The Inspector General has met with Commission staff to work towards positioning the Commission for audited financial statements. While the unique makeup of the Commission requires research on determining the applicable standard to be used in preparing financial statements, the Commission staff has made great strides during this period 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. Further, the IG has worked with Commission staff responsible for the J-1 program to gather information early in the process that will assist not only the Commission but also the OIG in monitoring the program internal controls. Lastly, the IG has started the process of designing an OIG portion of the Commission MIS, which, when completed, will allow Commission managers access to OIG reports and information directly. The OIG will also work with the Commission staff to place OIG information on the Commission website.

The IG continued to serve on the Executive Council on Integrity and Efficiency. The IG continued to serves as the Inspector General of the Denali Commission in line with a Memorandum of Agreement between the ARC IG and the Denali Commission Federal Co-Chair. During this period, we issued one report to the Denali Commission. A partial followup was conducted and will be completed early in the next fiscal year. The full audit report is included in the most recent Denali Commission annual report. The Denali Commission has also forwarded an inquiry into a project that the OIG will review during the upcoming period.

The IG worked with the Commission staff to help plan an upcoming teleconference dealing with the Governmental Accounting Standards Board's Statement No. 34, which deals with basic financial statements for State and local governments. The IG attended the annual joint meeting of the President's Council on Integrity and Efficiency and the Executive Council on Integrity and Efficiency as well as the annual Development Districts Association of Appalachia conference.