GENERAL SERVICES ADMINISTRATION
Washington, DC 20405
OIG 5410.2 CHGE 2
April 15, 2020
GSA ORDER
SUBJECT: Office of Inspector General, Audit, Inspection, and Investigative Activities
1. Purpose. This update primarily adds the activities of the Office of Inspections but includes updates to all sections of the policy.
2. Background. This policy sets for the activities of the various components of the Office of Inspector General.
3. Applicability. All GSA and GSA/OIG employees.
4. Cancellation. This Order cancels and supersedes GSA Order, OIG 5410.2 CHGE 1.
5. Explanation of Change Paragraph. Slight language changes to Part 4, Section 5, which changes the meaning of the third sentence.
6. Signature.
/S/____________________________
CAROL F. OCHOA
Inspector General
OFFICE OF INSPECTOR GENERAL, AUDIT, INSPECTION, AND INVESTIGATIVE ACTIVITIES
Part 1. Office of Inspector General Activities
1. Audits, Inspections, and Investigations. The Office of Inspector General (OIG) conducts independent and objective reviews of GSA programs and activities. The OIG pursues a two-fold mission in performing audit, inspection, and investigative activities: improving the economy, efficiency, and effectiveness of GSA programs; and detecting and preventing fraud, waste, and mismanagement. Reviews are performed by OIG employees with posts of duty in regional and Headquarters locations. Audit, inspection, and investigative activities are discussed in parts 2, 3, and 4.
2. Review of Legislation and Regulations. New and proposed legislation and regulations, concerning the programs and activities of GSA are reviewed by the OIG regarding their impact on economy and efficiency, and fraud prevention and detection. The review of legislation is performed by the Counsel to the Inspector General, while the review of regulations and directives is carried out by the OIG Clearance officer.
3. Allegations of Wrongdoing. The OIG receives allegations and complaints about GSA operations nationwide. Suspected fraud, waste, and mismanagement can be reported to any Special Agent in Charge, or by contacting the OIG Hotline Officer in Washington, DC on 202-501-1780, toll free on 800-424-5210, or through the mail (GSA/OIG/Hotline, Washington, DC 20405). Potentially illegal or improper activities can be reported confidentially, where the identity of the person is not disclosed outside the OIG, or anonymously.
4. Access to GSA and Contractor Records. OIG auditors, analysts, inspectors, criminal investigators, and attorneys have unrestricted access to all records, reports, reviews, documents, papers, and materials available to GSA and pertaining to agency programs and activities. When performing reviews of contractor records and proposals, access to information is provided by-statute, contract terms, and agreement between the contractor and the Government. To facilitate the process of gaining access to information, auditors, analysts, inspectors, and attorneys carry credentials identifying them as OIG officials. OIG Special Agents carry a badge and credentials.
Part 2. Audit Activities
1. General. This part provides guidance for agency officials needing information regarding audit requests, types of audits, steps in the audit process, audit resolution, and implementation reviews.
2. Audit Requests. GSA managers and contracting officials can request audits of agency programs and activities, and contractor records or proposals at any time. In addition, the Office of Audits meets annually with the Heads of Services and Staff Offices and the Regional Administrators to discuss areas of concern for internal audit consideration and specific contract or proposal information for contract audits.
3. Types of Audits. The Office of Audits provides comprehensive coverage of GSA operations through program audits, including financial, regulatory, and system audits and assessments of internal controls. The office conducts contract audits in support of GSA contracting officials to carry out their procurement responsibilities and obtain the best value for federal customers and American taxpayers.
a. Program audits are independent appraisals of GSA programs, financial management, operations, and activities that can be performed at any location where the agency conducts business. These audits generally determine whether an entity is using resources economically and efficiently, achieving desired program results, and complying with applicable laws and regulations.
b. Contract audits are audits of contractor records and proposals in support of GSA contracting officials. These audits relate to proposed or awarded contracts and can include preaward and postaward audits, price reduction and defective pricing reviews, contractor claims and termination reviews, and lease escalation evaluations.
c. Special audits are one-time audits of identified problem areas that are performed on a priority basis. These audits are usually initiated by the Inspector General or the Assistant Inspector General for Auditing. These audits can also be requested by the Administrator, Deputy Administrator, Heads of Services and Staff Offices (HSSOs), and Regional Administrators (RAs). Requests for special audits should be directed to the IG, the Assistant Inspector General for Auditing, or the appropriate Regional Inspector General for Auditing or Associate Deputy Assistant Inspector General for Auditing.
4. Engagement Letters. Engagement letters are usually issued to RAs or HSSOs to announce the OIG's intention to initiate internal or special audits. Engagement letters are not issued when the nature of the audit requires that the audit presence not be disclosed in advance or the need for such notification has been preempted by a formal entrance conference. For contract audits, the contracting officer usually informs the contractor of the impending audit.
5. Entrance and Exit Conferences. Entrance and exit conferences are held with responsible management officials immediately prior to initiation and upon completion of the audit effort. Entrance conferences are to discuss the purpose, scope, and principal features of the audit; and provide management officials the opportunity to request specific coverage in relevant areas. Exit conferences are held following the audit to discuss audit findings and results, giving management officials the opportunity to ask questions and comment on the validity of the facts. Also, for all audits except contract audits, the exit conference allows management officials the opportunity to comment on the reasonableness of audit conclusions and proposed recommendations.
a. Internal, and Special Audits. Entrance and exit conferences are held with RA, HSSOs, or their designees.
b. Contract Audits. Entrance and exit conferences (if applicable) are held with the contractor.
6. Draft Audit Reports. Draft audit reports are issued to GSA management officials and, for certain types of contract audits, to GSA contractors. The draft reports give the auditee the opportunity to provide written comments that are included as an appendix in the final audit report.
a. Internal and Special Audits. Draft audit reports are issued to Regional Administrators or Heads of Service and Staff Offices. These GSA officials have 30 calendar days to provide written comments expressing either agreement or disagreement with each of the conclusions and recommendations contained in the report. These written comments are carefully analyzed when finalizing the audit report.
b. Contract Audits. Draft audit reports are issued for multiple award schedule post award audits. A draft report is transmitted to the contractor for written comment.
7. Final Audit Reports and Resolution. In response to final audit reports, GSA managers and contracting officers develop specific plans regarding actions to be taken in response to audit findings and/or recommendations. Audit report resolution is the process by which GSA managers and OIG officials agree upon the actions to be taken. Detailed procedures for audit resolution are contained in GSA Order, Internal Audit Follow-up Handbook (ADM P 2030.2D).
a. Internal and Special Audits. Resolution is reached based upon the formal written action plans approved by the appropriate HSSO. For regional audits, the action plans are prepared by the RA and submitted through the appropriate HSSO to the audit office that issued the report.
b. Contract Audits. Resolution is based upon an agreement on the Decision Record submitted by the contracting officer to the audit office that issued the report.
8. Implementation Reviews. Implementation reviews are conducted to determine whether GSA management has adequately implemented actions agreed upon for resolved internal and special audit reports. While these reviews are normally conducted after management has completed all corrective actions, interim reviews can be conducted where complex or lengthy corrective action is specified by management.
Part 3. Inspection Activities
1. General. This part provides guidance for agency officials needing information regarding inspection requests, types of inspections, steps in the inspection process, inspection resolution, and implementation reviews.
2. Inspection Requests. GSA managers can request inspections of agency programs and activities by contacting the Director of the Office of Inspections.
3. Definition of Inspection. The term “inspection” includes evaluations, inquiries, and similar types of reviews that do not constitute an audit or a criminal investigation.
4. Types of Inspections. The Office of Inspections performs inspections that are systematic and independent assessments of the design, implementation, and/or results of GSA’s operations, programs, or policies. They provide information that is timely, credible, and useful for agency managers, policymakers, and others. Inspections can be used to determine efficiency, effectiveness, impact, and/or sustainability of agency operations, programs, or polices. They often recommend improvements and identify where administrative action is necessary. Other uses of inspections include but are not limited to: providing factual and analytical information; measuring performance; determining compliance with applicable law, regulation, and/or policy; identifying savings and funds be put to better use; sharing best practices or promising approaches; and assessing allegations of fraud, waste, abuse, and mismanagement.
5. Engagement Letters. Engagement letters are usually issued to RAs or HSSOs to announce the OIG's intention to initiate inspections. Engagement letters are not issued when the nature of the review requires that the inspection presence not be disclosed in advance or the need for such notification has been preempted by a formal entrance conference.
6. Entrance and Exit Conferences. Entrance and exit conferences are usually held by the Assistant Inspector General for Inspections with responsible management officials immediately prior to initiation and upon completion of the inspection. Entrance conferences are held to discuss the purpose, scope, and principal features of the inspection. They also provide GSA officials the opportunity to request specific coverage in relevant areas. Exit conferences are held following the review to discuss inspection findings and recommendations and offer management officials the opportunity to ask questions and provide feedback.
7. Draft inspection Reports. Draft inspection reports are issued to RAs or HSSOs. These GSA officials will be provided a designated time frame to provide written comments expressing either agreement or disagreement with each of the conclusions and recommendations contained in the report. These written comments are analyzed and are included as an appendix in the final inspection report.
8. Final Reports and Resolution. In response to final inspection reports, GSA managers develop an action plan in response to the conclusions and recommendations contained in the report. Report resolution is the process by which GSA managers and OIG officials agree upon the action plan. Detailed procedures for inspection resolutions are contained in GSA Order Internal Audit Follow-up Handbook (ADM P 2030.2D).
9. Implementation Reviews. The Office of Inspections conducts reviews to determine whether GSA management has adequately implemented actions agreed upon for resolved inspection reports. While these reviews are normally conducted after management has completed all corrective actions, interim reviews can be conducted where complex or lengthy corrective action is specified by management.
Part 4. Investigative Activities
1. General. This part provides guidance for agency officials needing information regarding investigative requests, activities, reports, and referrals. This part also provides information concerning actions to be taken by management in response to investigative activities and reports.
2. Investigative Requests. GSA managers and officials may request investigative services or support by contacting the Special Agent in Charge in field locations or the Office of Investigations at Headquarters.
3. Types of Investigative Activities. The Office of Investigations conducts criminal and non-criminal investigations of GSA programs, operations and employees, and also provides investigative support and assistance to GSA managers and officials.
a. Investigations are conducted of suspected or alleged wrongdoing involving GSA operations, personnel, and funds. This includes Federal employees involved in and with GSA programs and activities, GSA contractors providing services directly to GSA or to other Federal agencies, and any persons or entities involved or participating in any such suspected or alleged wrongdoing.
b. Investigative support and assistance is provided to GSA managers and officials as follows:
(1) Security and Personnel Matters. Investigative assistance in these areas is provided after the GSA Security officer's review and initial factual analysis determines that activities warrant referral to the OIG.
(2) Tort Claims and Indebtedness Matters. Investigative assistance in these areas is provided to the GSA Office of General Counsel in connection with litigation that has been initiated by, or against, GSA.
c. Liaison with the Department of Justice and U.S. Attorneys is provided on all potential and referred civil and criminal fraud actions. Liaison and litigation assistance is supplemented by the Counsel to the Inspector General.
d. Integrity Awareness Briefings are provided to GSA employees to heighten their awareness of potential fraud, waste and mismanagement, methods for reporting suspected wrongdoing, and the responsibility of the OIG to combat such activity.
4. Reporting Suspected or Alleged Irregularity. The Office of Investigations receives allegations and complaints about GSA operations nationwide. Suspected fraud, waste, and mismanagement can be reported to any Special Agent in Charge, or by contacting the OIG Hotline Officer in Washington, DC on 202-501-1780, toll free on 800-424-5210, or through the mail (GSA/OIG/Hotline, Washington, DC 20405). Potentially illegal or improper activities can be reported confidentially, where the identity of the person is not disclosed outside the OIG, or anonymously.
5. Investigative Interviews. All GSA employees are required to cooperate fully with OIG investigative special agents. Generally, OIG special agents request that managers direct employees under their supervision to report for investigative interviews. Under some conditions, notification to the immediate supervisor is undesirable and the special agent may notify a higher level management official or arrange the interview without any management notification. To the extent possible, interviews are arranged to avoid unnecessary inconvenience to employees or their office.
6. Investigative Reports and Referrals. The results of investigative activity are presented in Reports of Investigation. The OIG does not have independent authority to prosecute or litigate criminal or civil cases, or impose administrative sanctions. Accordingly, Reports of Investigation are referred to those offices or individuals possessing these authorities. The types of referrals contained in Reports of Investigation are:
a. Administrative referrals are addressed to the Administrator, the HSSO or Regional Commissioner, whichever has line authority over the employee or program area. Generally, these referrals are for non-prosecutable wrongdoing on the part of GSA employees where disciplinary action by management may be warranted.
b. Criminal and Civil referrals are addressed to the Department of Justice, U.S. Attorney offices, or State or local prosecutors. These referrals are for criminal prosecution or civil litigation.
c. Suspension and Debarment referrals are addressed to the GSA Suspension and Debarment Division. These referrals relate to wrongdoing on the part of a firm or individual doing business with the Government. In some instances, these referrals are made while contract fraud investigations are in progress.
d. Informational referrals are addressed to the Administrator, the HSSO, or the Regional Commissioner, whichever has line authority over the employee or program area. These referrals are used to inform officials when an investigation disclosed that a complaint or allegation was unfounded.
e. Program Fraud Civil Remedies Act referrals are addressed to the GSA Office of General Counsel for administrative litigation. These referrals involve false claims and false statements with a value less than $150,000 that are litigated by the agency in lieu of the Department of Justice.
7. Management Action on Referrals. Reports of Investigation addressed to GSA management officials for consideration of administrative or suspension/debarment action (or for informational consideration) reference GSA Form 9577, Disposition Report which is used to inform the OIG of the actions' taken or to be taken by management. Generally, the Disposition Report should be completed and returned within 30 days. For Reports of Investigation involving criminal and civil referrals, GSA management has no action responsibilities. However, GSA management may be requested to consider appropriate administrative or suspension/debarment action should the Department of Justice or U.S. Attorney decline prosecution.
8. Review of Disposition Report. Upon receipt of the completed Disposition Report from GSA management, the Special Agent in Charge reviews the action proposed or taken by management and evaluates whether the action is commensurate with the investigative findings and agency regulations. If the action does not appear to be commensurate, the Special Agent in Charge contacts the cognizant management official to resolve concerns.
U.S. General Services Administration