DoD Inspector General’s Office Releases Semi-Annual Report to Congress on Accomplishments

February 20, 2018

Twice a year, per the requirements of the Inspector General Act of 1978 (as amended), the Department of Defense (“DoD”) Office of the Inspector General (“OIG”) issues a report that summarizes its efforts and oversight conducted for the preceding six-month period. The report serves to demonstrate the importance of the OIG’s work to detect and deter waste, fraud and abuse, improve the efficiency and effectiveness of DoD programs, and ensure ethical conduct throughout the DoD.

The most recent report, which covers the period of April 1, 2017, to September 30, 2017, documented 55 issued reports, including several significant audits and evaluations. Of the 1,000-plus recommendations issued by the OIG, monetary benefits of those recommendations, if implemented, could potentially save the DoD billions of dollars.

Of the 55 issued reports, the OIG Audit component issued 40 reports that identified $202 million in questioned costs and over $3 million in funds that could be put to better use. The reports addressed areas such as the acquisition of goods and services, contract administration and oversight, financial management and audit readiness, improper payments, building partnership capacity, cybersecurity, overseas contingency operations and readiness.

One program identified as wasting funds is the DoD Information Technology Portfolio Repository. The DoD spent at least $30.8 million to operate, maintain, and update the Repository, but incomplete and inaccurate information technology system data makes the information contained in the database unreliable.

The Defense Criminal Investigative Service (“DCIS”) opened 468 cases, closed 465 cases and has 1,623 ongoing investigations. These criminal cases primarily addressed allegations of procurement, fraud, public corruption, product substitution, healthcare fraud, illegal transfer of technology and cyber-crimes. DCIS cases resulted in total receivables and recoveries of $1.1 billion, as well as investigations resulting in $763.7 million in civil judgments and settlements and $293.1 million in administrative recoveries.

Another interesting statistic concerns the Administrative Investigations division, which received 904 whistleblower reprisal and restriction complaints and 7,106 contacts to the DoD Hotline which resulted in 4,182 cases being opened.

Every year, the OIG is tasked with informing Congress of what the DoD OIG considers to be the most serious management and performance challenges facing the DoD. In response, the DoD OIG presents the top 10 DoD management and performance challenges. For 2018, some of those challenges include identifying and implementing efficiencies, enabling effective acquisition and contract management, increasing cybersecurity and cyber capabilities, improving financial management and ensuring ethical conduct.

The DoD OIG office serves an important function in its responsibility to conduct oversight over DoD programs and operations. As an independent office, the DoD OIG’s vision is to be a model oversight organization in the government by leading change, speaking the truth, and promoting excellence. Based on the accomplishments of the DoD OIG over the past six months, it is easy to conclude that the office provides a valuable service to the public in its ability to monitor government and government contractors from abusing the fiscal responsibilities one has when spending taxpayer dollars.

Click here for more information and to read the full DoD OIG’s report. Also feel free to contact Cherry Bekaert’s GovCon team for additional guidance.