Audit Summary

During this reporting period, the Audit Division issued 106 audit reports containing more than $560 million in questioned costs and more than $170 million in funds to be put to better use and made 420 recommendations for management improvement. Specifically, the Audit Division issued 27 internal reports of Department programs funded at more than $26 billion; 17 external reports of contracts, grants, and other agreements funded at more that $94 million; and 62 Single Audit Act audits. In addition, the Audit Division issued seven Notifications of Irregularities and one Management Improvement Memorandum.

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 period	4	$3,648,849
Issued during period	3	$170,599,707
Needing management decision during period	7	$174,248,556
Management decisions made during period: • Amounts management agreed to put to better use1 • Amounts management disagreed to put to better use	22 0	$109,911,010 $0
No management decision at end of period	6	$64,337,546

1 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken. 2 One audit report was not resolved during this reporting period because management has agreed with some, but not all, of the funds recommended to be put to better use in the audit.

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 period	14	$10,396,267	$3,839,006
Issued during period	28	$560,367,786	$5,076,367
Needing management decision during period	42	$570,764,053	$8,915,373
Management decisions made during period: • Amount of disallowed costs1 • Amount of costs not disallowed	232 0	$269,391,578 $0	$4,191,797 $0
No management decision at end of period	20	$301,372,475	$4,723,576

1 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken. 2 One audit report was not resolved during this reporting period because management has agreed with some, but not all, of the questioned costs in the audit.

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 period	25	73
Issued during period	98	420
Needing management decision during period	123	493
Management decisions made during period: • Number management agreed to implement1 • Number management disagreed with	892 0	346 0
No management decision at end of period	40	147

1 Includes instances in which management has taken action to resolve the issue and/or the matter is being closed because remedial action was taken. 2 Includes six audit reports that were not resolved during this reporting period because management has agreed to implement a number of, but not all, recommended management improvements in these audits.

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 OIG’s Audit Division monitors the status of open audit reports to track the audit resolution and closure process. As of March 31, 2007, the OIG closed 115 audit reports and was monitoring the resolution process of 337 open audit reports.

Unresolved Audits

Audits Over 6 Months Old Without Management Decisions

As of March 31, 2007, the following audits had no management decision or were in disagreement:

• City of Carpentersville, Illinois

• COPS Grant to the City of Dunedin, Florida, Police Department

• COPS Grants to the Picuris Pueblo, New Mexico, Police Department

• COPS Grants to the Navajo Department of Resource Environment, Window Rock, Arizona

• COPS Grants to the Passamaquoddy Tribe and Pleasant Point Reservation Police Department, Perry, Maine

• USMS Intergovernmental Service Agreement for Detention Facilities with the Central Virginia Regional Jail

• USMS Intergovernmental Service Agreement for Detention Facilities with the Blount County, Tennessee, Sheriff’s Office

• USMS Intergovernmental Service Agreement for Detention Facilities with the Cumberland County Jail, Portland, Maine

• USMS Intergovernmental Service Agreement for Detention Facilities with the Hamilton County, Tennessee, Silverdale Correctional Facility

• USMS Intergovernmental Service Agreement for Detention Facilities with the Western Tidewater Regional Jail, Suffolk, Virginia

• Use of Equitable Sharing of Assets by the Baltimore County, Maryland, Police Department

• Use of Equitable Sharing of Assets by the Baltimore City, Maryland, Police Department

Quality Control

Every 3 years the OIG’s Audit Division is required by the Government Auditing Standards issued by the Comptroller General of the United States to undergo a quality control review by a separate external entity. In February 2007, the Federal Deposit Insurance Corporation (FDIC) OIG completed its external quality control review of the OIG’s Audit Division. The FDIC OIG issued an unmodified opinion stating that the system of quality control for the OIG audit function was designed in accordance with the quality standards established by the President’s Council on Integrity and Efficiency (PCIE).

In addition, the OIG Audit Division completed an external quality control review of the Department of Veterans Affairs (VA) OIG Office of Audit. We issued an unmodified opinion stating that the system of quality control for the VA OIG audit function was designed in accordance with the quality standards established by the PCIE.

Evaluation and Inspections Statistics

The chart below summarizes the Evaluation and Inspections Division’s (E&I) accomplishments for the 6-month reporting period ending March 31, 2007.

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, 2007, there were no unresolved recommendations that meet this criterion.

Investigations Statistics

The following chart summarizes the workload and accomplishments of the Investigations Division during the 6-month period ending March 31, 2007.

Source of Allegations
Hotline (telephone and mail) Other sources Total allegations received	777 3,752 4,529
Investigative Caseload
Investigations opened this period Investigations closed this period Investigations in progress as of 3/31/07	201 203 372
Prosecutive Actions
Criminal indictments/informations Arrests Convictions/Pleas	36 35 64
Administrative Actions
Terminations Resignations Disciplinary action	9 65 13
Monetary Results
Fines/Restitutions/Recoveries	$663,907

Integrity Awareness Briefings

OIG investigators conducted 187 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 8,600 employees.