1. RECOVERY OVERSIGHT OFFICE (ROO) OFFICE OF INSPECTOR GENERAL U.S. DEPARTMENT OF THE INTERIOR

2. RECOVERY OVERSIGHT OFFICE Jerry McGuire (Tom Cruise) = US Federal Government with Grant money Rod Tidwell (Cuba Gooding Jr) = Agency seeking Financial Assistance Office Staff and onlookers = Grant Managers

3. RECOVERY OVERSIGHT OFFICE Jerry McGuire (Tom Cruise) = US Federal Government with Grant money Rod Tidwell (Cuba Gooding Jr) = Agency seeking Financial Assistance Office Staff and onlookers = Grant Managers

4. Discuss the Office of Inspector General (OIG) mission and authority Discuss the American Recovery and Reinvestment Act (ARRA) Discuss the Recovery Oversight Office (ROO) Present an overview of fraud with some examples Discuss the impact fraud has on the Department of the Interior (DOI) Review indicators for detection and prevention of fraud Explain ways to report suspected fraud RECOVERY OVERSIGHT OFFICE

5. Are our Department and Bureau programs vulnerable to fraud? Do we have adequate controls to detect fraud directed against our programs? Do you know what a fraud is? Do you know when and how to report instances of suspected fraud? RECOVERY OVERSIGHT OFFICE

6. Council on Inspectors General on Integrity and Efficiency (CIGIE) consist of 67 members at the federal level 28 Offices of Inspectors General with agencies receiving ARRA funds 11,600 employees of multiple disciplines $1.9 billion annually in expenditures RECOVERY OVERSIGHT OFFICE

7. $16.5 billion in potential savings from audit recommendations and investigative recoveries Over 300,000 hotline complaints processed Over 17,000 indictments, prosecutions, and civil actions 4,296 suspensions or debarments 5,807 adverse personnel actions RECOVERY OVERSIGHT OFFICE *PCIE and ECIE Progress Report to the President FY 2007

8. Promote Excellence, integrity and accountability in the programs, operations, and management Promote effective financial, grant and procurement activities Promote the highest standards of integrity, impartiality and professionalism Promote effective coordination & improved management practices among Department components RECOVERY OVERSIGHT OFFICE

9. Derived from the Inspector General Act of 1978, as amended To conduct and supervise audits and investigations relating to programs and operations of the Department To prevent and detect fraud, waste and mismanagement in programs and operations To have access to all records, reports, audits, reviews, documents, papers, recommendations, or other material relating to programs and operations RECOVERY OVERSIGHT OFFICE

10. An intentional misrepresentation which causes the suffering of damages and usually monetary losses Fraud is cheating for profit Fraud is characterized by acts of guile, trickery, concealment, or breach of confidence, which are used to gain some unfair or dishonest advantage involving money, property, or services RECOVERY OVERSIGHT OFFICE

11. Differs from other crimes: Ordinary criminal attempts to conceal identity. For example, a burglary will be detected; the burglar conceals his identity by timing the crime to utilize darkness or lack of witnesses. Fraudster attempts to conceal the crime itself. For example, a bookkeeper hides embezzlement by creating false accounts. Once the false accounts are detected it is usually obvious who did it. RECOVERY OVERSIGHT OFFICE

12. Government contractors ― Prime contractors ― Sub-contractors Government employees Financial assistance recipients ― Sub-recipients ― Contractors Vendors seeking government business RECOVERY OVERSIGHT OFFICE

13. False/Dual Billing Kickbacks Product Substitution Cost Mischarging RECOVERY OVERSIGHT OFFICE Defective Pricing False Representations

14. Forgery Mail Fraud Conspiracy False Claim Embezzlement False Statement Theft and Bribery Conflict of Interest Obstruction of Federal Audit Fraud by wire, radio, or television Major Fraud Against the United States RECOVERY OVERSIGHT OFFICE

15. The intentional submission by the contractor to the government directly or indirectly of goods and/or services that do not conform to the contract specifications or requirements. Example: ― Contractor awarded contract to install fire retardant paneling ― Contractor installs non-fire retardant paneling ― Contractor submits invoice to government reflecting that fire retardant paneling was purchased and installed RECOVERY OVERSIGHT OFFICE

16. Misrepresentation of qualifications, certifications, knowledge, pricing or costs which is then presented to the government to further a fraud scheme. Examples: ― False Certification ― False/Inflated Resumes ― False Statements/Invoices RECOVERY OVERSIGHT OFFICE

19. *Includes Central Utah Project Completion Act **Includes DM, OIA, SOL, OIG, OST, PILT, HAZMAT, NRDAR, FBMS, Latino Commission Grant and Wildland Firefighting w/ Supps. ***Derived from Omnibus Appropriations Act for 2009 (Public Law 111-8) Department of the Interior budget FY 2009 = $11.3 billion***

20. RECOVERY OVERSIGHT OFFICE The Association of Certified Fraud Examiners estimates that the typical organization loses 7% of its annual revenues to fraud.* Approximately $791 million of our total budget could be at risk to fraudulent activity as reflected below by bureau: * Derived from 2008 ACFE Report to the Nation on Occupational Fraud and Abuse USGS = $ 73M BOR = $ 78.2M OSM = $ 11.5M BIA = $ 166.3M NPS = $ 176.7M MMS = $ 11.4M FWS = $ 100.8M BLM = $ 72.7M DO/DWP= $ 100.1M

21. Conflicts of interest Exceeding appointed authority Unauthorized transactions Duplicate or inflated charges Inadequate, missing, or altered records Unsupported or unauthorized draw-downs Identical values or sequence in bids and proposals RECOVERY OVERSIGHT OFFICE

22. ARRA expands protection to non-federal employees who reasonably believe there is reasonable evidence of: Gross mismanagement of contract or grant Gross waste of ARRA funds Substantial danger to health and safety Abuse of authority Violation of law, rule or regulation regarding contract or grant RECOVERY OVERSIGHT OFFICE *FAR 1.603-2 and FAR 2.101

23. Perform audits and inventories Reconcile financial records Compare bids and proposals Perform only authorized transactions Protect government and proprietary information Maintain supporting documentation Establish and follow effective internal controls Report suspicious activity RECOVERY OVERSIGHT OFFICE

24. Ensuring you are our “first defense” Avoid conflicts of interest – follow the rules Always imagine how your actions look without explanation – no audio Be fair and reasonable Work within the limits of your authority Be aware of contractor efforts to influence or steer you Remember - very few contractors are bad RECOVERY OVERSIGHT OFFICE

25. Immediately report any suspected fraud Making your report ― Reporting to your supervisor ― Reporting to the OIG Collect details of suspected activity When making your report, try to identify: ― Who ― What Do not discuss your suspicions with others Do not investigate on your own! ― When ― Where ― How ― Why

26. RECOVERY OVERSIGHT OFFICE Web: http://www.doioig.gov/hotline Mail: U.S. Department of the Interior Office of Inspector General Attn: Fraud Hotline 1849 C Street NW - Mail Stop 4428 Washington, D.C. 20240 Phone Hotline: Toll Free 1-800-424-5081 (in Washington DC area: 202-208-5300)

27. RECOVERY OVERSIGHT OFFICE (ROO) OFFICE OF INSPECTOR GENERAL U.S. DEPARTMENT OF THE INTERIOR

28. AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) of 2009 RECOVERY OVERSIGHT OFFICE Congress appropriated about $787 billion DOI received approximately $3 billion The Act requires obligation of these dollars at an unprecedented speed www.recovery.gov recovery.doi.gov

29. RECOVERY OVERSIGHT OFFICE Bureau of Reclamation--------------------$1 billion National Park Service----------------------$750 million Bureau of Indian Affairs-------------------$500 million Bureau of Land Management------------$320 million U.S. Fish and Wildlife Service------------$280 million U.S. Geological Survey--------------------$140 million Office of Inspector General--------------$15 million

30. ACCOUNTABILITY AND TRANSPARENCY IN ARRA RECOVERY OVERSIGHT OFFICE The Act creates new means of accountability and transparency for all entities that receive stimulus oversight money DOI OIG received $15 million www.doioig.gov/recovery

31. $15 MILLION... FOR WHAT? RECOVERY OVERSIGHT OFFICE The Recovery Oversight Office (ROO) Comprised of a diverse staff including: Auditors Evaluators Investigators Analysts Speed --- Innovation --- Flexibility --- Diligence

32. ROO STRATEGY RECOVERY OVERSIGHT OFFICE PREVENTION DETECTIONREPORTING

33. PREVENTION RECOVERY OVERSIGHT OFFICE Fraud awareness briefings Single audit education Real time liaison with the Department Monitor contract and grant awards Review internal and financial management controls

34. DETECTION RECOVERY OVERSIGHT OFFICE Critical Point Evaluations Compliance with ARRA and internal controls Review of risk management plans and project outcomes Forensic Analysis Periodic monitoring of contracting databases Collaboration with the OIG Hotline staff Proactive Initiatives Site inspections Integrity testing

35. REPORTING RECOVERY OVERSIGHT OFFICE Management Notifications to DOI and Bureaus Recovery Oversight Advisories Recovery Flash Reports Best Practices Reports Website Management Semi-Annual Reporting Recovery & Accountability Transparency (RAT) Board Financial Reporting (www.recovery.gov)

36. RECOVERY OVERSIGHT OFFICE