DEPARTMENT OF TRANSPORTATION OFFICE OF INSPECTOR GENERAL SUMMARY STATEMENT DESCRIPTION The Inspector General Act of 1978, as amended, provides for the establishment of an organization to be independent and objective in conducting and supervising audits and investigations designed to: (1) promote economy, efficiency, and effectiveness and prevent fraud, waste, and abuse in Departmental programs and operations; and (2) provide a means of keeping the Secretary of Transportation and Congress fully and currently informed of problems and deficiencies in the administration of such programs and operations. OBJECTIVES The Inspector General Act requires the Office of Inspector General (OIG) to conduct, supervise, and coordinate audits and investigations relating to the programs and operations of the Department. To accomplish its mission, the OIG must establish and maintain relationships between the Department of Transportation (DOT) and other Federal agencies and state and local governments with respect to their audit and investigative responsibilities. The Inspector General (IG) directs the mission and functions of the OIG, including: ascertaining the need for, formulating, and recommending Departmental policy, plans, and programs for audits, inspections and evaluations, and investigations; managing audits, inspections and evaluations, investigations, and administrative functions relating to programs and operations of the Department; providing leadership and coordination as well as recommending policies for activities designed to promote economy, efficiency, and effectiveness, and to prevent and detect fraud and abuse in the administration of Departmental programs and operations; and providing means for keeping the Secretary and Congress fully and currently informed about problems and deficiencies relating to the administration of Departmental programs and operations, and the progress of corrective actions. In carrying out these responsibilities, the IG and/or the Deputy IG exercise executive direction over the functions of Auditing; Inspections and Evaluations; Investigations; and Policy, Planning, and Resources. The Assistant Inspector General for Auditing (AIGA) ensures compliance with the standards established by the Comptroller General of the United States, the President's Council on Integrity and Efficiency (PCIE), and other professional guidelines for all audits performed in or for the Department. The audit organization conducts the following types of internal audits: financial and compliance, economy and efficiency, and program results. Protective audits are also performed to evaluate the business management practices of smaller activities which would not receive audit coverage as part of the larger scope audits of Departmental programs. Oversight is maintained over audit work performed by independent public accountants of grantees under the Single Audit Act of 1984, the Defense Contract Audit Agency (DCAA) for contracts anticipated or awarded by the Department, and audits of financial statements of Departmental entities or activities performed by public accounting firms in accordance with the Chief Financial Officers (CFO) Act of 1990. Support is also provided to investigations and inspections and evaluations. The Assistant Inspector General for Inspections and Evaluations (AIGE) provides independent and objective inspections and evaluations of the programs and operations of the DOT. These inspections and evaluations review management, operational, policy, regulatory, and/or legislative implications of transportation related issues, providing the Secretary, program managers within DOT, and the Congress with timely feedback and reports. Inspections and evaluations are designed to support overall OIG fraud, waste, and mismanagement missions. An inspection is program specific and is used for management analysis and for focused, on-site review. An inspection will determine if a program follows established policies, procedures, and guidelines and is managed properly. An evaluation looks at the effectiveness of a program. An evaluation will determine if a program achieves its goals and if these goals are contributing to the overall goals of the Department. Frequently, both inspection and evaluation activities exist in the same review. Inspections and evaluations are intended to provide more immediate and timely feedback to program managers and, in some instances, may provide suggestions for future audits or referrals for criminal investigations. The Assistant Inspector General for Investigations (AIGI) directs and controls the performance of all investigative activities under the authority of the IG. These investigations involve: alleged violations of fraud against the Government, false claims and statements, bribery, embezzlement, kickbacks, or other fraudulent or criminal activities affecting DOT programs, contracts, and operations; alleged violations of other Federal statutes and laws pertaining to DOT grants and contracts; allegations of bid rigging of federally funded construction projects; alleged improprieties on the part of Departmental employees and others in connection with DOT programs; noncompliance with legislative or administrative requirements relating to DOT programs; and alleged violations of DOT standards of conduct by Departmental employees. These investigations involve both proactive and reactive activities designed to maintain the Department's integrity and protect its resources from fraud, waste and/or program abuse. The Assistant Inspector General for Policy, Planning, and Resources (AIGP) develops overall OIG policy for the performance of audit, inspection and evaluation, investigative, and administrative activities. This organization is responsible for: reviewing and commenting on legislative and regulatory proposals of the Department as required by the IG Act; performing quality assurance reviews of audit, inspection and evaluation, and investigative practices to ensure compliance with OIG policies and procedures, and professional standards; maintaining an audit followup and tracking system; preparing the OIG Semiannual Report to Congress; developing and maintaining a long-range strategic plan to ensure OIG audits, inspections and evaluations, and investigations address the most current transportation issues and are responsive to Departmental needs; providing program and budget formulation and execution, and financial and administrative support services for the OIG; providing personnel management, recruitment, classification, and staff development services; and managing the OIG's Audit and Investigation Computer Integration System (AICIS) information resources, and Management Information System (MIS) data base. ACCOMPLISHMENTS During the Fiscal Year (FY) 1993, the Office of the AIGA issued 2,456 audit reports and made recommendations to improve the economy, efficiency, and effectiveness of DOT programs and operations with a potential impact of $488.9 million and questioned the eligibility of $302.5 million of costs. Resolution of audit reports resulted in management's commitment to seek recoveries and more effectively use resources amounting to $570.4 million. The OAIGE issued 26 reports, letters, and other responses, containing a total of 13 recommendations for improving departmental operations. The OAIGI conducted investigations that resulted in 95 convictions; 150 indictments; and $36.1 million in fines, court-ordered restitution, administrative actions, and cost avoidance. Specific accomplishments for each organization are discussed in the appropriate sections of this budget submission. REQUEST HIGHLIGHTS The FY 1995 request is for $38.319 million which is a net decrease of $681 thousand below the $39 million enacted in FY 1994. Except for an increase in printing and reproduction, decreases have been recognized in most budget categories. The OIG has budgeted $115,000 to fund the Transit Benefit Program and $867,000 to support activities coordinated through the Working Capital Fund. The OIG request includes $25,000 for advisory and assistance services as defined by Office of Management and Budget (OMB) Circular A-120 pursuant to the Budget and Accounting Act of 1921, as amended, 31 U.S.C. 1114(a). For technical engineering analysis for audits, inspections and evaluations, and investigations performed by the OIG, handwriting and laboratory analyses required for investigations, $10,000 has been identified. The remaining $15,000 is needed for Equal Employment Opportunity (EEO) investigations and supervisory training. The staffing levels requested for FY 1995 are 454 full-time permanent positions and 454 ceiling and nonceiling FTEs, representing a decrease to the FY 1994 enacted budget of 35 positions and 35 FTEs. More detail on the requested funding level is contained in the following justification. |