Office of the Inspector General (2020 Presidential transition)
| Book 3 - Organization Overview
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| Entire 2020 DOE Transition book As of October 2020 |
Congress originally established Inspectors General to consolidate existing audit and investigative resources to more effectively combat fraud, waste, and abuse in Federal agencies. The Department of Energy Office of Inspector General (OIG) fulfills that role at DOE by:
- Conducting independent and objective audits, inspections, investigations, and other reviews.
- Serving as the law enforcement arm of the Department by conducting criminal and civil investigations that detect, deter, and disrupt illegal activities.
- Promoting economy, efficiency, and effectiveness in the administration of Department programs.
- Preventing and detecting fraud, waste, abuse, and mismanagement related to Department programs and operations.
- Informing the Department of Energy Secretary and Congress about problems and deficiencies in Department programs and operations and the need for corrective action
Last Fiscal Year, DOE OIG, on a budget of $54.2 million, recognized monetary accomplishments of more than $650 million, and therefore provided the taxpayer with a $12.13 return on investment.
The Inspector General has authority to inquire into all Department programs and activities as well as the related activities of persons or parties associated with Department grants, contracts, or other agreements. As part of its independent status, the Inspector General provides the Secretary with an impartial evaluation of management practices. As a fact-finding organization for high profile, controversial matters, the Inspector General is able to apprehend those attempting to defraud the Government and protect the interest of the U.S. taxpayer.
Additionally, as an independent reviewer of the activities of the Department, the OIG operates under its own strategic plan, goals, and measures Our most recent strategic initiatives will position us to enhance our effectiveness in providing oversight to Departmental programs.
Mission Statement
To strengthen the integrity, economy, and efficiency of the Department’s programs and operations including deterring and detecting fraud, waste, abuse, and mismanagement.
Budget
| Fiscal Year | Budget |
| FY 2019 enacted | $51,330,000 |
| FY 2020 enacted | $54,215,000 |
| FY 2021 requested | $57,739,000 |
Human Resources
FY 2020 authorized full-time equivalents (FTEs): 291
History
Based on the Inspector General Act of 1978, as amended (the IG Act), virtually every federal agency has an Inspector General (IG). Approximately half are appointed by the President subject to Senate confirmation, and approximately half are appointed by the agency head.
According to the IG Act, the role of an IG includes the prevention and detection of waste, fraud, and abuse relating to each agency’s programs and operations. IGs also promote economy, efficiency, and effectiveness in the agency’s operations and programs.
IGs are nonpartisan and are selected solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations. They have a dual reporting requirement—to their agency heads and to Congress. IGs are required by the IG Act to keep both fully and currently informed about problems and deficiencies in their agencies’ programs and operations, as well as the necessity for and progress of corrective action
Offices of Inspector General (OIGs) are located within their agencies but have substantial independence. For example, agency heads may not prevent the IGs from initiating, carrying out, or completing any audit, evaluation, or investigation, except in limited circumstances. IGs must maintain their independence, in both reality and in appearance, to provide credible oversight.
Under the IG Act, IGs are given broad statutory authorities, including access to all agency records and information. IGs also have the authority to subpoena relevant documents and information from non-federal organizations and individuals.
IGs should meet regularly with the heads of each agency to foster effective communications. According to the IG Act, IGs must have direct and prompt access to agency heads.
The Council of the Inspectors General on Integrity and Efficiency (CIGIE), an independent Federal entity to which all Federal Inspectors General belong, provides training for OIG employees and develops policies, professional standards, best practices, and common approaches for the work of the OIGs.
Functions
The Office of Inspector General (OIG) is headquartered in Washington, DC and has field offices located throughout the country. The organization is responsible for conducting audits, inspections, and investigations and for receiving and acting upon allegations reported through the OIG Hotline. The organization also has a corporate support function that addresses the administrative management of the organization.
The Office of Audits conducts audits of Department programs and operations. In-depth efforts are concentrated on providing reliable and credible financial and performance information and recommendations for improvements to senior Agency/Department management, Congress, and the U.S. taxpayer. A risk-based process is used to identify areas for audit coverage based on known or emerging risks and the greatest vulnerabilities to the Department’s mission and operations. This process ensures comprehensive coverage over Department organizations, programs, and operations while meeting the Department’s evolving needs. Special reviews of high profile, unplanned, or immediate matters can also be addressed by audits throughout the year.
The Office of Inspections, Intelligence Oversight, and Special Projects (OIIS) conducts independent and thorough reviews of Department programs and operations to evaluate operational efficiency, effectiveness, and vulnerability. Inspections are more discreet, shorter suspense projects that can be handed over to the Office of Audits or Investigations, as needed. Inspections can be self- initiated, or based upon allegations of waste, fraud, abuse or mismanagement, including referrals from the OIG Hotline. Additionally, OIIS is responsible for reviewing the Department’s Intelligence and Counterintelligence programs and operations, including the Department’s oversight responsibility in accordance with Executive Order 12333. Finally, OIIS conducts whistleblower investigations under 41 USC 4712.
The Office of Technology, Financial, and Analytics (OTFA) promotes the effective, efficient, and economical operation of the Department of Energy’s programs and operations, including the National Nuclear Security Administration and the Federal Energy Regulatory Commission, through audits, inspections, and other reviews including the identification and analysis of Departmental data. The OTFA combines audit and data evidence to address management and security issues. OTFA conducts audits, inspections, and assessments of the Department’s information technology systems and related initiatives, with focus on cyber security, information management, and the Federal Information Security Modernization Act. OTFA further provides timely, reliable expert data analysis in support of ongoing audits and investigations, develops risk models, and coordinated data mining efforts. OTFA uses the latest technology and techniques to discover current and emerging cyber and economic threats and coordinate data analysis. The combined efforts of OTFA help to ensure that information technology issues are properly addressed and not overlooked.
The Office of Investigations addresses alleged violations of law that impact Department programs, operations, facilities, and personnel. Priority is given to investigations of suspected violations of criminal and civil statutes, as well as serious administrative misconduct. Investigations are also used to identify opportunities for improving the economy and efficiency of Department programs and operations by identifying recommendations for positive change. Investigators work closely with Department of Justice prosecutors and other Federal, State, and local law enforcement organizations.
The Chief Counsel provides legal advice to senior leadership. Also within this office is the OIG Whistleblower Ombudsman, who educates Department employees about prohibitions on retaliation for whistleblowing, as well as employees’ rights and remedies if anyone retaliates against them for making a whistleblower disclosure.
The Senior Counsel and Freedom of Information Act and Privacy Act Division provides executive leadership and direction to all Freedom of Information Act and Privacy Act operations and business management activities in the Office of Inspector General.
The Office of Management and Administration directs the development, coordination, and execution of overall OIG management and administrative policy and planning. This responsibility includes human resource activities and consultation; directing the OIG’s strategic planning process; financial management activities; personnel management and security programs; administrative support services; and information technology programs.
Recent Organization Accomplishments
FY20 Results through September 17, 2020
Office of Audits
- $556.4 million Identified as Questioned/ Unsupported Costs
- 20 Audit Reports Issued to the Department
- 94 Recommendations Made to the Department
Office of Inspections, Intelligence Oversight, and Special Projects
- Over 3000 Hotline Contacts (35% increase since FY18)
- 26 Contractor Whistleblower Retaliation Allegations
Office of Investigations
- $100.3 million in Recovered Funds/Fines
- 39 Criminal/Civil Actions/Indictments
Office of Technology, Financial, and Analytics
- 24 Ongoing Audits, Inspections, and Investigations were Supported
- Conducted Analysis of the Largest Fraud Investigation in the Department’s History
- $800,000 Misrepresented Salary Reported for One Employee
- Over 35,000 IT Weaknesses Identified
- 72 Recommendations Made to the Department
Leadership Challenges
Cooperative Audit Strategy
The OIG is currently finalizing audits for report issuance and will ultimately issue a capstone report on the Department’s Cooperative Audit Strategy.
Timekeeping Initiative
Labor charges are the largest expense within the Department. The OIG has identified substantial increases in fraudulent behaviors by contractors related to overcharging labor hours. Most recently, in September 2020, a Department contractor agreed to pay $57.8 million to resolve claims that the contractor had fraudulently overcharged the Department for labor hours dating back to 2009.
Administrative Remedies
The OIG is responsible for investigating the facts and circumstances underlying the referral of individuals and companies for suspension or debarment. The technical and legal quality of these referrals is at the heart of a robust suspension and debarment program. The OIG is in the process of ramping up our efforts in this area.
Department Directives: Reporting to OIG and Mandatory Disclosures
The OIG has identified two Department Directives that need to be substantially improved. These are DOE Order 221.1B, Reporting Fraud, Waste and Abuse to the Office of Inspector General; and DOE Order 221.2A, Cooperation with the Office of Inspector General. The OIG has identified ways in which these Directives could be significantly strengthened to improve the OIG’s ability to carry out its statutorily mandated responsibilities. We are drafting the documents necessary to put such changes into effect.
Office Space
The OIG primarily relies on space provided by Department contractors, as provided under the IG Act. Four of these spaces are currently in some stage of renovation or relocation. One of our locations is on a government-owned, Government operated facility. This site is unable to provide additional space needed by the OIG since they rely on their own appropriation for space. We are in the process of identifying options to deal with this situation. Our Headquarters space, which we pay for out of our appropriation, is the subject of several pending construction requests due to organizational growth and re-structuring.
Critical Events and Action Items
- Issue Opinion on Financial Statement Audit – November 2020
- Issue Federal Information Security Modernization Act Report – November 2020
- Issue Semiannual Report to Congress – November 2020
- Issue FY 2021 Management Challenges Report – December 2020 [1]
Organizational Chart
Link
Internal
- Department of Energy: Transitions 2020-organization overviews table of contents
- Office of Inspector General
External
References
- ↑ DOE. (2021). Transitions 2020: Organizational Overviews. US Department of Energy.