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