1. Gulf Consortium Orlando, Florida June 20, 2014
RESTORE Act Oversight Department of the Treasury Office of Inspector General
Gulf Consortium
Orlando, Florida
June 20, 2014

2. Introductions and Treasury OIG Contacts
Office of Audit
Name
Title
Phone
Debbie Harker
Audit Director
Cecilia Howland
Audit Manager
Office of Investigations
Jerome Marshall
Special Agent in Charge
Sean McDowell
Assistant Special Agent in Charge
Anna Sansiveri
Program Support Specialist
Office of Investigations Hotline
GULF (4853)

3. Purpose
Introduce ourselves, our office’s mission, and our oversight responsibilities related to the RESTORE Act
Discuss “Where are we now?” - the Trust Fund and the Treasury Regulations
Provide information on integrity risks and how to report fraud
Discuss our completed, in-process, and future RESTORE Act audit projects
Discuss our oversight coordination efforts

4. Our Mission
Our mission, consistent with the Inspector General Act of 1978, is to
conduct and supervise audits and investigations
provide leadership and coordination and recommend polices to promote economy, efficiency, and effectiveness, and to prevent and detect fraud and abuse
keep the Secretary and the Congress fully and currently informed about problems and deficiencies, and necessity for and progress of corrective action

5. Treasury OIG RESTORE Act Authority
RESTORE Act Sec Inspector General.
“The Office of the Inspector General of the Department of the Treasury shall have authority to conduct, supervise, and coordinate audits and investigations of projects, programs, and activities funded under this subtitle and the amendments made by this subtitle.”

6. Where are We Now? Gulf Coast Restoration Trust Fund
Treasury received Transocean’s first payment of $323 million in 2013 and the second payment of $320 million plus interest on March 6, 2014
Transocean’s final payment of $160 million plus interest is due in March 2015

7. Where are We Now? Some Reasons that RESTORE Act Funds Haven’t Gone Out to the Gulf Coast Region?
Treasury Regulations
BP Trial
Consideration of the NRDA Process Overlap with RESTORE Act

8. Where are We Now? Treasury Regulations
Interim Final Rule – Treasury Regulations
Sent to OMB for review in May 2014
Currently in the final stages of Federal Agency review

9. Potential Integrity Risks
Integrity risks for the Gulf Coast Restoration Trust Fund include:
Falsification of applications or statements
Misuse or mismanagement of federal funds
Irregularities in the award of contracts
Misallocation of grant proceeds
Duplication of funding for a project or program
Failure by grantees or contractors to deliver on promised goods or services
Contracts or grants may be awarded without following laws, regulations, or standard operating procedures
Failure to properly monitor funded activities
Funding of programs that fail to promote the restoration of the Gulf Coast region

10. Treasury OIG Investigative Oversight
The Inspector General may receive and investigate complaints or information regarding RESTORE Act programs concerning the possible existence of an activity constituting a violation of law, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority, or a substantial and specific danger to the public health and safety.
Contact with Gulf Coast State Attorney General’s Offices, State/Local Law Enforcement, and Federal Law Enforcement

11. Reporting Fraud 24/7 Hotline: 1-855-584-GULF (4853)
Mail: Treasury Hotline Office of Inspector General Pennsylvania Ave., NW Washington, D.C
Fax:

12. Completed Audits
Treasury Missed Its Statutory Deadline for Establishing Procedures Governing RESTORE Act Programs and Activities (April 17, 2013)
Treasury Needs to Establish Procedures to Expend and Invest Gulf Coast Restoration Trust Fund Monies (September 24, 2013)
Gulf Coast Ecosystem Restoration Council Faces Challenges in Completing Initial Comprehensive Plan (October 25, 2013)

13. Website for Completed Audits
structure/ig/Pages/default.aspx

14. Audits in Progress
Audit of National Oceanic and Atmospheric Administration’s (NOAA) Progress to Establish the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program
Risk Analysis of the Gulf Coast State and Local Government’s Internal Controls
Technical Assessment of the Initial Comprehensive Plan and Programmatic Environmental Assessment
Audit of Treasury’s Establishment of a Grants Program for Administration and Oversight of RESTORE Act Funds

15. Audits Planned for Fiscal Year 2015
We plan to perform audits of Treasury’s grant program administration of Direct Component funds
We will also audit recipients of Direct Component funds
The objective of these audits will be to determine whether the RESTORE Act program, project, or activity’s grant, contract, or cooperative agreement was awarded and administered in accordance with the (1) RESTORE Act, (2) applicable regulations, and (3) policies and procedures. We will use contract auditors to assist us with these audits.

16. Coordination Activities
Met with Federal OIG representatives for the six Federal agencies represented on the Gulf Coast Ecosystem Restoration Council
Met with Gulf Coast State audit offices and offices of the Attorney General
Met with NRDA representatives
Presented at the Southeast/Southwest Intergovernmental Audit Forum
Presented at the State of Alabama, Department of Examiners of Public Accounts annual training conference
Presented at Gulf Coast Ecosystem Restoration Council meetings
Attended the State of the Gulf of Mexico Summit
Met with select Louisiana parishes and Florida counties

17. Questions and Discussion