Management Report on Final ActionOctober 1, 2006 - September 30, 2007Topics on This Page Background The Inspector General Act Amendments of 1988 (P.L. 100-504) require Departments and Agencies to report to Congress on the actions they have taken and the amount of funds recovered or saved in response to the Office of Inspector General's (OIG) audit recommendations. This annual management report provides the status of OIG A-133 audit reports in the Department and summarizes the results of actions taken to implement OIG audit recommendations during the reporting period. Departmental Findings For the fiscal year covered by this report, the Department accomplished the following: - Initiated action to recover $1,894,936,000 through collection, offset, or other means (see Table I);
- Completed action to recover $246,669,000 through collection, offset, or other means (see
- Table I);
- Initiated action to put to better use $1,000,645,000 (see Table II); and
- Completed action that over time will put to better use $1,024,261,000 (see Table II).
At the end of this period there are 197 OIG audit reports over 1 year old with uncollected balances or unimplemented monetary findings. The reasons these reports are still pending are found in the notes to the tables. Departmental Conflict Resolution In the event that HHS agencies and OIG staff cannot resolve differences on specific report recommendations, a conflict resolution mechanism is available. During FY 2007, there were no disagreements requiring the convening of the Conflict Resolution Council. Status of Audits in the Department In general, HHS Agencies follow up on OIG recommendations effectively and within regulatory time limits. The HHS Agencies usually reach a management decision within the 6-month period that is prescribed by P.L. 100-504 and OMB Circular A-50, Audit Follow-up. For the most part, they also complete their final actions on OIG reports, including collecting disallowed costs and carrying out corrective action plans, within a reasonable amount of time. However, the Department continues to monitor this area to improve procedures and ensure compliance with corrective action plans. Report on Final Action Tables The following tables summarize the Department's actions in collecting disallowed costs and implementing recommendations to put funds to better use. Disallowed costs are those costs that are challenged because of a violation of law, regulation, grant term or condition, etc. Funds to be put to better use relate to those costs associated with cost avoidances, budget savings, etc. The tables are set up according to the requirements of Section 106(b) of P.L. 100-504.
TABLE I
Management Action on Costs Disallowed in OIG ReportsAs of September 30, 2007
(in thousands) | | Number | Disallowed Costs | A. Reports for which final action had not been taken by the commencement of the reporting period. See Note 1. | 280 | $607,270 | B. Reports on which management decisions were made during the reporting period. See Note 2. | 329 | $1,894,936 | Subtotal (A+B) | 609 | $2,501,306 | C. Reports for which final action was taken during the reporting period: | i. The dollar value of disallowed costs were recovered through collection, offset, property in lieu of cash, or otherwise. | 273 | $246,669 | ii.The dollar value of disallowed costs that were written off by management. | 2 | $784 | Subtotal (i+ii) | 275 | $247,453 | D. Reports for which no final action has been taken by the end of the reporting period. See Note 3. | 334 | $2,253,853 | Notes: - Includes adjustments of amended disallowance and disallowance excluded from the previous reporting period.
- Represents the amount of management concurrence with the OIG's recommendations. For this fiscal year, the OIG's reconciliation with the HHS Agencies showed a variance that represents the two organizations having different cut-off dates.
- In addition to current unresolved cases, this figure includes the list of audits over 1 year old with outstanding balances to be collected, audits under administrative or judicial appeal, and audits under a current collection schedule.
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TABLE II
Management Action on OIG Reportswith Recommendations That Funds Be Put to Better Use
As of September 30, 2007
(in thousands) | | Number | Disallowed Costs | A. Reports for which final action had not been taken by the commencement of the reporting period. See Note 1. | 9 | $26,402 | B. Reports on which management decisions were made during the reporting period. | 23 | $1,000,645 | Subtotal (A+B) | 32 | $1,027,047 | C. Reports for which final action was taken during the reporting period:
| i. The dollar value of recommendations that were actually completed based on management action or legislative action. | 23 | $1,024,261 | ii. The dollar value of recommendations that management has subsequently concluded should not or could not be implemented or completed. | 0 | $0 | Subtotal (i+ii) | 23 | $1,024,261 | D. Reports for which no final action has been taken by the end of the reporting period. | 9 | $2,786 | Notes: - Includes adjustments of amended disallowances and disallowances excluded from the previous reporting period.
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Topics in Section III include:
Report Date: November 15, 2007
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