Office of the Inspector General: Review of Seven Offices by Michael Erbschloe - HTML preview

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U.S. Department of Commerce OIG

The Inspector General provides overall leadership and policy direction for OIG, and reviews proposed and existing departmental legislation and regulations. The IG keeps the Secretary, Deputy Secretary, and Congress informed of serious problems and deficiencies relating to the administration of the Department's programs and operations, recommends corrective actions, and reports on the progress made in implementing corrective actions. The Office of Counsel provides legal advice and assistance to the IG and to OIG staff engaged in the other principal activities. The Office of Administration provides OIG-wide support in the areas of budget and administration, human resources, and information technology.

 

The mission of the Department of Commerce (DOC) OIG is to improve the programs and operations of the DOC through independent and objective oversight. The vision of the OIG is stated as:

  • To be recognized for our contribution to improved Commerce performance.
  • We work as a seamless, integrated team delivering valuable products to serve the public and to support decision-makers in the Department, OMB, and Congress.
  • We are an integral and trusted broker to our stakeholders.
  • We are catalysts for positive change throughout the Department.
  • We are fully staffed and have the resources to get the job done.
  • We have a diverse, competent, enthusiastic, and productive workforce and a cadre of effective managers at every level of the organization.
  • We have credible risk assessment processes that drive strategic and operational plans, priorities, and programs.
  • We have efficient, effective processes and a state-of-the-art infrastructure.
  • We have performance metrics that drive high performance and accountability.

 

Core values of the office are Integrity, Excellence, and Accountability.

 

Integrity

  • We are honest, ethical, and objective.
  • We hold ourselves to high standards and are willing to take tough stands.
  • We honor our commitments to each other and our stakeholders.

 

Excellence

  • We are forward-looking and seize opportunities to improve Commerce performance
  • We deliver timely, relevant, and high-impact products and services.
  • We encourage risk-taking that leads to new ideas and innovative solutions.

 

Accountability

  • We operate as independent, transparent, and trusted brokers serving our stakeholders.
  • We are passionate about delivering results that drive positive change.
  • We are trustworthy and can be counted on to do what we say.

 

Oversight Areas of the OIG are:

Office of the Secretary

Bureau of Economic Analysis

Bureau of Industry and Security

U.S. Census Bureau

Economic Development Administration

Economics and Statistics Administration

International Trade Administration

Minority Business Development Agency

National Oceanic and Atmospheric Administration

National Telecommunications and Information Administration

National Institute of Standards and Technology

National Technical Information Service

U.S. Patent and Trademark Office

 

 

Audits and Evaluations

The Office of Audit and Evaluation (OAE) provides executive leadership and management for the consolidated audit and evaluation activities conducted by the Office of Inspector General in monitoring Commerce operations, as well as external activities funded by the Department through contracts or financial assistance (loans, grants, and cooperative agreements).

 

OAE audit and evaluation activities include performance audits and evaluations, and financial audits. OAE also reviews and handles resolution of certain single audits conducted by state and local auditors on recipients of Commerce financial awards. All audit work is performed in accordance with government auditing standards.

 

Performance audits and evaluations address the efficiency, effectiveness, and economy of the Department's programs, activities, and information technology systems. They may check a unit's compliance with laws and regulations, and evaluate its success in achieving program objectives. They may also assess the operations of a contractor or recipient of a Commerce financial assistance award to determine whether the recipient complied with laws, regulations, and award terms; claimed allowable project costs; and achieved intended results.

 

Financial audits determine whether a reporting entity (1) has presented its financial statements fairly and in accordance with generally accepted accounting principles; (2) has an internal control structure that provides reasonable assurance of achieving the control objectives set forth by OMB; and (3) has complied with laws and regulations that could have a direct and material effect on its financial statements, the Federal Financial Management Improvement Act, and other laws and regulations.

 

Single audits. The Single Audit Act establishes audit requirements for state and local government and nonprofit organizations receiving federal financial assistance. In addition to undergoing OIG-performed audits, certain recipients of Commerce financial assistance undergo single audits conducted by state and local government auditors and independent public accountants. OAE reviews all single audit reports that have findings, and works with the funding agency and the recipients to resolve them.

 

OAE's audits and evaluations may be prompted by congressional requests from committees and individual Members, or by statute. We perform annual audits of Commerce financial statements pursuant to the Chief Financial Officers Act of 1990 and information security reviews as required by the Federal Information Security Management Act of 2002.

Investigations

 

The Office of Investigations (OI) investigates alleged or suspected fraud, waste, abuse, and misconduct by Commerce employees, contractors, recipients of financial assistance, and others involved in the Department's programs and operations. Such wrongdoing may result in criminal and/or civil prosecution, as well as administrative sanctions for violations of Department regulations and employee standards of conduct. OI's significant areas of criminal work are as follows:

 

  • Contract and grant fraud. OI investigates fraudulent activity related to grant awards made by Commerce operating units as well as contracts entered into by the Department and its operating units.

 

  • Employee misconduct. OI investigates or assists the Department in handling employee misconduct involving Commerce funds and programs. These cases cover a wide range of improper behavior—from misusing one's official position to stealing government property—that may warrant administrative sanction or criminal prosecution.

 

  • Support for other law enforcement offices. OI often partners with other law enforcement agencies to investigate cases involving Commerce employees as victims or perpetrators of crimes not directly related the business of the Department.

 

Below is a summary of the OIG final report, issued November 14, 2018, on the Department’s top management and performance challenges for FY 2019.

 

Challenge 1: Successfully Completing 2020 Census Testing and Systems Integration of New Innovations in Time to Deliver a Cost-Effective, Accurate Decennial Census. Our FY 2019 top management and performance challenges include these priority areas related to the 2020 Census:

  • Minimizing the challenges associated with incomplete testing of 2020 Census systems and innovations
  • Mitigating the risks of unplanned changes
  • Preventing further reductions to cost avoidance, reducing cost overruns, and eliminating unaccounted-for costs

 

Challenge 2: Maximizing Efficiencies of Environmental Satellite Programs. Our FY 2019 top management and performance challenges include these priority areas related to NOAA’s satellite programs:

  • Reducing life-cycle costs of the Polar Weather Satellite (PWS) program
  • Identifying an optimal launch strategy for remaining satellites in the series
  • Managing risks in next-in-series satellites
  • Planning an optimal next-generation satellite system architecture

 

Challenge 3: Deploying a Nationwide Public Safety Broadband Network (NPSBN). Our FY 2019 top management and performance challenges include these priority areas related to the First Responder Network Authority (FirstNet):

  • Deploying the NPSBN
  • Securing public safety participation
  • Ensuring the successful performance of the contract awarded to AT&T
  • Ensuring effective and efficient use of proceeds AT&T provides annually to FirstNet
  • Strengthening operational controls

 

Challenge 4: Ensuring USPTO Provides High-Quality Intellectual Property Rights. Our FY 2019 top management and performance challenges include these priority areas related to USPTO:

  • Ensuring that the Patent Trial and Appeal Board operates fairly and effectively.
  • Ensuring that examiners perform thorough patent application reviews
  • Improving the management of information technology (IT) acquisitions and operations

 

Challenge 5: Continuing to Improve the Department’s Cybersecurity Posture. Our FY 2019 top management and performance challenges include these priority areas related to the Department’s cybersecurity posture:

  • Implementing security controls to protect the systems supporting the 2020 Census
  • Securing cloud-based systems and assets• Sustaining Department-wide implementation of the Continuous Diagnostics and Mitigation program
  • Maintaining a robust IT workforce to manage an effective IT security program

 

Challenge 6: Utilizing Resources and Developing Processes to Rebalance Trade Enforcement and Promotion Priorities. Our FY 2019 top management and performance challenges include these priority areas related to trade enforcement and promotion:

  • Building staff expertise for the self-initiation of antidumping and countervailing duty cases
  • Institutionalizing processes for Section 232 product exclusion request reviews and managing the increased foreign investment review workload
  • Managing the downsizing of trade promotion capacity

 

Challenge 7: Providing Adequate Oversight to Effectively Manage the Significant Increase in Disaster Assistance Funding to EDA. Our FY 2019 top management and performance challenges include these priority areas related to EDA disaster relief:

  • Following a comprehensive oversight implementation strategy
  • Acquiring and maintaining sufficient staff with appropriate proficiency
  • Developing a risk management strategy to strengthen internal control

 

Challenge 8: Addressing Departmental Management Matters Involving Acquisitions. Our FY 2019 top management and performance challenges include these priority areas related to acquisitions:

  • Improving monitoring of blanket purchase agreements (BPAs)
  • Developing and maintaining a competent acquisition workforce to support the Department’s mission
  • Establishing oversight of mission-support service delivery
  • Increasing the pace of NOAA ship acquisitions

 

 

Many of the audits and evaluations performed in the last few years have been in preparation for the 2020 census. The following are examples of the type of findings by the OIG:

 

06.19.2019 The Census Bureau Must Correct Fundamental Cloud Security Deficiencies in Order to Better Safeguard the 2020 Decennial Census

02.06.2019 2020 Census: Issues Observed During the 2018 End-to-End Census Test’s Address Canvassing Operation Indicate Risk to Address List Quality

10.30.2018 The Census Bureau Must Improve Its Implementation of the Risk Management Framework

07.30.2018 Census Bureau Could Improve Monitoring of Blanket Purchase Agreements by Complying with Key Federal Acquisition Regulation and Commerce

04.30.2018 2020 Census: The Number and Location of Area Census Offices May Not Reflect NRFU Workload Demands and Will Not Result in Projected Cost Savings

02.27.2018 2020 Census: The Bureau's Background Check Office Is Not Fully Prepared for the 2020 Census

09.25.2017 Awarding of U.S. Census Bureau Noncompetitive Contracts Did Not Consistently Follow Federal Acquisition Regulations and Commerce Acquisition Policies

09.13.2017 2020 Census: Evaluation of Interactive Review Address Canvassing Operation Revealed Issues with Quality Assurance Controls

05.11.2017 2020 Census: The Address Canvassing Test Revealed Cost and Schedule Risks and May Not Inform Future Planning as Intended

03.29.2017 2020 Census: Census Bureau Needs to Improve Controls over Administrative Records

03.16.2017 2020 Census: 2016 Census Test Indicates the Current Life-Cycle Cost Estimate is Incomplete and Underestimates Nonresponse Followup

06.07.2016 2020 Census: The Bureau Has Not Reported Test Results and Executed an Inadequately Designed 2015 Test

04.18.2016 The Census Working Capital Fund Lacks Transparency

02.23.2016 Census Bureau Reviews of Unliquidated Obligations Could Be Improved with Greater Review Frequency and Additional Documentation

02.23.2016 The U.S. Census Bureau's Efforts to Ensure an Accurate Address List Raise Concerns over Design and Lack of Cost-Benefit Analysis