• Governance— PBGC's new Interim Director has shown a commitment to good governance, supporting PBGC leaders' correction of identified financial statement audit weaknesses and frankly discussing difficult ethics issues. The Board of Director's oversight role continued as a focus area; revised By-Laws are before the Board for approval (see pages 5-7).



• Stewardship— The financial statement audit was a significant activity and the new internal control reporting standard was briefed to management and the Advisory Committee. Investigations aggressively pursued conviction of and recovery from individuals who fraudulently obtained pension benefits and determined an employee submitted false documents to receive childcare subsidies (see pages 7-12).



• PBGC Business Model— We are auditing terminated but not yet insolvent multiemployer plans for protection of plan assets and potential PBGC savings of future financial assistance payments. PBGC is implementing recommendations from our prior audit to close-out certain insolvent multiemployer plans (see page 12-15).



• Information technology — Our post-implementation review and performance audit of a significant actuarial valuation system recommended that PBGC perform a cost-benefit analysis before expending more funds; PBGC's work in emergency preparedness resulted in resolving a reportable condition; and our FISMA report noted improvement. Investigators recovered three missing laptops (see pages 15-18).



• Procurement and contracting— Four incurred costs audits questioned more than $1 million in billed costs, and a report to the new Procurement Director cumulated the procurement audits since 2000 to show trends in identified weaknesses. Investigations included a contractor employee who falsified time records, and possible disclosure of procurement sensitive information (see pages 19-22).

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