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Semiannual Report to Congress October 1, 1995 through March 31, 1996
EPA Office of Inspector General
Semiannual Report to Congress
October 1, 1995 through March 31, 1996
The report listed below is an electronic rendering of the official printed document. It has been formatted for electronic presentation and may not contain all the charts, figures, or other graphical information in the official report.
Executive Summary
Foreword
This six-month period has been one of the most challenging times in the history of the Agency and the Office of Inspector General. The uncertainty of resource levels along with significant interruptions in the work hampered the effectiveness of the Agency in carrying out its mission. This situation made it clear that the work of the Office of Inspector General, in partnership with the Agency, represented more than findings of questioned costs, recommended efficiencies, recoveries, prosecutive and administrative actions. EPA management recognized the necessity and opportunity to apply the results and assistance of the OIG in making changes that solve difficult management problems. This cooperative approach is further strengthening the Agency's ability to protect vital natural resources and human health.
While this report highlights examples of OIG audits, reviews, and investigations completed in the past six months, EPA management is already acting on many of our recommendations to obtain savings, improvements, and more effective ways of addressing its mission. The OIG itself is also continuing to improve its efficiency and value to the Agency through organizational streamlining, strategic planning, and technology. Although much still needs to be done, I believe that the Agency-wide commitment to continuous improvement and achieving the greatest results from available resources, is the necessary formula to mutually meet our future challenges.
John C. Martin
Inspector General
Section 1-- Audits -- Significant Findings and Recommendations
Section 2 -- Audit Report Resolution
This section, required by the IG Act, reports on the status and results of Agency management actions to resolve audit reports. At the beginning of the semiannual period, there were 327 reports for which no management decision had been made. During the first half of fiscal 1996, the Office of Inspector General issued 251 new reports and closed 360. At the end of the reporting period, 218 reports remained in the Agency followup system for which no management decision had been made. Of the 218 reports, 126 reports remained in the Agency followup system for which no management decision was made within 6 months of issuance.
For the 223 reports closed that required agency action, EPA management disallowed $41.4 million of questioned costs and agreed with our recommendations that $7.7 million be put to better use (page 28). In addition, cost recoveries in current and prior periods included $1.1million in cash collections, and at least $31.6 million in offsets against billings.
Section 3 -- Investigations
During this semiannual reporting period, our investigative efforts resulted in 5 convictions and 1 indictment. Also, our investigative work led to $3.4 million in fines and recoveries.
Section 4 -- Fraud Prevention and Management Improvements
During this semiannual period, we reviewed 3 legislative and 35 regulatory items. Our most significant comments concerned the Local Empowerment and Flexibility Act of 1996, proposed revisions to the Federal Acquisition Regulation, the Office of Personnel Management's proposed rule on suitability for national security positions and personnel investigations, and the EPA Commercial Purchase Card policy.
The Office of Grants and Debarment completed action on 6 OIG-generated suspension and debarment cases during this reporting period, resulting in 4 suspensions and two compliance agreements.
The EPA Committee on Integrity and Management Improvement (CIMI), chaired by the Inspector General, published a bulletin on membership in professional societies and associations.
Ten new Hotline cases were opened and 15 were closed during the reporting period. Of the closed cases, 4 resulted in environmental, prosecutive, or administrative corrective action.
Profile of Activities and Results
Dollars are in millions
Audit Operations
(Questioned Costs (Ineligible, Unsupported, and Unnecessary/Unreasonable) and Recommended Efficiencies (Funds be Put to Better Use) are subject to change pending further review in the audit resolution process.)
OIG Managed Reviews:
- Reviews Performed by EPA, Independent Public Accountants and State Auditors
- Questioned Costs: $35.8 ( Federal Share: $25.5)
- Recommended Efficiencies (Funds be Put to Better Use): $12.8 (Federal Share:$12.8)
- Costs Disallowed to be Recovered (costs which EPA management agrees are unallowable
and is committed to recover or offset against future payments):$40.4 (Federal Share)
- Costs Disallowed as Cost Efficiency (funds made available by EPA management's
commitment to implement recommendations in OIG performance and preaward audits): $0.4
(Federal Share)
Other Reviews:
- Reviews Performed by Another Federal Agency or Single Audit Act Auditors
- Questioned Costs: $2.9 (Federal Share: $2.9)
- Recommended Efficiencies: $32.2 (Federal Share: $32.2)
- Costs Disallowed to be Recovered: $1.0 (Federal Share)
- Costs Disallowed as Cost Efficiency: $7.3 (Federal Share)
Agency Recoveries:
Recoveries from Audit Resolutions of Current and Prior Periods(cash collections or offsets to future payments). (Information on recoveries from audit resolution is provided from the EPA Financial Management Division and is unaudited): $32.7
Reports Issued:
- OIG Managed Reviews:
- EPA Reviews Performed by the OIG: 51
- EPA Reviews Performed by Independent Public Accountants: 4
- EPA Reviews Performed by State Auditors: 3
- Other Reviews:
- EPA Reviews Performed by another Federal Agency:134
- Single Audit Act Reviews: 59
Total Reports Issued: 251
Reports Resolved (agreement by Agency officials to take satisfactory corrective action)(Reports resolved are subject to change pending further review.): 223
Investigative Operations
- Fines and Recoveries (including civil):$3.4
- Investigations Opened: 71
- Investigations Closed: 71
- Indictments of Persons or Firms:1
- Convictions of Persons or Firms: 5
- Admin. Actions Against EPA Employees:11
Fraud Detection and Prevention Operations
- Debarments, Suspensions, and Compliance Agreements:6
- Hotline Cases Opened: 10
- Hotline Cases Processed and Closed: 15
- Personnel Security Investigations Adjudicated: 384