Overview of the United States Federal Inspectors General

Community

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 IG

According 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 2008

Provided 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, continued

7 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?