| This
Semiannual Report to Congress summarizes the activities and
accomplishments of the Pension Benefit Guaranty Corporation
(PBGC) Office of Inspector General (OIG) for the period April1,
2005, through September 30, 2005. When accomplishing audit
and investigative work, we ensure that it accords with our
mission to be an “independent and objective voice for
Congress, the Board of Directors, and PBGC.” We want
to focus our work on the challenges facing PBGC and to be
the primary source of timely and objective information for
the organization. We will accomplish our work demonstrating
our values of respect, excellence, and integrity.
During
this period, we conducted work in all areas designated as
Management Challenges, focusing much of our audit effort on
the financial statement audit and its related reports, and
contract audits.
- Governance—
the Board of Directors and PBGC Executives show strong commitment
to good governance (see page 5).
- Financial
management—rigorous third-quarter close implemented,
new financial statement audit contract awarded, financial
statement audit underway (see page 6).
- Information
technology — we issued a report on management’s
request to review the development of PBGC’s new Premium
and Practitioner system (see page 7).
- Procurement
and contracting—we audited PBGC’s award and
monitoring of contracts awarded to a Canadian firm to provide
actuarial software (see page 9).
- Program
performance—we completed field work and briefed PBGC
on its request to review required adjustments to participants’
benefits, and issued evaluations of the purchase card program
and accounts payable (see page 13).
In the
investigative area, we received a large number of allegations,
many of which we were able to close during the inquiry stage.
We opened 9 new cases, and closed 31 cases and 28 inquiries.
Significant investigative work this period, included:
- a PBGC
manager engaged in ethical misconduct by soliciting and
receiving a loan from a subordinate (see page 17);
- determined
that PBGC employees had not fraudulently used rewards program
resulting from government credit card purchases, but found
internal control weaknesses (see page 17);
- worked
with PBGC to prevent and detect fraud in its “missing
participants” program (see page 18);
- the
Assistant IG for Investigations testified in a pension fraud
case, resulting in conviction (see page 18): and
- PBGC
employees were disciplined for misusing PBGC computers to
view and share offensive material (see page 19).
OIG staff
participated in many internal and external activities, including
active participation in several PBGC mentoring programs as
senior mentors and mentorees, and activities impacting the
IG community.
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