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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
As we continue to mark the 25th Anniversary of the Inspector General Act, we devote a portion of this report to note the TVA OIG accomplishments over the last 18 years. Reflecting on the contributions we have added to TVA over these many years demonstrates the value of independent reviews of TVA programs and personnel. On our contract audit efforts alone (including preaward audits), our office has identified on average about $30 million annually in savings and potential avoided costs since 1986. While the work of the OIG has contributed to TVA’s “bottom line,” that is only part of the story. Much of our work focuses on strengthening controls at TVA in significant ways which cannot always be measured in dollars and cents. This is particularly critical given widely reported corporate failures in recent years.As reflected in this semiannual report, we continue to both add to TVA’s “bottom line” and to encourage implementing and maintaining proper internal controls over TVA programs, practices, and systems. Our preaward contract audits identified $12 million in potential savings, contract compliance audits identified nearly$5 million in questioned costs, and we found that TVA had miscalculated and misapplied indirect cost recovery rates that resulted in under recovery of $9.4 million of TVA’s indirect costs from the Department of Energy in connection with the tritium program. On the control side, we examined TVA’s 2003 financial statements and found no material problems, recommended enhancement of the enterprise-wide risk management program, and completed five audits that concluded that TVA’s information technology security system has improved due in part to an increased emphasis on incorporating security best practices.This semiannual report comes with a new feature, “Highlights,” which is designed to summarize the report and provide a helpful key to matters of interest to our stakeholders. We are dispensing with the hard copy of the report in favor of the e-government format of a compact disc and access on our website, www.oig.tva.gov, from which the entire report can be printed if desired. We are interested in feedback on this new feature.I am gratified by the support for our work from the TVA Board, TVA management, and Congress. We appreciate this support and are committed to continuing the OIG tradition of adding value to the work of TVA as we have for all these many years.
Our audit disclosed that mc did not comply with the terms of its agreement with the U.S. Department of Education. UIC failed to show that its GEAR UP project provided services to 1,130 participants from its cohort during each of the first three years of the grant (September 1, 1999, through August 31,2002). In addition, UIC and its partnership failed to provide $990,847 in required non-federal matching contributions forthe first three years of the grant. Therefore, we recommend that the Chief Financial Officer, Office of the Chief Financial Officer, in conjunction with the Assistant Secretary, Office of Postsecondary Education, require UIC to refund all $1,018,212 received during the first three years of the grant and take appropriate action pursuant to 34 C.F.R. § 74.62 to protect future GEAR UP grant funds
J-1 Visa Waiver program provides a waiver of the requirement for a foreign physician to return to his/her home country after completion of medical training
This is my first report to the Board of Directors and to the United States Congress after being nominated by President Bush in February and later confirmed by the United States Senate in May. I am appreciative of the trust and confidence placed in me by the President given what I view as significant challenges for both my office and TVA. President Bush met with the Inspectors General (IGs) in Washington on October 14, 2003, and expressed his support of our efforts to bring about good government in our respective federal agencies. The President met with us in the Indian Treaty Room of the Eisenhower Executive Office Building to underscore his commitment to achieving the necessary changes in government to make it work better for the American people. He noted that IGs are regarded as “agents of positive change.” Our meeting with the President was part of our celebration of the 25th anniversary of the enactment of the IG Act.These past six months have confirmed my belief that the OIG at TVA has an admirable history of promoting positive change. That has been true despite the inherent limitations that come with IGs having been previously appointed by the Board rather than the President. Promoting positive change is not always universally heralded in federal agencies, and IGs must have absolute independence in their audits and investigations if their work is to be credible. In 2000, Congress recognized the need for greater independence for the IG at TVA by enacting Public Law No. 106-422 which converted the IG from Board-appointed to one appointed by the President with the advice and consent of the Senate. My commitment, given this new level of independence, is to ensure that we continue to promote excellence at TVA and to do so with increased vigor. I firmly believe that TVA will benefit from a truly independent IG, and Congress will be better served in its oversight responsibilities of TVA.The OIG here at TVA is blessed with a cadre of highly trained professionals who until my appointment were ably led by Acting IG Don Hickman. Under Mr. Hickman’s leadership, significant accomplishments were achieved as noted in prior reports to the Board and to Congress. I appreciate Mr. Hickman’s commitment and leadership which continue to be an asset to our office.As this report indicates, we have tackled significant issues, and we have made progress in protecting TVA’s assets and in identifying ways that programs can be better run. Perhaps more importantly, we serve the equally important role of deterring others who witness our aggressive audits and investigations. As a former federal prosecutor, I am particularly sensitive to fraud indicators in an organization. Systemic fraud is easily perpetrated when controls are weak and the financial incentive is high. We have marshaled the talents of some of our best auditors and investigators to focus on fraud against TVA. The Inspections unit in Chattanooga has been charged with the mission of identifying fraud against TVA and following the evidence wherever it leads. I have every reason to believe they will be successful.Finally, I want to acknowledge the many courtesies extended to me by Chairman McCullough, Director Baxter, and Director Harris in assisting me during this transition time. Their continued recognition of the importance of the work of the OIG at TVA has been encouraging. We are all fortunate to live and work in East Tennessee and the Tennessee Valley Region, and I look forward making progress together over the coming years.
The Volunteer delivery system is the continuous cycle that enables the Peace Corps to meet the requests of host countries and Peace Corps posts for suitable, trained Volunteers. It is the agency’s engine. Initially, the study’s focus was narrow: to assess progress in implementing recommendations from a 1999 management review of the recruitment, selection, and placement processes. It became broader for two reasons. First, the President’s call to double the number of Volunteers in five years had alerted delivery system managers and staff to the need to be more effective and efficient. In fact, many were already preparing for changes in order to meet this challenge and are eager to use our study to help implement changes. Second, we noted that the agency’s history of studies and incremental changes in the delivery system has resulted in almost no noticeable increase in output—producing approximately the same number of Volunteers for the last 30 years—and few changes in efficiency. We anticipate this report will have more utility and the agency will make significant improvements in the system so the doubling of members will occur with no drop in quality.
I am pleased to submit this semiannual report on the accomplishments of the OIG for the six-month period ending March 31, 2003.I have been honored to serve as the Acting Inspector General since January 2002. The OIG staff and I now look forward to serving with a recent presidentially nominated Inspector General. As we have always done, the management team and I will assist the Inspector General in providing leadership, coordination, and oversight to pro- mote economy, efficiency, and effectiveness in all TVA programs and operations.Our products for the six-month period are summarized throughout this report. They have been well received and have contributed in many ways toward helping TVA achieve its goals. I also want to point out some of the note- worthy OIG accomplishments during the past 15 months of which I am especially proud.I remain sensitive of the need for TVA to conduct its business in an open and forthright manner that instills confidence in Congress, the Administration, investors, and TVA customers and ratepayers. Working toward this end, I assisted the TVA Board in strengthening corporate accountability, enhancing financial disclosure, and increasing external auditor independence. The OIG agreed to assume technical management of the external financial audit contract in 2003. Previously, this role was performed by the TVA Chief Financial Officer (CFO). Additionally, TVA's Board and CFO will certify the financial statements and related information in TVA's Annual Report, as well as all future financial statements and related information. The Information Statement, which is TVA's disclosure report to the public financial markets, will be similarly certified. The certification process will include signed certifications by all TVA Officers and Business Managers for the information they provide for these reports.At the same time, the OIG consolidated its financial audit resources into one department to assure an adequate number of Certified Public Accountant-certified auditors were available to conduct the annual audit of the work of TVA’s external auditor (PricewaterhouseCoopers [PWC]). While assuring that PWC’s financial audit work complies with government auditing standards, We will continue to assist TVA in upgrading its computer security infrastructure. Working with TVA's Information Services organization and an outside consultant, we agreed to establish the Information Technology Security Assessment Team. To date, the team has identified critical risk and the current status of information technology security for critical TVA computer systems and the steps necessary to protect the systems from cyber-attack.The Homeland Security Act of 2002 provided law enforcement authority for TVA OIG special agents under guidelines to be issued by the Department of Justice. Our special agents received comprehensive federal law enforcement skills training at the beginning of their careers. However, in preparation for this new status, we have undertaken an aggressive law enforcement skills refresher training pro- gram. The training included topics such as the rules of search and seizure, federal rules of criminal procedure, arrest authority and techniques, defensive tactics, firearms training, and the use of non- lethal weapons. I believe this training will ensure that our special agents exercise this authority responsibly and professionally.Finally, I have worked to develop a solid framework for excellence and future improvement in OIG operations. The management team and I created momentum to implement our strategic plan. We focused on three key areas: (1) maintaining our integrity as an independent watchdog; (2) strengthening working relationships with our stakeholders; and (3) leveraging OIG resources to optimize productivity and results.I am pleased with the support I have received from OIG employees, the TVA Board, Congress, and other stakeholders. I look forward to further serving these constituencies.Sincerely, G. Donald Hickman
We completed an audit of the Coshocton Metropolitan Housing Authority's Public Housing Program. The review of the Housing Authority's Public Housing Program was conducted as part of a comprehensive review of the Authority. The comprehensive review was performed based upon a request from HUD's Columbus Field Office Coordinator of Public Housing Program Center. The objectives of the audit were to: (1) determine whether the Housing Authority had adequate management controls for safeguarding cash, other monetary assets, and inventory; (2) review for indicators of possible waste, loss, and misuse of cash, other monetary assets, and inventory; and (3) assess the appropriateness of the Housing Authority's procurement process.
The audit resulted in nine findings. In accordance with HUD Handbook 2000.06 REV-3, within 60 days please provide us, for each recommendation without a management decision, a status report on: (1) the corrective action taken; (2) the proposed corrective action and the date to be completed; or (3) why action is considered unnecessary. Additional status reports are required at 90 days and 120 days after report issuance for any recommendation without a management decision.
Also, please furnish us copies of any correspondence or directives issued because of the audit. Should you or your staff have any questions, please contact Ronald Farrell, Senior Auditor, at (614) 469-5737 extension 8279 or me at (312) 353-7832.
Provides documentation to support the $72,329 of unsupported salaries and wages cited in this finding. If documentation cannot be provided, the Authority should reimburse its Public Housing Program the appropriate amount from non-Federal funds.
We completed an audit of the Coshocton Metropolitan Housing Authority's Comprehensive Improvement Assistance Program for Fiscal Years 1997, 1998, and 1999. The audit of the Housing Authority's Program was conducted as part of a comprehensive review of the Authority. The comprehensive review was performed based upon a request from HUD's Columbus Field Office Coordinator of Public Housing Program Center.
The objectives of the audit were to: (1) determine whether the Housing Authority had adequate management controls for safeguarding cash, other monetary assets, and inventory; (2) review for indicators of possible waste, loss, and misuse of cash, other monetary assets, and inventory; and (3) assess the appropriateness of the Housing Authority's procurement process.
The audit identified that the Housing Authority did not: (1) ensure that $287,224 of Comprehensive Improvement Assistance Program funds were used according to HUD's regulations: (2) ensure that $36.408 of Program funds were used in accordance with its Board approved operating budget; (3) procure goods and services in accordance with HUD's regulations; and (4) perform contractor employee wage surveys for its Program. Our report contains three recommendations to address the issues identified in this audit.
In conducting the audit, we reviewed the Housing Authority's policies and procedures for the period January 1999 to April 2002. We also reviewed and evaluated the Authority's: management controls over the Comprehensive Improvement Assistance Program; reliability of computer-processed data; general ledgers; and the Independent Auditor's Report for July 1. 2000 to June 30, 2001. In addition, we reviewed: the Authority's records; HUD's records; bank statements; cancelled checks; 24 CFR Parts 85 and 968; and HUD Handbooks 4910.1 and 7485.2.
We interviewed the Housing Authority's and HUD's staff regarding the Authority's Comprehensive Improvement Assistance Program. A HUD Construction Analyst inspected a sample of 26 Public Housing units and the exterior of 19 buildings comprising the Authority's Meadows and North Meadows housing developments. Our audit covered the period January 1999 to April 2002. This period was adjusted as necessary. We performed our on-site audit work between March 2001 and May 2002.
We conducted the audit in accordance with Generally Accepted Government Auditing Standards.
In accordance with HUD Handbook 2000.06 REV-3, within 60 days please provide us, for each recommendation without a management decision, a status report on: (1) the corrective action taken; (2) the proposed corrective action and the date to be completed; or (3) why action 15 considered unnecessary. Additional status reports are required at 90 days and 120 days after report issuance for any recommendation without a management decision. Also, please furnish us copies of any correspondence or directives issued because of the audit.
Should you or your staff have any questions, please have them contact Ronald Fairell, Senior Auditor, at (614) 469-5737 extension 8279 or me at (312) 353-7832.
Open configuration options Open configuration options Recommendations Public and Indian Housing 2003-CH-1011-001-A $287,224.00
Ensures that the $287,224 of housing work cited in this finding is completed correctly using non-federal funds. If the Authority is unable to ensure the work is completed correctly, then the Authority should reimburse its Comprehensive Assistance Improvement Program (now the Capital Fund Program) from non-Federal funds the applicable amount of work not completed correctly or not provided.
I am pleased to submit this semiannual report on the accomplishments of the OIG for the six-month period ending September 30, 2002.I am honored to continue serving as the Acting Inspector General. During this reporting period, our efforts ranged from increasing our role in financial-related matters and security reviews to conducting contract audits and integrity investigations. Our products, as summarized throughout this report, have been well received and have contributed in many ways toward helping TVA achieve its goals.As part of our ongoing efforts to focus on our core missions in these times of uncertainty, we have adopted an OIG seal, as reflected on the front cover. That seal incorporates three themes––the United States, TVA, and the OIG. We can best serve both the United States and TVA by concentrating on the role given us by Congress, as reflected in that seal––to promote economy, efficiency, and effectiveness.To better carry out this role, we measure and reward productivity, timeliness, and results. Our efforts in these areas during this past year resulted in significant internal OIG improvements, and I intend to continue emphasizing these three areas as we move forward to face the challenges of the new year.I am extremely pleased by the support I have received as Acting Inspector General from Congress, OIG employees, the TVA Board, and our other stakeholders. I look forward to further serving these constituencies.Sincerely,G. Donald Hickman
This semiannual report summarizes the OIG's activities and accomplishments for October 1, 2020, through March 31, 2021.The OIG issued three audit and evaluation reports, one management letter, one written advisory, and one review of compliance. The OIG resolved 373 investigative inquiries.The OIG’s completed, ongoing, and planned projects, as well as, ongoing investigations include the following:During the reporting period the OIG issued the following reports:• A written advisory to the Chair validating the Agency’s compliance with the Federal Managers’ Financial Integrity Act of 1982 (FMFIA).• Audit reports of the EEOC charge card program for FY 2019 and 2020; and for the EEOC’s financial statements for FY 2020.• A management letter identifying internal control deficiencies over undelivered orders.• A performance audit report on the Federal Information Security Modernization Act of 2014 (FISMA) for FY 2020.• On its review of the EEOC’s compliance with Executive Order 13950, “Combating Race and Sex Stereotyping.”Ongoing Audits, Evaluations, and Other Projects• The OIG has contracted with the public relations and communications firm Hager Sharp to evaluate the EEOC's social media program.• The OIG is evaluating EEOC's management of private sector customer service.• The OIG has contracted with the public accounting firm Harper, Rains, Knight & Company, P.A. (HRK) to perform the following:o FY 2021 financial statement audit.o FY 2021 Digital Accountability and Transparency Act of 2014 performance audit.o FY 2021 performance audit of the Agency's compliance with the Federal Information Security Modernization Act of 2014 for FY 2021• The OIG is reviewing the agency’s compliance with the Payment Integrity Information Act of 2019.Planned Audit and Evaluation• The OIG plans to conduct a performance audit of the EEOC’s enterprise risk management practices.• The OIG plans to conduct a program evaluation of EEOC's Digital Process Transformation and Automation (DPTA) strategy and activities at EEOC.Ongoing Investigative Activity• An investigation into the alleged ethical violations by an EEOC office director.• An investigation regarding an EEOC employee allegedly engaging in obtaining information on individuals through Agency information systems.• An investigation regarding an allegation of misuse of position by an EEOC employee allegedly working outside of the EEOC without authorization.• An investigation into ethical violations and misuse of government position, time, andresources by an EEOC employee who is allegedly participating in personal activities.
