Audit Summary
During this reporting period, the OIG’s Audit Division issued 98 audit reports, which contained more than $10 million in questioned costs and more than $185,000 in funds to be put to better use and made 217 recommendations for management improvement. Specifically, the Audit Division issued 12 internal audit reports of Department programs funded at more than $100 million; 24 external audit reports of contracts, grants, and other agreements funded at more than $16.7 million; and 62 Single Audit Act audits funded at more than $451 million. In addition, the Audit Division issued eight Notifications of Irregularities and one Investigative Assistance Memorandum.
| Audit Reports | Number of Audit Reports |
Funds Recommended to Be Put to Better Use |
|---|---|---|
| No management decision made by beginning of period | 3 | $3,051,384 |
| Issued during period | 2 | $185,383 |
| Needing management decision during period | 5 | $3,236,767 |
| Management decisions made during period:
– Amounts management agreed to put to better use1 – Amounts management disagreed to put to better use |
2 0 |
$185,383 $0 |
| No management decision at end of period | 3 | $3,051,384 |
| Audit Reports | Number of Audit Reports |
Total Questioned Costs (including unsupported costs) |
Unsupported Costs |
|---|---|---|---|
| No management decision made by beginning of period | 18 | $8,247,145 | $2,256,756 |
| Issued during period | 26 | $10,071,248 | $7,153,307 |
| Needing management decision during period | 44 | $18,318,393 | $9,410,063 |
| Management decisions made during period: – Amount of disallowed costs1 – Amount of costs not disallowed |
41 0 |
$11,289,201 $0 |
$8,077,157 $0 |
| No management decision at end of period | 3 | $7,029,192 | $1,332,906 |
| Audit Reports | Number of Audit Reports |
Total Number of Management Improvements Recommended |
|---|---|---|
| No management decision made by beginning of period | 21 | 63 |
| Issued during period | 77 | 217 |
| Needing management decision during period | 98 | 280 |
| Management decisions made during period: – Number management agreed to implement1 – Number management disagreed with |
97 0 |
279 0 |
| No management decision at end of period | 1 | 1 |
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.
OMB Circular A-50
OMB Circular A-50, Audit Followup, 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 September 30, 2008, the OIG closed 115 audit reports and was monitoring the resolution process of 331 open audit reports.
Audits Over 6 Months Old without Management Decisions
As of September 30, 2008, the following audits had no management decision or were in disagreement:
COPS Grants to the Passamaquoddy Tribe and Pleasant Point Reservation Police Department, Perry, Maine
Oversight of Intergovernmental Agreements by the USMS and the Office of the Federal Detention Trustee
USMS Intergovernmental Service Agreement for Detention Facilities with the Blount County, Tennessee, Sheriff’s Office
USMS Intergovernmental Service Agreement for Detention Facilities with the Central Virginia Regional Jail
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
Evaluation and Inspections Statistics
The chart below summarizes the Evaluation and Inspections Division’s (E&I) accomplishments for the 6-month reporting period ending September 30, 2008.
| E&I Workload Accomplishments | Number of Reviews |
|---|---|
| Reviews active at beginning of period | 4 |
| Reviews canceled | 0 |
| Reviews initiated | 4 |
| Final reports issued | 1 |
| Reviews active at end of reporting period | 7 |
Follow-Up Activities
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 September 30, 2008, one report, “The United States Marshals Service Judicial Security Process,” had one unresolved recommendation. The OIG continues to work with the USMS to resolve it.
The following chart summarizes the workload and accomplishments of the Investigations Division during the 6-month period ending September 30, 2008.
| Source of Allegations | |
| Hotline (telephone and mail) Other sources Total allegations received |
777 4,370 5,147 |
| Investigative Caseload | |
| Investigations opened this period Investigations closed this period Investigations in progress as of 9/30/08 |
163 194 382 |
| Prosecutive Actions | |
| Criminal indictments/informations Arrests Convictions/Pleas |
62 59 52 |
| Administrative Actions | |
| Terminations Resignations Disciplinary action |
26 68 29 |
| Monetary Results | |
| Fines/Restitutions/Recoveries Seizures Civil penalties |
$1,339,594 $2,460 $3,233,500 |
Integrity Awareness Briefings
OIG investigators conducted 93 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 2,942 employees.