OIG found seve ral ty pes of tra n s a ctions pro h i b i ted by fe d e ral re g u l at i o n s

and NSF inte rnal proce d u re s. The dire cto rate agreed with the OIG’s re co m m e n d ations fo r

i m p roving doc u m e nt at i o n ,rev i e w, and securi ty proce d u re s. The OIG also re commended 

pe ri odic inte rnal rev i e ws of approving officials and ca rdholders to test for co m p l i a n ce with

re g u l ations and proce d u re s, as well as the re i n s t ate m e nt of annual training for all ca rd h o l d e r s

a bout their duties and re s po n s i b i l i t i e s. ( N S F )

EEOC OIG Investigates Misuse of Credit Card and Theft of Settlement Check

The EEOC OIG investigated allegations that an EEOC field office investigator falsified her

application for employment,misused the government SmartPay VISA card, and stole a 

settlement agreement and check. During the course of the investigation,the OIG 

determined that the employee submitted fraudulent academic information,as well as 

falsified the Affidavit of Appointee by failing to indicate prior felony theft convictions.

The OIG established that the employee used the gove rn m e nt credit ca rd to obtain ATM ca s h

a dva n ces totaling in excess of $4,000, without pro per authori z at i o n . The inve s t i g ation also

concluded that the employee at te m p ted to cash the stolen settlement check. In addition,

the OIG’s inve s t i g ation revealed that the employee was wa nted on an outstanding fugitive

wa rra nt . The employee was arre s ted and later resigned from fe d e ral serv i ce. ( E E O C )

Computer Hackers Charged

The NASA OIG continued to devote considerable resources to detecting and prosecuting

computer crimes. Examples of successful prosecutions in this area include the following:

◆ A 16-year-old hacker was sentenced to six months in a detention facility for 

co m p u ter hacki n g. He admitted to illegally accessing a total of 13 NASA co m p u te r s

and downloading proprietary software valued at approximately $1.7 million.

This case marks the first time a juvenile computer hacker has been sentenced 

to incarceration.

◆ A hacker was sentenced to six months home detention and ordered to pay

$10,744 in restitution for hacking into NASA Jet Propulsion Laboratory systems.

◆ A 15-year-old hacker was arre s ted in New Yo rk for hacking into three NASA 

co m p u te r s. The youth defaced web pages and alte red sys te m s.

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◆ A hacker pled guilty to illegally accessing a NASA computer and installing a 

“sniffer“ program to capture login names and passwords. (NASA)

HUD OIG Investigates Bribery

Pursuant to a joint investigation involving the HUD OIG,the FBI,and the IRS Criminal

Investigation Division,a former Single Family Housing specialist at the HUD Santa Ana,

California,Homeownership Center, pled guilty to one count of accepting a bribe and two

counts of tax evasion. The specialist sold 82 HUD properties to various individuals that

were valued by HUD at approximately $9.1 million. She sold the properties for a total of

$2 million, resulting in a loss to HUD of more than $7 million. She sold 20 of these homes

to a real estate agent for approximately $700,000 even though these properties were

appraised at $2.1 million. The real estate agent resold the properties for $2.2 million. The

specialist received more than $80,000 in bribe payments and a BMW 325 convertible from

the real estate agent. The specialist was sentenced to two years’ incarceration and three

years’supervised release, and ordered to pay $1.4 million in restitution to HUD. Forty-six

of the 82 properties have also been seized. (HUD)

DOI OIG Investigation Unravels Money Laundering Scheme

The DOI OIG inve s t i g ated allegations that seve ral individuals stole approx i m ately $2.6 million

f rom the Oglala Lakota College (OLC ) , an Oglala Sioux Tri be college located in Ky l e, So u t h

Da ko t a . The inve s t i g ation re s u l ted in the co nv i ctions of 6 individuals on 128 criminal co u nt s,

including co n s p i ra cy, e m bez z l e m e nt,t h e ft,m o n ey launderi n g, and asset fo rfe i t u re. Th e

scheme invo l ved the theft of checks belonging to the OLC fo l l owed by an elabo rate scheme

to cre ate eight fictitious co m p a n i e s. The co n s p i rators opened bank acco u nts in the fict i t i o u s

co m p a n i e s’ names and used the acco u nts to launder the embezzled OLC funds for the 

personal benefit of the co n s p i rato r s. Du ring this pe ri od,the Bu reau of Indian Affairs prov i d e d

the OLC approx i m ately $12 million in funding. Among the defe n d a nts we re two fo rmer vice

p re s i d e nts for Business Affairs at OLC and seve ral local businessmen. ( D O I )

ED Files Complaint for Forfeiture in rem and Recovers More Than $1.6 Million

Based on the work of the ED OIG and the FBI,and at ED’s request, a federal complaint

for forfeiture in rem was filed in U.S. District Court. The complaint outlined evidence

developed in an investigation into $1.9 million of Impact Aid funds fraudulently wired

from the Federal Reserve to improper bank accounts. These funds were intended for 

two school districts in South Dakota. The court entered a judgment of forfeiture of all 

the assets covered by the complaint – eight assets related to a money-laundering and

wire-fraud scheme, including a total of $1,657,980,a 2000 Lincoln Navigator, a 2000

Cadillac Escalade, and a piece of real estate in Maryland that was purchased with the

diverted funds.

In September 2000,the DOJ Asset Forfeiture and Money Laundering Section granted ED’s

Petition for Remission and ED received $1,657,980,which was placed in the Impact Aid

account for distribution to appropriate grantees. The remaining assets were sold, and ED

received additional funds from the sales. The OIG is conducting a vigorous investigation

of this diversion of funds. (ED)

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Railroad Officials Plead Guilty to Employment Tax Fraud

After receiving a complaint from a railroad worker,the RRB OIG conducted a joint investigation with the IRS Criminal Investigation Division concerning a Utah-based railroad

owner who was not reporting service and compensation information to the RRB. The

owner and the chief operating officer were also responsible for failing to pay approximately $500,000 in employment taxes. This scheme denied benefits to more than 100 rail

workers during their work careers and potentially impacted their eligibility for retirement

benefits under the Railroad Retirement Act.

As a result of this inve s t i g at i o n , the owner and chief ope rating officer we re indicted on

c h a rges of co n s p i ra cy and violations of the Inte rnal Revenue Cod e. Du ring this re po rt i n g

pe ri od, both individuals pled guilty and the owner also ente red a guilty plea on behalf of

the co rpo rat i o n . The ra i l road owner was sente n ced to two ye a r s’p ro b ation and was fined

$ 4 0 , 0 0 0 . The owner also paid restitution in the amount of $540,000 and fines, pe n a l t i e s,

and inte rest totaling $250,000 on behalf of the co rpo rat i o n . The previous vice pre s i d e nt

was sente n ced to four mont h s’ i n ca rce rat i o n , four mont h s’ home dete nt i o n , and one year of

s u pe rv i s i o n . He was also ord e red to pay a $10,000 fine and a $150 special assessment .

( R R B )

TVA OIG Detects Fraudulent Product Substitution

TVA OIG audit and investigative efforts revealed that a Tennessee coal corporation 

fraudulently supplied the TVA with a blend of coal and petroleum coke, or petcoke, which

was prohibited by contract. (Petcoke is similar in appearance to coal but contains a higher

sulfur content, among other differences.) As a result of the OIG’s findings, the corporation

pled guilty to one count of mail fraud and one count of major fraud against the United

States. Additionally, the corporation’s owner pled guilty to theft. Under a plea agreement,

the corporation agreed to pay the TVA the estimated amount of the profit it made from

using petcoke in coal shipments to the TVA. A federal judge ordered the company,

through its owner, to pay $40,000 in restitution to the TVA and placed the company on

probation for five years. The owner was placed on three years’probation and ordered to

pay $657 in restitution to the TVA. (TVA)

Grantee Employee Embezzles Funds

The CNS OIG completed an investigation after receiving a hotline call reporting an 

embezzlement of funds from an AmeriCorps grant. The OIG found that an employee

working for the AmeriCorps program used forged travel vouchers and purchase orders to

obtain rental vehicles, a cellular telephone, and other items for her personal use. The

employee also received reimbursement for fraudulent travel expenses. The grantee fired

the employee, who later pled guilty and was sentenced to 6 years’ confinement, with all

but 25 consecutive weekends suspended, and 6 years’ probation and ordered to pay

restitution of $7,600. (CNS)

Two Bank Officials Sentenced for Obstructing a Bank Examination

Following his conviction in April 2000 for obstructing a bank examination and conspiracy,

the former senior executive vice president of the now defunct First National Bank of

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Keystone in Keystone, West Virginia,and president of Keystone Mortgage Company, a

subsidiary of the bank, was sentenced in July to 57 months’ imprisonment and fined

$100,000. The former executive vice president of the mortgage company, who was also

convicted on charges of obstructing a bank examination,was sentenced to 51 months’

imprisonment and fined $7,500.

The charges against these officials were based on their actions to obstruct an examination

of the bank by the Office of the Comptroller of the Currency that ultimately culminated 

in the bank’s closure on September 1,1999. Among the actions taken to obstruct the

examination was the burial of several dump truck loads of bank documents and microfilm

on a ranch owned by one of the convicted officials and her husband. A search of the

ranch by investigators resulted in the recovery of buried bank records that filled 370 file

boxes. Special agents of the FBI,FDIC OIG,Treasury OIG, Postal Inspection Service, and IRS

comprised a multi-agency task force that conducted the obstruction investigation and the

corresponding investigation of the circumstances leading to the failure of the bank.

(FDIC)

Tre a s u ry OIG Co m p l e tes Mate rial Loss Rev i ew of the First National Bank of

Keys to n e

As mandated by the Federal Deposit Insurance Act,the Treasury OIG completed a 

material loss review of the First National Bank of Keystone (Keystone). On September 1,

1999,the Office of the Comptroller of the Currency (OCC) closed Keystone after examiners

we re unable to ve rify $515 million of Keys to n e’s re po rted loans. This discre p a n cy re p re s e nte d

nearly 50 percent of the bank’s assets. Keystone’s failure is expected to cost the Bank

Insurance Fund more than $700 million,making it one of the largest dollar losses 

in FDIC history.

The OCC’s yearly examinations of Keystone from 1992 until its failure in 1999 repeatedly

uncovered unsafe and unsound banking practices and regulatory violations. However,the

OCC enforcement actions proved largely ineffective in getting Keystone to fully address

its operational problems. Alleged fraudulent accounting practices, uncooperative bank

management, and reported high profitability may have all served to mask the bank ’s true

financial condition from OCC examiners. Nonetheless, indicators existed that may have

dictated a more aggressive supervisory response by the OCC,such as verifying booked

loans earlier, taking more timely enforcement actions, and curbing the bank’s growth in

h i g h - risk activities until sufficient sys tems and co nt rols we re in place. The OIG made seve ra l

recommendations focused on OCC examination procedures and enforcement actions

needed when banks do not adequately address unsafe and unsound practices. The OIG

also recommended that the OCC determine whether a different supervisory approach is

needed to address banks’ rapid growth in high-risk activities. In response,the OCC formed

a committee of senior deputy comptrollers to address the recommendations. (Treasury)

FEC OIG Assesses Procurement of Training Services

The FEC OIG conducted an audit of the procurement process for training services

obtained by the FEC through outside vendors. The OIG identified a substantial number of

59 A Progress Report to the President • Fiscal Year 2000

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weaknesses in this area as a result of ineffective and inefficient management controls. The

FEC is currently considering the OIG’s proposals to correct such deficiencies. (FEC)

Information Technology Issues

As fe d e ral agencies increasingly rely upon IT,m o n i to ring and eva l u ating agencies’a u to m ate d

s ys tems takes on added impo rt a n ce. OIGs have made vital co nt ributions to the efficiency of

their agencies by ex posing we a knesses in auto m ated sys te m s, assessing the inte g ri ty of

e s s e ntial dat a , and promoting IT securi ty.

DOE OIG Finds That Contractor Did Not Clear Sensitive Information 

From Surplus Computers 

An OIG review found that the Westinghouse Savannah River Company (WSRC) failed 

to comply with DOE and Savannah River Site (SRS) requirements for disposal of surplus

computers. Specifically, WSRC did not clear stored information,including sensitive

unclassified information and Unclassified Controlled Nuclear Information,from all surplus

computers. In addition, WSRC did not certify that the computers were sanitized prior to

disposal. When WSRC discovered that uncleared surplus computer equipment had been

sold, it reacquired and destroyed the equipment. However,the OIG review disclosed that

WSRC could not account for 30 disk drives formerly used in the site’s security system. The

OIG review also disclosed that in the July 1999 timeframe, other SRS computer equipment

had been shipped to the People’s Republic of China. The shipper stated that no records

were kept, but believed the shipment did not contain hard drives. The OIG had no way to

d e te rmine the ex a ct co nte nt of this shipment but noted that more than 16,000 co m p u te r s

and related items were sold publicly by the SRS during FYs 1998 and 1999.

The OIG recommended that the DOE review its property management systems to ensure

that high-risk personal property is properly processed and that the DOE determine

whether any security vulnerabilities resulted from the release of the information at the

SRS. DOE management officials concurred with the recommendations and agreed to

take corrective action. In addition,the contractor’s award fee for the six months ending

March 31,2000, was reduced by $1 million because of weaknesses found in the protection

of sensitive unclassified information. (DOE)

NASA OIG Assessment of International Space Station Communications

Systems Identifies Needed Improvements 

An OIG assessment of the ISS’s command and co nt rol co m m u n i cations found that NASA 

did not fully consider all possible alte rn at i ves in developing its strate gy for upg rading the

s e c u ri ty of space station co m m u n i cat i o n s. In part i c u l a r,N A S A’s pro posed strate gy did not

fully address the issue of authent i cat i o n . Without strong authent i cat i o n ,NASA could not

e n s u re that the ISS would only obey commands sent by official source s. An OIG review of the

ISS Po rtable Co m p u ter Sys tems (the pri m a ry crew inte rf a ce for command and co nt rol of the

ISS) found that there is a need for an inte g rated prod u ct team and indepe n d e nt ve ri f i cat i o n

of displays as well as improve m e nt in usability. Without improve m e nt s, the space stat i o n

could po te ntially exe c u te erroneous co m m a n d s. Ad d i t i o n a l l y, the OIG found that the ISS 

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p rog ram did not have a coo rd i n ate d, well-defined process for softwa re engineering and 

s o ftwa re management . The lack of such a process results in numerous problems with

re q u i re m e nts co nt ro l , co n f i g u ration management, cost and schedule estimate s, and 

d e fe ct preve nt i o n . ( N A S A )

HUD OIG Documents Continuing Problems with Information Technology

Several components of the HUD 2020 Management Reform Plan rely upon the successful

development and implementation of new automated systems. However, developing 

systems that perform as intended, within schedule and at cost, remains a challenge for

HUD. HUD OIG audits continue to report instances where inadequate controls over 

information technology operations and investments have put the information in HUD 

data systems at risk.

HUD lacks effective management in system development and operations. The ability of

HUD to control information technology costs is limited because for many years HUD

lacked an adequate project cost accounting system. Another issue is constant changes in

scope and strategy. The Financial System Integration (FSI) project,the most ambitious and

costly HUD information technology project, has suffered from frequent changes in project

scope,strategy, and management. This project was an ambitious effort that started in

1991 to integrate approximately 100 HUD financial and program systems into nine 

consolidated systems at a projected total cost of $103 million. In a cost/benefit study,

Arthur Andersen indicated that the ongoing FSI Program costs through FY 1999 totaled

$206 million.

In FY 2000,H U D’s flawed implement ation of a standard general ledger for the De p a rt m e nt –

a cornerstone of FSI – led to a disclaimer of opinion on HUD’s FY 1999 Financial

Statements. As a result, the Department is considering yet another approach without

completing the planned solution decided upon in 1997. This shift in approach will further

delay correction of long-standing deficiencies,such as insufficient information regarding

individual multifamily loans, inability to support adequate funds controls for the Federal

Housing Administration,duplications of accounting entries due to a lack of integration

between program and accounting systems, inability to timely identify excess funds

remaining on expired project-based Section 8 contracts, and problems in reconciling cash

balances with Treasury records. Despite all of these problems, in August 2000,HUD’s 2020

Progress Review and Accomplishment Report said “HUD’s once vulnerable financial 

management system is now reliable, accurate and timely.” (HUD)

SSA OIG Questions Reliability of Codes in SSA Databases

The sensitivity of the data maintained and the magnitude of funds expended make

controls in automated systems critical to the integrity of the SSA’s programs. The OIG 

conducted an audit to determine the impact on the SSA’s operations when diagnosis

codes on the Master Beneficiary Record (MBR) or Supplemental Security Record (SSR) are

missing, invalid, or for unestablished diagnoses. The diagnosis code on the MBR and SSR

should refer to the basic medical condition that rendered the individual disabled. The OIG

e s t i m ated that 1.31 million MBR or SSR re co rds did not co ntain diagnosis codes re p re s e nt i n g

the medical condition related to the individuals’disabilities. Absence of such codes

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President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
affects the SSA’s ability to properly select beneficiaries or recipients for Continuing

Disability Reviews and precludes the SSA from identifying cases mandated for redeterminations. The OIG estimated that at least 3,539 recipients with incorrect codes should have

had medical redeterminations performed as required under the Personal Responsibility

and Work Opportunity Reconciliation Act of 1996 (referred to as the Welfare Reform Act).

Because the SSA did not perform these redeterminations, the OIG estimated that at least

$8.97 million in Supplemental Security Income benefits were paid incorrectly. The OIG

recommended that the SSA correct the diagnosis codes in its databases to ensure that, in

the future, all beneficiaries’ disabilities are represented by valid,specific codes. (SSA)

CPB OIG Assists CPB in Reducing Interconnection Charges By More Than 

$2.3 Million

On Nove m ber 5, 1 9 8 2 ,the CPB and the Public Bro a d casting Se rv i ce (PBS) ente red into an

a g re e m e nt to fund the Public Te l evision Sate l l i te Inte rco n n e ction Sys te m . The agre e m e nt

p rovided that the CPB would fund 50 pe rce nt of the agreed upon allowable net co s t s. I n

a d d i t i o n ,the agre e m e nt re q u i red that any revenue from the sale of excess sate l l i te ca p a c i ty

over the amount needed for public te l evision be used to re d u ce net ope rating ex pe n s e s.

From 1996 to 1999,the annual reports submitted to the CPB for the period of the OIG

audit did not present fairly the net operating expenses. Specifically, the PBS did not offset

the revenue from excess satellite capacity against the costs of the system. In fact, the PBS

received more than $4 million in revenue from excess satellite capacity that should have

been offset against costs. As a result, the CPB paid an excess of more than $2 million for

its 50 percent share of the costs of interconnection. Also, a 1996 Price Waterhouse report

identified excessive charges of more than $600,000 for expenses incurred on the Variable

Small Aperture Terminal. The OIG found no indication that the CPB had authorized this

charge. As a result, the CPB inappropriately funded 50 percent of the overcharge.

At the time of the OIG’s dra ft re po rt, the CPB and PBS we re in the process of negotiating a

new agre e m e nt for the Inte rco n n e ction Sys te m . In doing so, the CPB and PBS management

re s o l ved the OIG’s co n ce rn s. In July 2000, the CPB and PBS agreed to a 2-year co nt ra ct . Th i s

co nt ra ct called for a re d u ction of Inte rco n n e ction costs of $1.165 million a year in FYs 2001

and 2002 to offset the ove rc h a rges identified by the OIG audit. ( C P B )

Treasury OIG Documents Deficiencies in Customs’ Automated Systems

The Tre a s u ry OIG and GAO have been re po rting on auto m ated sys tems deficiencies since

1 9 9 4 . In part i c u l a r, an August 1999 Limited Official Use (LOU) audit re po rt on USCS co nt i n u i ty

of ope rations ca p a b i l i ty disclosed serious vulnera b i l i t i e s. An August 2000 LOU audit re po rt

disclosed that the vulnerabilities we re not co rre cted and included new info rm ation abo u t

m a g n i t u d e. A May 2000 LOU audit re po rt identified serious securi ty we a knesses that made

the USCS vulnerable to a range of cy be r - re l ated at t a c k s. When info rmed that identified 

v u l n e rabilities had not been co rre cte d,t h at the time nece s s a ry to co rre ct vulnerabilities wa s

g re ater than previously re po rte d, and that thre ats had incre a s e d, the Tre a s u ry IG re po rte d

these deficiencies to the Se c re t a ry of the Tre a s u ry through a “ 7 - d ay”l e t te r, issued May 26,

2 0 0 0 . The Se c re t a ry in turn re po rted the deficiencies to the Co n g ress and cited act i o n s

t a ken to mitigate the risks caused by the deficiencies. (Tre a s u ry )

62

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
TIGTA Identifies Security Weaknesses in Key IRS Programs

In the past, the security of taxpayer data has been an Achilles’ heel for the IRS,particularly

in the area of unauthorized browsing of taxpayer records. The TIGTA recommended that

the IRS actively review audit trail records to identify unauthorized accesses to taxpayer

information and other inappropriate activity on its computer systems. As the primary

revenue collector for the United States, the IRS is a target for both terrorists and hackers.

Disgruntled employees also represent a major threat, particularly with the turmoil the IRS

is experiencing during its reorganization process. The IRS has conducted comprehensive

security reviews of its major facilities and has significantly reduced previously identified

security weaknesses. While the IRS has made significant progress in bolstering computer

security,further improvements are needed.

During FY 2000,the TIGTA identified weaknesses in key programs,such as security certification and accreditation of sensitive systems, virus protection,and mainframe operating

system controls. Until these weaknesses are resolved, IRS systems and taxpayer data

remain vulnerable to tampering, loss, or unauthorized disclosure. (TIGTA)

USPS OIG Aids in Investigation of Computer Hacker

As a result of a joint investigation involving the USPS OIG, Texas Department of Public

Safety, Royal Canadian Mounted Police, and Canadian Forces National Investigative

Service, a computer hacker who had compromised and defaced approximately 60 

websites from both government and private industry pled guilty to six intrusions,

including the compromising and defacement of the USPS OIG’s website. (USPS)

NLRB OIG Stops Company From Using Agency’s Acronym 

for Pornographic Website

The OIG learned that a co m p a ny was using the domain name “ w w w. n l r b. co m“ as a 

g ate way for a po rn og raphic we b s i te. NLRB is not commonly used except to identify the

National Labor Re l ations Bo a rd. The only reasonable infe re n ce, t h e re fo re,t h at could be

d rawn from the co m p a ny’s use of “NLRB“ was that it was intending to lure individuals to

the we b s i te by falsely pre tending to be acting on the authori ty of NLRB. After being notified by the OIG that 18 U.S.C. § 912 makes it unlawful for any person to falsely pre tend to

be, and to act as, an officer or employee acting under the authori ty of the Un i ted St ate s, o r

a ny agency there o f, the co m p a ny ceased using the domain name “ w w w. n l r b. co m .“ ( N L R B )

FCC OIG Reviews Spectrum Auction Activities

In re s ponse to a re fe rral from the FCC’s Co m p u ter Se c u ri ty Of f i ce r, the OIG pe rfo rmed a

s pecial review of IT securi ty on a cri t i cal sub-netwo rk within the FCC’s IT infra s t ru ct u re.

The affe cted sub-netwo rk is used to suppo rt the FCC’s spe ct rum auction act i v i t i e s.

Wo rking with the IT staff from the auctions gro u p, the review team was able to re - c re ate

the sys tem be h avior displayed during a previous incident to suppo rt the hy pothesis that

the incident was the result of a database management system feature. Based on these

event re-creations and examination of the security boundary surrounding the auctions

technology, the review team concluded that the incident actually re s u l ted from a 

fe at u re of the Sybase database management sys tem and that the securi ty bo u n d a ry is 

co n f i g u red co rre ct l y.

63 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
The review also focused on the plans, policies, and procedures that were in place to

ensure that the systems in question are administered in a secure manner. The OIG found

that adherence to the existing plans, policies, and procedures were not sufficient to

ensure adequate security for the auctions. As a result,several recommendations to

strengthen controls over specific components of the IT infrastructure were made and 

subsequently implemented. (FCC)

FCA OIG Analyzes IT Infrastructure

In FY 1999, the FCA OIG co nt ra cted with Planning Te c h n o l og i e s, I n c. , (PTI) to pe rfo rm an

a n a l ysis of the FCA’s info rm ation te c h n o l ogy infra s t ru ct u re. Based on the re co m m e n d at i o n s

in PTI’s re po rt, the FCA has improved pro te ction against co m p u ter viru s e s, re d u ced securi ty

risks of unauthori zed ent ry to the FCA’s co m p u te r s, i m p roved employe e s’ use of the FCA’s

i nve s t m e nt in te c h n o l ogy,s t reamlined the co l l e ction of financial data from banks and 

a s s oc i at i o n s, i n i t i ated ergonomic eva l u ations as a pro a ct i ve approach to injuries at 

wo rk s t at i o n s, and established a serv i ce agre e m e nt for the FCA’s te c h n o l ogy. ( F CA )

ITC OIG Reviews Information Resources Management Function

The OIG co n d u cted an audit to eva l u ate the ITC’s co m p l i a n ce with the Cl i n g e r- Cohen Act of

1 9 9 6 and to dete rmine what improve m e nts should be made in the ITC’s curre nt org a n i z at i o n

and processes for Information Resources Management (IRM). The OIG found that the ITC

was not in full compliance with the Clinger-Cohen Act and its associated amendments to

the Pa pe rwo rk Re d u ction Act . The OIG found that the IRM at the ITC was fra g m e nte d, w i t h

re s ponsibilities spread across seve ral office s. This co nt ri b u ted to an uneven applicat i o n of

resources across the ITC and a lack of focus on supporting the ITC as a whole. The OIG

also found that the ITC’s Information Resources Management Steering Committee (IRMSC)

was not effectively performing its primary function of aligning IT investments with the

ITC’s strategic objectives. Based on the audit findings,the OIG made several recommendations for improving the ITC’s IRM function. The most important recommendation was

that the ITC appoint a Chief Information Officer (CIO) and assign sufficient responsibilities

and resources to this position so that the CIO could provide unified direction to the ITC’s

IRM. The OIG also made recommendations for strengthening the IRMSC,updating the

IRM Strategic Plan,improving the management of the ITC’s IRM personnel,and improving

information security planning. (ITC)

FLRA OIG Completes Audit of Computer Information Security

The FLRA OIG performed a comprehensive audit of the FLRA’s computer information

security. The audit objective was to render a baseline evaluation of the FLRA’s compliance

with federal information resource security requirements and to assess the quality of the

FLRA’s electronic information security system and the procedures used to protect vital

and sensitive electronic information. The audit also assessed the FLRA’s communication

hardware/software, internal management controls, application software development,

change controls,system software, network analysis, and penetration tests. The results of

this audit facilitated more senior management focus on computer information security

and supported the programming of more resources for the IRM Division to enable the

FLRA’s progression into the e-government era. (FLRA)

64

A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
Government Performance and Results Act Activities

In 1993,the Congress passed and the President signed into law the GPRA. Under this law,

programs are evaluated on the basis not of outlays or objectives, but of actual results.

IGs play an important role in this governmentwide effort. By reviewing their agencies’

implementation of GPRA and offering suggestions or recommendations for improvement,

IGs make indispensable contributions to improving agency performance. The following

are examples of efforts by IGs in this area during FY 2000.

DoD OIG Attains Measurable Results

In consonance with the emphasis being placed on GPRA,the DoD OIG is making every

effort to achieve performance-oriented,measurable results based on the investment the

Am e ri can taxpayer makes in the agency. Over the pe ri od Octo ber 1,1 9 9 9 , to Se p te m ber 30,

2000,OIG auditors caused the DoD to realize $207.8 million in monetary benefits and 

provided more than 980 recommendations that were agreed to by DoD managers, with

an impressive 96 percent recommendation success rate. For the same time period,the

e f fo rts of the De fense Criminal Inve s t i g at i ve Se rv i ce re s u l ted in $980.7 million in inve s t i g at i ve

re cove ri e s. The OIG also initiated a series of audits to ve rify the accura cy of DoD pe rfo rm a n ce

re po rt i n g. ( Do D )

HHS OIG Reports Improper Medicare Fee-for-Service Payments

The HHS OIG’s GPRA review plan is directed toward measures related to mission-critical

issues and areas at high risk of fraud, waste, and abuse. For example, the OIG’s continuing

financial statement audit work at the Health Care Financing Administration (HCFA) relates

directly to assessment of HCFA-generated financial performance data. The HCFA uses 

the OIG’s annual estimate of improper Medicare fee-for-service payments as a basis for

setting performance goals and for measuring performance. For FY 1999,the OIG reported 

that these improper payments totaled an estimated $13.5 billion,which represents a 

7.97 percent error rate. This estimate is $9.7 billion less than that for FY 1996,the year 

that the first error rate was developed.

The OIG believes that the HCFA has demonstrated continued vigilance in monitoring

improper payments and developing appropriate corrective action plans. As stated in its

FY 2000 performance plan,the HCFA’s goal is to reduce the error rate to 7 percent by

2000,6 percent by 2001,and 5 percent by 2002. The HCFA also plans to develop a new

methodology for measuring the FY 2003 error rate. (HHS)

ED OIG Evaluates Performance Data of State Educational Agencies

The ED OIG conducted a review on the process state educational agencies (SEAs) use to

collect and report specific kinds of data. ED uses the data to monitor and evaluate SEA

programs and includes it in the annual performance report to the Congress required by

GPRA. The review focused on two of ED’s major formula grant programs: Grants for

Schools Serving At-Risk Children (Title I) and Vocational and Technical Education

Assistance to the states (Perkins). Based on work performed at ED and at five SEAs, the

OIG made the following observations:

65 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
◆ The process of collecting data is complex,with data coming from several sources.

◆ Each SEA has its own unique process for collecting data,as well as a unique 

control structure. The method of collecting data from local education 

agencies varied.

◆ Most of the states did not submit their data on time.

◆ The data may not be consistent over time.

◆ When used for national aggregation or comparison,the data are not likely to be

comparable across states.

ED agreed with the OIG’s findings and has begun working with the states to develop a

better data collection system. (ED)

NARA OIG Evaluates Accuracy of NARA’s Performance Measurement Data

The OIG conducted an evaluation to verify the validity of data entered into the NARA’s

new Performance Measurement Reporting System. The OIG noted that data could not

a l ways be ve rified be cause (1) source doc u m e nts we re missing or they did not substant i ate

d atabase ent ri e s, (2) inco rre ct data was in the dat a b a s e, (3) pe rt i n e nt prog ram info rm at i o n

was not included, and (4) NARA officials did not enter data co n s i s te ntly into the sys te m .

Ad d i t i o n a l l y, the OIG found mat h e m at i cal errors in the declassification dat a b a s e.

The OIG re commended that (1) pe rfo rm a n ce measure m e nt guidance be revised or cre ate d

to ensure that source doc u m e nts exist and are maint a i n e d, (2) staff members re s po n s i b l e

for maintaining support documents be trained on how these documents should be

maintained, (3) staff members responsible for reporting performance measure data 

are aware of the reporting requirements and that data is entered in the database in 

accordance with the guidance, and (4) management clarify, in the performance measurement guidance, the definition of “research room pull,” and how to handle training and

workshop questionnaires when the participant does not give the course an overall rating.

Management concurred with the recommendations and, prior to the completion of the

draft report, began taking corrective actions. (NARA)

TVA OIG Audits Performance Indicators

The TVA developed 24 performance indicators as part of the annual performance plan

submitted to the Congress in response to GPRA. The TVA OIG audited eight indicators

during FY 2000. The objective of each audit was to determine whether information 

systems providing source data for indicators were reasonably accurate and reliable and

indicators were reported correctly. The OIG found that the information used to support

five of the eight indicators was accurate and reliable and that indicators were reported

correctly.

One audit found the TVA did not maintain sufficient documentation to verify the reported

indicator, and TVA management agreed to develop the necessary policies and procedures

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President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
to ensure that sufficient documentation will be maintained in the future. The OIG could

not assess the adequacy of the data and information systems supporting the remaining

two indicators because (1) one of the indicators was not measured in accordance with the

c ri te ria given in the Annual Pe rfo rm a n ce Pl a n , and (2) the other indicator was not ca l c u l ate d

as defined in the Annual Performance Plan and the TVA did not maintain sufficient

documentation to verify the indicator. (TVA)

NEH OIG Voices Concern Over Validation Process

The NEH OIG reviewed the NEH’s annual performance plan to determine the agency’s

progress towards meeting requirements of GPRA. The OIG disclosed that the validation

process is a major concern because most of the performance information is obtained

from grantees themselves. The OIG made several recommendations, and the NEH has

taken a number of steps in response to the OIG report. (NEH)

FMC OIG Evaluates FY 2001 Performance Plan

The FMC OIG conducted a review to determine if the FMC has developed a performance

plan that meets the requirements of GPRA. Specifically, the OIG wanted to determine

whether the FMC’s plan provided (1) a succinct and concrete statement of expected 

performance for subsequent comparison with actual performance;(2) a linkage between

the FMC’s pe rfo rm a n ce goals and the FMC’s mission,s t rategic goals, and prog ram act i v i t i e s ;

and (3) coordination between related strategic goals and performance goals. The OIG

found that the FMC’s plan addressed all key issues and co ntained no significa nt deficiencies.

The OIG made suggestions to ensure that performance measures were more objective

and quantifiable and that performance information was verifiable. (FMC)

NLRB OIG Instrumental in Improving Strategic Planning Documents

The OIG rev i e wed NLRB’s FY 1999 pe rfo rm a n ce plan and found that some goals we re not

defined or ex p ressed as tangible,m e a s u rable object i ve s. S u p po rt was missing or not re a d i l y

available for some pe rfo rm a n ce measure s. A revised pe rfo rm a n ce plan for FY 1999 was 

not pre p a red timely or clearl y. The results in the dra ft pe rfo rm a n ce re po rts did not include

s pecific data on some measures or co m m e nts nece s s a ry for readers to understand the

d at a ;most significa nt l y,s u b s t a ntial pe ri ods of time or cases we re excluded from the re s u l t s.

The strategic plan for FYs 2000 - 2006 and the pe rfo rm a n ce plan for FY 2001 we re deve l o pe d

a fter the OIG re po rt was issued. The strategic plan eliminated two goals that re l ate to 

p rog ram are a s. The goals have pe rfo rm a n ce measures that are quantifiable and the plans

p rovide that ve ri f i cation and va l i d ation of pe rfo rm a n ce data will be pe rfo rmed co nt i n u o u s l y

t h roughout the ye a r. ( N L R B )

FTC OIG Finds Consumer Benefits Are Not Apparent

in Some Performance Measures

The FTC OIG re ce i ved select agency pe rfo rm a n ce measures for FY 2000 that we re co nt a i n e d

in the FY 2001 pro posed OMB budget request to dete rmine whether sys tems are in place to

ca p t u re pe rfo rm a n ce info rm ation both accurately and timely. The OIG’s review of 9 of the

a g e n cy’s 13 pe rfo rm a n ce measures found that, g e n e ra l l y,s ys tems are in place to co l l e ct and

67 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
process data and to report it in a timely manner. However,the OIG also found that

m e t h od o l ogy used for the accumulation of selected pe rfo rm a n ce data was not sufficient l y

defined to allow for the reporting of measures in an accurate and consistent manner.

The OIG believes that the best way to address this weakness is for the agency to define

the rationale behind each of the 13 performance measures, i.e.,clearly articulate how

consumers and/or businesses are better off when the FTC meets or exceeds its 

performance targets. ( F TC )

Grants Management

OIGs perform a valuable service by monitoring recipients of federal grants to ensure that

those recipients use grant monies appropriately and account for expenditures as required.

Diligence on the part of OIGs results in significant cost recovery and savings.

HHS OIG Uncovers Medicaid Payment Abuses

Based on work in three states,the HHS OIG testified before the Senate Committee on

Finance regarding states’use of manipulative financing schemes that exploit a provision

in Medicaid’s “upper payment limit“ regulations governing enhanced payments to certain

providers. This issue was brought to the OIG’s attention by HCFA officials, who provided

information to assist the OIG in selecting states for this ongoing review.

The OIG noted that some states are using inte rg ove rn m e ntal tra n s fers to artificially generate

excessive federal matching payments at the expense of other states and contrary to the

intent of the program. These abusive practices increase the federal share of Medicaid

without a co rre s ponding increase in the state s’s h a re or in the amount or quality of serv i ces

p rovided to Me d i caid pat i e nt s. In re s ponse to these findings, the HCFA dra fted a re g u l at i o n

to redefine the ty pes of facilities pro pe rly included in upper pay m e nt limit classificat i o n s.

Co m p l i a n ce with this re g u l ation could save an estimated $55 billion over the next ten 

ye a r s. The OIG also offe red re co m m e n d ations should the Co n g ress wa nt to act to close 

this loo p h o l e. (H H S )

DOI OIG Recommends Improved Grants Management

The DOI OIG found that the U.S. Fish and Wildlife Service (FWS) did not have effective

management oversight and accountability for Federal Aid Program grant funds. The FWS

allowed grantees to draw down $424 million on letters of credit without requiring all

grantees to periodically submit documentation on costs actually incurred. Consequently,

the FWS could not verify that payments were for costs incurred or for advances. The FWS

has agreed to improve its grants monitoring activities, and the DOI has reported the lack

of adequate audit follow-up and management controls in the program as a material

weakness in its latest Accountability Report. (DOI) 

EPA OIG Identifies $14.3 Million in Needed Cost Recovery

From Construction Grant

EPA’s Region 4 needs to collect $14.3 million in cost recoveries from the City of 

Fort Lauderdale, Florida (City) to compensate the EPA for a compost facility that was 

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President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
prematurely abandoned. In August 1983,the EPA awarded the City a $15.8 million 

construction grant to build a dewatering facility and an off-site compost facility. The City

closed the compost facility after approximately two years of operation because of

mechanical and odor control problems. In September 1990,the EPA offered the City a

$1.3 million gra nt amendment that funded 100 pe rce nt of the costs to co rre ct the pro b l e m s.

However,the City declined to use the supplemental grant because it believed that the

technology failed and the facility was incapable of operating satisfactorily. The City never

re o pened the co m post facility and re q u e s ted approval in June 1998 to demolish the facility

and sell the land. The EPA’s policy on Abandonment of Wastewater Treatment Works 

generally requires that grant recipients operate and maintain treatment facilities over

their useful life consistent with the Clean Water Act. The policy also obligates the EPA to

pursue cost recovery if grant recipients terminate use of treatment facilities without 

adequate justification. (EPA)

DOL OIG Identifies Deficiencies in Grants Management

The DOL OIG identified accounting and management deficiencies related to grants

awarded by the Employment and Training Administration (ETA) and the Bureau of

International Labor Affairs (ILAB):

◆ An OIG audit determined that the ETA’s grant cost accounting system,which was

used to account for almost $9 billion in grant costs, is not in compliance with the

Federal Financial Management Improvement Act. The OIG found that hundreds of

millions of dollars in grantee cost reports were not entered into the ETA’s

accounting system. Between year-end and issuance of the audit report, the ETA

redirected staff to input delinquent grantee cost reports, bringing reported grant

costs substantially up to date. However,the ETA needs to establish systems and

routines to ensure the timely and accurate recording of grantees’ cost reports.

◆ In FY 2000,the ILAB received $70 million for programs to assist countries to apply

core labor standards and reduce exploitative child labor. In FY 2001,the ILAB

received $167 million,a 112 percent increase. An OIG review of ILAB activities

found that the ILAB did not have the appropriate grants management structure

to ensure accountability over the substantial funds appropriated. The OIG is

working with the Assistant Secretary for Administration and Management and

the ILAB to identify necessary controls over the issuance of grants, the best way

to disburse the money, and the level of monitoring needed. (DOL)

ARC OIG Aids in Closing Grants

OIG and agency emphasis on grant management, including timely project closing and

deobligation of funds, remained a high priority at the ARC. As a result, 353 projects were

closed during the fiscal year with deobligations approximating $3.4 million;among those,

$860,000 of deobligations involved projects that were identified by the OIG for follow-up

action. Since the inception of the OIG in 1960,agency actions in this area have resulted in

more timely recovery of more than $20 million in unused funds. Ongoing agency actions

include the establishment of a quick response follow-up system that will identify projects

for which the grant period is expiring and generate automatic follow-up requests where

funds remain unexpended. (ARC)

69 A Progress Report to the President • Fiscal Year 2000

President’s Council on Integrity and Efficiency • Executive Council on Integrity and Efficiency
NSF OIG Audits Grant Awards

The NSF OIG identified significant problems with several awardees’ ability to fulfill 

agreements to share in the costs of their research projects. For example, the NSF provided

an awardee $7.5 million in funding under a cooperative agreement that required the

recipient to contribute $10.1 million as its share of the costs. The OIG determined that

all the claimed cost sharing was “at risk“ because the awardee did not adequately account

for or document the costs. The OIG was unable to identify cost sharing specific to the

award and, therefore, could not ensure that cost-sharing expenditures would not be

claimed for more than one federal award. Due to the serious nature of this deficiency,the

OIG recommended that the NSF require the awardee to address the matter immediately.

In July 2000,the NSF notified the awardee that the agency would not make the next

scheduled award increment available until the awardee had shown the NSF that an 

adequate system was in place for tracking and accounting for its cost sharing. (NSF)

DOT OIG Takes Proactive Approach to Prevent Grant Fraud and Improve

Oversight

The Tra n s po rtation Eq u i ty Act for the 21st Ce n t u ry p rovides $217 billion to rebuild the nat i o n’s

s u rf a ce tra n s po rt ation infra s t ru ct u re. To safe g u a rd inve s t m e nts in DOT highway and tra n s i t

i n f ra s t ru ct u re prog rams from fra u d, wa s te, and abuse, the OIG will provide cri t i cal ove r s i g ht 

of such prog rams and implement pro a ct i ve initiat i ve s. For ex a m p l e, $942 million in hidden

cost increases in Boston’s Central Artery Project led to the implementation of OIG 

re co m m e n d ations for be t ter gra nt ove r s i g ht . The Bo s ton pro j e ct is the most ex pe n s i ve 

h i g h way co n s t ru ction pro j e ct in the Un i ted St ates and has drawn co n s i d e rable co n g re s s i o n a l

i nte re s t . To coo rd i n ate fraud preve nt i o n ,d e te ct i o n , and inve s t i g at i ve effo rts with fe d e ra l ,

s t ate, and local tra n s po rt ation co m po n e nt s, the OIG designated a national co nt ra ct and gra nt

f raud coo rd i n ator and five regional spe c i a l i s t s. Among cases involving fraud on highway and

t ransit co n s t ru ction pro j e ct s, OIG inve s t i g at i o n s,s i n ce 1997, h ave re s u l ted in approx i m ately 

98 indict m e nt s, 53 co nv i ct i o n s, and $38 million in fines, re s t i t u t i o n , and re cove ri e s. ( D OT)

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The President’s Council on Integrity and Efficiency

Membership Addresses and Hotline Numbers as of May 2001

Vacant, Chair*

Deputy Director for Management

OFFICE OF MANAGEMENT AND BUDGET

17th and Pennsylvania Ave., NW

Room 260, Eisenhower EOB

Washington, DC 20503

Gaston L. Gianni, Jr., Vice Chair, PCIE*

Inspector General

FEDERAL DEPOSIT INSURANCE CORPORATION

801 17th Street, NW, Room 1096

Washington, DC 20434-0001

☎800-964-3342

Barry R. Snyder, Vice Chair, ECIE*

Inspector General

FEDERAL RESERVE BOARD

Mail Stop 300

20th Street and C Street, NW

Washington, DC 20551

☎800-827-3340 or 202-452-6400

Everett L. Mosley, Inspector General

AGENCY FOR INTERNATIONAL DEVELOPMENT

Ronald Reagan Building, Room 6.06D

1300 Pennsylvania Avenue, NW

Washington, DC 20523

☎800-230-6539 or 202-712-1023

Roger C. Viadero, Inspector General

DEPARTMENT OF AGRICULTURE

1400 Independence Ave., SW

Room 117-W Whitten Building

Washington, DC 20250-2301 

☎800-424-9121 or 202-690-1622 

Rebecca Donegan, Acting Inspector General

CENTRAL INTELLIGENCE AGENCY

Room 2X30, New Headquarters

Washington, DC 20505

Johnnie E. Frazier, Inspector General

DEPARTMENT OF COMMERCE

14th & Constitution Ave., NW, Room 7898C

Washington, DC 20230

☎800-424-5197 or 202-482-2495

Luise S. Jordan, Inspector General

CORPORATION FOR COMMUNITY

& NATIONAL SERVICE

1201 New York Ave., NW, Suite 8100

Washington, DC 20525

☎800-452-8210

Robert Lieberman, Deputy Inspector General

DEPARTMENT OF DEFENSE

400 Army Navy Drive, Room 1000

Arlington, VA 22202-2884

☎800-424-9098 or 703-604-8546

Lorraine Pratte Lewis, Inspector General

DEPARTMENT OF EDUCATION

400 Maryland Ave., SW, Room 4006 MES

Washington, DC 20202-1510

☎800-647-8733 or 202-205-5770

Gregory H. Friedman, Inspector General

DEPARTMENT OF ENERGY

1000 Independence Ave., SW,

Room 5D-039

Washington, DC 20585

☎800-541-1625 or 202-586-4073

Nikki L. Tinsley, Inspector General 

ENVIRONMENTAL PROTECTION AGENCY

1200 Pennsylvania Avenue, NW, (2410) 

Washington, DC 20460

☎202-260-4977 or 888-546-8740

Ruben Garcia, Jr., Assistant Director*

Criminal Investigative Division

FEDERAL BUREAU OF INVESTIGATION

935 Pennsylvania Ave., NW, Room 7116

Washington, DC 20535

☎202-324-3000

George J. Opfer, Inspector General

FEDERAL EMERGENCY MANAGEMENT AGENCY

500 C Street, SW, Suite 505

Washington, DC 20472

☎800-323-8603

William R. Barton, Inspector General

GENERAL SERVICES ADMINISTRATION

18th & F Streets, NW, Room 5340

Washington, DC 20405

☎800-424-5201 or 202-501-1780

Amy Comstock, Director*

OFFICE OF GOVERNMENT ETHICS

1201 New York Avenue, NW, Suite 500

Washington, DC 20005-3917

Michael F. Mangano, Acting Inspector General

DEPARTMENT OF HEALTH & HUMAN SERVICES

330 Independence Ave., SW, Room 5246

Washington, DC 20201

☎800-447-8477

Susan Gaffney, Inspector General

DEPARTMENT OF HOUSING & URBAN DEVEL.

451 7th Street, SW, Room 8256

Washington, DC 20410-4500

☎800-347-3735 or 202-708-2451

Earl E. Devaney, Inspector General

DEPARTMENT OF THE INTERIOR

1849 C Street, NW, Mail Stop 5341

Washington, DC 20240

☎800-424-5081 or 202-208-5300

Glenn A. Fine, Inspector General

DEPARTMENT OF JUSTICE

950 Pennsylvania Ave., NW, Room 4706

Washington, DC 20530

☎800-869-4499

Gordon S. Heddell, Inspector General

DEPARTMENT OF LABOR

200 Constitution Ave., NW, Room S-1303

Washington, DC 20210

☎800-347-3756 or 202-693-6999

Roberta L. Gross , Inspector General

NATIONAL AERONAUTICS & SPACE ADMIN.

300 E Street, SW, Code W, Room 8T79

Washington, DC 20546

☎800-424-9183

Hubert T. Bell, Inspector General

NUCLEAR REGULATORY COMMISSION

Mail Stop T5 D28

Washington, DC 20555

☎800-233-3497

Vacant, Deputy Director*

OFFICE OF PERSONNEL MANAGEMENT

1900 E Street, NW

Washington, DC 20415-0001

Patrick E. McFarland, Inspector General

OFFICE OF PERSONNEL MANAGEMENT

1900 E Street, NW, Room 6400 

Washington, DC 20415-0001

☎Fraud, Waste, and Abuse:

202-606-2423

☎Healthcare Fraud: 202-418-3300

Martin J. Dickman, Inspector General

RAILROAD RETIREMENT BOARD

844 North Rush Street, Room 450

Chicago, IL 60611-2092

☎800-772-4258

Elaine Kaplan, Special Counsel*

OFFICE OF SPECIAL COUNSEL

1730 M Street, NW, Suite 300

Washington, DC 20036

☎Disclosure: 800-572-2249

☎Hatch Act Information: 800-854-2824

☎Whistleblower Protection: 800-572-2249

Phyllis K. Fong, Inspector General

SMALL BUSINESS ADMINISTRATION

409 3rd Street, SW, Suite 7150

Washington, DC 20416

☎800-767-0385 or 202-205-7151

James G. Huse, Jr., Inspector General

SOCIAL SECURITY ADMINISTRATION

Altmeyer Building, Suite 300

6401 Security Boulevard

Baltimore, MD 21235

☎800-269-0271

Anne M. Sigmund, Acting Inspector General

DEPARTMENT OF STATE AND THE BROADCASTING

BOARD OF GOVERNORS

2201 C Street, NW, Room 6817

Washington, DC 20520-6817

☎800-409-9926 or 202-647-3320

Kenneth M. Mead, Inspector General

DEPARTMENT OF TRANSPORTATION

400 Seventh Street, SW, Room 9210

Washington, DC 20590

☎800-424-9071 or 202-366-1461

Jeffrey Rush, Jr., Inspector General

DEPARTMENT OF THE TREASURY

1500 Pennsylvania Avenue, NW, Suite 4436

Washington, DC 20220

☎800-359-3898

David C. Williams, Inspector General

TREASURY INSPECTOR GENERAL FOR

TAX ADMINISTRATION

1125 15th Street, NW, Suite 700A

Washington, DC 20005

☎800-366-4484

Richard J. Griffin, Inspector General

DEPARTMENT OF VETERANS AFFAIRS

810 Vermont Avenue, NW, Room 1114 TW

Washington, DC 20420

☎800-488-8244

Vacant, Controller*

Office of Federal Financial Management

OFFICE OF MANAGEMENT AND BUDGET

1725 17th Street, NW, Room 6025

Washington, DC 20503

*Also members of the ECIE
73 A Progress Report to the President • Fiscal Year 2000

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The Executive Council on Integrity and Efficiency

Membership Addresses and Hotline Numbers as of May 2001

Vacant, Chair

Deputy Director for Management

OFFICE OF MANAGEMENT AND BUDGET

17th and Pennsylvania Ave., NW

Room 260, Eisenhower EOB

Washington, DC 20503

Barry R. Snyder, Vice Chair, ECIE

Inspector General

FEDERAL RESERVE BOARD

Mail Stop 300

20th Street and C Street, NW

Washington, DC 20551

☎800-827-3340 or 202-452-3000

Fred E. Weiderhold, Jr., Inspector General

AMTRAK

10 G Street, NE, Suite 3W-300

Washington, DC 20002-4285

☎800-468-5469

Hubert N. Sparks, Inspector General

APPALACHIAN REGIONAL COMMISSION

1666 Connecticut Ave., NW, Suite 215

Washington, DC 20235

☎800-532-4611

A. Roy Lavik, Inspector General

COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

☎202-418-5510

Mary B. Wyles , Inspector General

CONSUMER PRODUCT SAFETY COMMISSION

4330 East West Highway

Bethesda, MD 20814-4408

☎301-504-0573

Kenneth Konz, Inspector General

CORPORATION FOR PUBLIC BROADCASTING

401 9th Street, NW

Washington, DC 20004-2129

☎800-599-2170 or 202-783-5408

Aletha L. Brown, Inspector General

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

1801 L Street, NW, Suite 3001

Washington, DC 20507

☎800-849-4230 or 202-663-7020

Stephen G. Smith, Inspector General

FARM CREDIT ADMINISTRATION

1501 Farm Credit Drive, Suite 4100

McLean, VA 22102-5090

☎800-437-7322 or 703-883-4316

H. Walker Feaster, III, Inspector General

FEDERAL COMMUNICATIONS COMMISSION

445 12th Street, SW, Room 2-C750

Washington, DC 20554

☎202-418-0473

Lynne A. McFarland, Inspector General

FEDERAL ELECTION COMMISSION

999 E Street, NW, Room 940

Washington, DC 20463

☎202-694-1015

Edward Kelley, Inspector General

FEDERAL HOUSING FINANCE BOARD

1777 F Street, NW

Washington, DC 20006

☎800-276-8329 or 202-408-2900

Francine C. Eichler, Inspector General

FEDERAL LABOR RELATIONS AUTHORITY

607 14th Street, NW, 2nd Floor

Washington, DC 20424-0001

☎800-331-3572

Tony P. Kominoth, Inspector General

FEDERAL MARITIME COMMISSION

800 N. Capitol St., NW, Rm. 1054

Washington, DC 20573

☎202-523-5865

Frederick J. Zirkel, Inspector General

FEDERAL TRADE COMMISSION

600 Pennsylvania Ave., NW

Washington, DC 20580

☎202-326-2581

Robert G. Andary, Inspector General

GOVERNMENT PRINTING OFFICE

N. Capitol and H Streets, NW (Stop: IG)

Washington, DC 20401

☎800-743-7574

Len Koczur, Acting Inspector General

LEGAL SERVICES CORPORATION

750 First Street, NE, 11th Floor

Washington, DC 20002-4250

☎800-678-8868 or 202-336-8936

Paul Brachfeld, Inspector General

NATIONAL ARCHIVES AND RECORDS

ADMINISTRATION

8601 Adelphi Road, Room 1300

College Park, MD 20740

☎800-786-2551 or 301-713-7305

H. Frank Thomas, Inspector General

NATIONAL CREDIT UNION ADMINISTRATION

1775 Duke Street

Alexandria, VA 22314-3428

☎800-778-4806 or 703-518-6357

Daniel Shaw, Inspector General

NATIONAL ENDOWMENT FOR THE ARTS

1100 Pennsylvania Ave., NW, Room 601

Washington, DC 20560

☎202-682-5402

Sheldon L. Bernstein, Inspector General

NAT’L. ENDOWMENT FOR THE HUMANITIES

1100 Pennsylvania Ave., NW, Room 419

Washington, DC 20600

☎202-606-8423

Jane E. Altenhofen, Inspector General

NATIONAL LABOR RELATIONS BOARD

1099 14th Street, NW, Room 9820

Washington, DC 20570

☎800-736-2983

Christine C. Boesz, Inspector General

NATIONAL SCIENCE FOUNDATION

4201 Wilson Boulevard, Room 1135

Arlington, VA 22230

☎800-428-2189 

Charles D. Smith, Inspector General

PEACE CORPS

1111 20th Street, NW, 2nd Floor

Washington, DC 20526

☎800-233-5874

Wayne Robert Poll, Inspector General

PENSION BENEFIT GUARANTY CORPORATION

1200 K Street, NW, Suite 470

Washington, DC 20005-4026

☎800-303-9737

Walter Stachnik, Inspector General

SECURITIES AND EXCHANGE COMMISSION

450 5th Street, NW

Washington, DC 20549-1107

☎202-942-4460

Thomas D. Blair, Inspector General

SMITHSONIAN INSTITUTION

Victor Building

750 9th Street, NW, Suite 4200

Washington, DC 20560-0905

☎202-275-1671

Richard Chambers, Inspector General

TENNESSEE VALLEY AUTHORITY*

400 W. Summit Hill Drive, Room ET4C-K

Knoxville, TN 37902-1499

☎800-323-3835

Dev Jagadesan, Acting Inspector General

U.S. INTERNATIONAL TRADE COMMISSION

500 E Street, SW, Room 515

Washington, DC 20436

Karla W. Corcoran, Inspector General

UNITED STATES POSTAL SERVICE

1735 N. Lynn Street

Arlington, VA 22209-2005

☎888-USPS-OIG (888-877-7644)

*With the enactment of Public Law 106-422 on 

November 1, 2000, the President was given the 

authority to appoint the TVA IG.
AID Agency for International Development

AIG Assistant Inspector General 

ARC Appalachian Regional Commission 

CFO Chief Financial Officers

CFTC Commodity Futures Trading Commission

CNS Corporation for Community and National Service

CPB Corporation for Public Broadcasting 

CPSC Consumer Product Safety Commission

DCAA Defense Contract Audit Agency

DOC Department of Commerce

DoD Department of Defense

DOE Department Of Energy

DOI Department of the Interior 

DOJ Department of Justice

DOS Department of State

DOT Department of Transportation

ECIE Executive Council on Integrity and Efficiency

ED Department of Education 

EEOC Equal Employment Opportunity Commission

EPA Environmental Protection Agency

FAA Federal Aviation Administration

FBI Federal Bureau of Investigation 

FCA Farm Credit Administration 

FCC Federal Communications Commission 

FDIC Federal Deposit Insurance Corporation

FEC Federal Election Commission 

FEMA Federal Emergency Management Agency

FHFB Federal Housing Finance Board

FLRA Federal Labor Relations Authority

FMC Federal Maritime Commission

FRB Federal Reserve Board

FTC Federal Trade Commission 

FY Fiscal Year

GAO General Accounting Office

GISRA Government Information Security Reform Act

GPO Government Printing Office

GPRA Government Performance and Results Act

GSA General Services Administration

HCFA Health Care Financing Administration 

HHS Department of Health and Human Services 

Glossary of Acronyms and Abbreviations

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HUD Department of Housing and Urban Development

IG Inspector General 

IG Act Inspector General Act of 1978

IGATI Inspectors General Auditor Training Institute

IGCIA Inspector General Criminal Investigator Academy

INS Immigration and Naturalization Service

IRS Internal Revenue Service

ISS International Space Station 

IT Information Technology

ITC U.S.International Trade Commission 

LSC Legal Services Corporation

NARA National Archives and Records Administration

NASA National Aeronautics and Space Administration

NCUA National Credit Union Administration

NEA National Endowment for the Arts

NEH National Endowment for the Humanities

NLRB National Labor Relations Board

NRC Nuclear Regulatory Commission

NSF National Science Foundation 

OGE Office of Government Ethics 

OIG Office of Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

OSC Office of Special Counsel

PBGC Pension Benefit Guaranty Corporation

PCIE President’s Council on Integrity and Efficiency

PC Peace Corps 

PDD Presidential Decision Directive

RRB Railroad Retirement Board

SBA Small Business Administration

SEC Securities and Exchange Commission

SI Smithsonian Institution 

SSA Social Security Administration

TIGTA Treasury Inspector General for Tax Administration

Treasury Department of the Treasury

TVA Tennessee Valley Authority

USCS U.S. Customs Service

USDA U.S.Department of Agriculture

USPS U.S. Postal Service

VA Department of Veterans Affairs 

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