Post on 23-Feb-2016
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Overview of the United States Federal Inspectors General
Community
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UMBC BriefingTom Caulfield
Tom.Caulfield@cigie.gov
To promote economy, efficiency, effectiveness, and integrity in the delivery of United States Federal agency programs.
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IG Mission
Key IG Activities AUDIT, INSPECT, and EVALUATE agency programs and
activities
INVESTIGATE allegations of wrongdoing
REVIEW proposed legislation and regulations as to their likely effect on the economy and efficiency of the host department/agency
INFORM agency head and Congress
Operate a HOTLINE to receive information
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What Does This Mean
IGs provide Federal oversight to identify and recommend the elimination of fraud, waste, abuse, and mismanagement.
IGs are a value added resource for the Executive and Legislative branches of the Federal government.
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What IGs Do Not Do Operate Programs
Create or Amend Program Policy
Enforce Implementation of OIG Recommendations
Suspension or Debarment Contractors
Employment Decisions Regarding Agency Personnel
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Hallmarks of an Effective IG Roles
Oversight Independence Objectivity
Responsibilities Identify Fraud, Waste, Abuse, and Mismanagement Dual Reporting Requirement (Department/Agency
Head and Congress) Be Transparent to the Media and Public
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Public Interface Hotlines
IG Websites
List Serves
Semi-Annual Reports to Congress
Freedom of Information Act
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Council of the Inspectors General on Integrity and Efficiency(CIGIE)
Established by Federal law: The Inspector General Act of 1978 IG Act Amendments of 1988 IG Reform Act of 2008
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CIGIE Mission
Address integrity, economy, and effectiveness issues that transcend individual Government agencies; and
Increase the professionalism and effectiveness of personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the offices of the Inspectors General.
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Membership and Construct of CIGIE
72 Federal Inspectors General (IGs)
6 Additional Members
IG Staff Sizes Vary
CIGIE Officers
Integrity Committee and 6 Standing Committees
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Federal IG Community: Results• FY 2010
– 6,784 audits and inspections– 25,589 investigations– 440,362 hotline complaints processed– Identified $87.2 billion in potential savings
• FY 2011– 7,469 audits and inspections– 26,677 investigations– 473,870 hotline complaints processed– Identified $93.9 billion in potential savings
FY 2011 OIG community’s aggregate budget about $2.7 billion.Return of about $35 in potential savings for every $1 invested in OIGs.
Our IG Profession: Then and Now
Beginnings of the IG System in the U.S.
• 1777 – George Washington is commander of the Continental Army
• Army (est. in 1775) is new, loosely organized, and untrained
• Oct. 1777 – GW meets with 14 of his officers and proposes idea of an Inspector General
• Under GW’s proposal, IG is a “drillmaster general”
• IG would promote tactical efficiency of the Army, report to Commander in Chief
Beginnings of the IG System in the U.S.
• Dec 1777 – Congress authorizes IG, but modifies GW’s proposal
• Congress’ vision of an IG:– Less of a drillmaster, more of an inspector to review the
troops, give understanding of unit’s condition– IG would largely be an agent of Congress, reporting to
Congress
Washington’s IG Report to Commander vs.
Congress’ IG Report to Congress
The question of whom the IG should report to is not easily answered.
Beginnings of the IG System in the U.S.
• Our Offices of Inspector General (OIGs) today:–Dual reporting report to agency
head, also report to Congress– Independence
The IG Concept Moves Into the Civilian side of the Federal
Government
IG Concept Moves into Fed Gov’t
Let’s first define two terms:
Administrative IG: Position created within an agency by the agency head. There is no law requiring an OIG to exist in that agency.
Statutory IG: Position created within an agency by Congress. Congress has passed a law mandating (requiring) an OIG to exist in that agency.
IG Concept Moves into Fed Gov’t – First Administrative IG
• Jan 1, 1952 – Stuart Hedden appointed IG of the CIA
• Two things clear:– IG’s requests for info to be treated as requests from the
Director himself– IG was responsible to Director, not other officers of the
Agency (Acting as the Director’s “eyes and ears”)
“…established on 1 January
1952.”
IG Concept Moves into Fed Gov’t – First Statutory IG
• 1951 – Congress passed Mutual Security Act (authorized foreign aid)
• 1959 – Act amended, created IG to oversee Int’l Cooperation Administration (ICA) (oversaw foreign aid operations)
• New York Times article: position created “for keeping [ICA] free of waste, inefficiency, and corruption.”
Landmark Legislation: Inspector General Act of
1978
(Pre) Landmark Legislation – Billie Sol Estes Scandal
• 1960s – USDA began controlling price of cotton, by specifying quotas and acreage allotments to farmers.
• But if land had been taken by eminent domain, farmers could transfer their cotton allotment to another piece of land.
• Estes persuaded farmers to transfer their cotton allotments to land in TX, and lease the land and allotments to Estes.
• Estes was hoarding cotton allotments.
Billie Sol Estes
(Pre) Landmark Legislation – Billie Sol Estes Investigations
Congress launched exhaustive investigation; brought USDA’s subsidy programs under intense scrutiny:
• “Estes’ misrepresentations succeeded primarily because of shortcomings in performance of the Department of Agriculture.”
• “Agriculture personnel displayed a conspicuous lack of alertness.”• “Had the federal investigations been properly coordinated, it is almost inconceivable that Estes’ fraudulent activities could have been continued for such a long period.”
(Pre) Landmark Legislation – Admin OIG Created at USDA
Secretary of Agriculture Orville Freeman administratively creates USDA OIG in 1962.
USDA
OIG
Secretary of Agriculture Earl Butz eliminates USDA OIG in 1974.
Orville Freeman Earl Butz
Landmark Legislation – Inspector General Act of 1978
The Inspector General Act of 1978 Signed by President CarterOctober 12, 1978
Created statutory IGs at:Department of Agriculture General Services Administration
Department of Housing and Urban Development
Community Service Administration
Department of the Interior Environmental Protection Agency
Department of Commerce Small Business Administration
Department of Labor Veterans Administration
Department of Transportation National Aeronautics and Space Administration
Landmark Legislation – Inspector General Act of 1978
• Purposes of an OIG: Create independent and objective units to:
√ Conduct and supervise audits and investigations relating to programs and operations of the agencies
√Promote economy, efficiency, and effectiveness in the administration of these agencies, and to prevent and detect fraud and abuse
√ Provide a means for keeping the head of the establishment and Congress informed about problems and deficiencies
Components of OIGs
Components of most OIGs:• Audit• Investigations• Inspections & Evaluations• Counsel• Mission Support
Creation of PCIE• 1981 – President Reagan signs executive
order to create President’s Council on Integrity and Efficiency (PCIE)
• Purpose – Forum for PAS IGs to meet together, enhance efforts to promote integrity and efficiency
*Side note: IG concept began to move into state and local levels of gov’t at this time. Massachusetts created first state OIG in 1981.
1988 Amendments to IG Act• 1988 – Congress passed significant amendments to IG
Act• Created statutory IGs at over 30 agencies (most
smaller in size). Referred to as DFE OIGs:
DFE:Designated Federal Entity
IG is appointed by agency head
• Only difference between PAS and DFE OIGs is the IG appointment type. Both are still statutory and operate independently from agency.
Criteria of Becoming an IGAccording to IG Act (as amended):
• Not appointed with regard to political affiliation
• Appointed solely on basis of-integrity
-demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations
Creation of ECIE• 1992 – President Bush (Sr.) signs executive
order to create Executive Council on Integrity and Efficiency (ECIE)
• Purpose – Forum for DFE IGs to meet together, enhance efforts to promote integrity and efficiency
PAS OIGs had PCIE - DFE OIGs had ECIEThese two will later come together to
form one Council…
Establishment of Integrity Committee
• 1996 – President Clinton signs executive order establishing Integrity Committee
- Has members from both Councils (PCIE and ECIE)- Reviews allegations of wrongdoing committed by IGs/certain sr. staff of OIGs
Statutory Law Enforcement Authority
• 2002 – Passage of Homeland Security Act statutorily grants exercise of law enforcement authority to special agents of 24 OIGs.
• Prior to this, few OIGs had law enforcement authority.
• Attorney General released guidelines (on training, operational requirements, etc.) applicable to these special agents.
IG Reform Act of 2008and Creation of CIGIE
IG Reform Act of 2008Provided tweaks to IG authorities:
• President or agency head must provide Congress a letter at least 30 days before removal or transfer of an IG
• IG cannot receive a cash award/bonus
• OIGs required to post reports (or portions) on website; direct link to hotline must appear on website
• Integrity Committee was statutorily established (no longer just by executive order)
• OIG required to obtain legal advice from its own counsel or another OIG’s counsel
• Established Council of Inspectors General on Integrity and Efficiency (CIGIE)
CIGIE MissionUnder the IG Reform Act of 2008, PCIE and ECIE
joined to form one Council CIGIE
CIGIE’s mission is to:Address integrity, economy, and effectiveness issues
that transcend individual government agencies Increase the professionalism and effectiveness of
personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the offices of the Inspectors General
CIGIE Structure
Members:72 Federal IGs6 non-IG members
Full membership meets once per month
Leadership:
-Controller, Office of Federal Financial Mgmt., OMB-Senior-level official from FBI-Director , Office of Government Ethics-Special Counsel, Office of Special Counsel-Deputy Director, OPM-Deputy Director for Management, OMB
Phyllis Fong, IG USDACIGIE Chair
Lynne McFarland, IG FECCIGIE Vice-chair
CIGIE Structure, continued7 Committees (and Current Chairs)
• Audit (DODIG IG)• Information Technology (Education IG)• Inspection and Evaluation (HHS IG & Peace
Corps IG)• Investigations (Securities & Exchange
Commission IG)• Legislation (Small Business Administration IG)• Professional Development (Interior Acting IG)• Integrity (Senior-level official from FBI)
Quality Standards• CIGIE maintains/updates the following:
– Quality Standards for Investigators– Quality Standards for Inspection and
Evaluation (aka The Blue Book)– Quality Standards for Digital Forensics– Quality Standards for Federal Offices of
Inspector General (aka The Silver Book)
• Quality Standard used by CIGIE, maintained by GAO: – Government Auditing Standards (aka
The Yellow Book)
CIGIE = The IG Community
• OIG sizes– Large OIGs
• DOD and HHS OIGs – about 1,700 employees each
– Small OIGs• Denali Commission – 1 employee
– And every size in between!
• FY 2011 – approx. 14,700 employees in the Federal OIG community
CIGIE is also a Federal Agency
• CIGIE is also its own Federal agency w/ a small number of employees.
• Coordinate bringing the IGs together and help to execute the community-cutting efforts– Mark Jones – Executive Director of CIGIE– Support staff to assist Mark (currently 3 people)– CIGIE Training Institute staff (currently 12
people)
CIGIE Training InstituteCIGIE Mission:
Address integrity, economy, and effectiveness issues that transcend individual government agencies
Increase the professionalism and effectiveness of personnel by developing policies, standards, and approaches to aid in the establishment of a well-trained and highly skilled workforce in the offices of the Inspectors General
Est. 2011 – Tom Caulfield, Executive Director of CIGIE
Training Institute
Audit, Inspection, &
Evaluation Academy
(AI&E)
Leadership & Mission Support
Academy
(LMS)
3 Academies
1 Training Institute
IG Criminal Investigator
Academy
(IGCIA)
CIGIE Training InstituteCIGIE’s gateway to responsive, high quality, cost-effective, state-
of-the-art, IG-specific training and professional development
Our Unique Profession
Unique characteristics that define our community:
• Independence
• Dual reporting
• Preventive work
Our IG Profession: Then and Now
A network of professionals taking an independent look at the Federal government, holding it accountable through inquiry and oversight.
Questions?