Management Report on Final Action

October 1, 2006 - September 30, 2007

Topics on This Page

• Background
• Departmental Findings
• Departmental Conflict Resolution
• Status of Audits in the Department
• Report on Final Action Tables

Background       

The Inspector General Act Amendments of 1988 (P.L. 100-504) require Departments and Agencies to report to Congress on the actions they have taken and the amount of funds recovered or saved in response to the Office of Inspector General's (OIG) audit recommendations. This annual management report provides the status of OIG A-133 audit reports in the Department and summarizes the results of actions taken to implement OIG audit recommendations during the reporting period.

Departmental Findings

For the fiscal year covered by this report, the Department accomplished the following:

• Initiated action to recover $1,894,936,000 through collection, offset, or other means (see Table I);
• Completed action to recover $246,669,000 through collection, offset, or other means (see
• Table I);
• Initiated action to put to better use $1,000,645,000 (see Table II); and
• Completed action that over time will put to better use $1,024,261,000 (see Table II).

At the end of this period there are 197 OIG audit reports over 1 year old with uncollected balances or unimplemented monetary findings.  The reasons these reports are still pending are found in the notes to the tables.

Departmental Conflict Resolution

In the event that HHS agencies and OIG staff cannot resolve differences on specific report recommendations, a conflict resolution mechanism is available.  During FY 2007, there were no disagreements requiring the convening of the Conflict Resolution Council.

Status of Audits in the Department

In general, HHS Agencies follow up on OIG recommendations effectively and within regulatory time limits. The HHS Agencies usually reach a management decision within the 6-month period that is prescribed by P.L. 100-504 and OMB Circular A-50, Audit Follow-up.  For the most part, they also complete their final actions on OIG reports, including collecting disallowed costs and carrying out corrective action plans, within a reasonable amount of time. However, the Department continues to monitor this area to improve procedures and ensure compliance with corrective action plans.

Report on Final Action Tables

The following tables summarize the Department's actions in collecting disallowed costs and implementing recommendations to put funds to better use.  Disallowed costs are those costs that are challenged because of a violation of law, regulation, grant term or condition, etc.  Funds to be put to better use relate to those costs associated with cost avoidances, budget savings, etc. The tables are set up according to the requirements of Section 106(b) of P.L. 100-504.

Topics in Section III include:

• FY 2007 Top Management and Performance Challenges Identified by the Office of the Inspector General
• Summary of Financial Statement Audit and Management Assurances
• Improper Payment Information Act Report
• Other Financial Information
• Consolidating and Combining Statements
• Management Report on Final Action
• Other Required Reporting

Report Date: November 15, 2007