Semiannual Report: April 1, 2014 - September 30, 2014
OIG-15-1SP: Oct 29, 2014
Tonya R. Ford
This is a publication by GAO's Inspector General that concerns internal GAO operations. The report summarizes the activities of the Office of the Inspector General (OIG) for the second reporting period of fiscal year 2014.
In fiscal year 2012, GAO's Forensic Audits and Investigative Services (FAIS) used two primary methods to access funds to support its undercover activities: a credit union checking account and undercover charge cards. OIG found no evidence of fraud or waste regarding undercover funds, but did identify areas for improvement in financial management controls. Controls were ineffective in preventing and identifying the use of appropriated funds for which the period of availability had expired. As a result, we found that FAIS investigative staff improperly used $3,966.25 and retained $7,160.34 in expired fiscal year 2011 funds in fiscal years 2012 and 2013. In addition, we identified other conditions that increased the risk for fraud, waste, and mismanagement of FAIS undercover funds, such as undercover purchases occurring prior to requisite management approval and omissions in policies and procedures for ensuring accountability over undercover funds. During our audit, GAO made accounting adjustments to remedy appropriations law violations and implemented procedures to mitigate future risk, including periodic reviews of controls over FAIS transactions.