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Operating Expenses of the Inspector General

Funding Categories FY 2003 ACTUAL FY 2004 ACTUAL FY 2005 ESTIMATE FY 2006 REQUEST Appropriation 33,083 34,794 34,720 36,000 Prior year balances and recoveries 4,917 9,682 6,189 1,484 Supplementals and transfers 5,097 1,639 1,112   TOTAL 43,097 46,115 42,021 37,484 Funding by Category and Location (PDF) Funding by Object Class (PDF) Staffing Levels (PDF)

The Office of Inspector General (OIG), U. S. Agency for International Development (USAID), FY 2006 appropriation request is $36 million. This request will allow the OIG to accomplish its mandatory and some urgent priority audit and investigative work and reduce USAID's, the African Development Foundation's (ADF), and the Inter-American Foundation's (IAF) exposure to fraud and waste. This request will also enable the OIG to increase the credibility of and confidence in those programs operating in highly vulnerable areas of the world.

Established under the Inspector General Act of 1978, the OIG is tasked to: (1) conduct audits and investigations relating to the programs, operations and personnel of USAID, ADF, and IAF; (2) provide leadership and coordination and recommend policies for activities designed to promote economy, efficiency and effectiveness and to detect waste, fraud and abuse in the programs and operations of USAID, ADF, and IAF; and, (3) provide a means for keeping the USAID Administrator, Foundation Directors, and the Congress fully and currently informed about problems and deficiencies relating to USAID, ADF, and IAF.

The OIG's goal is to promote and preserve the integrity, effectiveness and efficiency of USAID, ADF, and IAF. The OIG assists USAID, ADF, and IAF with the implementation of its strategies for economic development and provides managers with information and recommendations that improve program and operational effectiveness and efficiency. During FY 2004, with obligations of $39.9 million from Appropriation plus carry-over funds, OIG audits and investigations of contracts, contractors, grantees and program operations led to more than $56.1¹ million in monetary findings, questioned costs, funds put to better use, and civil restitution payments and penalties.

For USAID's FY 2004 consolidated financial statements, the OIG issued unqualified opinions on all five of USAID's principal financial statements. It is still extremely important for USAID to implement a single agency wide financial management system to provide timely and useful information to USAID managers.

USAID continues to play a critical and central role in the relief and reconstruction efforts in Iraq and Afghanistan. The economic and political instability that exists in these countries and USAID's need to rapidly expand and implement its programs to address immediate needs increase the vulnerability to corruption. To ensure effective use of U.S. funds, the OIG is devoting considerable audit and investigative resources overseeing both programs. The OIG established a continuous on-the-ground presence in Baghdad in August 2003 and continues with periodic visits to oversee major program activities in Afghanistan. Additionally, for both programs, the OIG is overseeing an extensive program of contracted financial audits to closely monitor program expenditures.

The OIG is also closely monitoring USAID's participation in the President's Emergency Plan for AIDS Relief through a recent pilot audit in Ethiopia and contacts with USAID's Washington bureaus and field missions.

Work continues on our proactive fraud awareness activities with excellent results. During FY 2004, in an effort to reduce fraud and illegal activity, through proactive initiatives the OIG staff conducted fraud awareness training sessions for more than 2,200 participants. The participants were USAID employees, grantees, and contractors worldwide. The ultimate goal of our fraud awareness program is to educate employees, contractors, and grantees to a point that we eliminate fraudulent activity from USAID's programs.

By law this office is also the Inspector General for the Millennium Challenge Corporation (MCC). In a separate submission through the MCC, we have detailed our reimbursement request for FY 2006.

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