President’s Council on Integrity and Efficiency

A Progress Report 

to the President

Fiscal Year 2006

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

Executive Council on Integrity and Efficiency

Results in Brief

In fiscal year 2006, more than 11,800 employees at 62 federal Offices of Inspector General conducted 

audits, inspections, evaluations, and investigations of federal programs and operations. These activities 

help promote economy, efficiency, and effectiveness in government operations and help detect and 

deter waste, fraud, and abuse. OIG activities resulted in:

♦ $9.9 billion in potential savings from audit recommendations,

♦ $6.8 billion in investigative recoveries,

♦ 6,500 indictments and criminal informations,

♦ 8,400 successful prosecutions,

♦ 950 successful civil actions,

♦ 7,300 suspensions or debarments,

♦ 4,200 personnel actions, 

♦ 201,000 hotline complaints processed,

♦ 6,500 audit, inspection, and evaluation reports issued, and

♦ 24,100 investigations closed.

This report was prepared by the Department of Justice Office of the Inspector General. Copies of 

this publication may be obtained by contacting (202) 616-4550. It also is available on the Inspectors 

General website at www.ignet.gov.
FOREWORD

T he members of the President’s Council on Integrity and Efficiency (PCIE) and the Executive Council on 

 Integrity and Efficiency (ECIE) are pleased to present A Progress Report to the President, Fiscal Year 2006. 

 The Report summarizes the fiscal year (FY) 2006 accomplishments and activities of the Office of Inspector 

General community and identifies the most significant management challenges facing the federal government. 

Twenty-eight years after the passage of the Inspector General Act of 1978 (IG Act), the OIG community continues 

to build on its past success, resulting in increased economy and efficiency across federal programs and operations. 

During FY 2006, the IGs placed greater emphasis on efforts to prevent rather than simply detect agency operational 

problems. Towards this end, we proactively identified the most serious management and performance challenges 

facing our respective agencies and the federal government. These include:

♦ Homeland Security and Terrorism 

♦ Information Technology Management and Security 

♦ Financial Management and Performance 

♦ Human Capital Management 

♦ Procurement and Grant Management 

♦ Performance Management and Accountability 

We intend to work closely in FY 2007 with agency management, Congress, and others to address these and other 

key management issues. In terms of performance, during FY 2006, the OIG community identified more than 

$9.9 billion in potential savings and obtained $6.8 billion in investigative fines, settlements, and recoveries. 

In pursuing our mission, we issued more than 6,500 audit and inspection reports, conducted more than 24,100 

investigations, and processed more than 201,000 hotline complaints. In addition to the positive monetary impact, our 

collective efforts resulted in 8,400 successful criminal prosecutions and approximately 4,200 personnel actions. 

More specific information on the activities of individual OIGs is available on the websites maintained by each office, 

or through the OIG community’s shared website at www.ignet.gov. The members of the PCIE and the ECIE remain 

committed to ensuring that federal government operations are efficient and effective, reflecting the best interests of the 

American people. 

Gregory H. Friedman Barry R. Snyder

 Vice Chair Vice Chair

 President’s Council on Executive Council on

 Integrity and Efficiency Integrity and Efficiency

Table of Contents

The Inspector General Community ....................................................................... 1

Overview of the PCIE and the ECIE ..................................................................... 4 

PCIE Committees, Working Groups, and Roundtables ........................................ 6

OIG Dollar Savings and Criminal Prosecutions ...................................................12

Top Management Challenges ............................................................................. 17

A Compendium of OIG Activities in FY 2006 ...................................................... 21

OIGs Help Protect the Nation Against Terrorism ................................................. 22

OIGs Detect and Deter Waste, Fraud, and Abuse .............................................. 24

OIGs Improve the Efficiency and Effectiveness of Government Programs ........ 28

Joint OIG Projects ............................................................................................... 32

Appendix A: Acronyms and Abbreviations ......................................................... 35

Appendix B: PCIE and ECIE Membership ......................................................... 36

President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 1

The Inspector General Community

Inspectors General Appointments

Inspectors General are selected on the basis of personal 

integrity and expertise in accounting, auditing, 

financial analysis, law, management analysis, public 

administration, or investigations. The Inspectors 

General serving at Cabinet-level departments and 

major agencies are nominated by the President and 

confirmed by the Senate. They can be removed only 

by the President, who must communicate the reasons 

for any such removal to both Houses of Congress. 

Inspectors General serving at designated federal 

entities and certain federal commissions, independent 

corporations or boards, and special offices are 

appointed by the heads of those entities. They can 

be removed by the entity head, who also must notify 

Congress of the reasons for removal.

Mission and Roles of the 

Inspectors General

OIGs have several critical roles. They identify waste, 

fraud, and abuse in their agencies’ programs and 

recommend actions to address their findings — both 

systemically and on a case-by-case basis. They report 

their findings and accomplishments to their agencies, 

Congress, and the public through reports on specific 

audits, investigations, and evaluations, as well as 

through their semiannual reports. They also promote 

initiatives to improve integrity, accountability, and 

excellence in government. 

Specifically, within their agencies OIGs:

♦ Conduct or oversee audits, investigations, 

inspections, and evaluations of their agencies’ 

programs;

Inspector General Act

The IG Act created Offices of Inspector General (OIG) 

in 12 Cabinet-level departments and agencies. The 

IG Act established the Inspectors General heading 

these offices as Presidentially-appointed, Senateconfirmed officials selected on the basis of their 

professional qualifications. The IG Act consolidated 

each agency’s audit and investigative functions under 

an OIG for that agency. In most cases, these functions 

had been fragmented among the very offices audited 

or investigated. OIGs also received dual reporting 

responsibility — both to the head of their agencies and 

to Congress through a semiannual reporting system. 

Further, the IG Act contains provisions that give OIGs 

operational and administrative independence within 

their agencies. 

OIGs have established their effectiveness and 

contributed to improving economy, accountability, and 

oversight of government management. As a reflection 

of this success, Congress has amended the IG Act 

several times since 1978, progressively broadening 

the authority of the Inspectors General and extending 

the statute to cover more federal agencies. The largest 

single extension was the 1988 amendment that, in 

addition to creating more Presidentially-appointed 

Inspectors General, established OIGs in certain 

independent regulatory agencies and government 

corporations. This latter group of Inspectors General 

has most of the same authorities as the Presidentiallyappointed Inspectors General, but they are appointed 

by their respective agencies. Today, 621

 agencies 

have statutorily-authorized Inspectors General (29 

Presidentially-appointed).

1

 The ECIE recently added five statutory OIGs to its membership. These OIGs are highlighted in Appendix B. Any statistical information from 

these offices will be included in the Annual Report for FY 2007.
2 A Progress Report to the President ▪ Fiscal Year 2006

♦ Review existing or proposed laws and 

regulations to determine their effect on the 

economy, efficiency, and integrity of programs; 

♦ Sponsor or lead initiatives that seek to identify 

systemic means of addressing weaknesses that 

leave federal programs vulnerable to waste, 

fraud, and abuse; and

♦ Inform their agency heads and Congress of 

program-related problems and the progress of 

corrective actions.

The OIGs’ roles and responsibilities include the 

following:

Audits: The IG Act mandates that each OIG be 

responsible for auditing programs and activities of its 

agency and for overseeing and reviewing related audit 

work performed by outside parties. During FY 2006, 

OIGs issued more than 6,000 audit reports. The IG Act 

requires that OIG audits conform to the “Government 

Auditing Standards,” published by the Comptroller 

General of the United States (often referred to as the 

Yellow Book). These standards embody the principle 

that auditors must possess the necessary competence, 

integrity, objectivity, and independence to effectively 

carry out their work. In 2006, the Advisory Council 

on Government Auditing Standards, appointed by the 

Comptroller General, proposed revisions to these standards. These revisions have been provided to interested 

parties for review and comment, and the Government 

Accountability Office anticipates finalizing the auditing 

standards in the spring of 2007. 

Investigations: OIGs are authorized to investigate 

criminal matters and civil or administrative wrongdoing involving their agencies’ programs and operations. 

During FY 2006, OIGs completed more than 24,000 

investigations. The most frequent subjects of OIG 

investigations included benefit recipients, contractors, 

grantees, and federal employees. In 2003, the Homeland Security Act granted statutory law enforcement 

powers to Presidentially-appointed OIGs that, within 

their jurisdiction, are equal to those of other federal law 

enforcement agencies. Exercise of these authorities in 

criminal investigations is subject to Department of Justice guidelines and is coordinated with the Federal 

Bureau of Investigation (FBI) and other law enforcement agencies. Similar to the Yellow Book standards 

for audits, the PCIE and ECIE have developed guidelines for OIG investigations that help ensure their professional quality and integrity. 

Inspections and Evaluations: Although the IG 

Act does not require OIGs to establish inspection 

and evaluation components, the statute provides 

authority for the offices to conduct analytical reviews 

that may be methodologically distinct from audits or 

investigations. Accordingly, many OIGs have created 

inspection and evaluation units to conduct broad 

reviews, program evaluations, and focused inspections 

that analyze the effectiveness of agency activities. 

The PCIE and the ECIE have issued quality standards 

for the conduct and reporting of OIG inspections and 

evaluations. During FY 2006, OIGs issued more than 

500 inspection and evaluation reports. 

OIG Hotlines: Most OIGs operate hotlines that 

receive complaints of fraud, waste, and abuse in their 

respective agencies. Many of the hotlines involve 

dedicated, toll-free telephone lines, the existence 

of which is publicized among agency employees, 

private sector participants in the agency’s programs, 

and the public. Hotlines may receive complaints such 

as allegations of misconduct or mismanagement by 

federal and contractor employees, abuse of authority, 

misuse of federal funds, grant fraud, contract fraud, 

and healthcare fraud. OIG criminal cases and civil or 

administrative actions often are generated by hotline 

complaints. During FY 2006, OIGs processed more 

than 201,000 complaints and allegations received 

through their hotlines. Appendix B at the end of this 

report provides OIG hotline information.

Improving Agency Operations: OIGs are aware of 

the need to maintain independence both in fact and 

appearance within their respective agencies. However, 

they also contribute to initiatives that improve agency 

operations. Most OIGs seek out and incorporate 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 3

the input of agency leadership when developing 

operational and strategic plans. OIGs often participate 

as observers in agency-led projects that address 

critical agency issues. When it does not compromise 

their independence or subsequent ability to evaluate a 

program, OIG personnel also may provide technical 

advice to their agencies on issues such as computer 

security, financial management, agency contracting, 

and law enforcement programs. 

Inspector General Semiannual Reports: The 

IG Act requires that each OIG report to Congress 

semiannually about its activities and accomplishments. 

Semiannual reports have become a centerpiece of 

the OIGs’ dual-reporting responsibilities. The IG Act 

specifies that the reports must be submitted initially 

to the OIG’s agency head, who must transmit them 

with the agency’s management report to Congress. By 

law, the completed reports become publicly available 

once they are sent to Congress. The IG Act establishes 

an extensive array of categories in which information 

must be reported in the semiannual report, such as 

Significant Problems, Abuses, and Deficiencies; 

Matters Referred to Prosecutive Authorities; Refusal 

to Provide Information; and Significant Revised 

Management Decisions.
4 A Progress Report to the President ▪ Fiscal Year 2006

Background and Mission

The PCIE was created by Executive Order (E.O.) 

12301 (March 26, 1981) and later updated and 

expanded by E.O. 12625 in 1988 and E.O. 12805 in 

1992. E.O. 12805 created the ECIE. The mission of 

the PCIE and the ECIE is to: 1) identify, review, and 

discuss areas of weaknesses and vulnerability to fraud, 

waste, and abuse in federal programs and operations; 

2) develop plans for coordinated, government-wide 

activities that address these problems; and 3) promote 

economy and efficiency in federal programs and 

operations.

Leadership

In FY 2006, Clay Johnson, III, Deputy Director 

for Management at the Office of Management and 

Budget (OMB), chaired both the PCIE and the ECIE 

(Councils). 

The vice-chairs of the PCIE and the ECIE are chosen 

by the chair from among the members of the PCIE and 

the ECIE. The vice-chairs provide executive direction 

to their respective councils and manage the day-today Councils’ activities. During FY 2006, Gregory H. 

Friedman, Inspector General, Department of Energy, 

served as vice-chair of the PCIE, and Barry R. Snyder, 

Inspector General, Board of Governors of the Federal 

Reserve System, served as vice-chair of the ECIE. 

An Executive Council — composed of the vice-chairs 

of the PCIE and the ECIE, the chairs of the PCIE committees, and an at-large ECIE member — is the leadership body for the PCIE and the ECIE. The Executive 

Council is responsible for:

♦ Maintaining external relationships and 

communications on behalf of the OIG community;

Overview of the PCIE and the ECIE

♦ Long-term planning and continuity of leadership for 

 the PCIE and the ECIE; and

♦ Compiling and distributing information on common 

 priorities of the PCIE and the ECIE’s membership.

Membership of the PCIE and the ECIE

Inspectors General who are appointed by the President 

subject to Senate confirmation are members of the 

PCIE. Civilian statutory Inspectors General not 

represented on the PCIE (who are appointed by their 

agency head) are members of the ECIE. To facilitate 

policy coordination and collaboration between the 

two groups, the PCIE vice-chair serves as an ex officio 

member of the ECIE, and the ECIE vice-chair is an 

ex officio member of the PCIE.

The following are ex officio members of both the PCIE 

and the ECIE: Controller of OMB’s Office of Federal 

Financial Management, Special Counsel of the Office 

of Special Counsel, Director of the Office of Government Ethics, Deputy Director of Office of Personnel 

Management, and Assistant Director of the FBI’s 

Criminal Investigative Division. 

Appendix B at the end of this report provides a current 

list of all PCIE and ECIE members.

Roles and Activities of the PCIE 

and the ECIE

The PCIE and the ECIE reach across agency 

boundaries to provide government-wide coordination 

of and focus on the activities of the OIGs. Among the 

functions they perform are: 

♦ Providing a forum in which the OIG community 

 discusses government-wide issues and addresses 

 shared concerns;
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 5

♦ Developing uniform standards for conducting audit, 

investigative, and inspection and evaluation 

activities of OIGs;

♦ Sponsoring and operating training programs to 

support the professional and management 

development of OIG auditors, investigators, and 

evaluators; and

♦ Conducting or advocating projects that address 

issues of common concern or interest among OIGs. 

The PCIE and the ECIE are the OIG community’s 

counterparts to similar groups representing other 

federal communities, such as Chief Financial Officers, 

Chief Information Officers, and Federal Acquisition 

Councils. Designated PCIE members regularly attend 

the meetings of these other groups as observers and 

inform PCIE and ECIE membership about relevant 

issues and initiatives.
6 A Progress Report to the President ▪ Fiscal Year 2006

PCIE Committees, Working Groups, 

and Roundtables

FY 2006 activities included:

♦ Government Auditing Standards: The Committee 

 supported the Government Accountability Office 

 (GAO) in its efforts to update the “Government 

 Auditing Standards.” The proposed changes 

 address audit quality assurance, non-audit services, 

internal control deficiencies, financial statement 

 restatements, audit documentation, appropriateness 

 and sufficiency of evidence in a performance 

 audit, and professional requirements. GAO 

 anticipates finalizing the auditing standards in 

 spring 2007. 

♦ FISMA Framework: The Committee approved 

the Federal Information Security Management 

Act (FISMA) framework, which will enhance 

the consistency, comparability, and completeness 

of annual independent evaluations of agencies’ 

information security programs and practices. The 

FISMA framework provides individual OIGs 

with the flexibility to implement a program that is 

appropriate to the size and complexity of its agency. 

The framework is available on the Inspectors 

General website at 

www.ignet.gov/pande/audit1.html#guide.

♦ Inspector General Auditor Training Institute: 

The Committee oversees IGATI to ensure that it 

provides quality training to meet the needs of the 

OIG audit community. In FY 2006, IGATI offered 

67 training sessions to more than 1,200 students. 

♦ National Single Audit Sampling Project: The 

Committee is leading a joint effort by the OIGs and 

independent auditors to review the quality of audits 

performed under the Single Audit Act. During 

 FY 2006, the group completed quality control 

 reviews on 208 randomly selected audits. The final 

report will be issued in FY 2007.

In FY 2006, the PCIE and the ECIE maintained six 

standing committees that provide leadership for 

activities in their respective areas and coordinated 

much of the project-related work conducted under 

the Councils’ auspices. The membership of these 

committees is composed of PCIE and ECIE OIGs. The 

committee chairs are selected by the PCIE membership 

through periodic elections.

Several of the committees have established working 

groups with a broader membership to discuss policy 

matters and to conduct specific projects under the 

committee’s leadership. In addition, several forums 

and roundtables affiliated with the Councils address 

specialized issues of widespread interest within the 

OIG community that do not fit readily within the 

committee structure. 

The following section highlights the FY 2006 activities 

of the committees and their affiliated groups. Some of 

these activities represent the continuation or completion 

of work initiated in prior years.

COMMITTEES

Audit Committee

The Audit Committee provides leadership to and 

serves as a resource for the federal audit community. 

The Committee sponsors and coordinates audits that 

address multi-agency or government-wide issues, 

develops and maintains professional standards for 

OIG audit activities, and provides oversight for the 

Inspector General Auditor Training Institute (IGATI). 

The Committee works closely with the Federal 

Audit Executive Council and other professional 

organizations. John P. Higgins, Jr., Inspector General, 

Department of Education (ED), chairs the Committee. 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 7

Federal Audit Executive Council

The Federal Audit Executive Council (FAEC) discusses 

and coordinates issues affecting the federal audit community with special emphasis on audit policy and 

operations of common interest to FAEC members. 

FAEC is composed of senior audit officials from the 

PCIE and the ECIE. Helen Lew, Assistant Inspector 

General for Audit, ED, chairs the Council. Highlights 

for FY 2006 included:

♦ Peer Review Training: FAEC provided a half-day 

training on the “PCIE/ECIE’s Guide for Conducting 

External Peer Reviews of the Audit Operations of 

Offices of Inspector General.” Participants earned 

 4 hours of continuing professional education.

♦ IGATI Curriculum Review Board: FAEC 

created the IGATI Curriculum Review Board to 

ensure that classes offered by IGATI meet the 

audit community’s training needs. At least once 

every 3 years, the Board evaluates all classes and 

recommends ways to improve them. In 2006, the 

Board evaluated 11 classes. 

♦ Financial Statement Audit Network: The Financial Statement Audit Network, a subgroup of FAEC, 

organized and hosted the fourth annual GAO/PCIE 

Roundtable. More than 200 participants attended the 

event, which included speakers from the Department 

of Justice (DOJ), Office of Management and Budget 

(OMB), GAO, Federal Accounting Standards 

 Advisory Board, and Chief Financial Officer and 

OIG communities. The Network also worked with 

OMB to update Bulletin No. 06-03, “Audit Requirements for Federal Financial Statements.” 

♦ Annual Conference: FAEC hosted its annual 

conference in Charlottesville, Virginia. Speakers 

throughout the federal government discussed a 

wide range of topics affecting the OIG community, 

including Hurricane Katrina, information security, 

cyber crimes, emerging human resource issues, 

generally accepted government auditing standards, 

congressional initiatives, legal matters, the OIG 

institutes, and pay-for-performance. More than 

100 participants earned 14 hours of continuing 

professional education.

Investigations Committee

The Investigations Committee is responsible for 

advising the OIG community on issues involving 

investigative functions, establishing OIG investigative 

guidelines, and promoting best practices among OIG 

investigators. During FY 2006, the Committee was 

chaired by Patrick P. O’Carroll, Jr., Inspector General, 

Social Security Administration (SSA). FY 2006 

activities included:

♦ IG Criminal Investigator Academy: The 

Committee oversees the IG Criminal Investigator 

Academy (IGCIA), which provides quality and 

cost-effective training for the OIG investigative 

community. As part of this effort, the Committee has 

pursued the establishment of a solid business model 

and funding mechanism for IGCIA and the creation 

of a permanent curriculum review group to review 

and refine IGCIA’s basic training programs.

♦ Revision of the Peer Review Guide: The 

Committee revised the “Investigation Peer Review 

Guide,” which outlines standards and guidance for 

conducting Quality Assessment Reviews of OIG 

investigative operations. These independent external 

reviews ensure that general and qualitative standards 

adopted by individual OIGs comply with PCIE 

requirements.

♦ Best Practices: The Committee identified “best 

practices” within the OIG investigations community 

to make them readily available to all OIGs for 

reference and use. Some of the identified best 

practices involved management development 

programs, evidence handling procedures, training 

systems, and case progress review guides.

♦ National Procurement Fraud Task Force: The 

Department of Justice (DOJ) established the 

National Procurement Fraud Task Force to promote 

the prevention, early detection, and prosecution 

of procurement fraud. The Committee coordinates 

the work of the OIGs, DOJ, FBI, and other law 

enforcement agencies on the Task Force. OIGs chair 

and participate on substantive subcommittees of the 

Task Force in areas such as information sharing, 

grant fraud, legislation, and private sector relations. 
8 A Progress Report to the President ▪ Fiscal Year 2006

Inspection and Evaluation Committee

The Inspection and Evaluation (I&E) Committee 

coordinates and shares effective practices among the 

OIGs that have I&E components. The Committee 

also coordinates joint I&E projects and identifies 

opportunities for training to sharpen the analytic and 

administrative skills of OIG inspectors and evaluators. 

The Committee is supported by the I&E Roundtable, 

composed of the assistant Inspectors General or heads 

of inspection and evaluation units within the OIGs. 

During FY 2006, the Committee was chaired by 

Johnnie E. Frazier, Inspector General, Department of 

Commerce (DOC). FY 2006 activities included the 

following:

♦ IG’s Guide to Evaluating Agency Emergency 

 Preparedness: The Committee recently issued 

“An IG’s Guide to Evaluating Agency Emergency 

Preparedness,” which highlights federal laws, regulations, guidance, checklists and resources, and best 

practices related to OIG reviews of agencies’ emergency preparedness. This guide represents the collaborative expertise of 17 OIGs that conducted work 

in this critical area.

♦ Federal Employees’ Compensation Act Project: 

Through the I&E and Audit Committees, the 

Departments of Commerce and Labor (DOL) OIGs 

are leading efforts to coordinate Federal Employees’ 

Compensation Act (FECA) audits, inspections, 

evaluations, and investigations. Initial results include 

a half-day symposium presented in March 2006 

entitled “FECA Program: Building a Coordinated 

Approach to FECA-Related Work,” and issuance of 

a FECA Protocol, effective July 1, 2006, to provide 

a more coordinated approach for conducting FECArelated OIG activities. The protocol is available on 

the Internet at www.oig.dol.gov/fecasymposium.

htm. Other OIGs also have begun or completed 

reviews of the workers’ compensation program in 

their agencies.

♦ I&E Training: The Committee has been seeking 

alternative ways to help meet the training needs of 

the I&E community. In FY 2006, the Committee 

 1) identified a number of courses that are of 

particular interest to I&E offices, 2) continued to 

facilitate course development, and 3) explored a 

number of innovative approaches to better leverage 

limited training resources.

♦ I&E Community Outreach: The Committee 

assisted federal, state, local, and international OIGs 

with their efforts to establish or expand I&E units. 

Human Resources Committee

The Human Resources Committee seeks opportunities 

to improve training methods, enhance the development 

and professionalism of OIG staff, and establish 

training to meet continuing educational requirements. 

During FY 2006, Earl E. Devaney, Inspector General, 

Department of Interior (DOI), assumed the Committee 

chair. FY 2006 activities included the following:

♦ Inspector General E-Learning: Inspector General 

E-Learning (IGEL) is the PCIE/ECIE online learning 

initiative that provides continuing professional 

development to members of the OIG community. 

IGEL was recognized at the Perspectives Conference 

(an international conference sponsored by the 

e-learning vendor) as the first government-wide 

e-government learning initiative with structured 

programs. During FY 2006, IGEL learning programs 

were developed for key occupations within the OIG 

community and organized around a new career 

development model that identifies competencies 

in leadership, management, team skills, and 

occupational mastery. 

♦ Leadership Development Academy: In partnership 

with the Federal Executive Institute, the Leadership 

Development Academy was developed to provide 

leadership training in the OIG community. The 

 training addresses many of the PCIE core competencies in leadership, management, and team skills 

 and addresses all Senior Executive Service Core 

Qualifications. 

♦ Inspector General Training Institutes: The Committee worked with both the Audit and Investigations 

Committees to rebuild the institutes for investigations, audit, and leadership and management. SSA 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 9

OIG developed training for investigators, the 

 Department of the Treasury OIG developed training 

for auditors, and DOI OIG established leadership 

and management training.

Legislation Committee

The Legislation Committee serves as the central coordinating point for legislative issues affecting the OIG 

community. Using newsletters and legislative tracking 

systems, the Committee keeps the OIGs informed on 

significant legislation and policy issues within the 

Legislative and Executive branches. During FY 2006, 

the Committee was chaired by J. Russell George, 

Inspector General, Treasury Inspector General for 

Tax Administration. FY 2006 activities included the 

following:

♦ Reviewing Legislation: The Committee reviewed 

the status of numerous bills introduced in Congress 

that would affect OIG authorities or reporting 

requirements. In addition, the Committee reviewed 

and reported on the status of bills introduced in the 

aftermath of Hurricane Katrina that would have 

impacted the OIG community.

♦ Examining the Improving Government 

Accountability Act: The Committee played an 

integral role in coordinating PCIE and ECIE efforts 

to assist Congress in its examination of proposed 

legislation, including H.R. 2489, the Improving 

Government Accountability Act, which focused 

on OIG authorities and operations. At the request 

of the Senate Committee on Homeland Security 

and Governmental Affairs, the Committee worked 

closely with GAO to review the provisions of 

 H.R. 2489. 

Integrity Committee

The Integrity Committee receives and reviews 

allegations of non-criminal misconduct by Inspectors 

General and certain senior members of their staff. The 

Committee ensures that complaints against Inspectors 

General receive a thorough and timely review, and, 

where appropriate, that the cases are investigated. The 

Committee consists of the Director of the Office of 

Government Ethics; Special Counsel of the United 

States; Inspectors General from the Office of Personnel 

and Management, DOI, and Securities and Exchange 

Commission; and the Assistant Director of the FBI’s 

Criminal Investigative Division. During FY 2006, the 

Committee was chaired by James H. Burrus, Assistant 

Director, Criminal Investigative Division, FBI.

During FY 2006, the Committee received and reviewed 

36 new allegations, initiated 2 investigations, and 

closed 25 cases, some of which had been received 

during prior years. The most common allegations 

included failure to investigate, faulty investigations, 

abuse of authority, mismanagement, lack of 

professionalism, misuse of government resources, 

impartiality, travel abuse, and prohibitive personnel 

practices. Of the closed cases, 15 were deemed to be 

outside the Committee’s purview and were referred 

elsewhere for consideration, 8 were determined to 

be unsubstantiated, and 2 resulted in administrative 

closure. The cases remaining at the end of the reporting 

period were in various stages of the Committee’s 

process. 

WORKING GROUPS AND ROUNDTABLES

Information Technology Roundtable and 

Advisory Council

The Information Technology (IT) Roundtable provides a forum for PCIE and ECIE members to share 

knowledge, methods, and techniques to improve the 

effectiveness of their audit, investigative, inspection, 

and evaluation activities and develop a common perspective on the OIG community’s role in governmentwide IT operations. Because the Roundtable has been 

called on at an ever-increasing rate to assess, opine, 

or recommend actions related to IT issues, a smaller, 

more focused group, the PCIE IT Roundtable Advisory 

Council (Advisory Council), was created to plan for 

and respond to more detailed requests from OIGs. The 

Advisory Council includes representatives from each 

OIG discipline (audit, inspections, and investigations), 

Chief Information Officers Council, and the Informa-
10 A Progress Report to the President ▪ Fiscal Year 2006

tion Security and Privacy Advisory Board. During 

FY 2006, both the IT Roundtable and Advisory Council 

were chaired by John P. Higgins, Jr., Inspector General, 

ED. FY 2006 activities included the following:

♦ IT Forums: The IT Roundtable hosted a number of 

events that included cross-disciplinary presentations, 

including collaborating with DOJ to host the Cyber 

Summit, which explored cyber security issues that 

affect the OIG community. The Roundtable also 

hosted the OIG Data-Mining Symposium 2006, 

which showcased proactive data-mining techniques 

to identify fraud, management control weaknesses, 

and systemic trends.

♦ Quality Standards for Investigations: The 

IT Roundtable established a working group 

to strengthen the OIG community’s computer 

forensics practices and ensure that existing Quality 

Standards for Investigations are met. The working 

group developed computer forensics questions 

for inclusion in the OIG Qualitative Assessment 

Review process. This peer review process then 

can assess OIG computer forensics programs and 

capabilities based on existing Quality Standards for 

Investigations. 

♦ Protecting Sensitive Information: The IT 

Roundtable published “Federal Agencies’ Efforts to 

Protect Sensitive Information, A Report to the Office 

of Management and Budget,” on behalf of the PCIE 

and the ECIE. The report consolidated FY 2006 

OIG assessments of their respective departments’ 

and agencies’ status in meeting the requirements 

of OMB Memorandum M-06-16, “Protection of 

Sensitive Agency Information.” 

Homeland Security Roundtable

In June 2005, the PCIE and ECIE established the 

Homeland Security Roundtable. The Roundtable 

supports the OIG community’s efforts to keep the 

nation safe by sharing information, identifying 

best practices, and working with other government 

entities and external organizations. During FY 2006, 

the Homeland Security Roundtable was chaired by 

Richard L. Skinner, Inspector General, Department of 

Homeland Security (DHS).

Shortly after the Roundtable’s first meeting in July 2005, 

Hurricane Katrina struck the Gulf Coast. The Roundtable 

became the natural vehicle to coordinate the OIGs’

hurricane recovery oversight, and subsequent efforts 

were made to review disaster assistance programs. One 

year after three major hurricanes swept through the Gulf 

States in 2005, record amounts of federal funds have 

been made available for recovery — $87.75 billion as 

of September 30, 2006. Ongoing oversight of this 

massive recovery effort by the OIGs continues to 

provide valuable lessons for future recovery efforts. As 

of September 30, 2006, OIGs from 22 departments and 

agencies have committed 480 full-time personnel to 

recovery oversight and have coordinated their efforts 

through the Roundtable.

At the end of FY 2006, the Roundtable initiated efforts 

to focus on its original intent: coordinating efforts 

to review the performance of agency programs and 

operations that impact homeland security. The disaster 

assistance efforts continue under the Roundtable’s 

Disaster Assistance Working Group, which is chaired 

by Matt Jadacki, Deputy Inspector General for Disaster 

Assistance Oversight, DHS OIG. 

Misconduct in Research Working Group 

The Misconduct in Research Working Group was 

formed in response to the Office of Science and 

Technology Policy’s proposed federal policy on 

Research Misconduct to Protect the Integrity of 

the Research Record, and provides an OIG forum 

comprising agencies that fund research. The Working 

Group leads federal OIGs in addressing the problems 

of research misconduct through the dissemination 

of effective investigative policies and practices. In 

addition, the Working Group seeks to ensure that 

international research efforts conform to the highest 

research standards and advocates for the development 

of uniform techniques for investigating allegations of 

research misconduct. During FY 2006, the Working 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 11

Group was chaired by Christine C. Boesz, Inspector 

General, National Science Foundation. 

In FY 2006, the Working Group provided guidance 

to member OIGs on: 1) effective auditing of 

agency implementation of the Office of Science and 

Technology Policy’s proposed federal policy, 2) the 

development of new Misconduct in Research policies, 

3) the adoption of compliance elements in the federal 

organizational sentencing guidelines, 4) an assessment 

of research misconduct cases for indications of fraud, 

and 5) the utility and use of software for detecting 

plagiarism.
12 A Progress Report to the President ▪ Fiscal Year 2006

OIG Dollar Savings and Criminal Prosecutions

total accomplishments also include results associated 

with audits performed by the Defense Contract Audit 

Agency (DCAA) under agreements with OIGs and 

agencies. Due to reporting processes, the results 

of audits performed by DCAA and corresponding 

management decisions may be reported by more than 

one OIG.

Recommendations that Funds be Put to 

Better Use

The IG Act defines a recommendation that funds be put 

to better use as follows:

a recommendation by the Office [of Inspector General] that funds could be used more efficiently if management of an establishment took actions to implement 

and complete the recommendation, including (1) 

reductions in outlays; (2) de-obligation of funds 

from programs or operations; (3) withdrawal of 

interest subsidy costs on loans or loan guarantees, insurance, or bonds; (4) costs not incurred 

by implementing recommended improvements related to the operations of the establishment, a 

contractor, or grantee; (5) avoidance of unnecessary expenditures noted in pre-award reviews 

of contractor or grant agreements; or (6) any 

other savings which are specifically identified.

The information on the following pages has been compiled from data reported by members of the OIG community. Taken together, these statistics offer an objective measure of the collective, government-wide impact 

of OIGs. We have placed these productivity indicators 

in an overall context by providing a 5-year running total 

for each reporting category.

To streamline the report, we are listing a combined 

PCIE and ECIE number for each category. The statistical performance of an individual OIG can be found in 

its semiannual reports, which are available on its website. (Links to individual OIG websites are located in 

Appendix B.) The data in this section generally correspond to equivalent categories in individual OIGs’ semiannual reports. However, due to data limitations, OIG 

reporting practices, and the way this report analyzes 

results generated by cooperative or interagency projects, 

some variations exist between the summary data and the 

collective totals of OIGs’ semiannual reports.

Audit-Related Accomplishments

Section 5 of the IG Act establishes a uniform set of 

statistical categories under which OIGs must report 

the results of their audit activities. The categories 

below correspond to the IG Act’s categories. The 

Recommendations that Funds be Put to Better Use

Reporting Year

Recommendations that Funds 

be Put to Better Use

Amount of Recommendations 

Agreed to by Management1

FY 2002 $ 15,153,564,400 $ 64,899,592,469

FY 2003 26,458,286,927 11,334,893,561

FY 2004 14,938,468,879 12,503,502,362

FY 2005 13,851,596,950 15,708,882,069

FY 2006 16,434,386,326 9,982,235,555

FYs 2002-2006 $ 86,836,303,482 $ 114,429,106,016

1 The amounts in this column may exceed the amounts in the preceding column because either management agreed to a higher dollar amount 

than an OIG recommended or it includes recommendations issued in previous reporting periods that were accepted in the current fiscal year.

 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 13

 

Questioned Costs

The IG Act defines a questioned cost as:

a cost that is questioned by the Office [of 

Inspector General] 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. 

Financial Statements

OIGs closely monitor government financial 

management through audits of financial statements 

Questioned Costs

Reporting Year

Amount of 

Questioned Costs

Amount of Recommendations

Agreed to by Management1

FY 2002 $ 3,007,702,351 $ 2,419,882,927

FY 2003 3,112,677,749 1,989,689,586

FY 2004 4,429,644,538 2,063,504,412

FY 2005 4,353,684,456 4,458,011,519

FY 2006 5,334,641,555 3,955,711,372

FYs 2002-2006 $ 20,238,350,649 $ 14,886,799,816

1 The amounts in this column may exceed the amounts in the preceding column because either management agreed to a higher dollar amount 

than an OIG recommended or it includes recommendations issued in previous reporting periods that were accepted in the current fiscal year.

required by the Chief Financial Officers Act (CFO Act) 

and the Accountability of Tax Dollars Act (ATD Act), 

which mandates that OIGs conduct financial statement 

audits for the 24 CFO agencies and 75 ATD agencies. 

Twenty-three PCIE agencies and 1 ECIE agency make 

up the 24 CFO agencies, and 20 ECIE and 2 PCIE 

agencies are included in the ATD agencies. The positive 

trends related to these audits include:

♦ Between FYs 1996 and 2006, unqualified audit 

opinions for the 24 CFO Act agencies rose from 

 6 to 18. 

♦ From FYs 2001 to 2006, audit-reported material 

weaknesses decreased from 57 to 41. 

♦ For the second straight year, every major federal 

agency issued their audited financial statements on 

November 15, 2006, just 45 days after the end of 

 FY 2006.
14 A Progress Report to the President ▪ Fiscal Year 2006

Investigations-Related Accomplishments

The categories used in this report reflect the broad 

range of accomplishments generated by the OIGs’ 

investigative components. Unlike the specific 

reporting categories for audit reports, the IG Act did 

not create a uniform system for recording the results 

of investigative activities. The OIGs, though, have 

developed a relatively uniform set of performance 

indicators for their semiannual reports that include 

most of the data presented in this section. 

Indictments and Criminal Informations

The totals reported in this category include criminal 

indictments and informations filed in federal, state, 

local, or foreign courts or under the Uniform Code of 

Military Justice, resulting from cases in which an OIG 

had an active investigative role.

Indictments and Criminal Informations

Reporting 

Year

OIG 

Investigations

Joint OIG 

Investigations Total

FY 2002 5,262 507 5,769

FY 2003 6,010 816 6,826

FY 2004 5,583 648 6,231

FY 2005 5,676 1,171 6,847

FY 2006 5,686 828 6,514

FYs 2002-

2006 28,217 3,970 32,187

Investigative work often involves several law 

enforcement agencies working the same case. OIGs 

typically conduct cases with other OIGs, federal 

law enforcement agencies, and state or local law 

enforcement entities. These investigative statistics have 

been compiled using a methodology that attempted 

to eliminate duplicate reporting by multiple OIGs. 

Therefore, these consolidated statistics differ from 

the collective totals for the equivalent categories in 

individual OIG semiannual reports. The joint OIG 

investigations statistics include investigations that are 

worked jointly with other federal OIGs. 

Criminal Prosecutions

A prosecution is included in this chart when, as the 

result of OIG activities, its subject is convicted in 

federal, state, local, or foreign government venues, 

under the Uniform Code of Military Justice, or is 

accepted for a pretrial diversion agreement by the 

Department of Justice. 

Criminal Prosecutions

Reporting 

Year

OIG 

Investigations

Joint OIG 

Investigations Total

FY 2002 10,459 231 10,690

FY 2003 6,051 557 6,608

FY 2004 5,928 547 6,475

FY 2005 6,626 1,077 7,703

FY 2006 7,370 1,040 8,410

FYs 2002-

2006 36,434 3,452 39,886
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 15

Successful Civil Actions

This table includes civil actions successfully resolved 

in matters arising from OIG investigations, audits, 

inspections and evaluations through legal or legalrelated actions other than criminal prosecution. They 

include:

♦ Civil judgments or forfeitures in favor of the United 

States in federal, state, local, or foreign government 

legal systems;

♦ Settlements negotiated by a governmental authority 

prior to or following the filing of a formal civil 

complaint; and

♦ Settlements or agreements in cases governed by the 

Program Fraud Civil Remedies Act or other agencyspecific civil litigation authority.

Successful Civil Actions

Reporting 

Year

OIG 

Investigations

Joint OIG 

Investigations Total

FY 2002 567 6 573

FY 2003 598 55 653

FY 2004 549 45 594

FY 2005 453 98 551

FY 2006 839 108 947

FYs 2002-

2006 3,006 312 3,318

 

Suspensions and Debarments

Suspension and debarment actions include proceedings 

by federal agencies to suspend, debar, or exclude 

parties from contracts, grants, loans, and other forms 

of financial or non-financial transactions with the 

government based on findings produced by the OIGs. 

Suspensions and Debarments

Reporting 

Year

OIG 

Investigations

Joint OIG 

Investigations Total

FY 2002 7,668 16 7,684

FY 2003 7,510 97 7,607

FY 2004 4,891 154 5,045

FY 2005 9,715 203 9,918

FY 2006 7,125 138 7,263

FYs 2002-

2006 36,909 608 37,517

 

 

Personnel Actions

Personnel actions include reprimands, suspensions, 

demotions, or terminations of federal, state, or local 

government employees, or of federal contractors and 

grantees, as the result of OIG activities.

Personnel Actions

Reporting 

Year

OIG 

Investigations

Joint OIG 

Investigations Total

FY 2002 1,622 2 1,624

FY 2003 1,988 11 1,999

FY 2004 1,954 35 1,989

FY 2005 2,686 133 2,819

FY 2006 4,092 82 4,174

FYs 2002-

2006 12,342 263 12,605
16 A Progress Report to the President ▪ Fiscal Year 2006

 

 

Investigative Receivables and Recoveries

Investigative receivables and recoveries reflect the total 

dollar value of the following matters:

♦ Criminal cases: The amount of restitution, criminal 

fines, and special assessments resulting from 

successful criminal prosecutions in cases where an 

OIG had an active investigative role.

♦ Civil cases: The amount of damages, penalties, 

settlements, and forfeitures resulting from successful 

civil actions during the reporting period that were 

based on OIG activities.

♦ Voluntary repayments: The amount paid 

voluntarily, or as the result of an agency’s 

administrative processes, by the subject of an 

investigation in which an OIG has an active role, 

or the value of government property recovered 

by an OIG during such an investigation before 

prosecutorial action is taken.

Joint Investigations with Other Federal 

Investigative Offices

This category reflects the percentage of investigations 

in which OIGs had an active investigative role with 

other federal investigative organizations (not including 

other OIGs). 

In FY 2006, 26 of the 29 PCIE OIGs reported 

conducting joint investigations. Of these, 8 OIGs 

indicated that 10 percent or fewer of their cases were 

joint, 16 stated that joint cases comprised between 

10 to 50 percent of their investigations, and 2 OIGs 

conducted more than 50 percent of their cases jointly. 

The highest portion of joint cases reported by a PCIE 

OIG was 61 percent. 

Among the ECIE OIGs, 10 of 28 offices reported 

conducting joint cases, compared with 5 in the prior 

year. Of the 10 offices that reported conducting joint 

cases, 5 indicated that 10 percent or fewer of their 

cases were joint, 4 stated that joint cases comprised 

between 10 to 50 percent of their investigations, and 

1 conducted 100 percent of its cases jointly.

Investigative Receivables and Recoveries

Reporting Year OIG Investigations Joint OIG 

Investigations Total

FY 2002 $ 4,608,962,268 $ 16,177,145 $ 4,625,139,413

FY 2003 3,264,413,948 1,203,628,314 4,468,042,262

FY 2004 2,587,322,748 895,715,469 3,483,038,217

FY 2005 2,777,558,301 1,483,062,002 4,260,620,303

FY 2006 3,348,177,094 3,434,571,754 6,782,748,848

FYs 2002-2006 $ 16,586,434,359 $ 7,033,154,684 $ 23,619,589,043
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 17

The Reports Consolidation Act of 2000 requires the 

Inspector General of each federal agency to describe 

the most serious management and performance 

challenges facing their agency. The Act also 

requires that OIGs assess their agency’s progress 

in addressing these challenges. Annually, the PCIE 

and ECIE identify and report the top management 

challenges in our Annual Report to the President. The 

identified challenges highlight high-risk activities and 

performance issues that impact agency operations or 

strategic goals. The challenges may require immediate 

management attention and may result in the loss of 

billions of taxpayer funds if not remedied. 

Top Management Challenges Facing Our Nation

During FY 2006, the OIG community identified 

six challenges as the most significant management 

challenges facing their agencies: 1) Homeland 

Security and Disaster Preparedness, 2) Information 

Technology Management and Security, 3) Financial 

Management and Performance, 4) Human Capital 

Management, 5) Performance Management and 

Accountability, and 6) Procurement and Grant 

Management. The FY 2006 challenges closely parallel 

the President’s Management Agenda (PMA) and 

Government Accountability Office’s (GAO) “HighRisk” list. 
18 A Progress Report to the President ▪ Fiscal Year 2006

Agency Management Challenges Most Frequently 

Identified by OIGs as of January 2007

AGENCY

HOMELAND

SECURITY/ 

DISASTER

PREPAREDNESS

INFORMATION

TECHNOLOGY

MANAGEMENT

AND SECURITY

FINANCIAL

MANAGEMENT

AND

PERFORMANCE

HUMAN CAPITAL

MANAGEMENT

PERFORMANCE

MANAGEMENT

AND 

ACCOUNTABILITY

PROCUREMENT

AND GRANT

MANAGEMENT

ARC X X

CFTC X

CNCS X X X X X

CPSC X X X

DHS X X X X X X

DOC X X X X X

DOD X X X X X

DOE X X X X

DOI X X X

DOJ X X X X

DOL X X X X X

DOS X X X X

DOT X X X X X

ED X X X X X

EEOC X

EPA X X X X X

FCA X X X

FCC X X X

FDIC X X X X

FEC X X

FHFB X

FLRA X X X X

FMC X X

FTC X

GSA X X X X

HHS X X X X

HUD X X

ITC X X

LSC X X X X

NASA X X X X X

NEA X X X

NEH X X X X

NLRB X X X X

NRC X X X

NSF X X X X X

OPM X X X X

PBGC X X X X

Peace Corps X X X X X

RRB X X

SBA X X X X

SEC X X X

SSA X X X X X

TIGTA X X X X X

Treasury X X X

USAID X X X X X

USDA X X X

USPS X X

VA X X X
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 19

The following summarizes the management challenges 

and the results of OIG reviews.

Homeland Security and Disaster 

Preparedness 

One of the most critical challenges facing the federal 

government is combating terrorism. In this regard, 

federal agencies, individually and collectively, 

have implemented numerous initiatives focusing 

on potential terrorist threats. Initiatives underway 

include border security, transportation security, 

identity theft protection, limiting bioterrorism threats, 

export controls and nonproliferation of weapons 

of mass destruction, and infrastructure protection. 

OIG reviews have focused on these critical areas, 

identified vulnerabilities, and provided important 

recommendations for corrective action. 

Information Technology Management and 

Security

The federal government relies on approximately 11,000 

information systems to manage its programs and operations and carry out its critical missions. In FY 2006, the 

federal IT budget totaled $63.4 billion. Over $4 billion 

of the federal agencies’ IT budget was for securityrelated programs. Since 2000, the PCIE has identified 

IT as a significant management challenge for federal 

agencies, and IT currently is the primary challenge at 

a number of agencies. OIG work has identified the following common IT challenges: lack of management 

controls, insufficient planning and oversight, lack of 

certification and accreditations of information systems, 

and inadequate technical controls. OIG reviews also 

identified vulnerabilities in handling personally identifiable information or classified data. In addition, OIG 

reviews have found problems with limited operational 

controls that have resulted in failed IT projects costing 

hundreds of millions of taxpayer dollars. 

Federal agencies have implemented various actions to 

address the concerns identified. However, the federal 

government needs to continue to strengthen its IT 

investment controls and enhance its computer security 

to ensure that current and future IT systems are not 

compromised. 

Financial Management and Performance

Federal agencies continue to face challenges 

providing timely, accurate, and useful financial 

information and managing for results. While agencies 

are making significant progress issuing audited 

financial statements in a timely manner and receiving 

unqualified opinions on these financial statements, 

attaining a clean opinion alone does not necessarily 

equate to reliable and sound financial operations. For 

example, agencies continue to address erroneous and 

improper payments, and OIGs remain committed to 

recommending possible solutions and sharing best 

practices to help their agencies correct the underlying 

causes. Taking systematic and proactive measures to 

develop and implement appropriate, cost-effective 

internal controls was a continuing management 

challenge in FY 2006. In addition, better budget 

and performance integration has become even more 

critical for results-oriented management and efficient 

allocation of scarce resources among competing needs. 

The OIG community remains committed to helping 

improve financial audits and has been working with 

the Office of Management and Budget to develop 

processes and procedures to ensure timely audit 

opinions, help agencies produce useful financial 

information, and improve agency financial and internal 

control systems. 

Human Capital Management

Ensuring a competent, well-trained, and motivated 

workforce remains a critical challenge across 

government. In fact, strategic management of human 

capital was the first of five initiatives in the PMA 

and was included on GAO’s government-wide “High 

Risk” list. The human capital challenge continues to 

intensify as employees in key positions increasingly 

become eligible to retire, are lost through attrition, or 

migrate to other business opportunities. OIG audits 

and evaluations have assessed areas such as recruiting, 

workforce planning, delivery of training, and employee 
20 A Progress Report to the President ▪ Fiscal Year 2006

turnover. This work has resulted in constructive 

recommendations aimed at helping agencies address 

their human capital issues through workforce skills 

and competency assessments, workforce restructuring, 

benchmarking against other federal or private sector 

organizations, innovative recruitment and hiring 

approaches, improved training opportunities and 

techniques, and adoption of appropriate workplace 

tools. 

Performance Management and 

Accountability 

The Government Performance and Results Act (GPRA) 

of 1993 and the PMA call for reliable performance data 

in order for agencies to make informed decisions and 

achieve the maximum public benefit. The PMA’s five 

areas of management weaknesses across government 

are: 1) Strategic Management of Human Capital, 

2) Competitive Sourcing, 3) Improved Financial 

Management, 4) Expanded Electronic Government 

(E-Gov), and 5) Budget and Performance Integration. 

PMA also requires agencies to establish and measure 

the results-oriented goals through the Program 

Assessment Rating Tool initiative, which assesses the 

strengths and weaknesses of the various programs. 

OIG reviews found that performance measures were 

ambiguous or not quantifiable, and in some instances, 

there was no correlation between the measured 

activities and the agencies’ actions. OIGs also found 

that agencies had insufficient management controls 

and procedures in place to validate performance. As a 

result, OIGs have made recommendations to strengthen 

these controls and procedures in order to validate 

performance. 

Procurement and Grant Management

Procurement, contracts, and grants historically have 

been areas subject to fraud and waste throughout 

the government, and effectively managing them is 

a continuing challenge. As we have reported over 

the years, audits and investigations across the OIG 

community continue to uncover lax contractor 

oversight in federal procurements. A significant 

portion of the OIG-reported questioned costs and 

recommendations that funds be put to better use are 

the result of poor contractor oversight and fraudulent 

billing schemes. Additionally, OIG investigative work 

continues to confirm the vulnerability of programs 

to general contract fraud and embezzlement and has 

resulted in the recovery of billions of dollars. 

Grant management oversight also warrants continued 

emphasis. For example, audits of grants at one agency 

revealed a potential savings of $1.6 million. Recent 

audits at a number of federal agencies also have 

highlighted concerns with interagency procurement 

services performed through fee-for-service 

organizations. Finally, the government continues to 

emphasize the competitive sourcing initiative, which 

fosters competition between federal and private 

sources for certain tasks that are readily available 

in the commercial marketplace. With this emphasis 

on “market-based” government, as well as the need 

for stronger contract and grant oversight, the OIGs’ 

independent assessment of agency contracting activities 

and infrastructure takes on added importance. 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 21

A Compendium of OIG Activities in FY 2006

Examples of OIG audits, investigations, and inspections 

and evaluations presented in the following sections are 

grouped by four categories:

♦ OIGs Help Protect the Nation Against Terrorism

♦ OIGs Detect and Deter Waste, Fraud, and Abuse

♦ OIGs Improve the Efficiency and Effectiveness of 

Government Programs

♦ Joint OIG Projects

OIGs play a critical role in ensuring the accountability 

of government agencies by conducting audits, 

investigations, and evaluations. This compendium 

includes only a small sample of the work OIGs have 

completed during this reporting period. It focuses on 

issues that reflect the current priorities of the federal 

government and the OIG community. Additional 

information regarding the performance of individual 

OIGs is published in their semiannual reports, which 

are available on the individual websites. (Links to 

individual OIG websites are located in Appendix B.) 
22 A Progress Report to the President ▪ Fiscal Year 2006

OIGs Help Protect the Nation Against Terrorism

Since the terrorism attacks against the United States 

on September 11, 2001, the federal government 

has implemented or strengthened various programs 

designed to protect the nation and its assets and 

operations. These programs cover a wide range of 

areas and activities, including transportation safety, 

emergency management, bioterrorism threats, export 

controls, and infrastructure protection. In 2006, OIGs 

issued more than 130 audits and reviews that focused 

on helping improve the programs and operations that 

protect the nation against terrorism and helping ensure 

they have appropriate controls in place, are effectively 

and efficiently managed, and are accountable for their 

results. Below are examples of work performed by 

the OIG community to help protect the nation against 

terrorism.

The Department of Homeland Security (DHS) 

OIG reviewed DHS’s Homeland Security Information 

Network, a computer-based counterterrorism 

communications system connecting all 50 states, 

5 territories, Washington, D.C., and 53 major urban 

areas. The OIG determined that the Network is 

not effective for allowing federal, state, and local 

governments to securely share information on 

suspicious activities and terrorism threats. The OIG 

recommended that DHS clarify and communicate 

the Network’s mission, define the intelligence data 

flow model for the Network, provide procedures 

and training, and identify performance metrics 

for measuring its effectiveness. In response to the 

OIG’s recommendations, DHS developed a strategic 

framework, including an approach for mapping the 

Network’s capabilities to DHS’s strategic plan, and 

established an implementation plan that includes 

providing users with Network training, technical 

support materials, and increased involvement in 

defining requirements. 

The Department of Energy (DOE) OIG reviewed 

the National Nuclear Security Administration’s Design 

Basis Threat (DBT) analysis. DBT attempts to identify 

the credible threats to highly sensitive and classified 

DOE assets and operations. The OIG determined 

that the National Nuclear Security Administration 

experienced delays implementing upgrades to meet 

DBT requirements and had not fully evaluated the 

effectiveness of interim upgrades. Additionally, DOE 

had not completed comprehensive inspections of the 

security environment at all its sites that have special 

nuclear material. The National Nuclear Security 

Administration concurred with the OIGs findings and 

DOE agreed that future security inspections will place 

special emphasis on the implementation of DBT.

The Department of Justice OIG evaluated the 

Federal Bureau of Prisons’ efforts to prevent terrorists 

and other high-risk inmates from using the mail to 

continue or encourage criminal or terrorist activities. 

The OIG found that the Bureau of Prisons did not 

adequately read the mail or listen to the telephone calls, 

visitor communications, or cellblock conversations of 

terrorists and high-risk inmates; did not have sufficient 

resources to translate inmate communications in 

foreign languages; and lacked staff adequately trained 

in intelligence analysis techniques to properly assess 

terrorism communications. As a result of the OIG 

review, the Bureau of Prisons agreed to improve its 

monitoring of mail of high risk inmates and tighten 

controls over other communications of high-risk 

inmates. 

The Amtrak OIG organized surveillance and countersurveillance training for investigations personnel and 

police officers from the Amtrak Police Department. 

The training resulted in the creation of a Surveillance 

and Counter-Surveillance team, which is designed to 

detect potential terrorism involving Amtrak facilities 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 23

radioactive materials are included in the decisionmaking about the scope of the Tracking System and 

b) validate existing data to ensure that reliable 

information is used in the regulatory analysis. In 

response, NRC agreed to validate the data and negotiate 

with the OIG on the scope of the regulatory analysis. 

The Department of State (DOS) OIG inspected the 

Office of the Coordinator for Counterterrorism, which 

seeks to create partnerships with multi-lateral and nongovernment organizations and foreign governments to 

advance the counterterrorism objectives and national 

security of the United States. The OIG found that the 

Office had too often been viewed as marginal on the 

global war on terrorism. The OIG recommended that 

the Office strengthen contract administration and funds 

management and clearly define and strengthen its 

oversight role in the Antiterrorism Assistance Program, 

which provides counterterrorism training to foreign law 

enforcement agencies and supports counterterrorism 

projects. In response, DOS initiated a quarterly review 

process of Antiterrorism Assistance Program initiatives 

and assigned a financial specialist to monitor the 

Program’s allotment.

The Department of Transportation (DOT) OIG

issued a classified report on the physical security of 

Federal Aviation Administration facilities and DOT’s 

headquarters building. Both DOT and the Federal 

Aviation Administration agreed with the OIG’s 

recommendations to strengthen existing access controls 

and accelerate and complete security upgrades on its 

facilities.

The Department of the Treasury OIG reviewed 

the Office of the Comptroller of the Currency’s 

enforcement of the Bank Secrecy Act, which requires 

banks to maintain programs for preventing, detecting, 

and reporting transactions indicative of criminal acts 

such as terrorism financing. The OIG found that the 

Office did not take formal enforcement action against 

a large national bank for significant Bank Secrecy Act 

violations. In response to the OIG report, the Office 

has taken measures to strengthen its enforcement of the 

Bank Secrecy Act.

and provide increased anti-terrorism capabilities during 

heightened alerts.

The Department of Health and Human Services 

(HHS) OIG reviewed 15 universities’ compliance 

with regulations of select dangerous agents, such as 

Ebola and smallpox viruses, which could pose a severe 

threat to public health and safety if misused as a result 

of an inadvertent, terrorist, or other criminal act. The 

OIG found that 11 universities had weaknesses in at 

least one of the following control areas: accountability 

for select agents, restricted access to select agents, 

security plans, training, and emergency response 

plans. The OIG provided restricted reports to the 

universities and recommended that the Centers for 

Disease Control and Prevention, which regulates how 

HHS-designated select agents are managed, resolve 

the recommendations cited in the reports. The Centers 

for Disease Control and Prevention responded that the 

recommendations were being implemented. 

The Department of Defense (DoD) OIG evaluated 

DoD’s Defense Installation Vulnerability Assessments, 

which involve DoD policies, organizations, and 

processes associated with the protection of critical 

infrastructure, including non-DoD assets, in the 

U.S. and overseas. DoD agreed with the OIG’s 

recommendations to standardize definitions; increase 

emphasis on mission-critical, non-DoD assets; and 

establish a defense field activity responsible for 

integrating concepts, reorganizing standards, and 

scheduling assessments. 

The Nuclear Regulatory Commission (NRC) OIG

evaluated the proposed National Source Tracking 

System, a web-based system that will contain 

comprehensive information on high-risk radioactive 

sources. The review concluded that the Tracking 

System may be inadequate because the supporting 

analysis was based on unreliable data and may not 

account for all byproduct material that represents a 

risk to security and public health and safety. The OIG 

recommended that NRC: a) conduct a regulatory 

analysis to ensure that the full range of eligible 
24 A Progress Report to the President ▪ Fiscal Year 2006

OIGs Detect and Deter Waste, Fraud, and Abuse

submitted by companies for construction, modification, 

supplemental maintenance services, archaeological 

services, design, and installation of hydrated lime 

injection systems and hydro-generator services. OIG 

audits identified $8.1 million in potential savings 

opportunities for TVA. In addition, the OIG completed 

14 contract compliance audits and identified 

$5.6 million in ineligible and unsupported costs. TVA 

has or is planning to use the results of the OIG’s 

findings to negotiate better contract terms. 

The Department of Education (ED) OIG conducted 

an inspection of the grant application process for 

the Reading First program — a $5 billion program 

aimed at helping children successfully read by the end 

of the third grade. The OIG found that ED officials 

obscured the statutory requirements of the law, acted 

in contravention of General Accountability Office 

standards for internal controls, and took actions that 

called into question whether they violated prohibitions 

concerning federal direction or control over curriculum. 

ED agreed with the OIG’s recommendations and has 

initiated a review of all approved applications and 

replaced the program’s management. ED also plans to 

review all publicly disseminated materials to ensure 

accuracy and impartiality and develop internal controls 

to ensure that programs are managed in compliance 

with applicable laws and regulations. 

The Department of Housing and Urban 

Development (HUD) OIG audited the Section 8 

Housing Choice Voucher program, which assists 

low-income families, the elderly, and the disabled 

in affording safe and sanitary housing in the private 

market. The OIG found significant administrative noncompliance and improper payments, along with major 

issues related to the living conditions of residents. The 

OIG inspected 856 units and found that 73 percent 

did not meet minimum housing quality standards, and 

40 percent of the failed units had serious deficiencies. 

HUD agreed with the OIG’s recommendation to stop 

OIGs seek to detect and deter waste, fraud, and abuse 

in agency programs and operations. As evidenced by 

the examples below, OIGs have made a significant 

contribution in these areas to the performance and 

accountability of federal agencies. During the past 

year, OIGs issued more than 3,800 audits and reviews 

and made recommendations for corrective actions that 

addressed areas of vulnerability in agency programs 

and operations. 

The Department of Veterans Affairs (VA) OIG 

audited the VA’s fiduciary program and identified several opportunities to better protect the incomes and 

estates of beneficiaries who are unable to handle their 

financial matters. The audit estimated that $435 million 

in benefits payments and estates for more than 8,900 

beneficiaries were at risk for misuse because of inadequate oversight. VA agreed with the OIG’s recommendations to conduct field examinations with beneficiaries 

to assess their environment and usage of funds, use 

surety bonds, and require program staff to focus on key 

fraud indicators identified by the audit and report fraud 

to the OIG. 

The Social Security Administration (SSA) OIG

performed an audit to identify individuals receiving 

benefits inappropriately under multiple Social Security 

numbers. The OIG analyzed records for approximately 

54 million beneficiaries and identified 221 individuals 

receiving benefits inappropriately under at least 2 

different Social Security numbers. The OIG identified 

over $6 million in overpayments related to individuals 

with multiple Social Security numbers. Many cases 

appeared to involve fraud, and the OIG is assessing 

these cases for potential criminal or civil action. SSA 

agreed with the OIG’s recommendation to continue 

to work together to assess overpayments where 

appropriate.

The Tennessee Valley Authority (TVA) OIG

completed eight pre-award audits of cost proposals 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 25

housing assistance payments for units that did not meet 

its standards. 

The Federal Deposit Insurance Corporation (FDIC) 

OIG investigated former executives of a Miami-based 

bank who were responsible for questionable loan swaps 

that allowed the bank to hide $22 million in losses. As a 

result of the investigation, the bank’s former chairman 

of the board and chief executive officer were found 

guilty of bank and securities fraud and sentenced to 

30 years’ incarceration to be followed by 5 years’ 

supervised release. Two other bank officials pleaded 

guilty and were each sentenced to 28 months’ incarceration and 2 years’ supervised release. 

The Corporation for National and Community 

Service (CNCS) OIG substantiated allegations that 

officials of two companies engaged in bid rigging in 

an effort to secure more than $12 million in CNCS 

contracts. As a result of the OIG review, CNCS rejected 

the bids from the firms and debarred three individuals 

involved in the scheme. In addition, CNCS acted on 

the OIG’s recommendation to implement the Program 

Fraud Civil Remedies Act, which provides federal 

agencies with an administrative means to recoup 

federal funds less than $150,000 that was unlawfully 

obtained by persons through false claims or false 

statements. 

The Department of Commerce (DOC) OIG

developed evidence concerning an international 

telemarketing scheme in which participants posing as 

DOC employees contacted citizens, awarded an alleged 

prize in a fake DOC-administered lottery, and solicited 

purported “fees” necessary to release the victims’ 

supposed winnings. Identified victims sent more than 

$4 million to individuals involved in the scheme. The 

joint OIG and FBI investigation resulted in more than 

20 arrests, indictments, and guilty pleas by perpetrators 

of the scheme.

The Environmental Protection Agency (EPA) OIG

found that EPA’s existing contracts for responding 

to natural disasters worked as intended and allowed 

the agency to quickly respond to Hurricane Katrina. 

However, the OIG recommended that EPA improve 

how it reviews contractor invoices to help prevent it 

from paying duplicate, unallowable, and unreasonable 

costs after determining that EPA absorbed more than 

$180,000 in overcharges. EPA agreed with the OIG’s 

recommendations and has initiated action to recoup the 

amount of overcharges. 

The National Science Foundation (NSF) OIG

audited a support contractor for the U.S. Antarctic 

Program, which is responsible for the coordination 

and support of America’s scientific research efforts 

in Antarctica. The OIG questioned $55.5 million in 

costs claimed by the contractor from FY 2000 through 

2004. As a result, the contractor was cited for failing to 

adhere to its federally disclosed accounting practices. 

In addition, NSF initiated more rigorous reviews of the 

contractor’s vouchers and is reengineering its process 

for monitoring all contracts. 

The Federal Communications Commission (FCC) 

OIG determined that the Schools and Libraries Support 

Mechanism of the Universal Service Fund, which is 

funded by charges on consumers’ telephone bills, is an 

area of high risk for fraud, waste, and abuse. The OIG 

found several instances where funding recipients did 

not comply with program requirements and identified 

$11.5 million in potential funding recoveries. In 

response to the OIG report, FCC agreed to implement a 

plan to recover funds.

The Office of Personnel Management OIG

investigated a doctor who ordered large quantities of 

medications used to treat Hepatitis C, provided the 

medications to patients to self-administer at home, 

and then billed the Federal Employees Health Benefits 

Program and private insurers as if the injections were 

administered in the office. The doctor, who defrauded 

insurers of $10 million, was convicted of 44 counts of 

fraud.

The Consumer Product Safety Commission (CPSC) 

OIG audited CPSC’s travel charge card program and 

found a flaw in the system used to track delinquent 

payments. The OIG also determined that CPSC 

employees often were unaware of their responsibilities 

under the travel card program. As a result, CPSC 
26 A Progress Report to the President ▪ Fiscal Year 2006

agreed to improve the current tracking system and is 

more actively reviewing travel card payments made by 

its employees. 

The Peace Corps OIG is investigating more than 

1,300 Peace Corps claims — with expenditures of 

approximately $11 million annually — under the 

Federal Employees’ Compensation Act to determine 

if there was a widespread problem of fraud, waste, or 

abuse. The Act was established to provide workers’ 

compensation for certain federal employees in 

unusually hazardous jobs. The OIG recommended 

that the Peace Corps ensure that initial claims are 

closely scrutinized before the claims are accepted 

and sent for review, remind all Peace Corps Federal 

Employees’ Compensation Act claimants of their 

obligations to report any changes to their disability 

status, and conduct additional research on claims 

with high potential for fraud — such as those with 

no or low medical costs but high compensatory 

benefits. The Peace Corps has begun implementing the 

recommendations and already has achieved significant 

and swift results that produced millions in cost savings. 

The Government Printing Office (GPO) OIG

conducted fraud investigations in Office of Workers’ 

Compensation Programs that could lead to an 

estimated cost savings of $6.17 million ($617,000 

annually) during the next 10 years. As an example, an 

OIG investigation, which found that a former GPO 

employee was deceased but still received Office of 

Workers’ Compensation Program benefits, resulted in 

$36,000 in annual savings. 

The Railroad Retirement Board (RRB) OIG is 

investigating more than 50 cases in which disability 

annuitants are failing to accurately report selfemployment income. The OIG estimates that these 

annuitants are defrauding RRB programs by more than 

$3 million. The OIG has obtained 12 convictions and 

1 civil judgment from these fraud cases, resulting in 

potential recoveries of $1 million. RRB responded to 

the findings in the investigations by revising application 

forms and informational documents to include 

additional information on reporting responsibilities.

The Small Business Administration OIG

substantiated allegations that a loan agent and four 

individuals submitted false and fraudulent documents, 

artificially inflated bank deposits, and used loan 

proceeds to fund required equity injections when 

applying for loans. As a result of the OIG investigation, 

the five individuals were convicted and collectively 

sentenced to 91⁄2 years’ incarceration and ordered to pay 

nearly $19 million in restitution.

The Department of Health and Human Services 

OIG substantiated allegations that a pharmacy 

benefits manager arranged kickbacks for referrals 

of Federal Employees Health Benefits Program, 

Medicare+Choice, and Indian Health Service program 

business. As a result of the investigation, the manager 

agreed to repay the government $137.5 million and 

enter into a 5-year Corporate Integrity Agreement that 

focuses on reviewing contracts and other arrangements 

for potential kickback violations. 

The Department of Defense (DoD) OIG conducted 

an investigation that found a billing agency in the Philippines inflated medical provider bills for DoD personnel by more than 230 percent and established a supplemental insurance plan that improperly waived beneficiary cost shares. The U.S. Attorney’s Office used 

results from the investigation, showing $2.4 million 

in overcharges, to indict the company and its former 

President. The OIG recommended that TRICARE, the 

managed health care program for the uniformed services, strengthen controls over third party billing agencies 

and more aggressively use its sanctioning authority. 

The U.S. Agency for International Development 

(USAID) OIG investigated a U.S.-based firm and 

found that the firm overcharged USAID on three 

overseas development contracts. One contract 

involved a program to encourage financial institutions 

to increase credit to small businesses in developing 

countries. The two others involved economic assistance 

programs in post-war Bosnia-Herzogovina. The firm 

created a subsidiary, which then billed USAID for 

training materials without adequate cost justification. 

Additionally, the firm charged USAID its agreed profit 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 27

rate, along with the profit charged by its subsidiary, 

resulting in a total overpayment of more than $500,000. 

The firm agreed to pay $1.2 million to settle the claims. 

The Department of Education OIG investigated a 

former Georgia Superintendent of Education and her 

co-conspirators who funneled more than $500,000 

in federal education dollars into the Superintendent’s 

failed 2002 gubernatorial campaign. The former 

Superintendent was sentenced to 8 years’ incarceration 

and ordered to pay restitution of more than $414,000. 

The co-conspirators received sentences up to 8 years’ 

incarceration and were ordered to pay restitution of 

more than $382,000. 

The Federal Deposit Insurance Corporation OIG

substantiated allegations that a former FDIC intern 

fraudulently obtained the names, dates of birth, and 

social security numbers of more than 5,000 employees, 

and then conspired to open accounts and obtain 

loans using FDIC employees’ names. The intern was 

sentenced to 60 months’ incarceration and ordered to 

make restitution totaling more than $630,000. FDIC 

contracted with a credit reporting bureau to provide 

fraud protection to all FDIC employees whose credit 

had been jeopardized.

The National Labor Relations Board (NLRB) OIG 

audited NLRB information technology procurement 

actions and concluded that NLRB inappropriately 

used sole source and time-and-materials contracts, 

incorrectly used General Services Administration 

schedules, and obligated $758,875 in funds to 

the wrong fiscal year. In response to the OIG’s 

recommendations, NLRB corrected the $758,875 

improper obligation, revised the warrant manual 

regarding sole source authorization levels, instituted 

procedures to ensure that determinations and findings 

are prepared, and clarified procedures regarding 

internal controls and contract administration. 
28 A Progress Report to the President ▪ Fiscal Year 2006

OIGs Improve the Efficiency and Effectiveness 

of Government Programs

which were adopted by the U.S. Embassy in Baghdad, 

were designed to increase coordination and effectiveness of the programs.

The Department of Homeland Security (DHS) 

OIG conducted a comprehensive review of the 

Federal Emergency Management Agency’s (FEMA) 

authorities, plans and procedures, organizational 

structure, and resources. The OIG recommended 

that FEMA provide necessary financial, technical, 

and staff support; clarify how DHS headquarters, 

FEMA, and other DHS components will implement 

the National Response Plan; address improvements 

to FEMA’s infrastructure; build relationships with 

states in concert with the Preparedness Directorate and 

DHS’ Public Affairs; and modify how FEMA manages 

disaster assistance. FEMA agreed with the OIG’s 

recommendations.

The Department of Justice OIG examined the 

FBI’s handling and oversight of one of its highest 

paid counterintelligence assets who allegedly passed 

classified U.S. government information to the People’s 

Republic of China without FBI authorization and had 

a longtime intimate relationship with her FBI handler. 

The OIG found that the FBI was aware of numerous 

serious counterintelligence issues concerning the 

asset but did little or nothing to resolve them. The 

OIG recommended that the FBI create a separate 

section in the asset file to document red flags and other 

counterintelligence concerns, require a more thorough 

periodic background reinvestigation for long term 

assets, require alternate case agents to frequently meet 

with assets, and fully implement its policy regarding 

counterintelligence polygraph examinations. The 

FBI agreed with the OIG’s recommendations and 

stated that it has taken steps to correct deficiencies in 

its China Program and improve asset handling and 

counterintelligence procedures.

Since the IG Act was established in 1978, OIGs 

have monitored the efficiency and effectiveness 

of government programs. Every year, OIGs make 

problem-solving recommendations to improve program 

management. During the past fiscal year, more than 

1,300 OIG audits and reviews identified inefficient 

and ineffective government programs and operations 

and recommended performance and management 

improvements. Below are examples of such work 

performed by the OIG community.

The Treasury Inspector General for Tax Administration reviewed efforts by the Internal Revenue Service (IRS) to take action against individuals and entities that do not file tax forms. Currently, IRS does not 

have a comprehensive, national non-filer strategy or an 

executive who is charged with overseeing the efforts of 

IRS’s four business divisions to address non-filers. IRS 

agreed with the OIG’s recommendations to establish 

a Non-filer Program Office, implement management 

control systems, and provide accountability for all IRS 

non-filer efforts. 

The Department of State OIG inspected U.S.-funded 

rule-of-law programs in Iraq. The OIG identified 

approximately $400 million being spent by multiple 

federal agencies for rule-of-law programs. The OIG 

defined rule-of-law as including the entire legal complex of a modern state, from a constitution and legislature to courts, judges, police, prisons, due process 

procedures, a commercial code, and anticorruption 

mechanisms. The OIG found that effective rule-of-law 

strategies are essential for the functioning of a democracy and are central to protecting the rights and liberties 

of individuals. One of its recommendations was that 

the U.S. Embassy in Baghdad design and implement a 

strategic plan that includes outcomes, benchmarks, and 

measures for these programs. Other recommendations, 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 29

Specifically, the OIG estimated that nearly one-third 

of complaints filed with Mine Safety and Health 

Administration’s (MSHA) headquarters and 15 percent 

of those filed with the districts took two or more days 

before an inspection was initiated. The OIG identified 

several necessary improvements, which MSHA agreed 

to implement. 

The Department of Transportation OIG audited the 

Federal Highway Administration’s efforts to identify 

and release federal funds kept idle on transportation 

projects. The OIG found $258 million in unneeded 

funds in 14 states and estimated that states nationwide 

could release unneeded federal funds of between 

$440 million and $775 million. In response, the 

Federal Highway Administration worked with the 

states to review inactive obligations and release a total 

of $757 million in idle federal funds for use on active 

transportation projects. 

The U.S. Postal Service (USPS) OIG reviewed the 

usage rate of USPS’s Biohazard Detection System, 

which is designed to detect the presence of anthrax in 

the mail. The OIG found that, despite USPS policy that 

requires one System test for every hour of operation, 

testing occurred continuously at certain times. The 

OIG concluded that over-testing could cost nearly 

$80 million in operational expenses during the life 

of the system. The OIG recommended that USPS 

reemphasize already established manual procedures for 

efficient usage for the short term and implement a valid 

technological solution for the long term. USPS agreed 

with the recommendations and planned to provide 

upgrades to the System that would reduce operational 

costs by $22 million annually. 

The National Aeronautics and Space Administration 

(NASA) OIG conducted an audit to determine 

whether management of the Space Shuttle Program’s 

Problem Reporting and Corrective Action process was 

effective in tracking problems and their root causes, 

documenting corrective actions, and providing a 

source of data that NASA can use both to learn from 

and prevent problem occurrences. NASA agreed to 

implement the OIG’s recommendations to improve the 

The General Services Administration (GSA) OIG

is conducting a performance review of approximately 

255 contracts valued at $741 million that GSA awarded 

on behalf of FEMA. The review is part of the OIG 

community’s aggressive review of agencies’ response 

efforts to the Gulf Coast hurricane disasters. GSA 

expects to issue its report in FY 2007. 

The U.S. Department of Agriculture (USDA) OIG

concluded that the Animal and Plant Health Inspection 

Service had made progress in developing plans to 

respond to an outbreak of highly pathogenic avian 

influenza on a large commercial poultry operation, but 

USDA had not developed a comprehensive approach 

for surveillance and monitoring of avian influenza 

in domestic poultry. USDA agreed with the OIG’s 

recommendations to improve the program.

The Department of Veterans Affairs (VA) OIG

conducted a criminal investigation with the FBI and 

the Montgomery County, Maryland, Police Department 

relating to the theft of an employee’s personally owned 

computer, which contained personal information 

on millions of veterans and active duty military 

personnel. As a result, two individuals responsible 

for the theft have been arrested and convicted for this 

burglary, and FBI forensic analysis confirmed that there 

was no evidence that VA data had been compromised 

following the burglary. The OIG’s administrative 

investigation identified numerous issues regarding VA 

policies and procedures for protecting sensitive data. 

In response, VA has taken administrative action against 

the individuals involved in the inappropriate and 

untimely handling of the notification of the theft of this 

data, implemented a daily process for reporting security 

breaches to VA’s Security Operations Center, issued 

appropriate new policies, and instituted a large-scale 

campaign of background checks of employees.

The Department of Labor OIG reviewed the process 

available to the public to report complaints of hazardous conditions in coal mines. The OIG found that 

delays in assessing complaints and initiating inspections may have subjected miners to prolonged hazardous conditions. 
30 A Progress Report to the President ▪ Fiscal Year 2006

accuracy and completeness of the Problem Reporting 

and Corrective Action information and increase its 

value as a management tool. 

The Federal Election Commission (FEC) OIG 

audited FEC’s public disclosure program for federal 

campaign finance information. The OIG found that 

disclosure differences exist among reporting entities 

due to a variety of factors that are inherently part of the 

campaign finance disclosure process, but made various 

recommendations to improve the program. FEC agreed 

with the OIG’s recommendation to strengthen the 

current system of campaign finance disclosure. 

The Department of Energy OIG concluded that the 

National Nuclear Security Administration (NNSA) 

might not achieve the first production unit for the W76 

warhead system refurbishment within the established 

scope, schedule, and cost parameters as detailed in 

the project plan. The OIG reported that a failure to 

complete the refurbishment within the established 

schedule and scope could have a direct effect on 

production decisions, impact NNSA’s ability to manage 

project costs, and affect overall national security 

goals of the refurbishment effort. In response, NNSA 

proposed to re-baseline the milestones to meet the 

expected production dates. 

The Department of the Interior (DOI) OIG evaluated the effectiveness of DOI’s participation in the Modified Waters Delivery to Everglades National Park project — a critical component in achieving environmental 

restoration in the South Florida Everglades. The OIG 

concluded that DOI did not develop and communicate a 

comprehensive, unified restoration strategy or define its 

role. These oversights contributed to the project being 

8 years behind schedule and having a projected price 

tag approaching $400 million — nearly 5 times its original estimate. DOI agreed with the OIG’s recommendations to improve its participation, hire a new Assistant 

Deputy Secretary to lead its South Florida ecosystem 

restoration projects, and begin development of a 

project plan. 

The Department of Labor (DOL) OIG audited a 

settlement agreement that DOL’s Wage and Hour 

Division signed with a national retail chain after the 

chain was cited for numerous child labor violations. 

The OIG found serious breakdowns in the Wage and 

Hour Division’s process for negotiating, developing, 

and approving the settlement agreement, which 

resulted in significant concessions to the retail chain. 

Also, DOL’s Solicitor was not consulted during 

the negotiation process, and significant portions of 

the agreement were written by the national chain’s 

lawyers. As a result of the OIG audit, the Wage and 

Hour Division agreed to implement recommendations 

to develop written procedures for settlement 

agreements with employers. 

The Corporation for Public Broadcasting (CPB) 

OIG reviewed allegations that the Chairman of 

CPB’s Board of Directors and senior executives 

made personnel and contract funding decisions based 

on political ideology. The OIG report led to the 

Chairman’s resignation and efforts by CPB to revise 

procurement and personnel management policies, 

including enhancing internal controls. 

The Social Security Administration (SSA) OIG

estimated that SSA overpaid beneficiaries $3.2 billion 

in improper payments to disabled beneficiaries. The 

OIG found that if SSA had used information already 

available in its records, it would have determined that 

many individuals receiving disability benefits had 

returned to work and were no longer disabled. SSA 

agreed with the OIG’s recommendation to take timely 

action on information that disabled beneficiaries may 

be working. 

The National Archives and Records Administration 

(NARA) OIG found that a NARA contract to acquire 

Information Technology Support Services included 

three modifications totaling $4.4 million, although 

the work to be performed by the contractor was 

unchanged. As a result, NARA incurred more than 

$4.4 million in expenses that should have been 

absorbed by the contractor. NARA concurred with the 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 31

OIG’s findings and took action to remove $3.2 million 

of the modification amount. 

The U.S. Agency for International Development 

(USAID) OIG audited funds appropriated for 

displaced individuals in Afghanistan. The OIG 

determined that only $600,000 of the $10 million 

appropriated for FY 2004 had been used to provide 

shelter materials and basic necessities for displaced 

persons in Kabul. Additionally, none of the $5 million 

appropriated for FY 2005 had been transferred or spent. 

USAID agreed with the OIG’s recommendations to 

ensure that the remaining $14.4 million in unspent 

funds were used for its intended purposes.

The Equal Employment Opportunity Commission 

(EEOC) OIG evaluated the National Contact Center, 

a pilot program that provides the public with 24-

hour access to EEOC and information about equal 

employment rights and responsibilities. The OIG found 

that the Contact Center had the potential to make a 

significant contribution to EEOC but is not effective 

as presently operated. The OIG report recommended 

that EEOC continue with the Contact Center only if 

significant changes are made to improve call volume, 

optimize customer satisfaction and operational 

efficiencies, measure on-going performance, and 

ensure readiness for the future. In light of the report, 

the Senate Appropriations Committee recommended 

eliminating funding for the Contact Center. 
32 A Progress Report to the President ▪ Fiscal Year 2006

Joint OIG Projects

indictments, 407 arrests, and 255 convictions. As of 

September 30, 2006, the Hurricane Fraud Hotline 

received 22,647 contacts or allegations of fraud, waste, 

and abuse. 

The Government Accountability Office and 

Department of Homeland Security (DHS) OIGs 

performed a joint audit of DHS’s purchase card 

contracts used after hurricanes in the Gulf Region. The 

OIGs determined that a weak control environment and 

breakdowns in key controls exposed DHS to fraud and 

abuse in its use of the purchase card. As a result, DHS 

agreed to establish new cardholder procedures.

A joint investigation by the Departments of Treasury and Homeland Security OIGs, along with the 

Washington, D.C., Metro Area Fraud Task Force, 

U.S. Postal Service, and U.S. Secret Service, led to the 

guilty plea of a civilian to bank fraud, mail fraud, and 

money laundering. Investigators determined that the 

civilian defrauded FEMA of more than $100,000 in 

relief funds intended for victims of Hurricanes 

Katrina and Rita. The civilian faces between 84 and 

105 months’ incarceration. 

Other Joint Projects

The Department of State OIG and Special Inspector 

General for Iraq Reconstruction collaborated on a 

survey of anticorruption programs in Iraq. The survey 

included an inventory of U.S. government funding for 

anticorruption programs in Iraq and an analysis of the 

U.S. Embassy in Baghdad’s anticorruption working 

group. The OIG recommended that the Embassy 

strengthen its Iraqi anticorruption programs and 

provide support and guidance for Iraqi efforts to design 

and establish a training facility for anticorruption 

personnel from Iraq’s Board of Supreme Audit, 

Commission on Public Integrity, and Inspectors 

General. 

In addition to the work that OIGs conduct within 

and relating to their own agencies, they also promote 

integrity, accountability, and excellence in governance 

through joint activities with OIGs and outside agencies. 

During the past fiscal year, OIGs performed many 

interagency and joint OIG audits, inspections, and 

investigations. Below are examples of this work.

Hurricane Katrina

In the aftermath of Hurricane Katrina, the federal 

government allocated more than $87 billion toward 

disaster relief, recovery, and rebuilding efforts in areas 

hit by the devastating hurricane. The entire OIG community quickly responded to the disaster by providing 

much-needed support in a variety of ways — from 

volunteering 300 special agents to assist with the law 

enforcement efforts, to OIG staff volunteering in the 

clean-up process and manning waste, fraud, and abuse 

hotlines, to auditors, program analysts, and investigators providing assurances that funds appropriated for 

disaster relief programs were being spent in an effective, efficient, and economical manner. 

As of September 30, 2006, agencies under review by 

OIGs had issued more than 8,400 contracts with a total 

value exceeding $12 billion. To help provide oversight for these expenditures, OIGs have audited and 

reviewed 348 contracts and identified $80.9 million in 

taxpayer funds that could be put to better use. An additional 487 contract audits are ongoing. Below are 

examples of the work conducted jointly by OIGs. 

OIG investigative teams deployed to each of the 

Federal Emergency Management Agency (FEMA) 

joint field offices in Alabama, Mississippi, Louisiana, 

Texas, and Florida continue investigating allegations 

of fraud, waste, and abuse. Since the hurricane relief 

and recovery process was initiated, federal OIGs 

have opened 1,756 cases that have resulted in 439 
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 33

and helping U.S. companies expand exports. The OIGs 

will release their reports during the coming year. 

A multi-agency investigation by the Department of 

the Interior OIG, FBI, and IRS led to the guilty plea 

of a former congressional staffer who was involved in 

allegations that a lobbyist defrauded the U.S. government and certain Indian tribes of millions of dollars. 

Investigators found that the lobbyist and others 

improperly provided valuable items to a congressman 

and members of the congressman’s staff, including the 

former congressional staffer, in return for official 

actions to benefit the lobbyist’s clients. 

A joint investigation by the Department of Defense 

and National Aeronautics and Space Administration 

(NASA) OIGs and the Department of Justice 

uncovered a scheme by a contractor to improperly 

use competitors’ information to procure contracts 

for launch services worth billions of dollars from the 

Air Force and NASA. The investigation resulted in 

the contractor paying the government $615 million 

to resolve criminal and civil allegations — a record 

recovery for both DoD and NASA in government 

procurement fraud. 

A joint investigation by the Departments of Interior 

and Education OIGs, along with the FBI, led to 

the guilty plea and sentencing of a former Director 

of the American Samoa’s Department of Education. 

The investigation determined that the former Director 

accepted cash and goods in exchange for fraudulently 

awarding contracts. The former Director was sentenced 

to 30 months’ incarceration and ordered to pay $61,000 

in restitution.

A joint investigation that included OIGs from 

the Departments of Commerce, Interior, and 

Transportation determined that a subcontractor 

offered bribes to a Philadelphia city official to obtain 

a minority business certificate. The certificate was 

used by the subcontractor to qualify for work on a 

construction grant awarded to the City of Philadelphia. 

The subcontractor was convicted of bribery and 

submitting a false tax return, sentenced to 5 years’ 

OIGs from the Departments of Commerce, 

Defense, Energy, Homeland Security, and State and 

the Central Intelligence Agency jointly evaluated the 

effectiveness of U.S. controls on exports of defense-related items and dual use goods and technology — items 

that have both civilian and military applications — to 

China. The interagency review identified areas needing improvement to promote a more effective system 

of controls over exports to China. Areas for improvement included coordination within the federal licensing 

agencies, documentation of license reviews, export 

licensing and enforcement policies and procedures, follow-up on license conditions, and end use checks. Each 

participating OIG issued a report, and the interagency 

report summarizing the work of the joint OIG effort 

and follow-up on previous recommendations will be 

issued in 2007.

OIGs from the U.S. Department of Agriculture 

(USDA) and Environmental Protection Agency 

(EPA) reviewed efforts by the Chesapeake Bay Program — which is administered by EPA to lead and 

coordinate restoration of the Chesapeake Bay — in 

achieving nutrient and sediment reduction goals for 

the Chesapeake Bay. The OIGs determined that, at the 

current rate of progress, the watershed will remain impaired for decades. EPA must improve coordination and 

collaboration with its bay partners and the agricultural 

community to better reduce nutrients and sediment 

entering the Chesapeake Bay watershed. The OIGs also 

found that USDA, a critical bay partner at the federal 

level, could significantly assist EPA in implementing 

the needed conservation practices within the agricultural community, which is a major contributor of nutrients and sediment to the Bay. However, USDA has not 

coordinated a Department-wide strategy or policy to 

address its commitment as a Bay partner. Both EPA and 

USDA agreed with the OIGs’ recommendations.

In response to a Congressional request, OIGs from 

the Departments of Agriculture, Commerce, State, 

and Treasury; the Small Business Administration; 

and the U.S. Agency for International Development 

are working together to review how their respective 

agencies are coordinating trade promotion activities 
34 A Progress Report to the President ▪ Fiscal Year 2006

incarceration, and ordered to pay a $6,200 criminal 

fine and $31,852 in restitution. In addition, the 

subcontractor and his company were debarred for 

3 years.

OIGs from the Departments of Commerce, Housing 

and Urban Development, and Agriculture jointly 

investigated an Economic Development Administration 

(Commerce) program funding the construction of 

water towers for municipalities around the country. 

The investigation revealed that substandard parts and 

equipment were used in tanks built by the contractor 

and the contractor conspired with an engineering firm 

to generate false tests indicating that the tanks met 

contract specifications despite structural deficiencies. 

The investigation resulted in a civil settlement, 

including payment of $1.75 million to the government, 

and warranties for necessary repairs valued at 

$250,000.
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 35

Appendix A: Acronyms and Abbreviations

ARC Appalachian Regional Commission

CFTS Commodity Futures Trading Commission

CNCS Corporation for National and Community

 Service

CPB Corporation for Public Broadcasting

CPSC Consumer Product Safety Commission

DCAA Defense Contract Audit Agency

DHS Department of Homeland Security

DOC Department of Commerce

DoD Department of Defense

DOE Department of Energy

DOI Department of the Interior

DOJ Department of Justice

DOL Department of Labor

DOS Department of State and Broadcasting 

 Board of Governors

DOT Department of Transportation

ECIE Executive Council on Integrity and 

 Efficiency

ED Department of Education

EEOC Equal Employment Opportunity 

 Commission

EPA Environmental Protection Agency

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

FTC Federal Trade Commission

FY Fiscal Year

GAO Government Accountability Office

GPO Government Printing Office

GSA General Services Administration

HHS Department of Health and Human 

 Services

HUD Department of Housing and Urban 

 Development

IG Inspectors General

IG Act Inspector General Act of 1978

IRS Internal Revenue Service

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

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

OIG Office of Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

PCIE President’s Council on Integrity and 

 Efficiency

RRB Railroad Retirement Board

SBA Small Business Administration

SEC Securities and Exchange Commission

SSA Social Security Administration

TIGTA Treasury Inspector General for Tax 

 Administration

Treasury Department of the Treasury

TVA Tennessee Valley Authority

USAID U.S. Agency for International 

 Development

USDA U.S. Department of Agriculture

USPS U.S. Postal Service

VA Department of Veterans Affairs
36 A Progress Report to the President ▪ Fiscal Year 2006

Appendix B: PCIE and ECIE Membership

Linda Combs

Controller, Office of Federal Financial Management

OFFICE OF MANAGEMENT AND BUDGET

Eisenhower Executive Office Building

17th Street and Pennsylvania Avenue, NW, Room 262

Washington, DC 20503

(202) 395-6059

James H. Burrus

Assistant Director, Criminal Investigative Division

FEDERAL BUREAU OF INVESTIGATION

935 Pennsylvania Avenue, NW

Washington, DC 20535

(202) 324-4260

Robert I. (Ric) Cusick

Director

OFFICE OF GOVERNMENT ETHICS

1201 New York Avenue, NW, Suite 500

Washington, DC 20005

(202) 482-9292

Dan Blair

Deputy Director

OFFICE OF PERSONNEL MANAGEMENT 

1900 E Street, NW

Washington, DC 20415-0001

(202) 606-1000

Scott Bloch

Special Counsel

OFFICE OF SPECIAL COUNSEL

1730 M Street, NW, Suite 300

Washington, DC 20036-4505

(202) 254-3610

Disclosure hotline (800) 872-9855

Whistleblower protection (800) 572-2249

Hatch Act information (800) 854-2824

Members Sitting on Both Councils

Clay Johnson, III

Chair, PCIE and ECIE

Deputy Director of Management

OFFICE OF MANAGEMENT AND BUDGET

Eisenhower Executive Office Building

17th and Pennsylvania Avenue, NW, Room 113

Washington, DC 20503

(202) 456-7070

Gregory H. Friedman

Vice Chair, PCIE

Inspector General

DEPARTMENT OF ENERGY

1000 Independence Avenue, SW

Washington, DC 20585

(202) 586-4393

Website http:/www.ig.energy.gov

Hotlines (202) 586-4073

 (800) 541-1625

Hotline E-mail ighotline@hq.doe.gov

Barry R. Snyder

Vice Chair, ECIE

Inspector General

FEDERAL RESERVE BOARD

20th and Constitution Avenue, NW, Stop 300

Washington, DC 20551

(202) 973-5003

Website http://www.federalreserve.gov/oig

Hotlines (202) 452-6400

 (800) 827-3340
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 37

President’s Council on Integrity 

and Efficiency

Donald A. Gambatesa

Inspector General

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

Ronald Reagan Building

1300 Pennsylvania Avenue, NW

Washington, DC 20523-6600

(202) 212-1170

Website http://www.usaid.gov/oig

Hotlines (202) 712-1023

 (800) 230-6539

John L. Helgerson

Inspector General

CENTRAL INTELLIGENCE AGENCY

Room 2X30, New Headquarters Building

Washington, DC 20505

(703) 874-2555

Gerald Walpin

Inspector General

CORPORATION FOR NATIONAL AND COMMUNITY 

SERVICE

1201 New York Avenue, NW, Suite 830

Washington, DC 20525

(202) 606-9390

Website http://www.cnsig.gov

Hotline (800) 452-8210

Phyllis K. Fong

Inspector General

U.S. DEPARTMENT OF AGRICULTURE

Jamie L. Whitten Building 

1400 Independence Avenue, SW, Room 117-W

Washington, DC 20250-2301

(202) 720-8001

Website http://www.usda.gov/oig

Hotlines (202) 690-1622

 (800) 424-9121

Hearing impaired (202) 690-1202 

Johnnie E. Frazier

Inspector General

DEPARTMENT OF COMMERCE

14th and Constitution Avenue, NW

HCHB 7898-C

Washington, DC 20230

(202) 482-4661

Website http://www.oig.doc.gov/oig

Hotlines (202) 482-2495

 (800) 424-5197

Hearing impaired (800) 854-8407

Thomas Gimble

Acting Inspector General

DEPARTMENT OF DEFENSE

400 Army Navy Drive

Arlington, VA 22202

(703) 604-8300

Website http://www.dodig.mil

Hotline (800) 424-9098

John P. Higgins, Jr.

Inspector General

DEPARTMENT OF EDUCATION

400 Maryland Avenue, SW

Washington, DC 20024

(202) 245-6900

Website http://www.ed.gov/about/offices/list/oig

Hotline (202) 245-6911

E-mail oighotline@ed.gov

Daniel Levinson

Inspector General

DEPARTMENT OF HEALTH AND HUMAN 

SERVICES

330 Independence Avenue, SW, Room 5250

Washington, DC 20201

(202) 619-3148

Website http://oig.hhs.gov

Hotline (800) 447-8477

E-mail hhstips@oig.hhs.gov

Richard L. Skinner

Inspector General

DEPARTMENT OF HOMELAND SECURITY

245 Murray Drive, Building 410

Washington, DC 20528

(202) 254-4100

Website http://www.dhs.gov/xoig/index.shtm

Hotline (800) 323-8603

Hotline E-mail dhsoighotline@dhs.gov

Hurricane Fraud Hotline (866) 720-5721

Hurricane Fraud Hotline E-mail hkftf@leo.gov

Kenneth M. Donohue

Inspector General

DEPARTMENT OF HOUSING AND URBAN 

DEVELOPMENT

451 7th Street, SW

Washington, DC 20410

(202) 708-0430

Website http://www.hud.gov/offices/oig

Hotlines (202) 708-4200

 (800) 347-3735
38 A Progress Report to the President ▪ Fiscal Year 2006

Earl E. Devaney

Inspector General

DEPARTMENT OF THE INTERIOR

1849 C Street, NW, Mail Stop 5341

Washington, DC 20240

(202) 208-5745

Website http://www.doioig.gov/

Hotline (800) 424-5081

Glenn A. Fine

Inspector General

DEPARTMENT OF JUSTICE

950 Pennsylvania Avenue, NW, Suite 4706

Washington, DC 20530

(202) 514-3435

Website http://www.usdoj.gov/oig

Hotline (800) 869-4499

Hotline E-mail oig.hotline@usdoj.gov

Civil Rights and Civil Liberties 

E-mail inspector.general@usdoj.gov

Gordon S. Heddell

Inspector General

DEPARTMENT OF LABOR

200 Constitution Avenue, NW, Room S5502

Washington, DC 20210

(202) 693-5100

Website http://www.oig.dol.gov

Hotlines (202) 693-6999

 (800) 347-3756

Howard J. Krongard

Inspector General

DEPARTMENT OF STATE AND 

THE BROADCASTING

BOARD OF GOVERNORS

2201 C Street, NW, Room 8100, SA-3

Washington, DC 20522-0308

(202) 663-0361

Website oig.state.gov

Hotlines (202) 647-3320

 (800) 409-9926

Calvin L. Scovel, III

Inspector General

DEPARTMENT OF TRANSPORTATION

400 7th Street, NW, Room 9210

Washington, DC 20590

(202) 366-1959

Website http://www.oig.dot.gov

Hotlines (202) 366-1461

 (800) 424-9071

Harold Damelin

Inspector General

DEPARTMENT OF THE TREASURY

Main Treasury Building. Room 4436

1500 Pennsylvania Avenue, NW

Washington, DC 20220

(202) 622-1090

Website http://www.ustreas.gov/inspector-general

Hotline (800) 359-3898

J. Russell George

Inspector General

TREASURY INSPECTOR GENERAL FOR TAX 

ADMINISTRATION

1125 15th Street, NW

Washington, DC 20005

(202) 622-6500

Website http://www.treas.gov/tigta

Hotline (800) 366-4484

George Opfer

Inspector General

DEPARTMENT OF VETERANS AFFAIRS

810 Vermont Avenue, NW 

Washington, DC 20420

(202) 565-8620

Website http://www.va.gov/oig

Hotline (800) 488-8244

Hotline E-mail vaoighotline@va.gov

Bill A. Roderick

Acting Inspector General

ENVIRONMENTAL PROTECTION AGENCY

1200 Pennsylvania Avenue, NW, Mailcode 2410T

Washington, DC 20460-0001

(202) 566-0847

Website http://www.epa.gov/oig

Hotlines (202) 566-2476

 (888) 546-8740

Jon T. Rymer

Inspector General

FEDERAL DEPOSIT INSURANCE CORPORATION

3501 Fairfax Drive

Arlington, VA 22226

(703) 562-2166

Website http://www.fdicoig.gov

Hotline (800) 964-3342

E-mail ighotline@fdic.gov
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 39

Brian D. Miller

Inspector General

GENERAL SERVICES ADMINISTRATION

18th and F Streets, NW, Room 5340

Washington, DC 20405

(202) 501-0450

Website http://oig.gsa.gov/

Hotlines (202) 501-1780

 (800) 424-5210

Robert W. Cobb

Inspector General

NATIONAL AERONAUTICS AND SPACE 

ADMINISTRATION

300 E Street, SW, Code W, Room 8V69

Washington, DC 20546

(202) 358-1220

Website http://oig.nasa.gov

Hotline (800) 424-9183 

Hotline Website http://oig.nasa.gov/cyberhotline.html

Hubert T. Bell

Inspector General

NUCLEAR REGULATORY COMMISSION

11545 Rockville Pike, Mail Stop T5-D28

Rockville, MD 20852

(301) 415-5930

Website http://www.nrc.gov/insp-gen.html

Hotline (800) 233-3497

Patrick E. McFarland

Inspector General

OFFICE OF PERSONNEL MANAGEMENT

1900 E Street, NW, Room 6400

Washington, DC 20415-0001

(202) 606-1200

Website http://www.opm.gov/oig

Hotline Fraud/waste/abuse (202) 606-2423

Hotline Healthcare fraud (202) 418-3300

Martin J. Dickman

Inspector General

RAILROAD RETIREMENT BOARD

844 North Rush Street, Room 450

Chicago, IL 60611

(312) 751-4690

Website http://www.rrb.gov/mep/oig.asp

Hotline (800) 772-4258

Eric M. Thorson

Inspector General

SMALL BUSINESS ADMINISTRATION

409 3rd Street, SW, 7th Floor

Washington, DC 20416

(202) 205-6586

Website http://www.sba.gov/IG

Hotlines (202) 205-7151

 (800) 767-0385

Patrick P. O’Carroll, Jr.

Inspector General

SOCIAL SECURITY ADMINISTRATION

Room 300, Altmeyer Building 

6401 Security Boulevard

Baltimore, MD 21235

(410) 966-8385

Website http://www.ssa.gov/oig

Hotline (800) 269-0271

Richard Moore

Inspector General

TENNESSEE VALLEY AUTHORITY

400 West Summit Hill Drive

Knoxville, TN 37902-1499

(865) 632-4120

Website http://oig.tva.gov

Hotline (877) 866-7840

 
40 A Progress Report to the President ▪ Fiscal Year 2006

Executive Council on Integrity 

and Efficiency

Fred E. Weiderhold, Jr.

Inspector General

AMTRAK

10 G Street, NE, Suite 3W-300

Washington, DC 20002

(202) 906-4600

Website http://www.amtrakoig.com

Hotline (800) 468-5469

Clifford H. Jennings

Inspector General

APPALACHIAN REGIONAL COMMISSION

1666 Connecticut Avenue, NW, Suite 215

Washington, DC 20009-1068

(202) 884-7675

Website http://www.arc.gov/indexdo?nodeId=2060

Hotlines (202) 884-7667

 (800) 532-4611

Carl W. Hoecker

Inspector General 

U.S. CAPITOL POLICE (new member)

499 S. Capitol Street, SW, Suite 345

Washington, DC 20003

(202) 593-4642

Hotline (866) 906-2446

E-mail oig@cap-police.senate.gov

A. Roy Lavik

Inspector General

COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

(202) 418-5110

Website http://www.ignet.gov/internal/cftc/cftc.html

Hotline (202) 418-5510

Christopher W. Dentel

Inspector General

CONSUMER PRODUCT SAFETY COMMISSION

4330 East West Highway

Bethesda, MD 20814-4408

(301) 504-7644

Hotline (301) 504-7906

Kenneth Konz

Inspector General

CORPORATION FOR PUBLIC BROADCASTING

401 9th Street, NW

Washington, DC 20004-2129

(202) 879-9660

Website http://www.cpb.org/oig

Hotlines (202) 783-5408

 (800) 599-2170

Michael Marsh

Inspector General

DENALI COMMISSION (new member)

Peterson Tower, Suite 400

510 L Street

Anchorage, Alaska 99501

(907) 271-1414

Curtis Crider

Inspector General

U.S. ELECTION ASSISTANCE COMMISSION 

(new member)

1225 New York Avenue, NW, Suite 1100

Washington, DC 20005

(202) 566-3125

Website http://www.eac.gov/oig.asp

Hotline (866) 552-0004

Aletha L. Brown

Inspector General

EQUAL EMPLOYMENT OPPORTUNITY 

COMMISSION

1801 L Street, NW, Suite 3001

Washington, DC 20507

(202) 663-4379

Website 

http://www.ignet.gov/internal/eeoc/eeoc.html

Hotline (800) 849-4230

Carl A. Clinefelter

Inspector General

FARM CREDIT ADMINISTRATION

1501 Farm Credit Drive

McLean, VA 22102

(703) 883-4030

Website http://www.fca.gov/oig.htm

Hotlines (703) 883-4316

 (800) 437-7322
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 41

Kent R. Nilsson

Inspector General

FEDERAL COMMUNICATIONS COMMISSION

445 12th Street, SW, Room 2-C762

Washington, DC 20554

(202) 418-0470

Website http://www.fcc.gov/oig

Hotline (202) 418-0473

Lynne A. McFarland

Inspector General

FEDERAL ELECTION COMMISSION

999 E Street, NW, Room 940

Washington, DC 20463

(202) 694-1015

Website http://www.fec.gov/fecig/mission.htm

Hotline (202) 694-1015

Edward Kelley

Inspector General

FEDERAL HOUSING FINANCE BOARD

1625 Eye Street, NW, Room 3095

Washington, DC 20006-4001

(202) 408-2544

Website 

http://www.fhfb.gov/Default.aspx?Page=100

Hotlines (202) 408-2900 

 (800) 276-8329

Francine C. Eichler

Inspector General

FEDERAL LABOR RELATIONS AUTHORITY

1400 K Street, NW, Room 250

Washington, DC 20424

(202) 218-7744

Website http://www.flra.gov/ig/ig.html

Hotline (800) 331-3572

Adam Trzeciak

Inspector General

FEDERAL MARITIME COMMISSION

800 North Capitol Street, NW, Room 1054

Washington, DC 20573

(202) 523-5863

Website 

http://www.fmc.gov/bureaus/inspectorgeneralInspector

General.asp

Hotline (202) 523-5865

Howard Sribnick

Inspector General

FEDERAL TRADE COMMISSION

600 Pennsylvania Avenue, NW

Washington, DC 20580

(202) 326-2743

Website http://www.ftc.gov/oig/

Hotline (202) 326-2800

J. Anthony Ogden 

Acting Inspector General

GOVERNMENT PRINTING OFFICE

North Capitol and H Streets, NW, Stop: IG

Washington, DC 20401

(202) 512-0039

Website http://www.gpo.gov/oig/

Hotline (800)743-7574

Vacant

U.S. INTERNATIONAL TRADE COMMISSION

500 E Street, SW, Room 515

Washington, DC 20436

(202) 205-3177

Website http://www.usitc.gov/oig

Hotline (800) 500-0333

Richard West

Inspector General

LEGAL SERVICES CORPORATION

3333 K Street, NW

Washington, DC 20007

(202) 295-1650

Website http://www.oig.lsc.gov/

Hotline (800) 678-8868

Karl W. Schornagel

Inspector General

LIBRARY OF CONGRESS (new member)

101 Independence Avenue, Suite LM-630

Washington, DC 20540

(202) 707-2637

Website http://loc.gov/about/oig/
42 A Progress Report to the President ▪ Fiscal Year 2006

Paul Brachfeld

Inspector General

NATIONAL ARCHIVES AND RECORDS 

ADMINISTRATION

8601 Adelphi Road

College Park, MD 20740-6001

(301) 837-1532

Website http://www.archives.gov/oig

Hotlines (301) 837-3500 

 (800) 786-2551

Hotline E-mail oig.hotline@nara.gov

William A. DeSarno

Inspector General

NATIONAL CREDIT UNION ADMINISTRATION

1775 Duke Street

Alexandria, VA 22314-3428

(703) 518-6351

Website http://www.ncua.gov/oig

Hotlines (703) 518-6357

 (800) 778-4806

Daniel L. Shaw

Inspector General

NATIONAL ENDOWMENT FOR THE ARTS

1100 Pennsylvania Avenue, NW

Washington, DC 20506

(202) 682-5402

Website 

http://www.nea.gov/about/OIG/Contents.html

Hotline (202) 682-5402

Sheldon L. Bernstein

Inspector General

NATIONAL ENDOWMENT FOR THE HUMANITIES

1100 Pennsylvania Avenue, NW, Room 419

Washington, DC 20506

(202) 606-8350

Website http://www.neh.gov/whoweare/oig.html

Hotline (202) 606-8423

Jane E. Altenhofen

Inspector General

NATIONAL LABOR RELATIONS BOARD

1099 14th Street, NW, Room 9820

Washington, DC 20570

(202) 273-1960

Website 

http://www.nlrb.gov/About_Us/inspector_general/index.aspx

Hotline (800) 736-2983

Christine C. Boesz

Inspector General

NATIONAL SCIENCE FOUNDATION

4201 Wilson Boulevard, Room 1135

Arlington, VA 22230

(703) 292-7100

Website http://www.nsf.gov/oig

Hotline (800) 428-2189

E-mail oig@nsf.gov

H. David Kotz

Inspector General

PEACE CORPS

1111 20th Street, NW

Washington, DC 20526

(202) 692-2900

Website 

http://www.peacecorps.gov/index.cfm?shell=learn.whatispc.

management.inspgen

Hotlines (800) 233-5874

 (202) 692-2915

Robert L. Emmons

Inspector General

PENSION BENEFIT GUARANTY CORPORATION

1200 K Street, NW, Suite 480

Washington, DC 20005

(202) 326-4030 x3437

Website http://oig.pbgc.gov/

Hotline (800) 303-9737

David C. Williams

Inspector General

U.S. POSTAL SERVICE

1735 Lynn Street

Arlington, VA 22209-2005

(703) 248-2300

Website http://www.uspsoig.gov

Hotline (888) 877-7644

Walter Stachnik

Inspector General

SECURITIES AND EXCHANGE COMMISSION

100 F Street, NE

Washington, DC 20549-2736

(202) 551-6060

Website http://www.sec.gov/about/oig.shtml

Hotline (202) 551-6060
President’s Council on Integrity and Efficiency ▪ Executive Council on Integrity and Efficiency 43

Stuart W. Bowen, Jr

Inspector General

SPECIAL INSPECTOR GENERAL FOR IRAQ 

RECONSTRUCTION (new member)

400 Army Navy Drive

Arlington, VA 22202

(703) 428-1100

Website http://www.sigir.mil/

 Hotline (866) 301-2003

A. Sprightley Ryan 

Acting Inspector General

SMITHSONIAN INSTITUTION

2011 Crystal Drive, Suite 351

Arlington, VA 22202

(202) 633-7050

Website http://www.si.edu/oig/

Hotline (703) 603-1894

Lives Lost in the Line of Duty

U.S. Agency for International Development

Robert Hebb, Auditor

Charles Hega, Auditor

Oscar C. Holder, Foreign Service Officer, Program Inspector

Sidney B. Jacques, Foreign Service Officer, Program Inspector

William Stanford, Auditor

Department of Housing and Urban Development

Paul Broxterman, Special Agent

Abdon Cabello, Special Agent

Department of Justice

William “Buddy” Sentner III, Special Agent

U.S. Postal Service

Greg R. Boss, Special Agent

PCIE and ECIE members pay tribute to all the dedicated OIG employees who lost their 

lives while performing their official duties either as part of an OIG or a predecessor 

agency. We salute their service to the IG community and appreciate their sacrifice. 
President’s Council on

Integrity and Efficiency

Executive Council on

Integrity and Efficiency