october 1, 2011–september 30, 20122 introduction this oig annual work plan identiﬁes selected...

F Y 2012

O I G A N N U A L W O R K P L A N

OCTOB E R 1, 2011–S E PTE M B E R 30, 2012

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HIGHLIGHTS OF THE OFFICE OF INSPECTOR GENERAL’S (OIG)

WORK PLAN

GOAL 1: Assist Government Printing Office (GPO) in meeting its strategic managementgoals related to transforming itself into a digital information platform and provider of securedocuments to satisfy changing customer requirements in the present and in the future.

• Controls over the Passport Inventory Tracking System

• Controls over Passport Production Personnel Security

• Actions to Strengthen and Sustain GPO’s Transformation to a Digital Platform

• Controls over Information Security Management

• GPO’s Public Key Infrastructure Certification Authority

• Safeguards over Blank Passports

GOAL 2: Promote economy, efficiency, and effectiveness in GPO operations by helpingGPO managers ensure financial responsibility.

• Audit of GPO’s Consolidated Financial Statements

• GPO’s Fleet Card Program

• Volatility of GPO’s FECA Estimated Liabilities

• GPO’s Safety Program

GOAL 3: Strengthen GPO’s print procurement programs that support other Governmententities, by providing quality and timely assessments.

• Opportunities to Reduce Potential Costs Associated with Duplication in GovernmentPrinting

• Use of Suspensions and Debarments in Contracted Printing Services

GOAL 4: Reduce improper payments and related vulnerabilities by helping GPOmanagers reduce payment errors, waste, fraud, and abuse in the major GPO programsand operations while continuing to ensure that programs serve and provide access to theirintended parties.

• Management Controls over Overtime Pay

• FDsys Contract Administration

• Controls over Improper Payments

• Controls over the Management of the FECA

• Controls over GPO’s Purchase Card Program

GOAL 5: Increase the efficiency and effectiveness with which GPO managers exercisestewardship over official publications from all three branches of the Federal Government.

• Development of FDsys

• Assessment of the Federal Depository Library Program’s Biennial Survey

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Message from the Inspector General . . . . . . . . . . . . . . . . . . . . . . .1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Summary of the OIG’s Strategic Plan. . . . . . . . . . . . . . . . . . . . . . .3

Organization and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Audit and Inspection Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Investigative Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Hotline Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

TA B L E O F C O N T E N T S

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INVESTIGATIVE PLAN

The OIG is responsible for conducting criminal, civil,and administrative investigations relating to violationsof Federal laws, rules or regulations as they pertain toGPO programs, contracts, and operations, as well asallegations of criminal activity and serious misconducton the part of GPO employees. Fraud investigationstypically result from allegations or suspicions of wrong-doing involving GPO programs, operations or person-nel. They may also be the result of broad initiativesarising out of prior OIG activities, or as part of broadinteragency initiatives, normally in consultation with theappropriate U.S. Attorneys.

The OIG investigates fraudulent activity in severalareas, including the following:

The Federal Employees’ Compensation Program: TheOIG investigates those who intentionally fail to disclosereportable employment or income, falsify or reportfraudulent medical information, or claim to be injured ordisabled when in fact they are not. As necessary, theseinvestigations also target healthcare providers (doc-tors, clinics, pharmacists, physical therapists, etc.) whofraudulently bill for services, as well as fraud associatedwith medical promotions or treatments and unauthor-ized payments or kickbacks made to employers, provid-ers or claimants.

Contract Fraud: As contract fraud is a form of theft thatresults in the loss of many government dollars, the OIGinvestigates schemes in which Federal contracts arebeing used for unjust enrichment, personal use, or otherthan their intended purpose.

The OIG may issue Management Implication Reports,which are issued to GPO executive directors when aninvestigation identifies a systemic weakness in a pro-gram or operation that may impact GPO business units.

The OIG participates in an Outreach Program to speakbefore a variety of GPO groups and training classes inan effort to help employees identify indicators of fraudthat should be referred to the OIG.

The OIG maintains the OIG Hotline, a confidentialchannel for the receipt of complaints about violations oflaw, regulation, or fraud, waste, and abuse. Investiga-tions conducted by OIG criminal investigators are usu-ally the result of allegations received from the Hotline,OIG audits, GPO management or employees, OIG’s ofother agencies, Congress, and the public.

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Message from the INSPECTOR GENERALU.S . GOVE R N M E NT P R I NT I NG OF F ICE

I am pleased to present the GPO OIG Annual Work Plan for fiscal year (FY) 2012. This documentdescribes how OIG will achieve its mission of helping the GPO effectively carry out its responsibili-ties by promoting economy, efficiency and effectiveness in the administration of, and to prevent anddetect fraud and abuse in GPO programs and operations. We aligned our Annual Work Plan withthe OIG’s and GPO’s Strategic Plan.

This plan reflects the priority work that the OIG believes is necessary to provide effective oversightof the broad spectrum of GPO programs and operations. The OIG anticipates that there will befewer resources available to carry out our mission in FY 2012. Accordingly, adjustments to this planmay be necessary as the year unfolds to ensure that we direct our resources to areas of highestrisk and vulnerability.

Primary sources of input for the projects listed in this plan included risk assessments across GPOprograms and operations based upon prior OIG work, U.S. Government Accountability Office(GAO) high-risk assessments, and identification of key GPO challenges and priorities.

Our planning also reflects direct outreach and solicitation of topics and assignment suggestionsfrom GPO’s leadership, external stakeholders, our staff, and oversight requirements. As a result,a number of assignments listed in this plan are responsive to the immediate concerns or requestsof GPO managers. Other assignments are required or are self-initiated based upon our themes,which are focused on providing the greatest value and risk reduction to GPO.

I want to thank each member of GPO’s leadership as well as external stakeholders and our staff fortheir direct participation in this process. I look forward to continuing an open dialogue for receivingideas, suggestions, and feedback.

MICHAEL A. RAPONIInspector General

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INTRODUCTION

This OIG Annual Work Plan identifies selected as-signment topics continuing from fiscal year (FY) 2011and assignment topics scheduled to be started dur-ing FY 2012, providing for unforeseen work that maybe requested by hotline complaints, GPO leadership,and Congress.

This plan is implemented through audits, evaluations,investigations, and follow-up reviews in compliancewith the Inspector General Act, the applicable profes-sional standards of the U.S. Comptroller General, andthe Quality Standards for Federal Offices of InspectorGeneral of the Council of the Inspectors General onIntegrity and Efficiency.

SUMMARY OF THE OIG’S STRATEGIC PLAN

The OIG’s Strategic Plan sets forth the OIG’s formalstrategy for identifying priority issues and managing itsworkload and resources for FY 2012-2016. Success-ful execution of this plan will enable the OIG to providethe highest quality work products to our stakeholdersand to assist the GPO in meeting its strategic mission,goals and objectives.

Our mission is to help the GPO effectively carry out itsresponsibilities by promoting economy, efficiency andeffectiveness in the administration of, and to prevent anddetect fraud and abuse in GPO programs and operations.

Our goals are:

GOAL 1: Assist GPO in meeting its strategic manage-ment goals related to transforming itself into a digitalinformation platform and provider of secure documentsto satisfy changing customer requirements in the pres-ent and in the future.

GOAL 2: Promote economy, efficiency, and effective-ness in GPO operations by helping GPO managersensure financial responsibility.

GOAL 3: Strengthen GPO’s print procurementprograms that support other Government entities byproviding quality and timely assessments.

GOAL 4: Reduce improper payments and relatedvulnerabilities by helping GPO managers reducepayment errors, waste, fraud, and abuse in the majorGPO programs and operations while continuing toensure that programs serve and provide access totheir intended parties.

GOAL 5: Increase the efficiency and effectivenesswith which GPO managers exercise stewardship overofficial publications from all three branches of theFederal Government.

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GOAL 6Strive for a highly qualified diverse workforce with the tools and training necessaryto continuously enhance OIG’s ability to fulfill its mission and communicate itsaccomplishments.

OIG seeks to create a work environment where allemployees are valued, treated fairly, and given op-portunities to develop to their full potential. Having adiverse, highly professional, motivated and multidis-ciplinary staff helps OIG fulfill its mission to supportGPO and Congress and help improve the performanceand accountability of government for the benefit of theAmerican people.

The OIG will develop a process to ensure OIG’s staffmembers collectively possess the core competenciesneeded to accomplish the OIG mission.

The OIG will develop a method for ensuring its staffmembers possess the requisite qualifications forrecruiting, hiring, continuously developing, training, andevaluating their staff members, and succession plan-ning to assist the organization in maintaining a work-force that has the ability to meet the OIG’s mission.

Staff members must collectively possess the profes-sional competence (i.e., teamwork, leadership, com-munication, technical knowledge, critical thinking skills,abilities, and experience) to perform the work assigned.In addition, staff must individually meet requirementsfor their respective job series and to satisfy applicableprofessional standards.

To ensure that the OIG staff members collectively pos-sess the needed skills, the Inspector General and keymanagers will assess the skills of the staff membersand determine the extent to which these skills match theOIG’s requirements. OIG management is responsible fordeciding the methods by which identified needs can bemet by hiring contractors or outside consultants, usingstaff members who possess the requisite skills, develop-ing staff members and providing training, or recruitingnew staff. The OIG will ensure staff members meet therequirements for continuing professional education con-tained in the applicable professional standards.


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GOAL 5Increase the efficiency and effectiveness with which GPO managers exercise stewardshipover official publications from all three branches of the Federal Government.

CARRYOVER PROJECTSDevelopment of FDsysThe stiffest budget cut in FY 2012 was to the GPORevolving Fund, which was appropriated at only$500,000, a 70 percent reduction. This fund helps tofinance the ongoing development of the FDsys, theonline system that provides permanent digital access toauthenticated federal government information.

This assessment of FDsys is intended to assist GPOmanagers to (1) identify risks associated with its currentoperational and development status, (2) meet requiredkey system expectations, and (3) build the system in acost-effective manner.

NEW PROJECTSAssessment of the Federal Depository LibraryProgram’s Biennial SurveyThe Federal Depository Library Program (FDLP) wasestablished by Congress to ensure the Americanpublic has access to its Government’s information.Since 1813, depository libraries have safeguardedthe public’s right to know by collecting, organizing,maintaining, preserving, and assisting users with

information from the Federal Government. The FDLPprovides Government information at no cost to des-ignated depository libraries throughout the countryand territories. Anyone can visit Federal depositorylibraries and use the Federal depository collectionswhich are filled with information on careers, businessopportunities, consumer information, health and nutri-tion, legal and regulatory information, demographics,and numerous other subjects.

GPO is responsible for administering the BiennialSurvey of Depository Libraries, required by 44 U.S.C. §1909. This Biennial Survey provides GPO with impor-tant information concerning the conditions of both in-dividual depository libraries and the Depository LibraryProgram as a whole. This data is used to administer theprogram and to assist in the assessments of the condi-tions and services of depository libraries.

This assessment will review the degree to whichdepository libraries provide complete and accurateresponses to the Biennial Survey of Depository Librar-ies and how effective GPO uses the data to administerthe program.

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GOAL 6: Strive for a highly qualified diverse workforcewith the tools and training necessary to continuouslyenhance OIG’s ability to fulfill its mission and communi-cate its accomplishments.

To accomplish these goals we will continuously monitorand assess risks in GPO programs and operations toidentify those critical to the achievement of our goalsand target resources to address those critical risks.

ORGANIZATION AND RESOURCES

The OIG is based in Washington, D.C., with three offices, the Office of Audits and Inspections, the Office of Inves-tigations, and Counsel to the Inspector General.

The Inspector General provides policy direction andleadership for GPO’s OIG and serves as an indepen-dent voice to the Public Printer and the Congress byidentifying opportunities and promoting solutions forimproving the GPO’s performance and economy andefficiency of operations, while preventing and detectingfraud, waste, and abuse.

The Assistant Inspector General for Audits andInspections conducts performance and financially-related audits across the spectrum of GPO’s programand operational activities. It produces reports onthose activities that are aimed at improving GPO’seconomy, efficiency, and effectiveness, while seekingto detect and prevent fraud, waste, and abuse. Audit

ASSISTANT INSPECTORGENERAL FOR AUDITS

AND INSPECTIONS

ASSISTANT INSPECTORGENERAL FOR

INVESTIGATIONS

COUNSEL TO THEINSPECTOR GENERAL

INSPECTOR GENERAL


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activities are focused on issues related to our strate-gic plan and related activities. Audits are conductedin accordance with generally accepted governmentauditing standards.

The Assistant Inspector General for Audits and Inspec-tions also identifies opportunities to improve cost ef-ficiency and effectiveness, and the overall quality of ser-vice delivery throughout GPO. Inspections are reviewsof agency activities, typically focused more broadly thanan audit and designed to give agency managers timelyand useful information about operations, includingcurrent and anticipated problems. Inspections are alsosometimes referred to as evaluations.

The Assistant Inspector General for Investigationsinvestigates allegations of fraud, waste, abuse, and mis-conduct that could affect GPO’s programs, operations,assets, and other resources. Investigative findings arereferred to the Department of Justice for criminal pros-ecution or civil litigation, or to GPO management foradministrative action. The office develops recommenda-tions to reduce GPO’s vulnerability to criminal activity.

The Counsel to the Inspector General is responsiblefor providing legal assistance and advice to OIG seniormanagement and supports audits, evaluations, specialreviews, and investigations. Counsel coordinates withoutside attorneys, including local and federal agenciesand law enforcement attorneys.

Other administrative matters include financial man-agement, procurement, human capital management,administrative, and information technology services tosupport OIG operations. In addition, the OIG reportssemiannually to the Public Printer and the Congresson the activities of the OIG during the 6-month peri-ods ending March 31 and September 30. The Semi-annual Reports to Congress are intended to keep thePublic Printer and the Congress fully and currentlyinformed of significant findings and recommendationsby the OIG.

Also, the OIG provides the Public Printer and Con-gress an assessment of the most serious managementchallenges facing GPO.

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GOAL 4Reduce improper payments and related vulnerabilities by helping GPO managers reducepayment errors, waste, fraud, and abuse in the major GPO programs and operations whilecontinuing to ensure that programs serve and provide access to their intended parties.

CARRYOVER PROJECTSManagement Controls over Overtime PayThis assessment is intended to assist GPO managersidentify control weaknesses that may lead to unauthor-ized overtime pay.

Federal Digital System (FDsys) ContractAdministrationThis assessment will review contractor costs incurred todetermine if they are allowable, reasonable, and justifiable.

NEW PROJECTSControls over Improper PaymentsThe Improper Payments Elimination and Recovery Act(IPERA), Public Law 111-204, was enacted on July22, 2010, and the Office of Management and Budget(OMB) issued implementing guidance, OMB Memoran-dum M-11-16, on April 14, 2011. The OMB guidancerequires Executive branch agencies to review annuallyimproper payments and to evaluate efforts to preventand reduce improper payments. While GPO is notsubject to Public Law 111-204, GPO’s internal controlprogram requires its managers to continuously monitorand improve the effectiveness of management controlsover their programs, functions, and activities.

OMB stated in the case of small Executive BranchAgencies, OMB recommends that the OIG considersubmitting a short one-page letter to Congress, GAO,and OMB stating that they did not have anything toreview under IPERA for compliance (thus still meet-ing the intent of the compliance reviews and reportingrequirements of IPERA).

This assessment will determine whether GPO managershave assessed the risk of potential improper payments

occurring in their programs, functions, and activities;identify the controls in place to mitigate the risk(s); anddetermine the effectiveness of those controls.

Controls over the Management of the FederalEmployees Compensation ActThe FECA provides for medical benefits, incomereplacement, and certain supportive services to civilianemployees of the federal government with work-relatedillnesses or injuries, or in the case of death, survivorbenefits to family members. FECA cases include claimssubmitted to the DOL resulting from a traumatic injury,occupational disease, illness, or fatality. FECA is pri-marily administered by the DOL. However, each federalagency, including the GPO, has financial and manage-ment responsibilities for its own FECA cases.

This assessment will examine whether GPO has effec-tive controls in place to manage its FECA program, toreduce opportunities for claimant fraud, and to returninjured GPO employees back to work when appropriate.

Controls over GPO’s Purchase Card ProgramSince 1989, the General Services Administration(GSA) has administered the Federal government’sSmartPay® Government Purchase Card Program. TheGovernment Purchase Card Program was created asa way for agencies to streamline Federal acquisitionprocesses by providing a low-cost, efficient vehicle forobtaining goods and services directly from vendors.Agencies may also use purchase cards to make pay-ments under established contracts.

This assessment will determine if controls over GPO’spractices will prevent or detect questionable, improper,and potentially fraudulent purchase card transactions.


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GOAL 3Strengthen GPO’s print procurement programs that support other Government entities byproviding quality and timely assessments.

NEW PROJECTSOpportunities to Reduce Potential CostsAssociated with Duplication in GovernmentPrintingAll printing, binding, and blank-book work for Con-gress, the Executive Office, the Judiciary, other thanthe Supreme Court of the United States, and everyExecutive Office, independent office and establish-ment of the Government, shall be done at the GPO,except for the: (1) classes of work the Joint Committeeon Printing (JCP) considers to be urgent or necessaryto have done elsewhere; (2) printing in field printingplants operated by an Executive Office, independentoffice or establishment; and (3) procurement of print-ing by an Executive Office, independent office or es-tablishment from allotments for contract field printing, ifapproved by the JCP.

This assessment will (1) identify federal agencies,programs or functional areas where printing duplication,overlap, or fragmentation exists, the actions neededto address such conditions, and the potential financialimpact of doing so; and (2) highlight opportunities forpotential cost savings and/or enhanced revenues.

Use of Suspensions and Debarments inContracted Printing ServicesGPO’s spending on contracted goods and servicesin excess of $500 million annually. To protect thegovernment’s interests, federal agencies are requiredto award contracts only to responsible sources—those

that are determined to be reliable, dependable, andcapable of performing required work. One way toprotect the government’s interests is through suspen-sions and debarments, which are actions taken toexclude firms or individuals from receiving contractsor assistance based on various types of misconduct.A suspension is a temporary exclusion pending thecompletion of an investigation or legal proceeding,while a debarment is for a fixed term that depends onthe seriousness of the cause, but generally should notexceed three years. These exclusions are reported inthe Excluded Parties List System maintained by theGeneral Services Administration, along with violationsof certain statutes and regulations.

Contractors may be debarred or suspended for aconviction of or civil judgment for such actions as fraud,embezzlement, theft, forgery, bribery, falsification ordestruction of records, making false statements, orreceiving stolen property; or commission of any otheroffense indicting a lack of business integrity or busi-ness honesty. Contractors may also be debarred orsuspended based on a debarment or suspension byanother agency.

This assessment will help GPO managers strengthenprogram integrity by determining whether GPOdebars or suspends contractors who are determinedto be unreliable, undependable, or incapable ofperforming the required work in accordance with theGPO Instruction.

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AUDIT AND INSPECTION PLAN

GOAL 1Assist GPO in meeting its strategic management goals related to transforming itselfinto a digital information platform and provider of secure documents to satisfy changingcustomer requirements in the present and in the future.

CARRYOVER PROJECTSControls over Passport Inventory TrackingSystemGPO’s e-Passport printing and production system usescommercial-off-the-shelf operating system and custom-ized application to track embedded chips throughoutthe e-Passport production process. It also controls themovement of passports throughout their workflow. Theapplication tracks chips from the time they are batchedfor processing until they are shipped to the StateDepartment as finished e-Passport books or returnedto the vendor as defective. The metadata residing in thechips as shipped by the chip vendor is ingested intothe application suite. Once ingestion is complete, GPOestablishes and maintains tracking of individual chips.The metadata GPO maintains is designed to provideGPO passport production with meaningful reports, bothfor work in progress and historical functions.

This assessment will help managers strengthen con-trols over the inventory tracking computer system.

Controls over Passport Production PersonnelSecurityThe purpose of this assessment is to determinewhether the process for identifying positions relatedto GPO passport production personnel that requirea security clearance is effective to mitigate personnelsecurity risks.

NEW PROJECTS PLANNEDActions to Strengthen and Sustain GPO’sTransformationto a Digital PlatformThe transformation of the GPO has begun. The trendtowards producing government documents through elec-tronic publishing technology and providing public govern-ment documents through the Internet has affected all ofGPO’s programs, reducing the production, procurement,and sales of printed products. These have historicallyprovided GPO with a vital source of revenue to supple-ment its annual budget. GPO is making operational andcultural changes to help ensure GPO stays relevant andefficient, and meets its customers’ needs.

This assessment is intended to determine the statusof GPO’s efforts and make recommendations to assistGPO with the transformation implementation.

Controls over Information Security ManagementAs GPO continues to transition into the digital infor-mation platform, GPO managers will face challengesrelated to protecting critical Agency systems, informa-tion, and data. To the extent GPO is a “contractor” foragencies of the Executive branch, those agencies relyon GPO’s information security management.

The Federal Information Security Management Act(FISMA) requires that each year Executive branchagencies conduct an independent evaluation of theirsecurity programs for compliance with the FISMA. Al-though it has no specific congressional mandate, GPOhas chosen to substantially comply with the principlesof the Act.


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The evaluation includes an assessment of the ef-fectiveness of the program, plans, practices, andcompliance with FISMA requirements. FISMArequirements also extend to any systems that a con-tractor uses to support an agency. This assessmentwill help GPO managers with challenges related toprotecting critical Agency systems.

GPO’s Public Key Infrastructure (PKI)Certification Authority (CA)WebTrust assessment is a critical part of the GPO PKI’scertification as a Shared Service Provider. The WebT-rust assessment results in a WebTrust Seal that GPOcan display on its Web site as a method of conferringconfidence to a potential entity seeking PKI services.

This assessment will provide an assurance serviceto GPO by performing a WebTrust CA examinationwith respect to all WebTrust criteria, in accordancewith Generally Accepted Government AuditingStandards. We will determine whether the PKI CAsystem is being operated in accordance with itspublished Certificate Policy and Certificate PracticeStatement . We will also assess GPO’s compliancewith reporting requirements of the Federal Infra-structure Policy Authority and the Shared ServiceProvider Working Group.

Safeguards over Blank PassportsThis assessment will determine whether adequatesafeguards are in place to provide reasonable assur-ance GPO is protected from liability during the devel-opment and transportation of blank passports.

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GOAL 2Promote economy, efficiency, and effectiveness in GPO operations by helping GPOmanagers ensure financial responsibility.

CARRYOVER PROJECTSAudit of GPO’s FY 2011 ConsolidatedFinancial StatementsThe OIG entered into a contract with an IndependentPublic Accounting firm to conduct the FY 2011 finan-cial statement audit. The audit will express an opinionon GPO’s financial statements and report on GPO’s in-ternal controls over financial reporting and compliancewith applicable laws and regulations that could have adirect and material effect on the financial statements.

GPO’s Fleet Card ProgramDue to environmental concerns, GPO shut down itsonsite gasoline pumps in February 2009. In Octo-ber 2008, GPO began using the General ServicesAdministration’s (GSA) fleet card program to purchasefuel and other services at retail gas stations. The GSAprogram applies to GPO-owned, GPO-commerciallyleased and GSA-leased vehicles.

The objective of this assessment is to evaluate theeffectiveness of controls over GPO’s use of fleet pur-chase cards.

NEW PROJECTSAudit of GPO’s FY 2012 ConsolidatedFinancial StatementsThe OIG entered into a contract with an IndependentPublic Accounting firm to conduct the FY 2012 finan-cial statement audit. The audit will express an opinionon GPO’s financial statements and report on GPO’s in-ternal controls over financial reporting and compliancewith applicable laws and regulations that could have adirect and material effect on the financial statements.

Volatility of GPO’s the Federal Employees’Compensation Act (FECA) Estimated LiabilitiesThe U.S. Department of Labor (DOL) administers theFECA Program and makes all decisions regardingthe eligibility of injured workers to receive work-

ers’ compensation benefits. DOL provides directcompensation to medical providers, claimants, andbeneficiaries. The GPO reimburses DOL for all work-ers’ compensation claims in addition to paying anadministrative fee.

Future workers’ compensation estimates are gener-ated from the application of actuarial proceduresdeveloped by DOL to estimate the liability for FECAbenefits. The liability for future workers’ compensa-tion benefits includes the expected liability for death,disability, medical costs for approved compensationcases, and a component related to injuries incurredbut not reported. The liability is determined usinghistoric benefit payment patterns related to a particu-lar period to estimate the ultimate payments relatedto that period. Because the FECA liability estimateis developed by DOL and out of the control of GPO,there is a risk that a significant, unexpected increasein the estimate could have an unfavorable impact onGPO’s financial management.

This assessment will determine whether opportuni-ties exist to reduce the risk and potential impactof the volatility of GPO’s workers’ compensationliability estimate.

GPO’s Safety ProgramThis assessment will provide GPO managers withan evaluation of GPO’s safety program, includingindustrial safety and hygiene, to determine if it is suf-ficient to minimize and prevent injuries, mishaps, andclose calls and ensure the welfare of GPO employeesand other resources. This assessment will help GPOmanagers improve safety practices which would resultin a reduction in accidents, workers’ compensationclaims, and missed time resulting from job-relatedinjuries and illnesses.


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GOAL 3Strengthen GPO’s print procurement programs that support other Government entities byproviding quality and timely assessments.

NEW PROJECTSOpportunities to Reduce Potential CostsAssociated with Duplication in GovernmentPrintingAll printing, binding, and blank-book work for Con-gress, the Executive Office, the Judiciary, other thanthe Supreme Court of the United States, and everyExecutive Office, independent office and establish-ment of the Government, shall be done at the GPO,except for the: (1) classes of work the Joint Committeeon Printing (JCP) considers to be urgent or necessaryto have done elsewhere; (2) printing in field printingplants operated by an Executive Office, independentoffice or establishment; and (3) procurement of print-ing by an Executive Office, independent office or es-tablishment from allotments for contract field printing, ifapproved by the JCP.

This assessment will (1) identify federal agencies,programs or functional areas where printing duplication,overlap, or fragmentation exists, the actions neededto address such conditions, and the potential financialimpact of doing so; and (2) highlight opportunities forpotential cost savings and/or enhanced revenues.

Use of Suspensions and Debarments inContracted Printing ServicesGPO’s spending on contracted goods and servicesin excess of $500 million annually. To protect thegovernment’s interests, federal agencies are requiredto award contracts only to responsible sources—those

that are determined to be reliable, dependable, andcapable of performing required work. One way toprotect the government’s interests is through suspen-sions and debarments, which are actions taken toexclude firms or individuals from receiving contractsor assistance based on various types of misconduct.A suspension is a temporary exclusion pending thecompletion of an investigation or legal proceeding,while a debarment is for a fixed term that depends onthe seriousness of the cause, but generally should notexceed three years. These exclusions are reported inthe Excluded Parties List System maintained by theGeneral Services Administration, along with violationsof certain statutes and regulations.

Contractors may be debarred or suspended for aconviction of or civil judgment for such actions as fraud,embezzlement, theft, forgery, bribery, falsification ordestruction of records, making false statements, orreceiving stolen property; or commission of any otheroffense indicting a lack of business integrity or busi-ness honesty. Contractors may also be debarred orsuspended based on a debarment or suspension byanother agency.

This assessment will help GPO managers strengthenprogram integrity by determining whether GPOdebars or suspends contractors who are determinedto be unreliable, undependable, or incapable ofperforming the required work in accordance with theGPO Instruction.

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AUDIT AND INSPECTION PLAN

GOAL 1Assist GPO in meeting its strategic management goals related to transforming itselfinto a digital information platform and provider of secure documents to satisfy changingcustomer requirements in the present and in the future.

CARRYOVER PROJECTSControls over Passport Inventory TrackingSystemGPO’s e-Passport printing and production system usescommercial-off-the-shelf operating system and custom-ized application to track embedded chips throughoutthe e-Passport production process. It also controls themovement of passports throughout their workflow. Theapplication tracks chips from the time they are batchedfor processing until they are shipped to the StateDepartment as finished e-Passport books or returnedto the vendor as defective. The metadata residing in thechips as shipped by the chip vendor is ingested intothe application suite. Once ingestion is complete, GPOestablishes and maintains tracking of individual chips.The metadata GPO maintains is designed to provideGPO passport production with meaningful reports, bothfor work in progress and historical functions.

This assessment will help managers strengthen con-trols over the inventory tracking computer system.

Controls over Passport Production PersonnelSecurityThe purpose of this assessment is to determinewhether the process for identifying positions relatedto GPO passport production personnel that requirea security clearance is effective to mitigate personnelsecurity risks.

NEW PROJECTS PLANNEDActions to Strengthen and Sustain GPO’sTransformationto a Digital PlatformThe transformation of the GPO has begun. The trendtowards producing government documents through elec-tronic publishing technology and providing public govern-ment documents through the Internet has affected all ofGPO’s programs, reducing the production, procurement,and sales of printed products. These have historicallyprovided GPO with a vital source of revenue to supple-ment its annual budget. GPO is making operational andcultural changes to help ensure GPO stays relevant andefficient, and meets its customers’ needs.

This assessment is intended to determine the statusof GPO’s efforts and make recommendations to assistGPO with the transformation implementation.

Controls over Information Security ManagementAs GPO continues to transition into the digital infor-mation platform, GPO managers will face challengesrelated to protecting critical Agency systems, informa-tion, and data. To the extent GPO is a “contractor” foragencies of the Executive branch, those agencies relyon GPO’s information security management.

The Federal Information Security Management Act(FISMA) requires that each year Executive branchagencies conduct an independent evaluation of theirsecurity programs for compliance with the FISMA. Al-though it has no specific congressional mandate, GPOhas chosen to substantially comply with the principlesof the Act.


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activities are focused on issues related to our strate-gic plan and related activities. Audits are conductedin accordance with generally accepted governmentauditing standards.

The Assistant Inspector General for Audits and Inspec-tions also identifies opportunities to improve cost ef-ficiency and effectiveness, and the overall quality of ser-vice delivery throughout GPO. Inspections are reviewsof agency activities, typically focused more broadly thanan audit and designed to give agency managers timelyand useful information about operations, includingcurrent and anticipated problems. Inspections are alsosometimes referred to as evaluations.

The Assistant Inspector General for Investigationsinvestigates allegations of fraud, waste, abuse, and mis-conduct that could affect GPO’s programs, operations,assets, and other resources. Investigative findings arereferred to the Department of Justice for criminal pros-ecution or civil litigation, or to GPO management foradministrative action. The office develops recommenda-tions to reduce GPO’s vulnerability to criminal activity.

The Counsel to the Inspector General is responsiblefor providing legal assistance and advice to OIG seniormanagement and supports audits, evaluations, specialreviews, and investigations. Counsel coordinates withoutside attorneys, including local and federal agenciesand law enforcement attorneys.

Other administrative matters include financial man-agement, procurement, human capital management,administrative, and information technology services tosupport OIG operations. In addition, the OIG reportssemiannually to the Public Printer and the Congresson the activities of the OIG during the 6-month peri-ods ending March 31 and September 30. The Semi-annual Reports to Congress are intended to keep thePublic Printer and the Congress fully and currentlyinformed of significant findings and recommendationsby the OIG.

Also, the OIG provides the Public Printer and Con-gress an assessment of the most serious managementchallenges facing GPO.

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GOAL 4Reduce improper payments and related vulnerabilities by helping GPO managers reducepayment errors, waste, fraud, and abuse in the major GPO programs and operations whilecontinuing to ensure that programs serve and provide access to their intended parties.

CARRYOVER PROJECTSManagement Controls over Overtime PayThis assessment is intended to assist GPO managersidentify control weaknesses that may lead to unauthor-ized overtime pay.

Federal Digital System (FDsys) ContractAdministrationThis assessment will review contractor costs incurred todetermine if they are allowable, reasonable, and justifiable.

NEW PROJECTSControls over Improper PaymentsThe Improper Payments Elimination and Recovery Act(IPERA), Public Law 111-204, was enacted on July22, 2010, and the Office of Management and Budget(OMB) issued implementing guidance, OMB Memoran-dum M-11-16, on April 14, 2011. The OMB guidancerequires Executive branch agencies to review annuallyimproper payments and to evaluate efforts to preventand reduce improper payments. While GPO is notsubject to Public Law 111-204, GPO’s internal controlprogram requires its managers to continuously monitorand improve the effectiveness of management controlsover their programs, functions, and activities.

OMB stated in the case of small Executive BranchAgencies, OMB recommends that the OIG considersubmitting a short one-page letter to Congress, GAO,and OMB stating that they did not have anything toreview under IPERA for compliance (thus still meet-ing the intent of the compliance reviews and reportingrequirements of IPERA).

This assessment will determine whether GPO managershave assessed the risk of potential improper payments

occurring in their programs, functions, and activities;identify the controls in place to mitigate the risk(s); anddetermine the effectiveness of those controls.

Controls over the Management of the FederalEmployees Compensation ActThe FECA provides for medical benefits, incomereplacement, and certain supportive services to civilianemployees of the federal government with work-relatedillnesses or injuries, or in the case of death, survivorbenefits to family members. FECA cases include claimssubmitted to the DOL resulting from a traumatic injury,occupational disease, illness, or fatality. FECA is pri-marily administered by the DOL. However, each federalagency, including the GPO, has financial and manage-ment responsibilities for its own FECA cases.

This assessment will examine whether GPO has effec-tive controls in place to manage its FECA program, toreduce opportunities for claimant fraud, and to returninjured GPO employees back to work when appropriate.

Controls over GPO’s Purchase Card ProgramSince 1989, the General Services Administration(GSA) has administered the Federal government’sSmartPay® Government Purchase Card Program. TheGovernment Purchase Card Program was created asa way for agencies to streamline Federal acquisitionprocesses by providing a low-cost, efficient vehicle forobtaining goods and services directly from vendors.Agencies may also use purchase cards to make pay-ments under established contracts.

This assessment will determine if controls over GPO’spractices will prevent or detect questionable, improper,and potentially fraudulent purchase card transactions.


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GOAL 5Increase the efficiency and effectiveness with which GPO managers exercise stewardshipover official publications from all three branches of the Federal Government.

CARRYOVER PROJECTSDevelopment of FDsysThe stiffest budget cut in FY 2012 was to the GPORevolving Fund, which was appropriated at only$500,000, a 70 percent reduction. This fund helps tofinance the ongoing development of the FDsys, theonline system that provides permanent digital access toauthenticated federal government information.

This assessment of FDsys is intended to assist GPOmanagers to (1) identify risks associated with its currentoperational and development status, (2) meet requiredkey system expectations, and (3) build the system in acost-effective manner.

NEW PROJECTSAssessment of the Federal Depository LibraryProgram’s Biennial SurveyThe Federal Depository Library Program (FDLP) wasestablished by Congress to ensure the Americanpublic has access to its Government’s information.Since 1813, depository libraries have safeguardedthe public’s right to know by collecting, organizing,maintaining, preserving, and assisting users with

information from the Federal Government. The FDLPprovides Government information at no cost to des-ignated depository libraries throughout the countryand territories. Anyone can visit Federal depositorylibraries and use the Federal depository collectionswhich are filled with information on careers, businessopportunities, consumer information, health and nutri-tion, legal and regulatory information, demographics,and numerous other subjects.

GPO is responsible for administering the BiennialSurvey of Depository Libraries, required by 44 U.S.C. §1909. This Biennial Survey provides GPO with impor-tant information concerning the conditions of both in-dividual depository libraries and the Depository LibraryProgram as a whole. This data is used to administer theprogram and to assist in the assessments of the condi-tions and services of depository libraries.

This assessment will review the degree to whichdepository libraries provide complete and accurateresponses to the Biennial Survey of Depository Librar-ies and how effective GPO uses the data to administerthe program.

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GOAL 6: Strive for a highly qualified diverse workforcewith the tools and training necessary to continuouslyenhance OIG’s ability to fulfill its mission and communi-cate its accomplishments.

To accomplish these goals we will continuously monitorand assess risks in GPO programs and operations toidentify those critical to the achievement of our goalsand target resources to address those critical risks.

ORGANIZATION AND RESOURCES

The OIG is based in Washington, D.C., with three offices, the Office of Audits and Inspections, the Office of Inves-tigations, and Counsel to the Inspector General.

The Inspector General provides policy direction andleadership for GPO’s OIG and serves as an indepen-dent voice to the Public Printer and the Congress byidentifying opportunities and promoting solutions forimproving the GPO’s performance and economy andefficiency of operations, while preventing and detectingfraud, waste, and abuse.

The Assistant Inspector General for Audits andInspections conducts performance and financially-related audits across the spectrum of GPO’s programand operational activities. It produces reports onthose activities that are aimed at improving GPO’seconomy, efficiency, and effectiveness, while seekingto detect and prevent fraud, waste, and abuse. Audit

ASSISTANT INSPECTORGENERAL FOR AUDITS

AND INSPECTIONS

ASSISTANT INSPECTORGENERAL FOR

INVESTIGATIONS

COUNSEL TO THEINSPECTOR GENERAL

INSPECTOR GENERAL


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INTRODUCTION

This OIG Annual Work Plan identifies selected as-signment topics continuing from fiscal year (FY) 2011and assignment topics scheduled to be started dur-ing FY 2012, providing for unforeseen work that maybe requested by hotline complaints, GPO leadership,and Congress.

This plan is implemented through audits, evaluations,investigations, and follow-up reviews in compliancewith the Inspector General Act, the applicable profes-sional standards of the U.S. Comptroller General, andthe Quality Standards for Federal Offices of InspectorGeneral of the Council of the Inspectors General onIntegrity and Efficiency.

SUMMARY OF THE OIG’S STRATEGIC PLAN

The OIG’s Strategic Plan sets forth the OIG’s formalstrategy for identifying priority issues and managing itsworkload and resources for FY 2012-2016. Success-ful execution of this plan will enable the OIG to providethe highest quality work products to our stakeholdersand to assist the GPO in meeting its strategic mission,goals and objectives.

Our mission is to help the GPO effectively carry out itsresponsibilities by promoting economy, efficiency andeffectiveness in the administration of, and to prevent anddetect fraud and abuse in GPO programs and operations.

Our goals are:

GOAL 1: Assist GPO in meeting its strategic manage-ment goals related to transforming itself into a digitalinformation platform and provider of secure documentsto satisfy changing customer requirements in the pres-ent and in the future.

GOAL 2: Promote economy, efficiency, and effective-ness in GPO operations by helping GPO managersensure financial responsibility.

GOAL 3: Strengthen GPO’s print procurementprograms that support other Government entities byproviding quality and timely assessments.

GOAL 4: Reduce improper payments and relatedvulnerabilities by helping GPO managers reducepayment errors, waste, fraud, and abuse in the majorGPO programs and operations while continuing toensure that programs serve and provide access totheir intended parties.

GOAL 5: Increase the efficiency and effectivenesswith which GPO managers exercise stewardship overofficial publications from all three branches of theFederal Government.

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GOAL 6Strive for a highly qualified diverse workforce with the tools and training necessaryto continuously enhance OIG’s ability to fulfill its mission and communicate itsaccomplishments.

OIG seeks to create a work environment where allemployees are valued, treated fairly, and given op-portunities to develop to their full potential. Having adiverse, highly professional, motivated and multidis-ciplinary staff helps OIG fulfill its mission to supportGPO and Congress and help improve the performanceand accountability of government for the benefit of theAmerican people.

The OIG will develop a process to ensure OIG’s staffmembers collectively possess the core competenciesneeded to accomplish the OIG mission.

The OIG will develop a method for ensuring its staffmembers possess the requisite qualifications forrecruiting, hiring, continuously developing, training, andevaluating their staff members, and succession plan-ning to assist the organization in maintaining a work-force that has the ability to meet the OIG’s mission.

Staff members must collectively possess the profes-sional competence (i.e., teamwork, leadership, com-munication, technical knowledge, critical thinking skills,abilities, and experience) to perform the work assigned.In addition, staff must individually meet requirementsfor their respective job series and to satisfy applicableprofessional standards.

To ensure that the OIG staff members collectively pos-sess the needed skills, the Inspector General and keymanagers will assess the skills of the staff membersand determine the extent to which these skills match theOIG’s requirements. OIG management is responsible fordeciding the methods by which identified needs can bemet by hiring contractors or outside consultants, usingstaff members who possess the requisite skills, develop-ing staff members and providing training, or recruitingnew staff. The OIG will ensure staff members meet therequirements for continuing professional education con-tained in the applicable professional standards.


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INVESTIGATIVE PLAN

The OIG is responsible for conducting criminal, civil,and administrative investigations relating to violationsof Federal laws, rules or regulations as they pertain toGPO programs, contracts, and operations, as well asallegations of criminal activity and serious misconducton the part of GPO employees. Fraud investigationstypically result from allegations or suspicions of wrong-doing involving GPO programs, operations or person-nel. They may also be the result of broad initiativesarising out of prior OIG activities, or as part of broadinteragency initiatives, normally in consultation with theappropriate U.S. Attorneys.

The OIG investigates fraudulent activity in severalareas, including the following:

The Federal Employees’ Compensation Program: TheOIG investigates those who intentionally fail to disclosereportable employment or income, falsify or reportfraudulent medical information, or claim to be injured ordisabled when in fact they are not. As necessary, theseinvestigations also target healthcare providers (doc-tors, clinics, pharmacists, physical therapists, etc.) whofraudulently bill for services, as well as fraud associatedwith medical promotions or treatments and unauthor-ized payments or kickbacks made to employers, provid-ers or claimants.

Contract Fraud: As contract fraud is a form of theft thatresults in the loss of many government dollars, the OIGinvestigates schemes in which Federal contracts arebeing used for unjust enrichment, personal use, or otherthan their intended purpose.

The OIG may issue Management Implication Reports,which are issued to GPO executive directors when aninvestigation identifies a systemic weakness in a pro-gram or operation that may impact GPO business units.

The OIG participates in an Outreach Program to speakbefore a variety of GPO groups and training classes inan effort to help employees identify indicators of fraudthat should be referred to the OIG.

The OIG maintains the OIG Hotline, a confidentialchannel for the receipt of complaints about violations oflaw, regulation, or fraud, waste, and abuse. Investiga-tions conducted by OIG criminal investigators are usu-ally the result of allegations received from the Hotline,OIG audits, GPO management or employees, OIG’s ofother agencies, Congress, and the public.

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Message from the INSPECTOR GENERALU.S . GOVE R N M E NT P R I NT I NG OF F ICE

I am pleased to present the GPO OIG Annual Work Plan for fiscal year (FY) 2012. This documentdescribes how OIG will achieve its mission of helping the GPO effectively carry out its responsibili-ties by promoting economy, efficiency and effectiveness in the administration of, and to prevent anddetect fraud and abuse in GPO programs and operations. We aligned our Annual Work Plan withthe OIG’s and GPO’s Strategic Plan.

This plan reflects the priority work that the OIG believes is necessary to provide effective oversightof the broad spectrum of GPO programs and operations. The OIG anticipates that there will befewer resources available to carry out our mission in FY 2012. Accordingly, adjustments to this planmay be necessary as the year unfolds to ensure that we direct our resources to areas of highestrisk and vulnerability.

Primary sources of input for the projects listed in this plan included risk assessments across GPOprograms and operations based upon prior OIG work, U.S. Government Accountability Office(GAO) high-risk assessments, and identification of key GPO challenges and priorities.

Our planning also reflects direct outreach and solicitation of topics and assignment suggestionsfrom GPO’s leadership, external stakeholders, our staff, and oversight requirements. As a result,a number of assignments listed in this plan are responsive to the immediate concerns or requestsof GPO managers. Other assignments are required or are self-initiated based upon our themes,which are focused on providing the greatest value and risk reduction to GPO.

I want to thank each member of GPO’s leadership as well as external stakeholders and our staff fortheir direct participation in this process. I look forward to continuing an open dialogue for receivingideas, suggestions, and feedback.

MICHAEL A. RAPONIInspector General


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REPORT FRAUD, WASTE, AND ABUSE

Report violations of law, rules, or agency regulations, mismanagement, gross waste of funds, abuse of authority,danger to public health and safety related to GPO contracts, programs, and/or employees.

U.S. Government Printing OfficeOffice of Inspector GeneralP.O. Box 1790Washington, DC 20013-1790Email: [email protected]: 1-202-512-1030Hotline 1-800-743-7574

GPO is the Federal Government’s primary centralizedresource for producing, procuring, cataloging, index-ing, authenticating, disseminating, and preserving theofficial information products of the U.S. Government indigital and tangible forms. The agency is responsible

for the production and distribution of information prod-ucts for all three branches of the Federal Government,including U.S. passports for the Department of State aswell as the official publications of Congress, the WhiteHouse and other Federal agencies, and the courts.

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F Y 2012

O I G A N N U A L W O R K P L A N

OCTOB E R 1, 2011–S E PTE M B E R 30, 2012

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october 1, 2011–september 30, 20122 introduction this oig annual work plan identiﬁes selected...

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