Semiannual Report to Congress

October 1, 2010 – March 31, 2011
Office of the Inspector General


Statistical Information

Audit Statistics

During this reporting period, the OIG’s Audit Division issued 41 internal and external audit reports, which contained more than $12.8 million in questioned costs and made 143 recommendations for management improvement. Specifically, the Audit Division issued 18 internal audit reports of Department programs funded at more than $540 million and 23 external audit reports of contracts, grants, and other agreements funded at over $42 million; and 48 Single Audit Act audits of programs funded at more than $146 million. In addition, the Audit Division issued three Notifications of Irregularities and four other reports.


Funds Recommended to Be Put to Better Use

Audit Reports Number of
Audit Reports
Funds
Recommended
to Be Put to
Better Use
No management decision made by beginning of period1 3 $3,051,384
Issued during period 1 $900
Needing management decision during period 4 $3,052,284
Management decisions made during period:
– Amounts management agreed to put to better use2
– Amounts management disagreed to put to better use
1
0
      
$900
$ 0
No management decision at end of period 3   $3,051,384
1 Reports previously issued for which no management decision has been made.

2 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken.



Audits with Questioned Costs

Audit Reports Number
of Audit
Reports
Total Questioned
Costs (including
unsupported
costs)
Unsupported
Costs
No management decision made by beginning of period1 9 $6,233,138 $513,078
Issued during period 242 $14,503,802 $11,752,800
Needing management decision during period 33 $20,736,940 $12,265,878
Management decisions made during period:
– Amount of disallowed costs3
– Amount of costs not disallowed
21
0
$13,411,638
$0
$12,149,097
$0
No management decision at end of period 12 $7,325,302 $116,781
1 Reports previously issued for which no management decision has been made.

2 Of the audit reports issued during this period with questioned costs, 11 were Single Audit Act reports.

3 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken.



Audits Involving Recommendations for Management Improvements

Audit Reports Number of
Audit Reports
Total Number of
Management
Improvements
Recommended
No management decision made by beginning of period1 22 68
Issued during period 752 264
Needing management decision during period 97 332
Management decisions made during period:
– Number management agreed to implement3
654 249
– Number management disagreed with 1 2
No management decision at end of period 32 81
1 Reports previously issued for which no management decision has been made.

2 Of the audit reports issued during this period with recommendations for management improvements, 47 were Single Audit Act reports.

3 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken.

4 Includes one audit for which management agreed to implement all but two of the recommendations.

National Defense Authorization Act Reporting

OIG Reporting Required by the National Defense Authorization Act for FY 2008

The National Defense Authorization Act for FY 2008 requires all Inspectors General appointed under the IG Act to add an annex to their Semiannual Reports:  (1) listing all contract audit reports issued during the reporting period containing significant audit findings; (2) briefly describing the significant audit findings in the report; and (3) specifying the amounts of costs identified in the report as unsupported, questioned, or disallowed. This Act defines significant audit findings as unsupported, questioned, or disallowed costs in excess of $10 million or other findings that the Inspector General determines to be significant. It defines contracts as a contract, an order placed under a task or delivery order contract, or a subcontract.

The OIG did not issue any audits that fit these criteria during this semiannual reporting period.

Audit Follow-up

OMB Circular A-50

OMB Circular A-50, Audit Follow-up, requires audit reports to be resolved within 6 months of the audit report issuance date. The Audit Division monitors the status of open audit reports to track the audit resolution and closure process. As of March 31, 2011, the OIG was monitoring the resolution process of 256 open audit reports and closed 110 audit reports this reporting period.

Unresolved Audits

As of March 31, 2011, the following audits were more than 6 months past their issuance and had no management decision or were in disagreement:

Evaluation and Inspections Statistics

The following chart summarizes the workload and accomplishments of the Evaluation and Inspections Division during the 6-month reporting period ending March 31, 2011.

E&I Workload and Accomplishments Number
of Reviews
Reviews active at beginning of period 8
Reviews cancelled  0
Reviews initiated 2
Final reports issued 1
Reviews active at end of reporting period 9

Unresolved Reviews

DOJ Order 2900.10, Follow-up and Resolution Policy for Inspection Recommendations by the OIG, requires reports to be resolved within 6 months of the report issuance date. As of March 31, 2011, there were no unresolved recommendations from the Evaluation and Inspections Division that met this criterion.

Investigations Statistics

The following chart summarizes the workload and accomplishments of the Investigations Division during the 6-month reporting period ending March 31, 2011.

Source of Allegations
Hotline (telephone, mail, and e-mail)
Other sources
Total allegations received
1,630
3,869
5,499
Investigative Caseload
Investigations opened this period
Investigations closed this period
Investigations in progress at end of reporting period
174
148
398
Prosecutive Actions
Criminal indictments/informations
Arrests
Convictions/Pleas
53
60
45
Administrative Actions
Terminations
Resignations
Disciplinary action
17
38
37
Monetary Results
Fines/Restitutions/Assessments
Seizures
Bribe monies deposited to the Treasury
Civil Fines/Restitutions/Recoveries/Penalties
$1,496,123
$0
$0
$0

Investigations Division Briefing Programs

OIG investigators conducted 60 Integrity Awareness Briefings for Department employees throughout the country. These briefings are designed to educate employees about the misuse of a public official’s position for personal gain and to deter employees from committing such offenses. The briefings reached more than 2,630 employees.

OIG investigators conducted seven Recovery Act Fraud Awareness Briefings for Department officials, contractors, state and local administering agencies, and grant recipients. The purpose of these briefings is to educate administrators on common fraud schemes and specific vulnerabilities within the contracts or grants they oversee. For contractors and grant recipients, the program provides information about the OIG’s oversight role and the potential ramifications of the misuse of Recovery Act funds. The briefings reached more than 555 attendees.

OIG Hotline

During FY 2011, the OIG received the majority of its Hotline complaints through its recently modified electronic complaint form located within the OIG website at www.justice.gov/oig.

In addition, Department employees and citizens are able to file complaints by telephone, fax, e-mail, and postal mail. The online access, e-mail, fax, and postal mail all provide the ability to file a complaint in writing to the OIG.

From all Hotline sources during the first half of FY 2011, over 1,600 new complaints related to Department operations or other federal agencies were entered into our complaint tracking system. Of the new complaints, over 1,000 were forwarded to various Department components for their review and appropriate action; 161 were filed for information; 305 were forwarded to other federal agencies, and 12 were opened by the OIG for investigation.

 


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