The
Office of Inspector General (OIG) was established at the Pension
Benefit Guaranty Corporation (PBGC) by the 1988 amendments
to the Inspector General Act of 1978 (IG Act). From its establishment,
until June 2002, Wayne Robert Poll served as the Inspector
General at the PBGC. He was followed by Robert
L. Emmons who served as Inspector General from January 2003 to October 2007.
Rebecca Anne Batts, the current Inspector General, began her tenure on April 28, 2008.
The Congress
originally created the OIGs in response to a series of government
scandals that had occurred over the preceding decade. Congress
believed that by establishing independent Inspector Generals
(IG) within each major Federal agency, taxpayers' funds could
be more prudently used and accurately accounted for; that
government would be better equipped to prevent and detect
fraud, waste, and abuse; and that the public's confidence
in their government would be enhanced. In 1988, Congress amended
the Act to add IGs at certain designated federal entities,
such as PBGC.
A major
benefit of the IG Act was perhaps most succinctly stated in
testimony provided to Congress by the Department of Justice
and cited in the IG Act's legislative history:
"The
combining of audit and investigation functions under
an Inspector General in the respective departments and
agencies virtually ensures that the performance of the agencies
will improve."
Over the
intervening years, Congress has established Offices of Inspector
General in 61 Federal entities.
Responsibilities
The OIG
conducts and supervises independent and objective audits relating
to programs and operations of PBGC and recommends policies
and procedures that promote economy, efficiency, and effectiveness
in program administration.
The OIG
investigates complaints from PBGC employees and the public
concerning suspected fraud or other violations of laws, mismanagement,
gross waste of funds or resources, abuse of authority, and
dangers to public safety and health. PBGC employees and contractors
are required to report serious abuse or criminal behavior
to the OIG. The IG Act provides that complainants are protected
against reprisals for making complaints or providing information
to the OIG.
The OIG
is required to expeditiously report to the Attorney General
whenever there are reasonable grounds to believe that Federal
criminal laws have been violated.
The OIG
reviews existing or proposed legislation and regulations to
make recommendations to PBGC and the Congress concerning the
impact on the economy and the efficiency of program administration
or on the prevention and detection of fraud, waste, and abuse.
Under
the IG Act, the Inspector General has the right to direct
and prompt access to the agency head. The agency head, under
the Act, is the Secretary of Labor, as Chairman of PBGC's
Board of Directors.
The OIG
keeps the agency head and the Congress fully informed about
problems and deficiencies in programs administered by PBGC
and the need for timely corrective action. This is accomplished
through meetings and briefings with agency officials, members
of the Congress, and their staffs; congressional testimony;
and the IG's Semiannual Report to the Congress.
Inspector General's Independence
The IG
is appointed by the Secretary of Labor as Chairman of PBGC's
Board of Directors (agency head), without regard to political
affiliation and solely on the basis of integrity and demonstrated
ability. The IG is nonpolitical and, therefore, subject to
the Hatch Act. If the IG is removed or transferred to another
position, the Secretary of Labor must communicate in writing
the reasons for such removal or transfer to both Houses of
Congress.
The IG
is under the general supervision of the Secretary of Labor.
General supervision does not include authority for those outside
of the OIG to supervise or interfere in any audit, investigation
or oversight matter. The IG has the authority to select and
appoint employees, directly contract for program services,
and maintain Legal Counsel which reports directly to the IG.
In the appointment memorandum, the Secretary of Labor asked
the IG to work closely with PBGC's Executive Director who
has day-to-day responsibilities for PBGC.
The IG
has authority to have direct and prompt access to the Secretary
for any purpose relating to the performance of the OIG's mission
and responsibilities.
The IG
has independent authority to initiate and conduct audits and
investigations and to issue administrative subpoenas to individuals
or entities outside the Federal Government to obtain full
access to documents and records. In addition, the OIG has
access to all records, reports, papers, documents, and other
materials available to PBGC, as well as the authority to request
information or assistance from any Federal, State, or local
Government agency and to report any refusals to the agency
head without delay.
The IG
is ensured independence by the IG Act's explicit statement
that the head of the agency cannot prevent or prohibit the
IG from initiating, carrying out, or completing any audit
or investigation, or issuing any subpoena.
How
the OIG Reports its Work Products
As a general
rule, OIG staff keeps PBGC management and/or the auditee advised
of audit findings as they are developed. Once the audit is
completed, the OIG issues a draft report to the PBGC Deputy
Executive Director who has oversight for the audited program
and an exit conference is scheduled. An exit conference is
held to communicate audit results to appropriate program or
agency management and to discuss proposed findings and recommendations.
Management's comments are important to ensure that the audit
results are fairly presented, audit recommendations are reasonable
and feasible, and any errors or misrepresentations are corrected.
PBGC management is to provide written comments on the facts,
conclusions, and each recommendation presented in the report
within 15 business days. The OIG issues the final audit report
which officially presents audit findings and recommendations
to appropriate officials, with a copy of management's written
comments attached. These reports are generally available to
the public.
Audit
recommendations are considered resolved when managers and
the auditors agree on the required corrective actions. After
the agreed-upon corrective actions have been completed, the
recommendations are considered closed. When disagreements
about audit recommendations arise, the OIG works with PBGC
management to resolve corrective action issues.
Investigation
reports detailing results and evidence obtained during investigations
involving PBGC programs, operations or personnel are provided
to the United States Attorney's Office, or other appropriate
prosecutive office, for consideration of criminal and/or civil
actions. Investigative findings of program fraud and employee
or contractor misconduct may be reported to the Deputy Executive
Director who is responsible for that program for their consideration
of corrective administrative action. Investigation reports
are not publicly available for privacy reasons.
In addition
to keeping PBGC informed through the usual reporting processes
-- such as exit conferences, draft and final audit and evaluation
reports, letter reports, or investigative reports and memoranda
-- the OIG also keeps the Secretary and Congress informed
through a number of other ways. They include meetings and
briefings; Congressional testimony; the IG's Semiannual Report
to the Congress (which the Secretary transmits to the Vice
President and the Speaker of the House within 30 days of its
receipt); and a special 7-day report for notifying the Secretary
and the Congress of any particularly serious or flagrant problems
requiring immediate attention.
Legislative
Review
The IG
Act requires that the OIG review and comment, as appropriate,
on all proposed and existing legislation and regulations in
order to identify weaknesses and recommend necessary corrective
actions. Accordingly, as part of its review of PBGC programs
and operations, the OIG makes legislative or regulatory recommendations
to PBGC and the Congress. These recommendations may be made
as part of the Department's ongoing legislative review and
clearance process; incorporated within audit and evaluation
reports or investigative memoranda provided to PBGC program
officials; included in our Semiannual Report to the Congress;
or presented as part of our testimony during Congressional
oversight hearings. |
