USDOJ/OIG - Semiannual Report to Congress, April 1, 1996- September 30, 1996

Appendix 2


April 1, 1996 through September 30, 1996


Immigration and Naturalization Service's Efforts to Combat Harboring and Employing Illegal Aliens in Sweatshops

Safeguarding Grand Jury Material at U.S. Attorneys' Offices

Use of the American Express Charge Card in the Department of Justice

Evaluating Security Clearance Procedures for Contractors in the Federal Bureau of Investigation

Immigration and Naturalization Service's Document Fraud Records


USDOJ/OIG - Semiannual Report to Congress, April 1, 1996- September 30, 1996

Appendix 3

High Risk Areas

The Department of Justice (Department) and the Office of Management and Budget have identified nine specific areas within the Department with a high risk for fraud, waste, and abuse. Audits and inspections in these areas provide managers with assistance to correct specific high risk activities, thus ensuring improved operations within the Department. During this reporting period, the OIG issued the following audit reports that addressed five of the high risk areas.

High Risk Area Type of Audit
Overcrowding in Federal Prisons The Community Corrections Center Program in BOP
Asset Forfeiture Program FDIC Reimbursement of Sale Proceeds to the USMS
Use of Equitable Sharing Revenues by the Chief of Police City of Gregory, Texas
Asset Forfeiture Program Annual Financial Statement FY 1995
Shortage of Detention Facilities USMS IGA with Hillsborough County, Florida Sheriff's Office
USMS IGA with Sarpy County, Nebraska
USMS IGA with City of Mansfield, Texas
USMS IGA with Union County Jail, New Jersey
USMS IGA with Central Falls, Rhode Island
USMS IGA with County of Plymouth, Massachusetts
Monitoring Private Trustees Chapter 7 Panel Trustees
Chapter 12 Standing Trustees
Automated Information Systems Planning Status of the INS Financial Management Corrective Action Plan as of June 30, 1996
INS Fee Forecasting


USDOJ/OIG - Semiannual Report to Congress, April 1, 1996- September 30, 1996

Appendix 4

Glossary of Terms

The following are definitions of specific terms as they are used in the report.

Border Crosser Card: An INS identification card (Form I-586) issued to Mexican nationals residing along the border in Mexico that permits entry into the U.S. for shopping or visits of short duration.

Disallowed Cost: A questioned cost that management has sustained or agreed should not be charged to the Government.

Enhanced Revenues: Future annual revenues that can be obtained from management action on audit recommendations.

External Audit Report: The results of audits and related reviews of expenditures made under Department of Justice contracts, grants, and other agreements. External audits are conducted in accordance with the Comptroller General's Government Auditing Standards and related professional auditing standards.

Final Action: (a) The completion of all actions that the management of an establishment has concluded are necessary with respect to the findings and recommendations included in an audit; and (b) in the event that the management of an establishment concludes no action is necessary, final action occurs when a management decision has been made.

Green Card: INS Alien Registration Receipt Card (Form I-151 or Form I-551).

Information: Formal accusation of a crime made by a prosecuting attorney as distinguished from an indictment handed down by a grand jury.

Inspection Advisory Notice: Method of bringing important and time sensitive issues to management's attention while inspections work is still ongoing or to share information on a subject matter outside the defined scope of a review.

Internal Audit Report: The results of audits and related reviews of Department of Justice organizations, programs, functions, computer security and information technology, and financial statements. Internal audits are conducted in accordance with the Comptroller General's Government Auditing Standards and related professional auditing standards.

Leasehold Improvements: Enhancements made to leased property, such as renovations to a leased building, that revert to the lessor at the end of the lease.

Management Issues: Allegations, generally of an administrative nature, that are sent to managers in the Department, or of other Departments, for their information and such action as they deem appropriate.

OIG Referrals: Matters referred to components within the Department of Justice for investigation or other action when criminal prosecution of the alleged misconduct is not foreseeable, and when the matter raises administrative issues involving lower-ranking employees. When a matter is referred, the component is to provide the OIG with the results of the referral, which may include investigative findings and administrative action taken by the component.


(Glossary Continued)

Pre-Trial Diversion: An alternative to prosecution which seeks to divert certain offenders from traditional criminal justice processing into a program of supervision and services administered by the U.S. Probation Service or other appropriate community agency providing such services. Participants who successfully complete the program have charges against them dismissed; unsuccessful participants are returned for prosecution.

Questioned Cost: Cost that is questioned by the OIG because of (a) an alleged violation of a provision of a law, regulation, contract, grant, cooperative agreement, or other agreement or document governing the expenditure of funds; (b) a finding that, at the time of the audit, such cost is not supported by adequate documentation; or (c) a finding that the expenditure of funds for the intended purpose is unnecessary or unreasonable.

Recommendation that Funds be Put to Better Use: Recommendation by the OIG that funds could be used more efficiently if management of an establishment took actions to implement and complete the recommendation, including (a) reductions in outlays; (b) deobligation of funds from programs or operations; (c) withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds;
(d) costs not incurred by implementing recommended improvements related to the operations of the establishment, a contractor, or grantee; (e) avoidance of unnecessary expenditures noted in pre-award reviews of contract or grant agreements; or (f) any other savings that are specifically identified.

Recovered Funds: Government funds returned to the Department or the U.S. Treasury as the result of an investigation.

Restitution Funds: Payments to victims of crimes or civil wrongs ordered by courts as part of a criminal sentence or civil or administrative penalty.

Seizures: Property, including cash, real estate, vehicles, etc., used or acquired through illegal activities, that is confiscated by law enforcement officials. A decision is made by a court or civil authority regarding the disposition of the seized property.

Unqualified Opinion: An auditor's judgment that there are no reservations as to the fairness of presentation of an organization's financial statements and their conformity with generally accepted accounting principles.

Unsupported Cost: Cost that is questioned by the OIG because the OIG found that, at the time of the audit, such cost is not supported by adequate documentation.


USDOJ/OIG - Semiannual Report to Congress, April 1, 1996- September 30, 1996

Appendix 5

Reporting Requirements Index

The Inspector General Act of 1978, as amended, specifies reporting requirements for semiannual reports. The requirements are listed below and indexed to the applicable pages.

IG Act References Reporting Requirement Page
Section 4(a)(2) Review of Legislation and Regulations 5
Section 5(a)(1) Significant Problems, Abuses, and Deficiencies 7 to 33
Section 5(a)(2) Significant Recommendations for Corrective Action 19 to 33
Section 5(a)(3) Prior Significant Recommendations Unimplemented None
Section 5(a)(4) Matters Referred to Prosecutive Authorities 7 to 17
Section 5(a)(5) Refusal to Provide Information None
Section 5(a)(6) Listing of Audit Reports A-1 to A-12
Section 5(a)(7) Summary of Significant Reports 7 to 33
Section 5(a)(8) Audit Reports--Questioned Costs 26
Section 5(a)(9) Audit Reports--Funds to be put to Better Use 26
Section 5(a)(10) Prior Audit Reports Unresolved None
Section 5(a)(11) Significant Revised Management Decisions None
Section 5(a)(12) Significant Management Decisions with which the OIG Disagreed None



On-Line Report Availability

Many audit, inspections, and special reports are available at the following Internet address: <>. In addition, the same materials are available through the Inspectors General Network's World Wide Web server at <>.


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P.O. Box 28329

Washington, D.C. 20038-8329

or call:

(202) 616-4550


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