This Semiannual Report of the Office of Inspector General (OIG) details some of our most significant accomplishments for the period April 1, 1999–September 30, 1999. During this period, the OIG focused its audit and investigative resources on activities that support accomplishment of our strategic plan goals. The OIG goals reflect my vision to provide the Department of Labor (DOL) and Congress with quality information, recommendations, and technical assistance. Our approach has been to augment our traditional independent audit and investigative roles by working collaboratively and constructively with the Department. We have done so for a number of major departmental initiatives to identify, early in the process, possible impediments that may affect the success of DOL in administering its programs and in serving the American public. The following are illustrative of recent activities to this end:
- Conducting 17 Welfare-to-Work Program audits to help the Employment and Training Administration (ETA) ensure that the program is effective in assisting welfare recipients to obtain employment and selfsufficiency. The audits assessed the grantees’ capability to administer their grant responsibilities by identifying vulnerabilities and recommending corrective action before funds are misspent.
- Working with ETA to jointly develop information that will assist ETA in finalizing regulations on administrative costs under the Workforce Investment Act.
- Responding to a request for audit services from the Bureau of Labor Statistics because of the premature dissemination of sensitive economic data.
- Assisting the Department in its continued efforts to implement cost accounting and viable performance measures.
- Conducting audits of a number of grants and contracts and identifying over $5 million in costs questioned due to mismanagement and lack of compliance with financial management requirements.
- Identifying $48 million in administrative overcharges by the U.S. Treasury to the Unemployment Insurance Trust Fund.
- Uncovering and stopping complex fraud schemes against DOL unemployment and disability compensation programs.
- Combating labor racketeering in unions and the workplace through successful indictments and convictions in the areas of employee benefit plans, labor-management relations, and internal union affairs, as well as utilizing civil RICO actions to establish long-term stability in unions.
- Calling attention to legislative changes needed to improve aspects of pension, workers’ compensation, and program evaluation functions of the Department.
My staff and I are committed to effecting positive change, reducing vulnerabilities, and contributing to the achievement of DOL strategic goals. I look forward to continuing to work effectively with the Secretary, management, and departmental staff at all levels in our common goal of ensuring the effectiveness, efficiency, and integrity of the programs that serve and protect American workers and retirees.