Introduction Statement of the Administrator Summary of FY 2002 Budget Request Program, Performance, and Prospects Operating Expenses, USAID Working Capital Fund Operation Expenses, Inspector General     Funding Sources Summary Table     Workforce Staffing Table     Operating Expenses by Object Class Code Foreign Service Disability and Retirement Fund Regions     Africa     Asia & the Near East     Europe & Eurasia     Latin America & the Caribbean Central Programs Glossary Abbreviations and Acronyms Wednesday, 29-May-2002 18:52:56 EDT

(Dollars in Thousands)

The Office of Inspector General (OIG), U.S. Agency for International Development (USAID), is an independent and objective unit within USAID, with the following statutory responsibilities: (1) to conduct audits and investigations relating to the programs and operations of USAID; (2) to 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; (3) to provide a means for keeping the Administrator and the Congress fully and currently informed about problems and deficiencies relating to USAID; and (4) to provide audit and investigative services and oversight for the Inter-American Foundation and the African Development Foundation.

The OIG's FY 2002 appropriation request of $32 million, plus $1.3 million of prior-year funds, will enable the OIG to reduce the Agency's exposure to fraud and to increase the credibility of and confidence in Agency programs throughout the world. In addition to its Washington, D.C. office, the OIG maintains regional offices in Dakar (Senegal), Pretoria (South Africa), Manila (Philippines), Cairo (Egypt), Budapest (Hungary), and San Salvador (El Salvador).

During FY 2000, OIG activities resulted in a $120 million lawsuit being filed against a major USAID grantee organization. Audit reviews of contractors, grantees and program operations led to $87 million in questioned costs and recommendations that funds be put to better use through de-obligations or reprogramming. Other OIG activities resulted in $37.9 million in criminal fines, civil settlement and restitution being imposed to date on several companies which conspired to rig bids on USAID-funded construction contracts. The OIG is continuing to pursue further judicial actions. OIG activities also resulted in a company guilty of obstruction of justice being fined $325,000 and placed on probation for two years.

The OIG has three major elements:

The Audit office is responsible for performance audits of USAID programs and management systems, financial statement audits of selected USAID accounts required by the Chief Financial Officers Act and financial related audits of grantees and contractors.

New and innovative approaches for quickly examining and reporting results are being developed.

The OIG is also expanding accountability of U.S. Government funds through its training and development work with Supreme Audit Institutions around the world.

The Investigations office is responsible for working with USAID to protect and maintain the integrity of Agency programs and operations by investigating allegations of Federal criminal and civil statutes and serious administrative violations.

Most of the investigations are reactive and are initiated in response to allegations.

However, part of OIG resources focus on proactive investigations which attempt to detect and prevent fraud in agency programs.

Priorities are twofold: first, conducting investigations into allegations of procurement and contract fraud; and second, ensuring that USAID employees maintain the highest ethical standards.

The Management office is responsible for managing all administrative activities for the Washington D.C. and overseas offices. Functions include human resources, budgeting, contracting and information management.