FY 2021 Inspector General Act Amendments Report

Background 

The Inspector General Act Amendments of 1988 (P.L. 100-504) require that Federal agencies 

report on the actions taken in response to Office of Inspector General (OIG) audit reports and 

corresponding audit recommendations. Specifically, the 1988 Amendments require agencies to 

report on: 1) Management Action Taken on OIG Reports containing Monetary Benefits and; 2) 

Management Action Not Taken on OIG Audit Reports in Excess of One-Year. 

In addition, the Office of Management and Budget (OMB) outlines specific “action 

requirements” on Federal agencies in its Circular No. A-50, “Audit Follow-up.” The Circular 

requires that agencies ensure final management decisions on OIG audit recommendations are 

reached within 180-days after the issuance of an audit report and that corresponding corrective 

actions begin as soon as practicable. 

Key terminology specific to NASA’s FY 2021 reporting under the Inspector General Act 

Amendments of 1988 follows: 

Corrective Action consists of management’s planned or proposed remediation efforts 

intended to mitigate an audit finding. 

Disallowed Costs are questioned costs that management has sustained or agreed should 

not be charged to the Government. 

Final Management Action is the point in time when corrective action, taken by 

management in conjunction with a final management decision, is completed. 

Final Management Decision is reached when management evaluates the OIG’s findings 

and recommendations and determines whether or not to implement a proposed 

recommendation. 

Funds to be Put to Better Use (FPTBU) are potential cost savings, identified by the 

OIG, which could be realized through the implementation of an audit recommendation. 

Questioned Costs are those costs identified by the OIG as being potentially unallowable 

because of either: a) a purported violation of law, regulation, contract, grant, cooperative 

agreement, or other device governing the incurrence of cost; b) a finding that, at the time 

of the audit, such cost is not supported by adequate documentation or; c) a finding that 

the cost incurred for the intended purpose is unnecessary or unreasonable.

Resolution is the point at which NASA and the OIG agree on action(s) to be taken in 

response to an audit recommendation or, in the event of disagreement, the point at 

which the Audit Follow-up Official determines the matter to be resolved. 
NASA’s Audit Follow-up Program

NASA utilizes the results of OIG audits to improve the overall efficiency and effectiveness of 

the Agency’s programs, projects, and functional activities. NASA is also committed to ensuring 

timely and responsive final management decisions, along with timely and complete final 

management action on all audit recommendations issued by the NASA OIG. To this end, NASA 

has implemented a comprehensive program of audit follow-up intended to ensure that audit 

recommendations issued by the OIG are resolved and implemented in a timely, responsive, and 

effective manner. NASA’s audit follow-up program is a key element in improving the overall 

efficiency and effectiveness of NASA’s programs, projects and operations. 

NASA’s Mission Support Directorate (MSD) serves as the Agency’s Office of Primary 

Responsibility for policy formulation, oversight, and functional leadership of NASA’s audit 

follow-up program. MSD implements audit follow-up program activities through an Agencywide network of Audit Liaison Representatives (ALRs) who, in turn, are responsible for 

executing audit follow-up program activities at the Mission Directorate, Field Center, and 

Mission Support Office levels. In conjunction with NASA’s network of ALRs, MSD provides 

the infrastructure to implement NASA’s audit follow-up program. The program utilizes NASA’s 

Audit and Assurance Information Reporting System (AAIRS) to track and monitor OIG audit 

reports and corresponding recommendations, as well as to support internal and external 

reporting. 

Consistent with the requirements outlined in OMB Circular A-50, MSD monitors audit 

recommendations issued by the OIG to ensure that a final management decision is reached 

within 180-days of the issuance of a final audit report. A final management decision is reached 

when either: 1) Management agrees to implement corrective actions in response to an OIG audit 

recommendation; or 2) Management determines that implementing a particular audit 

recommendation is imprudent, impractical, or not cost beneficial. In those instances where a 

final management decision cannot be reached, resolution is achieved in conjunction with 

NASA’s Audit Follow-up Official (AFO), consistent with provisions of OMB Circular A-50. 

When a final management decision to implement an audit recommendation has been made, 

corrective action is pursued as rapidly as practicable. In some instances, the corrective actions 

associated with a final management decision may span multiple fiscal years due to factors such 

as the complexity or cost of the planned corrective actions, or unexpected delays in the 

formulation, review, and approval of NASA policies, procedural requirements, or regulations. In 

these instances, MSD engages with the OIG and respective NASA Component (e.g., Mission 

Directorate, Field Center, or Mission Support Office) to ensure communication and coordination 

regarding necessary revisions to timelines and milestones associated with the implementation of 

these recommendations. 

FY 2021 Audit Follow-up Results

The Inspector General Act Amendments of 1988 require that heads of Federal agencies report on 

management action taken, or remaining to be taken, in response to OIG audit reports containing 

monetary benefits. For the purposes of this report, monetary benefits consist of: 1) Questioned 
Costs; or 2) Funds to be Put to Better Use (FPTBU), as defined above. NASA’s FY 2021 results 

of management action on OIG reports with monetary benefits are found in Table 1. 

The 1988 Amendments also require that Federal agencies report on those OIG recommendations 

for which a final management decision had been made in a prior fiscal year, but final 

management action is still ongoing. NASA’s FY 2021 results of management action not taken 

on OIG reports in excess of one-year are found in Table 2. 

In addition to the statutory reporting requirements delineated in the 1988 Amendments, OMB 

Circular A-50 requires that final management decisions on OIG audit recommendations be made 

within 180-days of the issuance of a final audit report. Results of final management decisions 

made during FY 2021 are found in Section 3 of this report. 

NASA’s overall FY 2021 reporting in conjunction with the requirements of the Inspector 

General Act Amendments of 1988 and OMB Circular A-50, follows: 

1. Management Action on OIG Reports with Monetary Benefits

The cumulative prior year carry-over amount of OIG identified monetary benefits pending final 

management action at the beginning of FY 2021, consisted of: 

o $231,584,131 in questioned costs identified in three OIG audit reports issued in FY

20171

, and FY 20202; and 

o $193,000,000 in FPTBU identified in one OIG report issued in FY 20193. 

During the course of FY 2021, the OIG issued one audit report to NASA containing monetary 

benefits consisting of $246,060 in questioned costs. Also during FY 2021, final management 

action was taken by NASA on $214,715,182 in questioned costs; and $193,000,000 in FPTBU

initially identified by the OIG in four audit reports issued in fiscal year 2019, 2020 and 2021. 

Final management action remaining to be taken by NASA on current and prior-year OIG 

identified monetary benefits as of September 30, 2021, consists of a total of $17,115,009 which 

is comprised of $17,115,009 in questioned costs, and $0 in FPTBU. These monetary benefits 

were identified in one OIG audit report4 issued to NASA in FY 2017. 

Table 1 summarizes NASA’s actions taken with respect to monetary benefits identified in OIG 

audit reports issued during FY 2021, as well as residual (carry-over) monetary benefits identified 

1

 “Construction of Test Stands 4693 and 4697 at Marshall Space Flight Center” (IG-17-021; May 17, 2017). 2

 “NASA’s Management of Crew Transportation to the International Space Station” (IG-20-005; November 14, 

2019); and “NASA’s Management of the Orion Multi-Purpose Crew Vehicle Program” (IG-20-018; July 16, 2020). 3

 “NASA’s Progress with Environmental Remediation Activities at the Santa Susana Field Laboratory” (IG-19-013, 

March 19, 2019). 4

 “Construction of Test Stands 4693 and 4697 at Marshall Space Flight Center” (IG-17-021; May 17, 2017).
in OIG audit reports issued in prior fiscal years, that required management action during FY 

2021. 

Table 1 

Management Action on OIG Audit Reports with Monetary Benefits

For the Year Ended September 30, 2021

Category Questioned Costs

Funds to be Put to 

Better Use Total 

Monetary 

Benefits 

(Dollars)

No. of 

Reports Dollars

No. of 

Reports Dollars

Line 1

Beginning Balance: Audit reports with monetary 

benefits issued in prior years requiring final 

management action (prior year carry-over into 

FY 2021)

3 $231,584,131 1 $193,000,000 $242,584,131

Line 2

Plus: Audit reports with monetary benefits 

issued during FY 2021 requiring final 

management action 

1 $246,060 0 $0 $246,060

Line 3

Total audit reports with monetary benefits 

requiring final management action during 

FY 2021 [line 1 + 2]

4 $231,830,191 1 $193,000,000 $424,830,191

Line 4

Audit reports with monetary benefits on which 

final management action was taken during FY 

2021 

3 $214,715,182 1 $193,000,000 $407,715,182

Line 5

Ending Balance: Audit reports with monetary 

benefits awaiting final management action at 

the end of FY 2021 [line 3 - line 4] (carry-over 

into FY 2022)

1 $117,115,009 0 $0 $17,115,009

2. Management Action Not Taken on OIG Reports in Excess of One-Year

As of September 30, 2021, a total of 61 recommendations in 26 OIG audit reports remain open in 

excess of one year since the issuance of the corresponding final audit reports. These 61 OIG 

recommendations open for more than one year at September 30, 2021, fall across seven 

functional areas of Agency operations/activities, specifically: 

• Earth/Space Science (18 recommendations);

• IT/Cybersecurity (15 recommendations); 

• Human Explorations and Operations (12 recommendations); 

• Infrastructure Management (5 recommendations);

• Health/Safety/Security Management (4 recommendations); 

• Acquisition Management (4 recommendations); and 

• Budget/Financial Management (3 recommendations) 

Although these recommendations remain open in excess of one year after issuance of the 

corresponding audit reports, NASA management either has, or continues to, aggressively pursue 

those actions needed to fully implement the OIG’s recommendations. NASA has completed 

corrective actions on 2 of the 61 recommendations (3 percent), and is currently awaiting the 

OIG’s determination with regard to sufficiency of those actions for closure. Final management 
action on the remaining 59 OIG recommendations open in excess of one year since the issuance 

of the corresponding final audit reports are planned for completion between the first-quarter of 

FY 2022 and second quarter of FY 2024. 

By way of comparison and perspective, as of September 30, 2020, a total of 44 recommendations 

in 23 OIG audit reports were open, pending completion of final management action, in excess of 

one year since the issuance of the corresponding final audit reports. 

Table 2 summarizes those OIG audit reports and associated recommendations issued prior to FY

2021 that remain open in excess of one year after the issuance of the corresponding final audit 

reports. 

Table 2

OIG Audit Reports and Recommendations Open in Excess of One-Year

(As of September 30, 2021)

Report 

Date

Report 

Number Report Title Recommendations

Open Closed Total

8/8/2012 IG-12-017 Review of NASA's Computer Security Incident Detection and 

Handling Capability

2 1 3

7/22/2014 IG-14-026 Audit of the Space Network’s Physical and Information 

Technology Security Risks

1 3 4

3/28/2016 IG-16-015 Audit of the Spaceport Command and Control System 1 0 1

11/2/2016 IG-17-003 NASA's Earth Science Mission Portfolio 1 1 2

3/9/2017 IG-17-012 NASA’s Management of Electromagnetic Spectrum 1 1 2

4/13/2017 IG-17-017 NASA’s Plans for Human Exploration beyond Low Earth Orbit 1 5 6

5/17/2017 IG-17-021 Construction of Test Stands 4693 and 4697 at Marshall Space 

Flight Center

3 0 3

4/5/2018 IG-18-015 NASA's Management of GISS: The Goddard Institute for 

Space Studies

1 7 8

5/14/2018 IG-18-017 NASA’s Compliance with the Improper Payments Information 

Act for Fiscal Year 2017

1 2 3

10/22/2018 IG-19-002 Audit of NASA's Historic Property 3 2 5

3/26/2019 IG-19-014 NASA’s Engineering and Technical Services Contracts 3 0 3

5/7/2019 IG-19-018 NASA’s Heliophysics Portfolio 3 1 4

5/29/2019 IG-19-019 Management of NASA's Europa Mission 1 9 10

6/18/2019 IG-19-022 Cybersecurity Management and Oversight at the Jet 

Propulsion Laboratory

1 9 10

10/21/2019 IG-20-001 NASA’s Security Management Practices 4 4 8

11/7/2019 IG-20-004 Review of NASA’s Fiscal Year 2019 Digital Accountability and 

Transparency Act Submission

2 3 5

11/14/2019 IG-20-005 NASA’s Management of Crew Transportation to the 

International Space Station

1 7 8

3/3/2020 IG-20-011 NASA’s Management of Distributed Active Archive Centers 2 1 3

3/10/2020 IG-20-012 NASA's Management of Space Launch System Program 

Costs and Contracts

4 4 8

3/17/2020 IG-20-013 Audit of NASA’s Development of Its Mobile Launchers 2 2 4

4/10/2020 IG-20-016 NASA’s Compliance with the Improper Payments Information 

Act for Fiscal Year 2019

1 3 4

6/25/2020 IG-20-017 Evaluation of NASA’s Information Security Program under the 

Federal Information Security Modernization Act for Fiscal Year 

2019

6 3 9
7/16/2020 IG-20-018 NASA’s Management of the Orion Multi-Purpose Crew Vehicle 

Program

1 2 3

8/27/2020 IG-20-021 Audit of NASA’s Policy and Practices Regarding the Use of 

Non-Agency Information Technology Devices

5 0 5

9/14/2020 IG-20-022 NASA’s Management of the Stratospheric Observatory for 

Infrared Astronomy Program

1 8 9

9/16/2020 IG-20-023 NASA's Planetary Science Portfolio 9 2 11

Totals 26 61 80 141

3. Final Management Decisions Made Within 180-Days of Report Date

During FY 2021, the OIG issued 18 audit reports containing 129 recommendations addressed to 

NASA which required a final management decision within six months of the respective final 

report dates. Final management decisions were made within six months of issuance of the 

corresponding final audit reports on 128 (99 percent) of the OIG recommendations issued during 

FY 2021. 

The one remaining unresolved recommendation pertains to the OIG’s September 2021 report 

entitled, “NASA’s Construction of Facilities” (IG-21-027). In the report, the OIG recommended 

that NASA revised its Procedural Requirements 8820.2G to define and establish parameters for 

the use of institutional and programmatic Construction of Facilities (CoF) funds and establish a 

cost-sharing method for facilities that will have more than one user. NASA concurred with the 

recommendation and stated that the management planned to develop a process for evaluating 

large investment renewal projects and would consider opportunities for cost-sharing institutional 

and programmatic CoF projects. However, the OIG stated that management’s proposed actions 

were partially responsive to the recommendation as management did not indicate that costsharing methods will be defined in policy. 

 

For the five-year period ended September 30, 2021, 562 OIG audit recommendations in 72 audit 

reports were issued to NASA requiring a final management decision within six months of the 

respective final report dates. Final management decisions were made within six months of the 

respective final reports dates on 561 (99.8 percent) of these recommendations, including the 

currently unresolved recommendation relating to NASA’s Construction of Facilities, as noted 

above. 

4. Audit Recommendation Closure Efficiency

During the course of FY 2021, a total of 133 OIG audit recommendations (including 115 

recommendations issued in prior fiscal years) were closed based on responsive management 

action taken by NASA. 

Of the 133 audit recommendations closed by the OIG during FY 2021: 

• 69 recommendations (52 percent) were closed within one year of issuance of the 

associated audit reports; 
• 50 recommendations (37 percent) were closed between one and two years of issuance of 

the associated audit reports; and 

• 14 recommendations (11 percent) were closed in excess of two years of issuance of the 

associated audit reports 

For comparative purposes, during FY 2020, a total of 151 OIG audit recommendations 

(including 131 recommendations issued in prior years) were closed based on responsive 

management action taken by NASA. Of these 151 recommendations closed by the OIG during 

FY 2020: 

• 43 recommendations (28 percent) were closed within one year of issuance of the 

associated audit reports;

• 83 recommendations (55 percent) were closed between one and two years of issuance of 

the associated audit reports; and 

• 25 recommendations (17 percent) were closed in excess of two years of issuance of the 

associated audit reports