Office of Inspector General Semiannual Report to Congress April 1, 2019 - September 30, 2019

During this semiannual reporting period, we issued two audit reports that included $108,578 in questioned cost and 19 recommendations to improve stewardship of awards by recipients. Through our audit follow-up process, we worked with National Endowment for the Arts (Arts Endowment) staff and award recipients to clear 31 recommendations, which will further improve stewardship of awards. In addition, we addressed 17 of 18 hotline complaints, primarily enabling us to help citizens avoid scams by individuals fraudulently representing themselves as Arts Endowment employees.Furthermore, as required by the Consolidated Reports Act of 2000 and Office of Management and Budget Circular A-136, Financial Reporting Requirements, my staff worked with Agency officials to prepare a list of the top Arts Endowment management challenges. The challenge areas include financial management, human capital, information technology, inventory management, and awardee accountability. A summary of the challenge areas and any improvement by the Agency in these areas is included in this report.Finally, my office received a rating of "pass" based on a Peer Review conducted by the U.S. Commodity Futures Trading Commission (CFTC) Office of Inspector General (OIG). The CFTC OIG concluded that my office's system of quality control provided reasonable assurance that audits by my staff were performed and reported in accordance with required professional standards since the last Peer Review in 2016.The value-added work that my staff accomplished this period is due to their commitment to excellence, continued growth, and dedicated work effort, along with the support of Arts Endowment Chairman and her staff. I look forward to continuously working with Arts Endowment leadership and staff -- promoting economy, efficiency, effectiveness -- helping to ensure integrity, excellence, and value in the Arts Endowment's mission delivery.