update from oig. the opinions expressed today are those of the speaker and not necessarily the...
TRANSCRIPT
UPDATE from OIG
The opinions expressed today are those of the speaker and not necessarily the opinions of the Department of Health and Human Services (HHS), Office of Inspector General (OIG)
OAS Workload
Audit Process
Work Plan for 2016 - Colleges and
Universities
OMB Uniform Guidance
Presence of OIG in Educational
Institutions
Daniel R. Levinson, Inspector General
Mission - To
protect the integrity
of Department of
Health & Human
Services (HHS)
programs as well as
the health and
welfare of program
beneficiaries.
Established- 1976
Largest Inspector General's office in the Federal Government – approximately 1750 employees
OIG's oversight: All programs under other HHS
institutions including CMS, CDC, NIH, FDA ,ACF, HRSA.
Conduct independent audits of HHS programs and/or HHS grantees and contractors.
Provide assistance in criminal, civil, and administrative investigations.
Oversee HHS's annual financial statement audits.
Gloria Jarmon– Deputy Inspector
General for Audit Services
WASHINGTON
MONTANA
WYOMING
UTAHCOLORADO
OREGON
CALIFORNIA
ARIZONANEW MEXICO
TEXAS
OKLAHOMA
KANSASMISSOURI
MS.
KENT
AK
OAS Regional Boundaries
Boston Region – INew York Region – IIPhiladelphia Region – IIIAtlanta Region – IVChicago Region – VDallas Region – VIKansas City Region – VIISan Francisco Region - IX
Headquarters Offices
Regional Offices
Field Offices
PUERTO RICO
TX
NMAZ
CA
NV
UTCO
KS
OK
LA
AR
MO
IA
MN
NE
WY
SD
OR
WA
ID
MT ND
WI
ILIN
OH
KY
TN
WV
PA
VA
MINY
VTNH
MA
DE
ME
NC
SC
GAALMS
FL
NJ
MD
CTRI
DC
HI
Workload is related to funding 80% Health Care (Medicare & Medicaid) 20% Discretionary (Everything else including college &
universities)
We do Performance and Cost Audits
Medicaid Dental
Head Start Health &
Safety
Select Agents
PERFORMANCE AUDITS
Bid Proposals
Grant/Contract Closeouts
Recipient Capability
Audits
Requested Audit
Services
COST AUDITS
OIG.HHS.GOV
OMB Circular A-133 established cognizance Designated which Federal agency has primary
responsibility for audit of all Federal funds received by an entity.
HHS OIG holds audit cognizance over all State governments and most major research colleges and universities.
HHS OIG receives reimbursement for audits that it performs on non-HHS funds.
Audits may be requested by Congress, HHS, and other Federal organizations.
Requested audit services include: Contract and grant closeouts; Bid Proposals; Other reviews designed to
provide specific information requested by management.
Planning Identify Issue or Concern Identify StaffTeam Meeting Identify Audit Requirements Identify type of AuditContact AuditeeReview of CriteriaMeeting with Program Officials
Survey Focus Objectives and Identify
Subobjectives Survey planCoordinate with Other Auditors Preliminary Review and Analysis Team Meeting Go/No-Go Audit program Audit leads
Data Collection and AnalysisEvidence
Physical Documentary Testimonial Analytical
Audit Documentation
ReportingTeam meetingWriting the Draft Report Independent Report Review Issuing the Draft Report Issuing the Final report
Draft Report: OIG issues to auditee. 30- day comment period.
OIG receives comments, incorporates into report, and addresses them in the report.
OIG issues final report, with auditee comments summarized & OIG response included. Appendix has auditee’s full comments.
OIG tracks report recommendations for resolution; awaits clearance from cognizant OPDIV.
http://oig.hhs.gov/
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
2 CFR Chapter I, and Chapter II, Parts 200, 215, 220, 225, and 230
Effective December 26, 2014
Section 200.430 Compensation—Personal Services Strengthens the requirements for non-
Federal entities to maintain high standards for internal controls over salaries and wages while allowing for additional flexibility
Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed
No longer any specific requirements for after-the-fact certifications or plan-confirmation systems Systems still need to accurately reflect work
performed Budget estimates can not be used unless
there are procedures to update significant budget changes
The Federal Demonstration Partnership (FDP) is piloting a payroll certification system in lieu of effort reporting
University of California, San Diego – Audit report issued in April 2015 $202,401 in unallowable administrative
costs that were directly charged to projects
University of Louisville – Ongoing Reviewing administrative costs
Reviews of the FDP’s Pilot Payroll Certification System Joint reviews between the HHS OIG and the
National Science Foundation OIG at:▪ George Mason University (Audit Report Issued)▪ University of California – Irvine (Audit Report
Issued)▪ University of California – Riverside (Ongoing)▪ Michigan Technology University (Audit Report
Issued )
George Mason University – Audit Report issued July 31, 2015 $746,229 in costs that were not adequately
documented because the University did not always comply with its documentation policies for payroll▪ Timeliness of certifications, cost transfers, time sheet
reviews, and bimonthly certifications There were also access control issues related to
its payroll computer system▪ Two factor authentication, old passwords, security
patches
University of California at Irvine – Audit Report issued December 31, 2014 We could not determine whether the payroll
certification system provided data that supported labor charges because the University could not reconcile its accounting records to its Federal Financial Reports
A total variance of approximately $3.8 million for 666 Federal awards, totaling $491 million