During this reporting period, the Office of Inspector General (OIG) issued 7 reports to the Appalachian Regional Commission with one additional report being issued to the Denali Commission. Recommendations in grant reviews were directed at improved reporting and eligibility of expenditures.

Grant reviews disclosed projects were generally being implemented in accordance with program requirements and grantees generally had satisfactory accounting systems and internal controls. A change in audit reporting procedures has brought more oversight to grants by the program managers. The J-1 Visa Waiver program provides a waiver of requirements for a foreign physician to return to his/her home country after completion of medical training in the United States. ARC participates as a Federal Entity sponsor to assist Appalachian communities in providing healthcare services to medically underserved areas. The applicable ARC policies and procedures require J-1 physicians to practice 40 hours of primary care per week in a designated Health Profession Shortage Area (HPSA) in the Appalachian Region and serve at least 3 years (unless a State has a longer period). There is no prohibition on J-1 physicians working extra hours or practicing subspecialties after fulfilling primary care requirements.

During the reporting period, the IG served on the Executive Council on Integrity and Efficiency. The IG is a member of the Government Audit Training Institute Advisory Committee. The IG continued as the Inspector General of the Denali Commission under a Memorandum of Agreement with the Denali Commission Federal Co-Chair.

The OIG has met with Commission staff and contractors to work towards the successful completion of the first financial statement audit of the Commission. While the unique makeup of the Commission required much research on determining the applicable standards to be used in preparing financial statements, the Commission staff has made great strides during the past year in working towards a final determination of standards to be used and coming up with a standard format that will be equally acceptable to all parties. Lastly, the Inspector General has continued the process of designing an OIG portion of the Commission Management Information System (MIS), which, when completed, will allow Commission managers access to OIG reports and information directly. The OIG has worked with the Commission staff to place OIG information on the Commission web site.