NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
FISCAL YEAR 1996 ESTIMATES
INSPECTOR GENERAL
PROGRAM GOALS
The goal of the Office of Inspector General is to serve as an independent and objective audit and investigative organization to assist
NASA in achieving economy, efficiency and effectiveness in the administration of its programs and operations, and to prevent and
detect fraud and mismanagement.
STRATEGY FOR ACHIEVING GOALS
The NASA Office of the Inspector General (OIG), established by the Inspector General Act of 1978 (P.L. 95-452), seeks to work
cooperatively with NASA management and program managers to carry out its various audit and investigative responsibilities. The
primary responsibilities of the OIG are: (1) to provide assistance and work cooperatively with Agency management as it carries out
NASA's program and operations; (2) maintain a balanced audit and inspection programs which include providing technical
assistance in the audit of the Agency's financial statement as required by the Chief Financial Officers (CFO) Act; and (3) concentrate
investigative resources on procurement fraud matters, including emphasis on prevention initiatives. The OIG investigators,
auditors, and inspectors conduct independent reviews, studies, and analyses of NASA's programs and operations. The OIG works
jointly with other Offices of Inspector General, the Federal Bureau of Investigation (FBI), the Defense Contract Audit Agency (DCAA),
and other investigative and audit entities when concurrent jurisdiction exists.
The OIG has responded to the spirit of reform in government promulgated by the National Performance Review. The OIG maintains
a cooperative spirit with NASA management as audits are conducted of Agency programs and operations. To the extent appropriate
and permitted by law, management is apprised of significant investigative matters. The OIG continues to reexamine its procedures
and processes to become more collaborative and less adversarial in dealings with NASA management, while assuring that the OIG's
statutory independence is maintained. The OIG will continue to selectively concentrate staff resources on those programs and
operations identified as the most critical and vulnerable to fraud and abuse based on funding levels, program needs,
Congressional/Administration concerns and results of OIG research and findings.
The OIG is organized into three major units: Audits, Investigations and Administration, and Inspections. Audits are prioritized and
selected to evaluate programmatic, operational and financial management concerns, problems, and vulnerabilities. The
Investigations activities remain focused on complex procurement fraud matters, criminal and noncriminal, fraud against the
Government by contractor and government employees, product substitution; procurement irregularities; unethical and improper
conduct; and waste and management. Inspections will be conducted which support management's interests and concerns in
achieving the programmatic objectives more efficiently and effectively; issues of Congressional concern; and matters of high agency
vulnerability as identified by the OIG.
MEASURES OF PERFORMANCE
FY 1994 FY 1995 FY 1996
Office Staff Ceiling
Full-Time Permanent 204 210 210
Investigations
Cases pending beginning of year 416 364 351
Opened during year 367 372 383
Closed during year 419 385 362
Cases pending end of year 364 351 372
Audits
Audits pending beginning of year 70 82 84
Opened during year 76 64* 60*
Closed during year 64 62 58
Audits pending end of year 82 84 86
*Instituting emphasis on programmatic audits
ACCOMPLISHMENTS AND PLANS
This request represents the resources (FTE's) needed at NASA Headquarters and the field offices to fulfill the OIG mission.
Recognizing that the identified audit, investigative, and inspections workload significantly exceeds the available resources,
continuous adjustments of priorities will be necessary to ensure that balanced coverage of NASA's programs and operations is
maintained, that critical and sensitive matters are promptly evaluated and investigated, and that all OIG customers receive timely,
accurate and complete responses.
The OIG audit and inspection programs set priorities for internal and external audits and evaluations to maximize the return on
available staff resources. These priorities are established and contained in strategic plans for each major program area - space
flight, space station, space science, aeronautics, mission to planet earth, space communications, financial management,
management systems and facilities, and procurement. The OIG uses a formal, comprehensive process to identify, review, prioritize
and select the audits and evaluations to be performed.
The OIG audit and inspection workload and assignments are derived by: (1) working closely with management and program
managers to determine programmatic concerns and vulnerabilities; (2) selecting audits using a structured internal audit universe
encompassing NASA's programs and operations and an external universe comprised of NASA's prime contractors, their
subcontractors and grantees; (3) addressing issues required by laws and internal regulations; and (4) responding to management's
requests for independent evaluations of programmatic concerns. The audits and inspections identified from these sources are
prioritized and compared to available resources and published in the annual OIG plan. The OIG will continue its implementation of
the program manager concept to obtain greater visibility and awareness of issues related to NASA's major programs which will be
included in the audit plan.
The defined audit workload far exceeds available staff which will require continuous adjustment of priorities to provide balanced
coverage of programs and operations most vulnerable to abuse and mismanagement. Further, program/project change, growth,
delay and termination increase the need for OIG oversight of contractor/subcontractor/grantee cost, schedule and performance
effectiveness. NASA's continued reliance on contractors and grantees (about 90% of the agency's total obligations are for
procurement) requires direct OIG involvement and oversight of Defense Contract Audit Agency and Health and Human Services OIG
audits of NASA contractors and grantees, to ensure effective contract and grant execution and administration. NASA was billed
approximately $17 million during FY 1994 for contract audit services.
The OIG plans to continue implementing its internal program manager concept to ensure visibility and awareness of significant
issues related to major NASA programs/projects. During FY 1996, the OIG will focus attention and provide support to program
managers on issues relating to: Space Station, Earth Observing System, Space Shuttle, Spacelab, space science projects, etc. The
functional areas to be evaluated will include procurement and contract administration, technology transfer, financial management,
Information Resources Management (IRM), and facilities and equipment.
The OIG will continue to monitor and assess NASA's high risk areas, material weaknesses and areas of significant concern to ensure
that corrective actions are implemented timely. Areas of emphasis will include: financial systems-accounting; procurement and
environmental programs; institutional contracting practices; contract management; printing management; contractor-held property;
contractor cost reporting; allotment and budgetary controls; and financial reporting/general ledger. Financial management's
significance increased with the passage of the Chief Financial Officers Act requiring the OIG to audit and render an opinion on the
agency's annual financial statement, its internal control structure and its compliance with laws and regulations. Our financial
audits will concentrate on accounting controls, information systems and required performance measurements.
Agency vulnerabilities are determined by taking into consideration the following: (1) whether program/project objectives are
accomplished in the most cost effective manner; (2) whether NASA's more than $1 billion annual expenditure on information
technology is providing expected programmatic and financial information needed to make sound decisions (NASA is the top ranked
civilian agency in information technology spending); (3) management's actions to correct internal control weaknesses reported under
the Federal Manager's Financial Integrity Act; (4) improvements in financial management systems, practices, controls and
information; (5) effectiveness of the audit follow-up system in enabling management to maintain the status of corrective actions; (6)
completeness of safety and mission quality activities; and (7) the adequacy of agencywide corrective actions addressing
environmental concerns. These identified vulnerabilities are then evaluated, prioritized and included in our plans for further action.
The OIG investigative workload of both criminal and noncriminal cases continues to exceed the availability of investigative
resources. The massive workload of the investigative program has caused the OIG to be primarily reactive with emphasis given to
the more serious criminal allegations. (Historically, criminal allegations represent about 85% of our total investigative caseload.)
The FY 1996 investigative staffing level will enable and require OIG management to effectively manage the complex workload of both
criminal and civil matters. As the number of complex procurement fraud cases continues to increase, and with such cases taking
longer to resolve, our flexibility to improve and expand the program is reduced. Also, the quantity of investigative allegations
received requires a preliminary evaluation to determine their potential impact and, if serious, opening an investigation, further
adversely affecting the timely completion of ongoing cases. We continue to work with management by referring the more routine
administrative matters to them for their resolution, keeping the OIG advised of the action taken. The investigations program
managers, like audit, are assessing the allegations and cases on a programmatic basis to determine their seriousness and impact to
the programs in meeting their objectives.
In summary, the OIG will collaborate with agency management to address issues of joint concern and to improve the scope,
timeliness and thoroughness of its oversight of NASA programs and operations, identify preventive measures, and enhance its
capability to assist NASA management to efficiently and effectively achieve program/project goals and objectives.
INSPECTOR GENERAL
FISCAL YEAR 1996 ESTIMATES
BUDGET SUMMARY
OFFICE OF INSPECTOR GENERAL
SUMMARY OF RESOURCES REQUIREMENTS
FY 1994 FY 1995 FY 1996
(Thousands of Dollars)
I. Personnel & related costs 13,840 14,500 15,700
II. Travel 531 800 800
III. Operation of installation 356 700 800
A. Technical services (194) (500) (555)
B. Management & operations (162) (200) (245)
Total 14,727 16,000 17,300
FY 1994 FY 1995 FY 1996
(Full-Time Equivalents - FTE's)
Full-time permanent 194 200 200
Other controlled full-time equivalent (FTE's) 10 10 10
Total 204 210 210
BASIS OF FY 1996 FUNDING REQUIREMENT
FY 1994 FY 1995 FY 1996
(Thousands of Dollars)
I. Personnel and related costs 13,840 14,500 15,700
A. Compensation & Benefits 13,640 14,055 15,235
1. Compensation 11,221 11,701 12,725
a. Full-time permanent 10,710 11,111 12,125
b. Other than full-time permanent 245 340 340
c. Overtime & other compensation 266 250 260
2. Benefits 2,419 2,354 2,510
B. Supporting costs 200 445 465
1. Transfer of personnel 59 275 275
2. Personnel training 131 150 170
3. OPM services 10 20 20
II. Travel 531 800 800
Travel funding is required to carry out audit, investigation, inspection and management duties. This funding allows for
increases in per diem, airline costs, and workloads. The travel is being kept at the same level, however, increased travel by
technical personnel is anticipated.
III. Operation of installation 356 700 800
Operation of installation provides a broad range of services and equipment in support of the Inspector General's activities.
A. Technical services 194 500 555
This estimate provides for all equipment, including the lease, purchase, maintenance, programming and operations of
automated data processing (ADP) equipment. NASA provides common services items such as office space, communications,
supplies, and printing and reproduction at no charge to the Office of Inspector General. The funding for technical services
will cover the cost of providing an electronic data processing (EDP) upgrade, equipment to employees, and replacing
equipment that has become outdated or unserviceable. As funding permits, the OIG will begin implementing its strategic
plan to modernize its EDP capabilities OIG wide. In FY 1996, the OIG will begin purchasing hardware and software
associated with the plan to move from a mainframe environment to a personal computer (PC)-to-PC based environment.
B. Management and operations 162 200 245
Included in this category are miscellaneous expenses within the Office of Inspector General, i.e., GSA cars, the Inspector
General's confidential fund, miscellaneous contracts, and supplies not provided by NASA. The increase in Installation
Common Services will primarily allow for audit and investigative contractor support and other specialized activities which the
OIG cannot perform internally.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
PROPOSED APPROPRIATION LANGUAGE
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of the Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
as amended, [$16,000,000] $17,300,000. (Department of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1995.)
IG