SECTION 1. PURPOSE.

.01 This Order prescribes the organization and functions of the Office of Inspector General (OIG) established in the Department of Commerce (the Department) under the Inspector General Act of 1978, 5 U.S.C.A. Appendix 3 (the Act). The scope of authority and functions of the Inspector General are set forth in Department Organization Order 10-13.

.02 This revision updates the Order to incorporate previous amendments and to reflect the current organizational structure of the OIG, including the establishment of the Office of Systems Evaluation, title changes to certain offices within the OIG, and realignment of various functions and responsibilities among the offices. Specifically, the Office of Compliance and Audit Resolution has been re-titled as the Office of Administration, and the Office of Inspections and Resource Management has been re-titled as the Office of Inspections and Program Evaluations. In concert with these actions, all resource management and administrative functions have been transferred from the former Office of Inspections and Resource Management to the Office of Administration; inspection and program evaluation functions are now shared by the Office of Inspections and Program Evaluations and the Office of Systems Evaluation; and responsibility for audit resolution and follow-up has been reinstated in the Office of Audits from the former Office of Compliance and Audit Resolution.

SECTION 2. ORGANIZATION.

The OIG, directed by the Inspector General, is composed of the immediate office of the Inspector General, the Office of Audits, the Office of Investigations, the Office of Inspections and Program Evaluations, the Office of Systems Evaluation, the Office of Administration, and the Office of Counsel to the Inspector General. The OIG conducts its operations at headquarters offices located in the Herbert C. Hoover Building in Washington, D.C., and at such regional and field offices as may be established by the Inspector General.

SECTION 3. OFFICE OF AUDITS.

.01 Organization. The Office of Audits (OA) will be headed by an Assistant Inspector General for Auditing (AIGA), who shall be responsible for supervising the performance of auditing activities relating to the programs and operations of the Department, and will report and be responsible to the Deputy Inspector General and the Inspector General. The AIGA will supervise the performance of all functions and duties assigned to the OA by the Inspector General; will be advisor to, and serve as representative of, the Inspector General on all audit matters; will advise other Department officials regarding these matters; and will represent the Department with officials of other Federal agencies or other public or private groups regarding audit matters. The AIGA may arrange with other Federal, State, and local agencies, and with other private organizations, to perform audits of Departmental programs.

a. The AIGA may be assisted by a Deputy Assistant Inspector General for Auditing (DAIGA), and a Deputy Assistant Inspector General for Regional Audits (DAIG/RA), who reports to the DAIGA. The DAIGA and the DAIG/RA will be the chief operating aides to the AIGA on audit matters; will be responsible for the day-to-day management of the OA staff and for supervising the quality control of audits and audit reports; and will perform other duties and functions as the AIGA may assign. The DAIGA will perform the duties and functions of the AIGA in his or her absence.

b. The functions and duties of the OA will be carried out by headquarters audit divisions, regional audit offices, and such other offices or specialized units as may be established to facilitate the performance of OA's assigned responsibilities.

1. Each headquarters audit division will be headed by a Director, who reports to the DAIGA, and is responsible for conducting audits and audit related activities as directed by the DAIGA.

2. Each regional audit office will be headed by a Regional Inspector General for Audits, who reports to the DAIG/RA, and is responsible for conducting audits and audit related activities as directed by the DAIG/RA.

.02 Functions. The OA will conduct, supervise, and coordinate audits of all organizational units and activities of the Department; will review the operating, administrative, and financial activities of the Department's operating units, including reviews to determine compliance with applicable laws, economy, efficiency, and achievement of program goals; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

a. The primary categories of audits conducted by the OA are described below:

1. Financial Audits. Financial audits include: financial statement audits, and financial assistance and contract audits.

(a) Financial statement audits are primarily concerned with providing reasonable assurance about whether the financial statements of an audited entity are presented fairly in all material respects and in conformity with generally accepted accounting principles.

(b) Financial assistance and contract audits include determining whether financial information is presented in accordance with established or stated criteria, whether the entity has adhered to specific financial compliance requirements, and whether the entity's internal control structure over financial reporting is suitably designed and implemented to achieve the control objectives.

2. Performance Audits. A performance audit is an objective and systematic examination for the purpose of providing an independent assessment of the performance of a government organization, program, activity, or function in order to provide information to improve public accountability and facilitate decision making by parties with responsibility to oversee or initiate corrective action. Performance audits include economy and efficiency audits and program audits.

3. Attestation Engagements. Attestation engagements concern examining, reviewing, or performing agreed upon procedures on a subject matter or an assertion about a subject matter and reporting on the results. The subject matter of the attestation engagement may take many forms, including historical or prospective performance or condition, historical events, analyses, or systems and processes. Attestation engagements can cover a broad range of financial or nonfinancial objectives such as: an entity's internal control over financial reporting; an entity's compliance with requirements of specified laws, regulations, rules, contracts, or grants; management's discussion and analysis presentation; reliability of performance measures; and allowability and reasonableness of final grant and contract costs.

b. The OA will conduct resolution and follow-up on all recommendations made in OIG audit reports, and will review reports on audits performed by State or local governments or other independent audit organizations, and where appropriate, will conduct resolution and follow-up of findings and recommendations made in such reports. The OA's responsibilities for resolution and follow-up will include:

1. Evaluating operating unit responses and proposed actions on OIG recommendations; resolving disputes between OIG auditors and management officials; liaison with the Department's audit follow-up official; and assistance to the Inspector General in his or her role as a member of the Department's Audit Resolution Council.

2. Evaluating the Department's implementation of corrective actions; identifying cases in which audit recommendations have been ignored or circumvented; and recommending specific corrective actions.

3. Maintaining, in conjunction with the Office of the Secretary, a tracking system for all audit findings and recommendations; and preparing reports and conducting such other activities relating to audit resolution and follow-up as required by the Act, relevant OMB Circulars, and DAO 213-5.

SECTION 4. OFFICE OF INVESTIGATIONS.

.01 Organization. The Office of Investigations (OI) will be headed by an Assistant Inspector General for Investigations (AIGI), who shall be responsible for supervising the performance of investigative activities relating to programs and operations of the Department, and will report and be responsible to the Deputy Inspector General and the Inspector General. The AIGI will supervise the performance of all functions and duties assigned to the OI by the Inspector General; will be advisor to and serve as the representative of the Inspector General on all investigative matters; will advise Department officials regarding OIG investigative matters; and will represent the Department with officials of the Department of Justice and other Federal agencies or other public or private groups regarding investigative matters covered by the Act.

a. The AIGI may be assisted by a Deputy Assistant Inspector General for Investigations (DAIGI), who will be the chief operating aide to the AIGI on investigative matters; will be responsible for the day-to-day management of the OI staff and for supervising the quality control of investigations and investigative reports; will perform other duties and functions as the AIGI may assign; and will perform the functions and duties of the AIGI in his or her absence.

b. The functions and duties of the OI will be carried out by field offices and such other offices or specialized units as may be established to facilitate the performance of the OI's assigned responsibilities. Each field office will be headed by a Special Agent in Charge (SAC), who reports to the DAIGI, or a Resident Agent in Charge (RAC), who reports to a SAC.

.02 Functions. The OI will conduct, supervise, and coordinate criminal, civil, and administrative investigations of Department employees, programs, and operations, as authorized by the Act; will perform related activities designed to prevent and detect fraud, waste, and abuse in the programs and operations of the Department; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

SECTION 5. OFFICE OF INSPECTIONS AND PROGRAM EVALUATIONS.

.01 Organization. The Office of Inspections and Program Evaluations (OIPE) will be headed by an Assistant Inspector General for Inspections and Program Evaluations (AIG/IPE), who will report and be responsible to the Deputy Inspector General and the Inspector General.

a. The AIG/IPE will supervise the planning and performance of inspections and program evaluations relating to programs and operations of the Department; will advise and represent the Inspector General on matters regarding inspections and program evaluations; will advise Department officials regarding these matters; and will represent the OIG with officials of other Federal agencies or other groups regarding inspections and program evaluation matters.

b. The AIG/IPE may be assisted by a Deputy Assistant Inspector General for Inspections and Program Evaluations (DAIG/IPE) who will be the chief operating aide to the AIG/IPE on inspections and program evaluations; will be responsible for the day-to-day supervision of the OIPE staff and of the quality control of inspections and program evaluations; will perform other duties and functions as the AIG/IPE may assign; and will perform the duties and functions of the AIG/IPE in his or her absence.

.02 Functions. The OIPE will conduct, supervise and coordinate inspections and program evaluations of all programs, operations, and organizational units of the Department, except those pertaining to information technology (IT) and systems, which will be conducted by the Office of Systems Evaluation, as set forth in Section 6 of this Order; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

a. An inspection is a brief review of a Department program, operation or activity intended to gather current information about administrative and programmatic problems while there is time to correct them, and to highlight for Department managers those activities that are being performed well. Inspections may cover individual offices, divisions, branches, units, field offices, or other Department facilities, installations, or property; and may review program or administrative areas, functions, services, or processes without regard to organizational placement in the Department, including functions and services provided by contractors, or activities conducted by other parties dealing with the Department, including recipients of financial assistance.

b. Program evaluations are in-depth reviews of specific management issues, policies, or programs.

SECTION 6. OFFICE OF SYSTEMS EVALUATION.

.01 Organization. The Office of Systems Evaluation (OSE) will be headed by an Assistant Inspector General for Systems Evaluation (AIG/SE), who will report and be responsible to the Deputy Inspector General and the Inspector General.

a. The AIG/SE will supervise the planning and performance of inspections and evaluations of the Department's information technology and other systems, programs, and assets; will advise and represent the Inspector General on matters regarding systems inspections and evaluations; will advise Department officials regarding these matters; and will represent the OIG with officials of other Federal agencies or other public or private groups regarding systems inspections and evaluation matters.

b. The AIG/SE may be assisted by a Deputy Assistant Inspector General for Systems Evaluation (DAIG/SE), who will be the chief operating aide to the AIG/SE on systems evaluations and inspections; will be responsible for the day-to-day supervision of the OSE staff and of the quality control of systems evaluations and inspections; will perform other duties and functions as the AIG/SE may assign; and will perform the duties and functions of the AIG/SE in his or her absence.

.02 Functions. The OSE will conduct, supervise, and coordinate systems evaluations and inspections involving information technology and systems of all programs, operations, and organizational units of the Department; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

a. Systems evaluations are reviews of planning, acquisition, development, deployment, operations, maintenance, policy, and all related aspects, such as information security and contracts, for Department information technology systems and other systems. They address management, technical, operational, and contractual issues and seek to improve efficiency, effectiveness, and security. Systems evaluations are also conducted to help ensure that systems investments are well managed and maintain an appropriate balance between achieving technical requirements and managing costs, schedules, and other risks.

b. The OSE will conduct inspections, as described in subparagraph 02.a. above, involving information technology and systems of all organizational units and activities of the Department.

SECTION 7. OFFICE OF ADMINISTRATION.

.01 Organization. The Office of Administration (OADM) will be headed by an Assistant Inspector General for Administration (AIG/ADM), who will report and be responsible to the Deputy Inspector General and the Inspector General.

a. The AIG/ADM will supervise the provision and management of administrative resources and services to the OIG, and will be the principal advisor to the Inspector General on matters relating to OIG resource management, including planning, information and information technology management, personnel administration and security, budget formulation and execution, and support services; will advise and represent the Inspector General on resource management and administrative matters; will advise Department officials regarding these matters; and will represent the OIG with officials of other Federal agencies or other public or private groups regarding resource management and administrative matters.

b. The AIG/ADM may be assisted by a Deputy Assistant Inspector General for Administration (DAIG/ADM), who will be the chief operating aide to the AIG/ADM on resource management and administrative matters; will be responsible for the day-to-day supervision of the OADM staff; will perform other duties and functions as the AIG/ADM may assign; and will perform the duties and functions of the AIG/ADM in his or her absence.

c. The functions and duties of the OADM will be carried out by a Division of Human Resources Management, a Division of Information Technology Management, and such other offices or specialized units as may be established to facilitate the performance of OADM's assigned responsibilities.

.02 Functions. The OADM will be responsible for the provision and management of administrative resources and services for the OIG, as provided below; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

a. The OADM will direct and coordinate the OIG's efforts relating to strategic, tactical, and operational planning and organizational performance planning, measurement, and reporting, including the development and periodic update of its strategic plan, work plan, and other plans and reports as deemed necessary to support the accomplishment of the OIG's mission.

b. The OADM will formulate, justify, and defend the OIG's annual budget requests; will develop its annual budget operating plan and oversee the plan's implementation; and will provide for sound financial management of the OIG by effectively monitoring and controlling costs and ensuring that budget outlays and obligations do not exceed appropriated funds and reimbursements.

c. The OADM will develop and administer the OIG's management accountability and control program in accordance with the Federal Managers' Financial Integrity Act of 1982 (FMFIA) and OMB Circular No. A-123, "Management Accountability and Control," to include developing, maintaining, and overseeing the implementation of a management and financial control plan for OIG resources and activities, and preparing the OIG's annual statements on management and financial controls for inclusion in the Secretary's Annual FMFIA Report to the President.

d. The OADM will administer the OIG's responsibilities relating to employee health and safety; security (personnel, facilities, information, systems, and other resources); and emergency preparedness, including continuity of operations planning and management.

e. The OADM will administer the OIG's procurement program, including ensuring that the OIG has appropriate policies, systems, and procedures in place to acquire the goods and services it needs in a timely, efficient, and cost-effective manner.

f. The OADM will manage travel and transportation services for OIG employees, including overseeing use of the contractor-issued government travel card.

g. The OADM will administer the OIG's human resources function in accordance with the authorities established in the Act. This function includes recruitment; staffing; personnel security; position classification; employee relations, performance management and recognition; development and training; equal employment opportunity (EEO) and affirmative action; and personnel/payroll processing.

h. The OADM will plan for, acquire, secure, control, and manage OIG office space, facilities, and personal property, and manage conference and meeting planning activities for the OIG.

i. The OADM will provide for the effective planning, acquisition, and management of IT hardware, software, computer systems, networks, and e-mail services; will develop and administer an OIG-wide IT systems security program; provide for the periodic assessment, testing, certification, and accreditation of all OIG computer systems, networks, and applications; administer OIG systems; and provide IT support services to the OIG.

j. The OADM will manage OIG information resources and records throughout their life cycle. This function includes responsibility for the compilation, preparation, and publication of the Inspector General's Semiannual Report to the Congress and other reports required by the Act; provision of writing, editing, graphic design, publishing, and administrative support for the production, cataloguing, dissemination, and archiving of information products, such as audit and inspection reports, strategic plans, congressional testimony, and correspondence; administration of the OIG records management program; and management of the OIG website and information resources center.

SECTION 8. OFFICE OF COUNSEL TO THE INSPECTOR GENERAL.

.01 Organization. The Office of Counsel to the Inspector General (OC) will be headed by a Counsel to the Inspector General (Counsel), who will report and be responsible to the Deputy Inspector General and the Inspector General.

a. The Counsel will be the principal legal advisor to the Inspector General; will manage the provision of legal services to the Inspector General and the OIG staff; will represent the Inspector General on legal matters with the Department's Office of General Counsel and with other Department officials; and will represent the OIG with officials of the Department of Justice and other Federal agencies or other public and private groups regarding legal matters.

b. The Counsel may be assisted by a Deputy Counsel, who will be the chief operating aide to the Counsel; will be responsible for the day-to-day supervision of OC attorneys and other staff; will perform other duties and functions as the Counsel may assign; and will perform the duties and functions of the Counsel in his or her absence.

.02 Functions. OC will provide legal advice and counsel to the Inspector General, the Deputy Inspector General, the Assistant Inspectors General, and OIG staff in connection with the activities and operations of the OIG, including but not limited to the services set forth below; and will conduct such other activities as may be assigned to facilitate the accomplishment of the OIG's mission.

a. OC will advise the Inspector General and the Deputy Inspector General on the authorities and responsibilities of the OIG under the Act and other relevant statutes and regulations, and will provide legal advice and services to OIG staff on matters relating to the work of the OIG, including but not limited to, audits, inspections, program evaluations, investigations, Inspector General subpoenas, employee standards of conduct, Privacy Act and Freedom of Information Act requests, and personnel issues. On such matters, the Inspector General or the Counsel to the Inspector General may consult with the General Counsel. The Inspector General or Counsel to the Inspector General shall consult with the General Counsel on legal matters when they involve significant issues in important cases which may have a substantial impact on the operations of the Department. Where, in the judgment of the Inspector General, consultation on such significant issues would hinder or impede an audit, inspection, program evaluation, or investigation, the Inspector General may decline to consult.

b. The Inspector General and Counsel to the Inspector General shall consult with and give due regard to the opinion of the General Counsel on significant issues regarding all other legal matters, particularly program statutes and regulations, Department Orders, and general statutes such as the Freedom of Information Act and the Privacy Act.

c. OC will represent the OIG in interactions with the Department's Office of General Counsel and with other Department officials, with officials of the Department of Justice and other Federal agencies, and with other public and private groups; and will represent the OIG in criminal, civil, and administrative proceedings arising from OIG activities and operations, including audits, investigations, inspections, program evaluations, and personnel and administrative matters.

d. OC will prepare or review pleadings, briefs, memoranda, and other legal documents necessary for judicial or administrative proceedings involving the OIG or the Department, which are requested by the Department of Justice or the Office of General Counsel for use in such proceedings.

e. OC will provide legal and policy advice to the Inspector General in conjunction with the review of legislative and executive proposals relating to the management and operations of Department agencies and programs, including internal orders, regulations, guidelines, and policies; and will prepare or review comments, statements, or other expressions of the Inspector General's views or position on proposed or pending legislation, or other matters within the scope of the Inspector General's responsibilities, including the preparation or review of testimony to be given before a committee of the Congress.

.03 In the performance of the responsibilities of his or her office, the General Counsel will respect the independence and integrity of the OIG; in the performance of the responsibilities of his or her office, the Inspector General will give due regard to the authority of the General Counsel as chief legal officer for the Department.

SECTION 9. EFFECT ON OTHER ORDERS

This Order supersedes DOO 23-1, dated December 8, 1989, as amended.

Signed by: Inspector General

Approved by: Secretary of Commerce