Semiannual Report to Congress (SARC 38) October 1, 2007 through March 31, 2008

This Semiannual Report to Congress summarizes the Office of Inspector General's (OIG) October 1, 2007 through March 31, 2008 activities. Significant audit and investigative activity we conducted in PBGC's five major management challenges includes:

• Governance - we provided information to Congress and the Board of Directors to support their oversight responsibilities; we followed-up on prior audit reports that recommended actions to strengthen internal governance.
• Stewardship - we issued the 15th consecutive unqualified financial statement audit opinion and associated reports; Investigations aggressively pursued prosecution and recoveries from individuals who fraudulently obtained pension benefits, laptop thefts, possible social security number fraud, and threats to employees and contractors.
• PBGC Business Model - We reported that a terminated but not yet insolvent multiemployer plan's assets were being depleted quickly because of high administrative costs and PBGC might be able to save millions of dollars if it could close the plan before all assets are depleted.
• Information technology - We conducted work and briefed initial findings related to PBGC's development of a premium practitioner system.
• Procurement and contracting - An audit reported that PBGC needs to strengthen contract administration, and investigators began monthly fraud training sessions with procurement staff for prevention and detection of fraud. The Procurement Director took steps to correct long-standing weaknesses identified in prior audits