jurisdiction: US

text: b"DOE/IG-APP-005\n\n\n\n\n U.S. Department of Energy\n Office of Inspector General\n\n Planning for and Measuring\n Office of Inspector General Results\n\n\n FY 2002 Annual Performance Report and\n FY 2003 Annual Performance Plan\n\x0c Inspector General\xe2\x80\x99s Message\n\nWe are pleased to present the Office of Inspector General\xe2\x80\x99s (OIG) consolidated\nFiscal Year 2002 Annual Performance Report and Fiscal Year 2003 Annual\nPerformance Plan. This document evaluates our actual Fiscal Year (FY) 2002\nperformance and establishes the performance goals and strategies we will\npursue in FY 2003 to fulfill our mission.\n\nAs mandated by the Inspector General Act, the OIG promotes the effective,\nefficient, and economical operation of the Department of Energy\xe2\x80\x99s programs\nand operations, including the National Nuclear Security Administration (NNSA).\nWe continue to provide assistance to the Department and the Congress by\nidentifying opportunities to improve program performance and accountability,\nachieve cost savings, and return hard dollars to the Federal Government. The\nOIG also plays an important role in assisting the Department in implementing\nthe Government Performance and Results Act.\n\nAs we review our FY 2002 achievements and outline our FY 2003 performance\nplans, we look to national events that have and may affect our role. Since the\ntragic events of September 11, 2001, the OIG has significantly increased our\nalready substantial commitment to helping the Department identify and\nevaluate systemic and situational vulnerabilities in the areas of cyber and\nphysical security, counterintelligence, nuclear materials management, and\ncritical infrastructure protection. Our FY 2003 Annual Performance Plan\ncontinues this effort.\n\nThe OIG is committed to serving as a facilitator of management reform by\ncontinuing to evaluate program performance in critical areas central to the\nPresident\xe2\x80\x99s Management Reform Agenda, as well as the Secretary\xe2\x80\x99s priorities.\n\nWe look forward to addressing the challenges facing both our office and the\nDepartment. This document serves as our roadmap for accomplishing our\nmission and goals.\n\n\n Signed\nGregory H. Friedman\nInspector General\n\x0c Our Vision and Mission\n Our Vision\nTo be a highly effective organization that promotes positive change by identifying opportunities for\n To be a highly\nimprovements in the performance effectiveoforganization\n and efficiency that programs\n the Department\xe2\x80\x99s promotesand operations.\n positive change by identifying opportunities for\n improvements in the performance and efficiency of the\n Department\xe2\x80\x99s programs and operations.\n\n\n\n\n Our Mission\n Promote the effective, efficient, and economical\n operation of the Department of Energy and the\n National Nuclear Security Administration, through\nTo be a highly effective organization that promotes positive change by identifying opportunities for\n audits, investigations, inspections, and special reviews\nimprovements in the performance and efficiency of the Department\xe2\x80\x99s programs and operations.\n to detect and prevent waste, fraud, abuse, and\n violations of law.\n\n\nTo be a highly effective organization that promotes positive change by identifying opportunities for\nimprovements in the performance and efficiency of the Department\xe2\x80\x99s programs and operations.\n\n Our Strategic Goal\n Operate a robust review program and provide timely performance\n information and recommendations to facilitate the Department\xe2\x80\x99s\n efforts to:\n\n 1. Implement the President\xe2\x80\x99s Management Agenda;\n 2. Resolve management challenges;\n 3. Execute the Secretary\xe2\x80\x99s priorities; and\n 4. Ensure the integrity of the Federal and contractor workforce\n\n while ensuring that the OIG completes statutory mandates, recovers\n monies, and provides opportunities for savings.\n\n\n\n\n Goal 1 Goal 2 Goal 3\n Improve economy and Support the Taxpayer.\n Promote the Management\n efficiency and reduce\n Agendas of the President,\n waste, fraud, and abuse\n Secretary and Congress.\n within the Department.\n\n\n 2\n\x0c Our Responsibilities and\n Authorities\nAs required by the Inspector General Act of 1978, as amended, the OIG:\n\n \xe2\x88\x92 Conducts independent and objective audits, investigations,\n inspections, and special inquiries;\n \xe2\x88\x92 Promotes economy, efficiency, and effectiveness;\n \xe2\x88\x92 Prevents and detects waste, fraud, and abuse;\n \xe2\x88\x92 Reviews pending legislation and regulations; and\n \xe2\x88\x92 Keeps the Secretary and Congress fully and currently informed.\n\nIn further fulfillment of its mission and goals, the OIG also performs a number\nof functions mandated by other statutes, Executive orders, and regulations.\n\n Other Legal Mandates\n\n \xe2\x99\xa6 Government Management Reform Act\n \xe2\x99\xa6 Government Information Security\n Reform Act\n \xe2\x99\xa6 Government Performance and Results\n Act\n \xe2\x99\xa6 Executive Order 12863, President\xe2\x80\x99s\n Foreign Intelligence Advisory Board\n \xe2\x99\xa6 Executive Order 12333, United States\n Intelligence Activities\n \xe2\x99\xa6 National Defense Authorization Act for\n Fiscal Year 2000\n \xe2\x99\xa6 Annual Statement of Costs Incurred and\n Claimed Audits\n\n\n\n\n 3\n\x0c Our Organizational Structure\n The OIG is organized into four major functional areas and a corporate\n support office:\n\n \xe2\x80\xa2 Office of Audit Services\n \xe2\x80\xa2 Office of Investigations\n \xe2\x80\xa2 Office of Inspections\n \xe2\x80\xa2 Office of Program Review and Special Inquiries\n \xe2\x80\xa2 Office of Resource Management\n\n\n Inspector General\n -------------\n Principal Deputy\n\n Counsel\n ___________\n Office of Program Review\n & Special Inquiries\n\n\n Office of Office of Office of Office of\n Audit Services Investigations Inspections Resource\n Management\n\n\n Office of the Office of Office of Office of\n Deputy Asst Planning and Investigations Technology Capital Eastern Western Office of Policy, Office of\n Inspector General Administration Policy, Plans & Crimes Inspection Inspection Inspection Human Resources Operations and\n for Audit Services Programs Region Region Region and Information Financial\n Resources Resources\n\nNational Nuclear Environmental Science, Energy, Eastern Western\n Security Audits Technology and Investigation Investigation Human Information Financial\n Administration Division Financial Audits Operations Operations Resources Resources Resources\n Audits Division Division Division Division Division\n\n\n\n\n In addition to the Washington, D.C. area, OIG offices are located at key\n Department sites around the Nation.\n\n\n\n\n 4\n\x0c Human Capital\nThe OIG requires a highly trained and diverse workforce to carry out its\nmission. The Office recruits professional auditors, criminal investigators,\ninspectors, program analysts, and administrative support personnel. The\nfundable Full-Time Equivalents (FTEs) for FY 2002 were 252. The projected\nfundable FTEs for the OIG to accomplish the goals and objectives contained in\nthe FY 2003 Annual Performance Plan are 263.\n\nIn FY 2002, the OIG undertook an aggressive recruitment effort. Over 30 new\nauditors and investigators were hired during the last two quarters of FY 2002.\nOf the 30, 14 were women and 7 were minorities. The OIG took a number of\nproactive steps that led to filling many of these positions with minorities,\nincluding making visits to historically Black colleges and universities that have\nsignificant minority enrollments. OIG staff also recruited at annual\nconferences of the Women in Federal Law Enforcement and the National\nOrganization of Black Law Enforcement Executives. The OIG will continue to\nbuild on these accomplishments and strengthen diversity in its workplace.\n\n\n\n\n 5\n\x0c Our FY 2002 Accomplishments\nThis section describes the OIG\xe2\x80\x99s FY 2002 accomplishments. The OIG\nsuccessfully achieved its FY 2002 goals and targets. In most instances, the OIG\nexceeded its performance targets. During this period, the OIG had 10 major\ngoals with over 20 performance targets to measure its FY 2002\naccomplishments. Following are the results:\n\n FY 2002 General Goal\n\nPromote the efficient, effective, and economical operation of the Department\nof Energy, including the National Nuclear Security Administration.\n\n Performance Goal 1: Make recommendations\n for positive change in Department programs and\n operations through the issuance of reports.\n\n Assessment: Exceeded Goal\n\n\n\nPerformance Targets:\n\n \xe2\x80\xa2 Initiate at least 60 percent of audits planned for the year and\n replace those audits not started with more significant audits that\n identify time-sensitive issues needing review.\n\n \xe2\x80\xa2 Complete at least 90 percent of all audits within 12 months to\n provide timely information to Department management.\n\n \xe2\x80\xa2 Obtain at least 90 percent management compliance rate for\n recommendations made in investigative reports issued to\n Department management.\n\n \xe2\x80\xa2 Initiate at least 70 percent of inspections planned for the year and\n replace those not started with inspections having greater potential\n impact.\n\n \xe2\x80\xa2 Issue at least 10 inspection reports containing recommendations for\n positive change in Department and NNSA programs and operations.\n\n\n 6\n\x0cAccomplishments:\n\nEach year, as part of the audit planning process, Department management,\nother interested parties, and OIG staff are contacted and queried to identify\nand prioritize audit opportunities. For the audits completed in FY 2002, 92\npercent were completed within 12 months, to provide timely information to\nDepartment management. Also, the OIG\xe2\x80\x99s method of prioritizing helped the\nOffice succeed in initiating 70 percent of the audits planned for the year and\nreplace those not started with audits having greater potential impact or more\nsignificant audits needing time-sensitive review. For example:\n\n \xe2\x88\x92 At the request of the Administrator, NNSA, the OIG reviewed NNSA\xe2\x80\x99s\n efforts to construct the Tritium Extraction Facility at the Savannah\n River Site. Specifically, the review was conducted to determine\n whether the Tritium Extraction Facility Project was within cost,\n schedule, and technical scope. The OIG found that the Tritium\n Extraction Facility will cost substantially more than the planned $401\n million and, based on current progress, is unlikely to be completed by\n February 2006, as scheduled. The OIG determined that these baseline\n schedule and scope failures were due to the project team\xe2\x80\x99s inability to\n make full use of available project management controls.\n\n \xe2\x88\x92 The OIG initiated a follow-on audit at the request of the Brookhaven\n Area Office to gauge the sufficiency of corrective actions to an OIG\n audit report issued in May 1999, \xe2\x80\x9cHealth Physics Technician\n Subcontracts at Brookhaven National Laboratory.\xe2\x80\x9d The purpose of the\n review was to determine whether Brookhaven administered\n procurements in accordance with applicable regulations and its\n contract. The review showed that Brookhaven had initiated some\n improvements. However, in a number of cases, Brookhaven was still\n not providing the Department advance notice about high-dollar\n procurements, adequately justifying some noncompetitive\n procurements, or maintaining accurate data on small business\n contracts and purchases.\n\n \xe2\x88\x92 Based on information that the OIG received that raised concerns about\n the effectiveness and usefulness of the Advanced Vitrification System\n technology, a review was initiated to identify issues that could prevent\n successful deployment of the Advanced Vitrification System. The OIG\n concluded that there were a number of significant unresolved\n technical issues affecting the ability to develop and deploy the\n Advanced Vitrification System and that these challenges should be\n addressed before the Department funds additional research on the\n technology.\n\n\n\n\n 7\n\x0cThe OIG received responses to 63 recommendations made in investigative\nreports to management during FY 2002, with a 94 percent compliance rate.\nDepartment management took administrative action against 29 individuals as a\nresult of OIG Administrative Reports to Management and obtained 19\ndebarments of contractors and individuals.\n\nExamples of successes resulting from OIG investigative recommendations to\nmanagement include the following:\n\n \xe2\x88\x92 Ten subjects were debarred for 3 years from Government contracting.\n The subjects conspired to establish \xe2\x80\x9cshell\xe2\x80\x9d companies for the purpose\n of providing fraudulent invoices against a $2.8 million community\n development grant and cooperative agreement with the Department\xe2\x80\x99s\n Savannah River Site.\n\n \xe2\x88\x92 A contractor reimbursed the Department $201,618 for travel and per\n diem costs improperly paid to one of its subcontractors.\n\n \xe2\x88\x92 The Department agreed to develop a plan to correct security\n weaknesses relating to computers connected remotely to Department\n networks at a National Laboratory.\n\n \xe2\x88\x92 The Department terminated the employment of an individual for\n downloading over 1,100 pornographic images onto a Government\n computer.\n\nThe OIG initiated 87 percent of the inspections planned for the year and\nreplaced those not started with inspections having greater potential impact.\nThe OIG issued 22 final reports, 12 of which contained recommendations for\npositive change in Department and NNSA programs and operations. The\nfollowing are examples of outcomes from those recommendations:\n\n \xe2\x88\x92 The Department enhanced baseline cyber security measures to protect\n computerized employee personal information.\n\n \xe2\x88\x92 Lawrence Livermore National Laboratory developed corrective action\n plans to improve security and protective force operations at the site.\n\n \xe2\x88\x92 The Department performed a Nationwide review of the fresh pursuit\n policies and practices at all Department National Laboratories. The\n purpose of this review was to address inconsistencies at Department\n sites with respect to policies and practices pertaining to the \xe2\x80\x9cfresh\n pursuit\xe2\x80\x9d of fleeing suspected criminals in unauthorized possession of\n nuclear weapons, weapons components, or special nuclear material.\n\n\n\n\n 8\n\x0c Performance Goal 2: Conduct audits and render an opinion\n as required by the Government Management Reform Act (GMRA)\n on the Department\xe2\x80\x99s consolidated financial statements, system\n of internal controls, and compliance with laws and regulations;\n and conduct other audits required by law, regulation, or policy.\n\n Assessment: Exceeded Goal\n\nPerformance Target:\n\n \xe2\x80\xa2 Complete the required annual financial statement audits by\n designated due dates in the law.\n\nAccomplishments:\n\nThe OIG completed the audit of the Department\xe2\x80\x99s FY 2001 consolidated\nfinancial statements and rendered an unqualified (clean) opinion on February\n13, 2002, ahead of the March 1 statutory due date. As part of the review, four\nreportable conditions in the Department\xe2\x80\x99s system of internal controls were\nidentified: (1) the Department has made progress improving its performance\nmeasurement reporting, but more remains to be done to satisfy the\nrequirements of the Government Performance and Results Act and related\nOffice of Management and Budget (OMB) guidance; (2) the Department has\ncertain network vulnerabilities and general access control weaknesses that\ncould affect unclassified information system security; (3) the Department\xe2\x80\x99s\nWestern Area Power Administration did not uniformly perform reconciliations\nand could not promptly prepare account analyses; and (4) the Department\xe2\x80\x99s\nActive Facilities Data Collection System contained inaccurate data, including\nincorrect facility types and errors in reported square footage which, prior to\naudit adjustment, overstated the active facilities environmental liability\nestimate.\n\nIn addition, the OIG completed the required Federal Managers\xe2\x80\x99 Financial\nIntegrity Act (FMFIA) evaluations and implemented the OMB requirements. The\nreview disclosed that the Department continued to carry out its internal\ncontrol program mandated by the FMFIA.\n\n\n Performance Goal 3: Investigate allegations of\n violations of criminal and civil Federal law, as well as\n serious administrative misconduct, in order to\n facilitate successful prosecutions and administrative\n actions that maximize recovery of public resources\n and deter future wrongdoing.\n\n Assessment: Met Goal\n\n\n 9\n\x0cPerformance Targets:\n\n \xe2\x80\xa2 Obtain judicial and/or administrative action that facilitates positive\n change in Department programs and operations on at least 35\n percent of all cases investigated during the fiscal year.\n\n \xe2\x80\xa2 Obtain at least 70 percent acceptance rate on criminal and civil\n cases formally presented for prosecutorial consideration.\n\nAccomplishments:\n\nThe OIG obtained judicial and/or administrative actions on 37 percent of all\ncases investigated during the fiscal year and achieved a prosecutorial\nacceptance rate of 82 percent. The OIG obtained 21 criminal indictments and\n41 convictions, pretrial diversions, and civil judgments.\n\nExamples of successes as a result of OIG investigations include:\n\n \xe2\x88\x92 Two subcontractors paid the Government a total of $4.7 million to\n resolve allegations that employees submitted false per diem claims for\n long-term temporary assignment to a Department facility.\n\n \xe2\x88\x92 An investigation determined that a contractor improperly stored\n contaminated waste in violation of the Resource Conservation and\n Recovery Act. During the course of the investigation the contractor\xe2\x80\x99s\n parent company paid $14.5 million in remediation and disposal cost to\n clean up waste stored improperly.\n\n \xe2\x88\x92 A contractor employee was convicted for viewing and downloading\n pornographic images and videos depicting children.\n\n\n Performance Goal 4: Maintain investigative\n inter-agency and intra-agency cooperative efforts\n to combat fraud, waste, and abuse.\n\n Assessment: Met Goal\n\n\n\nPerformance Target:\n\n \xe2\x80\xa2 Ensure that at least 25 percent of all open cases during the fiscal\n year are task force/joint agency investigations.\n\n\n\n 10\n\x0cAccomplishments:\n\nThe OIG opened 139 cases during FY 2002, 26 percent of which were task force\nagency investigations. The following are examples of successes from task\nforce/joint agency investigations:\n\n \xe2\x88\x92 A subcontractor paid the Department $800,000 and released its claim\n to approximately $148,000 in contract funds held by the Department.\n The investigation determined that the subcontractor improperly\n charged the Government for costs associated with the manufacturing\n of commercial products.\n\n \xe2\x88\x92 Three individuals confessed and pleaded guilty to separate computer\n intrusions at Department entities as a result of joint investigations with\n other Federal and State law enforcement agencies.\n\n \xe2\x88\x92 A contractor paid a fine of $84,957 to the Government for improper\n disposal of an environmental contaminant into the Emory River, which\n flows through the Department\xe2\x80\x99s East Tennessee Technology Park. The\n contractor pleaded guilty and was sentenced to 12 months\xe2\x80\x99 home\n confinement; 2 years\xe2\x80\x99 supervised probation; and 300 community\n service hours.\n\n\n Performance Goal 5: Conduct proactive\n investigations focusing on areas most\n vulnerable to fraud, waste, and abuse within\n the Department, including the NNSA.\n\n Assessment: Exceeded Goal\n\n\nPerformance Targets:\n\n \xe2\x80\xa2 Conduct fraud awareness briefings every quarter with Department\n managers, program personnel, and contractors.\n\n \xe2\x80\xa2 Increase staff hours dedicated to proactive case development and\n investigations by 10 percent over the previous fiscal year.\n\n\n\n\n 11\n\x0cAccomplishments:\n\nOIG investigative personnel conducted 29 fraud awareness briefings in FY 2002\nwith an average of 5 per quarter. These presentations are designed to discuss\nthe process for reporting fraud, waste, and abuse to the OIG and to highlight\npriorities and initiatives of the Office of Investigations.\n\nThe OIG dedicated 5,952 hours to proactive case development during FY 2002.\nThis represents an increase of 49 percent in proactive work over the previous\nfiscal year.\n\nThe following are investigative results from FY 2002 proactive Government\npurchase card initiatives:\n\n \xe2\x88\x92 Obtained criminal convictions involving significant misuse and abuse of\n Government purchase cards. One contractor employee mischarged\n $138,000 for personal use and was sentenced to 13 months\xe2\x80\x99\n incarceration, 3 years\xe2\x80\x99 supervisory probation and ordered to pay\n restitution of $137,446. Two other subcontractor employees\n mischarged Government purchase cards in excess of $80,000. They\n were sentenced to home detention and probation. The Department\n has debarred three former contractor employees and two personal\n businesses from Government contracting for 3 years as a result of\n purchase card abuse.\n\n \xe2\x88\x92 Four other employees entered guilty pleas for Government purchase\n card misuse in the amounts of $37,000, $11,000, $10,000, and $2,000,\n respectively.\n\n \xe2\x88\x92 A \xe2\x80\x9cLessons Learned\xe2\x80\x9d report that consolidated findings from over 20\n separate OIG reviews recommended that the Department\xe2\x80\x99s\n Government purchase card program needs to: (1) ensure independent\n receipt and verification of goods and services; (2) include\n implementation policies and procedures for identifying unallowable\n and non-reimbursable costs; (3) ensure adherence to prescribed\n policies and procedures; and (4) improve purchase card issuance\n controls.\n\n Performance Goal 6: Focus performance reviews on\n those issues, programs and systems having the greatest\n potential impact on the protection or recovery of public\n resources; and make associated recommendations for\n positive change. This specifically includes evaluating the\n Department\xe2\x80\x99s implementation of the Government\n Performance and Results Act.\n\n Assessment: Exceeded Goal\n 12\n\x0cPerformance Targets:\n\n \xe2\x80\xa2 Ensure that at least 90 percent of performance audits incorporate\n approaches to evaluate performance measures and how they were\n applied.\n\n \xe2\x80\xa2 Complete at least 80 percent of management inspections within 12\n months.\n\n \xe2\x80\xa2 Initiate at least 70 percent of inspections planned for the year and\n replace those not started with inspections having greater potential\n impact.\n\nAccomplishments:\n\nOf the performance audits conducted in FY 2002, 100 percent included an\nevaluation of performance measures and how they were applied. As stated\npreviously, the OIG focuses performance reviews on those programs having the\ngreatest potential for protection and recovery of public resources. The OIG\nwas able to assist the Department to analyze not only the operation of\nprograms considered the most serious management challenges facing the\nDepartment, but also determine whether or not those programs were\neffectively measuring their performance.\n\nFor example, in FY 2002, the OIG issued a report entitled \xe2\x80\x9cEnvironmental\nManagement Performance Measures\xe2\x80\x9d (IG-0561). In that report, the OIG\nsuggested that the Assistant Secretary for Environmental Management focus\ncorporate measures on overall program performance. Specifically,\nperformance measure mechanisms should be developed to: (1) supplement\nexisting corporate performance measures and provide information on overall\ncost and schedule performance; and (2) capture changes in risk across\nEnvironmental Management\xe2\x80\x99s site cleanup activities.\n\nThe OIG initiated 87 percent of the inspections planned for the year and\nreplaced those not started with inspections having greater potential impact. In\naddition, the OIG completed 82 percent of its management inspections within\n12 months. During the year, the OIG focused a significant portion of its\nresources on reviews of security and safety related topics. Although security\nand safety have always been areas of emphasis, additional resources were\ndevoted to these areas in response to the events of September 11, 2001. The\nOIG completed several followup inspections to determine whether the\nDepartment was taking appropriate action on recommendations made in earlier\nsecurity-related inspection reports. Specific areas of review included: the\nprocess for transmitting classified documents; the progress being made on\nexecuting the Department\xe2\x80\x99s Counterintelligence Implementation Plan;\n\n\n\n 13\n\x0ccoordination activities with State, local, and tribal officials regarding\nshipments of nuclear weapons, nuclear weapons components, and special\nnuclear materials; and the export licensing process as it relates to foreign\nnational visits. The OIG found that the Department had made progress in\nimplementing the recommendations and made suggestions to enhance future\nimplementation activities. The following are examples of other inspection\nfindings during the year:\n\n \xe2\x88\x92 Over $2 million was unnecessarily spent by a Department site\n contractor to transport, upgrade, and store equipment that sat idle.\n\n \xe2\x88\x92 The Department needs to assure that sealed radioactive sources are\n properly controlled, inventoried, and leak tested in accordance with\n Federal rules and local site procedures.\n\n \xe2\x88\x92 A Value Engineering policy is needed that will meet the requirements\n of OMB Circular A-131 and is applicable to all Department systems,\n equipment, facilities, services, and supplies for the purpose of\n achieving essential functions at the lowest life-cycle cost.\n\n \xe2\x88\x92 Improvements are needed in the control of property at two inspected\n Department sites.\n\n\n Performance Goal 7: Conduct inspections of\n noncriminal allegations that enable the\n Department to hold employees and contractors\n accountable to the highest standards of honesty,\n objectivity, and integrity.\n\n Assessment: Exceeded Goal\n\n\nPerformance Target:\n\n \xe2\x80\xa2 Complete at least 80 percent of allegation-based inspections within\n 12 months.\n\nAccomplishments:\n\nThe OIG completed 100 percent of its allegation-based inspections within 12\nmonths. The following are examples of the results of allegation-based\ninspections:\n\n\n\n\n 14\n\x0c \xe2\x88\x92 Sandia National Laboratories issued trade secret licenses to 11\n companies since 1995 despite being advised both verbally and in\n writing over the course of the last 10 years of the Department\xe2\x80\x99s policy\n prohibiting the licensing of trade secrets. In many instances, these\n licenses were issued without the Department\xe2\x80\x99s knowledge. Sandia\xe2\x80\x99s\n improper licensing activity may have resulted in the inappropriate\n collection of $617,422.\n\n \xe2\x88\x92 There was no legal basis for the Rocky Flats Field Office\xe2\x80\x99s expenditure\n of $11,475 to pay for golf training for one employee and pilot training\n for three other employees.\n\n \xe2\x88\x92 There are opportunities for improvement in the overall security\n posture at the West Valley Demonstration Project.\n\n\n Performance Goal 8: Conduct oversight of\n Department intelligence programs, including the\n National Nuclear Security Administration, as\n required by Executive order.\n\n Assessment: Met Goal\n\n\nPerformance Target:\n\n \xe2\x80\xa2 Provide OIG intelligence oversight reports to the Intelligence\n Oversight Board in accordance with the requirements of Executive\n Orders 12333 and 12863.\n\nAccomplishment:\n\nThe OIG provided quarterly reports to the Intelligence Oversight Board within\nrequired timeframes. The reports serve to inform the Intelligence Oversight\nBoard, which is part of the President\xe2\x80\x99s Foreign Intelligence Advisory Board, of\nDepartment/NNSA intelligence activities the Inspector General believes may be\nunlawful or contrary to Executive order, Presidential directive, or Department\nintelligence procedures.\n\n Performance Goal 9: Effectively process\n complaints/allegations channeled through the OIG\n Hotline.\n\n Assessment: Exceeded Goal\n\n\n\n 15\n\x0cPerformance Targets:\n\n \xe2\x80\xa2 Enter into the database 80 percent of the complaints warranting\n predication within 1 week of being received.\n\n \xe2\x80\xa2 Refer at least 85 percent of allegations to management within 14\n days of the case being initiated after a referral decision has been\n made by the OIG.\n\nDuring the year, the OIG Hotline received 962 complaints/allegations, 382 of\nwhich warranted predication in the OIG database. Ninety-six percent of those\ncomplaints were predicated within 1 week of being received. Also, 220\nmatters were referred to the Department or other agency management for\nappropriate action, and 99 percent of those referrals were made within 14 days\nof the case being initiated after a referral decision was made by the OIG.\n\n\n Performance Goal 10: Align the organization in the\n most efficient, cost effective manner necessary to\n achieve the OIG legislative mission.\n\n Assessment: Met Goal\n\n\n\nPerformance Targets:\n\n \xe2\x80\xa2 Reduce the number of and align managers based on organizational\n analyses and downsizing.\n\n \xe2\x80\xa2 Lower the decision-making levels.\n\n \xe2\x80\xa2 Limit any new hiring to front-line employees.\n\n \xe2\x80\xa2 Increase the use of automation in work processes.\n\nAccomplishments:\n\nThe OIG conducted a major reorganization in FY 2002 that significantly changed\nthe delivery of audit services to customers. The Office of Audit Services was\nrealigned along programmatic lines from a regional structure. This change\nsupports a balance between single-site and multi-site audits, as well as\nensuring adequate coverage in major programmatic areas; specifically NNSA,\nenvironmental, and the combined areas of science, energy, technology and\n\n\n\n 16\n\x0cfinancial statements. While this reorganization did not reduce the number of\nmanagers, it resulted in a comprehensive delivery of services that addresses\nthe Secretary\xe2\x80\x99s mission priorities.\n\nBased on the reorganization, the Deputy Assistant Inspector General for Audit\nServices was delegated the authority to review and issue all draft audit reports.\nThis delegation will streamline the audit report process to allow the Assistant\nInspector General for Audit Services\xe2\x80\x99 attention to be focused on the final\nreport.\n\nThe OIG conducted an extensive recruitment effort through public\nannouncements, Governmentwide announcements, and college fairs and visits.\nThe OIG hired 32 new employees during FY 2002, all as front-line employees.\n\nThe OIG has continued to use automation in streamlining its work processes.\nAdditionally, efforts to secure OIG sensitive data are ongoing. The OIG began\nparticipation in a pilot program to use biometrics as a user authentication for\naccess to the OIG network system. The use of ENTRUST encryption was also\nexpanded to all field computers.\n\n\n\n\n 17\n\x0c Organizational Restructuring\n\n Budget and Performance\n Integration\n\n Appropriation for\n FY 2003 (in\n Office millions)\n\n Office of Inspector $37.7\n General\n\n\n\n\nBudget and performance integration is a key Governmentwide initiative in the\nPresident's Management Agenda. The OIG has aligned its planning, budget and\nperformance measurement functions within the Office of Resource\nManagement. This alignment has allowed the OIG to better integrate budget\nand performance information and has moved the office closer to its goal of\ndeveloping a performance-based budget. Furthermore, this approach enables\nthe OIG to manage the development of budget and performance information in\na more effective and streamlined manner. Over the past year, the office\nsignificantly improved and realigned the performance measures in its strategic\nand annual plans to more closely quantify the results of the OIG's work. The\nOIG will continue its strong commitment toward achieving this important\ninitiative and further refine and strengthen the integration of its budget and\nperformance goals.\n\n\n\n\n 18\n\x0cBelow is the current matrix reflecting our progress.\nDepartment Outcomes Outputs\nBusiness Lines\n Target Estimated\n 2003 FY 2003\n Reviews* Cost\n ($ in\n millions)\nNational Security 78 $11.9\n Promote the safety and reliability of the nuclear\n stockpile.\n Assess the Department\xe2\x80\x99s progress in addressing and\n resolving the threat from weapons of mass\n destruction.\n Promote effective intelligence and\n counterintelligence programs.\n Promote security and safety within Department\n programs.\nEnvironmental 20 $3.1\nManagement\n Promote implementing environmental cleanup faster\n and cheaper.\n Contribute to the success of the Department\n completing the characterization of the Yucca\n Mountain site for permanent storage of the Nation\xe2\x80\x99s\n spent nuclear fuel.\n Assess the Department\xe2\x80\x99s management of uranium\n enrichment and civilian nuclear power development.\nEnergy/Science 16 $2.4\n Contribute to the protection of the critical energy\n infrastructure.\n Promote the implementation of the President\xe2\x80\x99s\n National Energy Plan.\n Assist in directing research and development that\n directly relate to and support the missions of the\n Department and aid in ensuring greater application of\n mature technologies.\nCorporate 90 $20.3\nManagement\n Contribute to the effectiveness of the Department\xe2\x80\x99s\n financial management.\n Assure the American public that the Department is\n fiscally responsible in carrying out its mission.\n Promote effective contract management.\n Foster responsiveness to complaints and allegations\n from the Department and OIG customers.\n Ensure the Department has metrics in place and uses\n them to manage its programs and activities\n effectively.\n Promote the safety and health of the Department\xe2\x80\x99s\n workforce.\nTotal 204 $37.7\n*Note: Due to the nature of the work performed by the Office of Investigations, quantifying the number\nof investigations planned is not possible. However, results from the investigations will be included in the\nFY 2003 reporting figures.\n\n\n\n\n 19\n\x0c Critical Outside Influences\nNumerous external factors could affect the achievement of the OIG goals and\nobjectives. Specifically, these factors could create a significant impact on\nworkloads, formulating budgets, assessing organizational structure, evaluating\nprocedures, and establishing priorities. Some examples include:\n\nBudget. Thus far in FY 2003, the OIG has been operating under a continuing\nresolution at the FY 2002 appropriation level. This reduced funding has\nnegatively impacted the progress the Office would anticipate accomplishing\notherwise. This annual plan assumes that the Office will shortly receive the\nanticipated FY 2003 funding level. The OIG expects to increase its reviews and\ninvestigations accordingly. However, should a continuing resolution remain in\neffect for longer than 4 months, the Office may be unable to complete the\nreviews reflected in this FY 2003 annual plan. Consequently, meeting\nperformance goals may not be achievable in all cases.\n\nSecretarial/Congressional Priorities. Unplanned, resource intensive, but\nnevertheless important, quick turnaround requests by the Secretary and\nCongress could impact on planned work and thereby affect progress towards\nachieving the OIG goals and objectives.\n\nNew Statutory Requirements. New legislative mandates and unfunded audit,\ninvestigative, inspection, or inquiry requirements would have a direct impact\non the OIG strategic plan. Specifically, new statutory requirements could\ndivert resources away from other critical areas, including evaluating the\nperformance of the Department\xe2\x80\x99s programs and operations as they relate to\nthe President\xe2\x80\x99s Management Agenda, the Secretary\xe2\x80\x99s priorities, and the most\nserious management challenges facing the Department. The OIG goals and\nobjectives are built around many of these areas.\n\nRecruitment and Retention. A number of factors could significantly impact\nthe OIG\xe2\x80\x99s ability to attract and retain a skilled and diverse workforce. The OIG\nconsists of highly trained professional staff whose skills are in demand in both\nthe public and private sectors. Consequently, vacancies are often difficult and\ntime consuming to fill. Since September 11, 2001, the OIG faces even more\ncompetition from many law enforcement agencies within the Federal\nGovernment. For example, the Federal Bureau of Investigation has initiated a\nhiring effort to fill 1,000 vacancies. In addition, the OIG will be competing\nwith the Transportation Security Administration, and the Department of\nHomeland Security could attract talent away from the OIG.\n\n\n\n\n 20\n\x0c Our Long-Term Plans\nThis portion of the Annual Performance Plan reflects the goals, objectives, and\nstrategies included in the OIG\xe2\x80\x99s FY 2002 \xe2\x80\x93 2007 Strategic Plan. During FY 2002, the\nOIG devoted a considerable amount of resources to revise and streamline its\nplanning goals, strategies and objectives.\n\n\n Goal 1: Promote the Management Agendas of\n the President, Secretary, and Congress\n\n\n 1. Objective: Conduct reviews seeking positive change in the Department\n relating to the implementation of the initiatives in the President\xe2\x80\x99s\n Management Agenda, the Secretary\xe2\x80\x99s Priorities, and the OIG-identified\n Management Challenges.\n\n Strategy:\n\n \xe2\x88\x92 Conduct reviews as outlined in the OIG annual plan relating to: (1) the\n President\xe2\x80\x99s Management Agenda initiatives; (2) the Secretary\xe2\x80\x99s\n Priorities; and (3) the OIG-identified Management Challenges.\n Specifically:\n\n \xe2\x88\x92 Complete reviews that address every President\xe2\x80\x99s, Secretary\xe2\x80\x99s, and\n OIG-identified initiative, priority, and/or challenge as identified\n in FY 2002 by 2005.\n\n \xe2\x88\x92 Conduct a review within 1 year of new initiatives and priorities\n that the Department has initiated.\n\n\n Goal 2: Improve economy and efficiency and\n reduce waste, fraud, and abuse within the\n Department\n\n 2. Objective: Concentrate OIG efforts on issues that have the greatest\n impact and usefulness to the Department.\n\n\n\n 21\n\x0cStrategies:\n\n\xe2\x88\x92 Ensure that every performance review includes an analysis of program\n accomplishments and the use of metrics to measure results.\n\n\xe2\x88\x92 Ensure at least 50 percent of all performance audits include\n recommendations leading to demonstrable cost savings, program\n efficiencies and/or funds that can be put to better use.\n\n\xe2\x88\x92 Complete five follow-up reviews annually from FYs 2003 to 2007 to\n determine status and efficacy of corrective actions.\n\n\xe2\x88\x92 Complete an annual risk-based programmatic assessment that considers\n OIG institutional knowledge, past program performance, funding levels,\n Presidential, Secretarial, and congressional concerns, as well as input\n from Department program managers.\n\n\xe2\x88\x92 Ensure that each year 80 percent of all planned performance reviews\n address high-risk areas as identified in the OIG annual risk-based\n programmatic assessments.\n\n\xe2\x88\x92 Strive for the Department to accept 75 percent of review\n recommendations.\n\n3. Objective: Provide timely information to the Department so that\n prompt action can be taken to improve program performance.\n\nStrategies:\n\n\xe2\x88\x92 Issue 80 percent of audit reports no later than 60 days following receipt\n of management comments.\n\n\xe2\x88\x92 Complete 75 percent of special inquiries within 60 days.\n\n\xe2\x88\x92 Ensure that 90 percent of administrative reports to management are\n issued within 60 days of resolution of criminal and civil investigations.\n\n\xe2\x88\x92 Complete follow-up inspections and special inquiries as identified in the\n OIG annual plans within 90 days of initiation.\n\n\xe2\x88\x92 Complete the fieldwork for 80 percent of inspections within 90 days of\n initiation.\n\n\n\n\n 22\n\x0c4. Objective: Strengthen financial management and cyber security\n through completion of mandatory reviews in accordance with Office of\n Management and Budget and other applicable requirements.\n\nStrategies:\n\n\xe2\x88\x92 Complete annually the Department\xe2\x80\x99s consolidated financial statement\n audits to determine whether the financial statements are free from\n material misstatement.\n\n\xe2\x88\x92 Review the Department\xe2\x80\x99s classified and unclassified information security\n system programs in conjunction with the financial statement audit.\n\n\xe2\x88\x92 Complete at least 10 \xe2\x80\x9cStatement of Costs Incurred and Claimed\xe2\x80\x9d audits\n annually to assess internal controls over costs claimed by the\n Department\xe2\x80\x99s major contractors.\n\n5. Objective: Concentrate investigative efforts on allegations of criminal\n and civil violations of law that adversely impact major Department\n programs and operations, with emphasis on maximizing the recovery of\n public resources and deterring future wrongdoing.\n\nStrategies:\n\n\xe2\x88\x92 Achieve an annual acceptance rate of 70 percent for cases presented for\n prosecutorial consideration.\n\n\xe2\x88\x92 Ensure that 75 percent of all cases opened focus on key areas of\n Department vulnerability, specifically procurement and grant fraud,\n environmental violations, qui tams, or computer crimes.\n\n6. Objective: Coordinate with other law enforcement agencies to\n establish effective networks in order to identify areas that are most\n vulnerable to waste, fraud, and abuse.\n\nStrategy:\n\n\xe2\x88\x92 Ensure at least 25 percent of all open cases are joint agency/task force\n investigations with external law enforcement agencies, such as the\n Federal Bureau of Investigation and other OIGs.\n\n7. Objective: Heighten awareness of potential fraud among internal and\n external customers.\n\n\n\n\n 23\n\x0cStrategy:\n\n\xe2\x88\x92 Provide 20 fraud awareness briefings annually to Department and\n contractor employees and managers.\n\n\n Goal 3: Support the Taxpayer\n\n\n8. Objective: Provide an effective and efficient mechanism for the\n Department and the public to report waste, fraud, and abuse.\n\nStrategies:\n\n\xe2\x88\x92 Operate the OIG Hotline in a manner that ensures at least 80 percent of\n Hotline complaints warranting further action begin processing within 7\n days of receipt.\n\n\xe2\x88\x92 Forward 85 percent of the complaints identified for referral to the\n Department within 14 days of initiation of the case.\n\n9. Objective: Report to the public.\n\nStrategy:\n\n\xe2\x88\x92 Ensure that all OIG public reports are accessible via the Internet within 4\n working days of submission to the Secretary.\n\n\n\n\n 24\n\x0c FY 2003 Annual Performance\n Plan\n\n\n OFFICE OF AUDIT SERVICES\n\nThe Office of Audit Services uses a risk-based process for identifying areas for\naudit coverage. Specific areas with the greatest vulnerability and those with\nsignificant dollar amounts are identified. This process leads to the office\xe2\x80\x99s\nconducting program performance reviews that focus on the most serious\nmanagement challenges facing the Department, the President\xe2\x80\x99s Management\nAgenda, and the Secretary\xe2\x80\x99s priorities. A significant portion of the OIG\xe2\x80\x99s\nresources is directed toward meeting its statutory audit responsibilities. In the\npast, these responsibilities were mostly financial in nature and crosscut all of\nthe challenge areas, the President\xe2\x80\x99s five key management initiatives, and the\nSecretary\xe2\x80\x99s priorities. The OIG\xe2\x80\x99s statutory audit responsibilities continue to\nincrease with the addition of information technology security responsibilities.\n\nThe Office of Audit Services has scheduled 81 performance audits to start in\nFY 2003. Many non-discretionary taskings from external sources impact on the\noffice\xe2\x80\x99s workload demands, and it is sometimes necessary to delay, postpone,\nor cancel planned audits to accommodate these demands. Following is a\nsummary of audits scheduled to begin in FY 2003. The audits are grouped by\nmanagement challenge area as appropriate. The planned audit workload is\nsummarized later in this Plan.\n\nNational Security\nStockpile Stewardship. The Department is responsible for maintaining the\nsafety, reliability, and performance of the aging nuclear weapons in the\nNation\xe2\x80\x99s stockpile. Since the moratorium on underground testing of nuclear\nweapons, the Department accomplishes this responsibility through its Stockpile\nStewardship Program. The Department is required, based on activities\nconducted under the Stockpile Stewardship Program, to annually certify to the\nPresident that the nuclear weapons stockpile is, in fact, safe and reliable and\nthat underground nuclear testing does not need to be resumed. Ultimately,\nthe program\xe2\x80\x99s success is dependent upon developing an unprecedented set of\n\n\n 25\n\x0cscientific tools to better understand nuclear weapons, enhancing stockpile\nsurveillance capabilities, and in the process, extending the life of the weapons\nthat comprise the stockpile.\n\nDeficiencies have been identified in surveillance tests of stockpiled nuclear\nweapons, a key component of the Stockpile Stewardship Program. Since 1996,\nthe Department has not met many of its milestones for surveillance testing,\nwhich has resulted in a significant backlog. The backlog in surveillance testing\nputs the Department at risk for not having critical information on the reliability\nof these weapons. Deficiencies have also been identified in conducting\nSignificant Finding Investigations to determine the cause and impact of\nproblems identified by surveillance tests, and to recommend corrective\nactions. The Department has not been meeting internally established\ntimeframes for initiating and conducting investigations of defects and\nmalfunctions in nuclear weapons. This resulted in test data and findings\nrelated to weapon reliability not being readily available to the Departments of\nEnergy and Defense. Ensuring that the Department can guarantee the safety\nand reliability of the nuclear stockpile is one of the Secretary\xe2\x80\x99s priorities.\n\nAudits in the Stockpile Stewardship area, scheduled to begin in FY 2003, will\ndetermine whether:\n\n \xe2\x88\x92 The Department is meeting the goals of the Nuclear Survivability\n Campaign. (A03DC008)\n\n \xe2\x88\x92 The goals and objectives of the Enhanced Surveillance Program are\n being achieved. (A03DC009)\n\n \xe2\x88\x92 The Department is disposing of disassembled weapons parts that have\n no identified need. (A03DC011)\n\n \xe2\x88\x92 Los Alamos is meeting identified delivery schedules for containment\n vessels. (A03LA012)\n\n \xe2\x88\x92 Los Alamos is stabilizing fissionable and other radioactive materials.\n (A03LA013)\n\n \xe2\x88\x92 The required parts and materials necessary for a hydro test shot are\n available. (A03LA014)\n\n \xe2\x88\x92 NNSA\xe2\x80\x99s Stockpile Life Extension Program is meeting scheduled\n milestones for refurbishment. (A03LL022)\n\n \xe2\x88\x92 Routine operations at the Nevada Test Site can be consolidated.\n (A03LV024)\n\n\n\n 26\n\x0c \xe2\x88\x92 The Department has established requirement levels for tritium that are\n consistent with current weapons planning. (A03SR022)\n\n \xe2\x88\x92 Y-12 operations can ensure the reliability of its Enriched Uranium\n Operations. (A03YT027)\n\n \xe2\x88\x92 Funds received by the Office of Transportation Safeguards are used\n only in support of mission essential expenditures. (A03AL036)\n\n \xe2\x88\x92 The Foreign Research Reactor Spent Nuclear Fuel program is\n maximizing the recovery of domestic highly enriched uranium that is\n dispersed throughout the world. (A03SR031)\n\nSecurity and Safety. The Department and its predecessor agencies have long\nplayed a critical role in our Nation\xe2\x80\x99s national security mission. The\nDepartment\xe2\x80\x99s complex is large and multi-faceted with a wide variety of\nlocations, facilities, sensitive materials, and activities that must be kept safe\nand secure. In coordination with the Department of Defense and other\nagencies, the Department helps to ensure that we live in a safe and secure\nworld. There have been profound changes in U.S. national security policies in\nthe post-Cold War era, but the commitment to a secure national defense\nremains as strong as ever. However, recent terrorist activities have prompted\nthe Department to consider new security threats and to identify and implement\nnew security measures on an evolving basis. For example, the Department\nestablished a direct-funded safeguards and security budget and obtained\nsupplemental security funding in response to the September 11, 2001, terrorist\nattacks. However, the Department still needs to improve certain procedures\nfor cyber security, controls over classified and nuclear weapons-related\ninformation, and security of its networking infrastructure necessary for critical\nsystems.\n\nEnsuring the safety and health of its workforce and the public is one of the\nDepartment\xe2\x80\x99s most difficult, long-term challenges. The Department is tasked\nwith simultaneously addressing the consequences of past activities, managing\ncurrent operations, and preventing future human and environmental problems.\nSafety and health issues encompass all activities relating to the identification,\ntesting, handling, labeling, cleanup, storage, and/or disposal of radioactive and\nhazardous waste. Other activities relate to nuclear safety and occupational\nand worker safety and health. The Department is implementing new safety\nprograms and conducting on-site evaluations to monitor conduct of operations\nand compliance with environment, safety and health requirements.\n\nAudits in the Security and Safety area, scheduled to begin in FY 2003, will\ndetermine whether:\n\n\n\n\n 27\n\x0c \xe2\x88\x92 Costs for Safeguards and Security activities are incurred for their\n stated purpose and indirect charges proportionately benefit safeguards\n and security programs. (A03NE009)\n\n \xe2\x88\x92 The Materials Protection, Control and Accounting Program is meeting\n its revised goal for completing physical protection upgrades of Russia\xe2\x80\x99s\n weapons and weapons-usable material storage facilities. (A03AL001)\n\n \xe2\x88\x92 There are adequate safeguards in the Technology Transfer Program to\n prevent the proliferation of nuclear/sensitive technology. (A03AL003)\n\n \xe2\x88\x92 NNSA\xe2\x80\x99s Chemical and Biological National Security Program is meeting\n its mission goals and objectives for Domestic Demonstration and\n Application activities. (A03DC005)\n\n \xe2\x88\x92 The Department has implemented corrective actions for safety\n deficiencies identified by internal Department and Defense Nuclear\n Facility Safety Board safety reviews. (A03DC010)\n\n \xe2\x88\x92 The Department is meeting its responsibilities for physical critical\n energy infrastructure and taking advantage of National Infrastructure\n Simulation and Analysis Center services. (A03TG023)\n\n \xe2\x88\x92 The Savannah River Site\xe2\x80\x99s medical facilities are operated in a manner\n consistent with Department policies. (A03SR019)\n\nInfrastructure and Asset Management. The Department\xe2\x80\x99s physical\ninfrastructure includes more than 50 major facilities in 35 States.\nModernization of these aging facilities and restoration of sites to make them\nsafe and viable are two of the most important tasks facing the Department.\nThe aging and deterioration of the Department\xe2\x80\x99s defense and research and\ndevelopment facilities have resulted in facilities operating well beyond their\nexpected useful life. The Department is at risk for not being able to meet\nexisting mission objectives if the condition and functionality of its facilities are\nnot addressed. The Department has embarked on a long-range program to\nconsolidate and build a smaller, modern and more efficient weapons\nproduction complex. This long-range program includes repairing and improving\nexisting facilities, upgrading roads and utilities, and improving or constructing\nmission support structures. The Department has also developed a Strategic\nFacilities Plan for each multi-program laboratory that identifies expected\ngeneral-purpose infrastructure modernization needs. In addition, the\nDepartment has developed Infrastructure Restoration Plans for its three long-\nterm multi-program environmental sites. The plans are tied to current and\nplanned cleanup and other Department missions, recognizing current\ncapabilities and conditions and the extent of deferred maintenance.\n\n\n\n 28\n\x0cThe Department also has extensive inventories of nuclear and non-nuclear\nmaterials that may no longer be necessary due to mission changes. However,\nthe Department continues to spend funds to store, secure, and handle these\nmaterials that could be put to better use. In addition, the potential exists for\nsafety and health concerns. While the Department has taken steps to improve\nits management of infrastructure and asset inventories, such as seeking\nadditional funding for infrastructure purposes, drafting management policy for\nreal property, and demonstrating new technologies to identify and track the\nlocations of assets, more needs to be done. The deterioration of infrastructure\nin the Department is at a critical stage.\n\nIn FY 2003, audits in the Infrastructure area will determine whether:\n\n \xe2\x88\x92 There is a programmatic requirement for NNSA\xe2\x80\x99s current and planned\n line-item projects. (A03AL004)\n\n \xe2\x88\x92 The appropriate infrastructure is in place to ensure the successful\n resolution of an emergency event. (A03DC006)\n\n \xe2\x88\x92 Livermore is maximizing the use of its available facilities and\n infrastructure to meet its mission at the least cost to the Department.\n (A03LL020)\n\n \xe2\x88\x92 NNSA can consolidate the hydrodynamic test infrastructure and support\n throughout the weapons complex. (A03LL021)\n\n \xe2\x88\x92 The Kansas City Plant\xe2\x80\x99s restructuring initiative will achieve its intended\n results. (A03YT026)\n\n \xe2\x88\x92 The Y-12 Highly Enriched Uranium Materials Facility will be completed\n on time and within budget. (A03YT028)\n\n \xe2\x88\x92 The Department\xe2\x80\x99s Isotope Production Program has consolidated\n facilities and refocused production. (A03NE008)\n\n \xe2\x88\x92 The Power Marketing Administrations have systems in place to ensure\n protection of critical assets. (A03DN004)\n\nEnvironmental Management\n\nEnvironmental Stewardship. The Department faces significant environmental\nchallenges at its facilities due to past operations that left a legacy of\nunacceptable risk to the environment. It is charged with the daunting task of\nprotecting human health and the environment by cleaning up large volumes of\nhazardous and radioactive wastes and contaminated facilities that supported\n\n\n 29\n\x0cnuclear weapons production activities. The Department must also address the\nneed to permanently dispose of defense-related high-level radioactive wastes\nas well as spent nuclear fuel from civilian nuclear power plants. All of these\nactivities must be carried out consistent with established Federal, State, and\nlocal requirements and standards. The Secretary has two main priorities in the\nEnvironmental Program: completing a \xe2\x80\x9ctop-to-bottom\xe2\x80\x9d review of the entire\nEnvironmental Management Program (completed in February 2002); and\nproducing a plan to accelerate the cleanup and closure of all sites where there\nis no longer a national security mission.\n\nIn FY 2003, audits in the Environmental Stewardship area will determine\nwhether:\n\n \xe2\x88\x92 The Department is adequately preparing for its post-closure\n responsibilities at Rocky Flats. (A03DN005)\n\n \xe2\x88\x92 Actions have been taken to improve the efficiency and effectiveness of\n groundwater monitoring activities. (A03FF005)\n\n \xe2\x88\x92 Surplus highly enriched uranium usable for nuclear weapons is being\n eliminated. (A03AL002)\n\n \xe2\x88\x92 The Department is on schedule to meet Government-Furnished Services\n and Items requirements at its environmental cleanup and closure sites.\n (A03DN001)\n\n \xe2\x88\x92 The Comprehensive Environmental Response, Compensation, and\n Liability Act (CERCLA) Pit Project is the most cost-effective alternative\n for the disposal of CERCLA waste at the Idaho National Engineering and\n Environmental Laboratory (INEEL). (A03IF007)\n\n \xe2\x88\x92 The revised Pit 9 demonstration project will meet Environmental\n Management\xe2\x80\x99s environmental risk reduction objectives. (A03IF009)\n\n \xe2\x88\x92 The Department effectively managed the cleanup of the waste silos\n and pits at the Fernald Environmental Management Project.\n (A03OR013)\n\n \xe2\x88\x92 The Department has identified the safest and most cost-effective\n method for processing and disposing of plutonium at the Hanford Site.\n (A03RL015)\n\n \xe2\x88\x92 The Department is fully utilizing the Waste Receiving and Processing\n Facility at the Hanford Site. (A03RL017)\n\n\n\n\n 30\n\x0c \xe2\x88\x92 The Office of River Protection has used the most cost-effective\n strategy in planning for the Waste Treatment Plant. (A03RL018)\n\n \xe2\x88\x92 Transportation routes within the State of Nevada will be available to\n transport waste to Yucca Mountain by 2010. (A03LV025)\n\n \xe2\x88\x92 Environmental Management (EM) is funding research and development\n activities at the INEEL that do not contribute to EM\xe2\x80\x99s mission of\n reducing risk and accelerating cleanup. (A031D030)\n\nEnergy and Science\nResearch and Development Investment. Science and technology are critically\nimportant to keeping the Nation\xe2\x80\x99s economy competitive and for addressing\nchallenges we face in health care, defense, energy production and use, anti-\nterrorism, and the environment. One of the President\xe2\x80\x99s Management Agenda\nreform initiatives is Better Research and Development Investment Criteria. As\nsuch, every Federal research and development dollar must be invested as\neffectively as possible. During FY 2001, the Department spent about $7.7\nmillion on a broad range of research activities, representing more than 40\npercent of its budget. However, the OMB has been critical of some of the\nDepartment\xe2\x80\x99s research and development efforts. Given the magnitude of the\nDepartment\xe2\x80\x99s research and development activities and the great benefit that\ncan flow from these activities, significant care needs to be taken in the\nprioritization and management of these activities. Directing the Department\xe2\x80\x99s\nresearch and development budgets towards innovations and ideas that are\nrelatively immature in their development and ensuring greater applications of\nmature technologies is one of the Secretary\xe2\x80\x99s priorities.\n\nIn FY 2003, audits in the Research and Development Investment area will\ndetermine whether:\n\n \xe2\x88\x92 Three separate nanoscale science research centers are necessary to\n satisfy the Department\xe2\x80\x99s research goals. (A03SC019)\n\n \xe2\x88\x92 Livermore is efficiently disseminating nonproliferation technologies to\n monitoring agencies for implementation and use. (A03LL017)\n\n \xe2\x88\x92 The activities funded by the Department\xe2\x80\x99s Transportation Program:\n (1) are in accordance with the President\xe2\x80\x99s National Energy Plan; and\n (2) do not duplicate activities funded by the Department or by private\n industry. (A03CH003)\n\n \xe2\x88\x92 New technologies are being developed to meet identified military\n needs. (A03LA015)\n\n\n\n 31\n\x0cEnergy Supply. The Department leads the Nation in the effort to develop\naffordable advanced clean energy for the 21st Century and to accelerate its\nacceptance and use, both nationally and internationally, by providing cutting-\nedge research in a broad range of energy sources. As energy demand outpaces\nsupply, the Nation will need to expand its sources of domestic energy\nproduction. Volatility in U.S. energy markets over the last few years has\ndemonstrated the need to strengthen the stability of the Nation\xe2\x80\x99s energy\nproduction and delivery systems as well as ensure the country\xe2\x80\x99s energy\nsecurity. In FY 2001, the President presented a comprehensive National Energy\nPolicy to meet our energy challenges. This policy established five key national\ngoals: modernize our conservation efforts; modernize our energy\ninfrastructure; increase energy supplies; accelerate the protection and\nimprovement of the environment; and increase our Nation\xe2\x80\x99s energy security.\nOne of the Secretary\xe2\x80\x99s priorities is for the Department to take a leadership role\nin exploring ways to identify and use potentially abundant new sources of\nenergy with dramatic environmental benefits.\n\nAudits in the Energy Supply area, scheduled to begin in FY 2003, will determine\nwhether:\n\n \xe2\x88\x92 The Path 15 Expansion Project is on schedule to be operational by Fall\n 2004. (A03DN003)\n\n \xe2\x88\x92 The Power Marketing Administrations\xe2\x80\x99 Investment Activities are\n consistent with mission needs and conform to applicable laws and\n regulations. (A03FF004)\n\n \xe2\x88\x92 The Federal Energy Regulatory Commission has developed and is\n monitoring the rules and policies for the establishment of Regional\n Transmission Organizations. (A03NE007)\n\n \xe2\x88\x92 The Distributed Energy Resources Program has established long-term\n goals, has implemented a spending strategy to meet its goals, and is\n subsidizing commercial ventures. (A03PR013)\n\n\n\n\n 32\n\x0cCorporate Management\nInformation Technology Management. The President has encouraged the use\nof electronic commerce in several pronouncements and has pledged the\nFederal Government will increase its use of electronic commerce. The\nPresident calls for the Administration to advance E-Government strategy by\nsupporting projects that offer performance gains across agency boundaries,\nsuch as E-procurements and projects that can deliver significant productivity\nand performance gains across the Government. Information technology\nsystems are an essential component of the Department\xe2\x80\x99s day-to-day operations\nand are vital to its programmatic and administrative functions.\n\nWith an estimated $1.4 billion annual expenditure for Information Technology\n(IT), it is essential that the Department develop and implement an effective IT\nmanagement, investment and control process. To enhance the management\ncontrol and security of IT, Congress passed the Clinger-Cohen Act of 1996 and\nthe Government Information Security Reform Act of 2001. The Clinger-Cohen\nAct required Federal agencies to appoint a Chief Information Officer to manage\nIT investments and to adopt a performance- and results-based management\napproach to acquiring, using, and disposing of IT. Although the Department\ncontinues to increase integrating IT into all aspects of its management and\nadministration of various missions, it has experienced problems in fully\nimplementing the requirements of the Clinger-Cohen Act.\n\nIn FY 2002, the Secretary called for the full implementation of electronic\ncommerce Departmentwide. In FY 2002, the Department\xe2\x80\x99s E-Government\ninitiative, the Innovative Department of Energy E-Government Applications\n(IDEA), was announced. The immediate goal of IDEA is to complete and\napprove the electronic Government program\xe2\x80\x99s action plan and road map.\n\nIn FY 2003, audits in the Information Technology Management area will\ndetermine whether the:\n\n \xe2\x88\x92 Department\xe2\x80\x99s Electronic Commerce strategy is producing increased\n competition and cost savings to the Department and improved\n customer service. (A03TG020)\n\n \xe2\x88\x92 The Department has an integrated cost-effective information systems\n framework for controlling physical access and tracking security\n clearance information. (A03TG035)\n\n \xe2\x88\x92 The Department\xe2\x80\x99s cyber security incident reporting methods provide\n for adequate protection of Department systems. (A03TG036)\n\n\n\n\n 33\n\x0c \xe2\x88\x92 The Department has fully developed and implemented a process for\n managing sensitive equipment throughout its lifecycle. (A03TG037)\n\nContract Administration. A significant portion of the Department\xe2\x80\x99s mission is\naccomplished through contracts, with industrial, academic, and nonprofit\ninstitutions operating the Government-owned plants and laboratories under a\nmanagement and operating relationship. These contracts represent the largest\nshare of the Department\xe2\x80\x99s annual budget. Contractors operate and manage a\nbroad range of scientific and production activities and facilities. For example,\ncontractors operate 11 multi-program National Laboratories located throughout\nthe United States. The programs carried out in these laboratories range from\nfundamental research in the physical and life sciences to advanced and goal-\noriented development of nuclear and alternative energy. Contract\nadministration, which includes project management, has been a longstanding\nchallenge. Although the Department has drastically changed its contract\nmanagement practices and policies with respect to its major facility contracts,\nas well as the overall management of its procurement system, the Department\ncontinues to be criticized for its contract management practices. For example,\nthere is criticism about the lack of contractual features to ensure contractor\nperformance accountability and the general indemnification of contractors for\nthe cost of all performance failures and liabilities under a contract. In\naddition, the Department continues to experience difficulties in managing\nsome of its major projects.\n\nIn FY 2003, audits in the Contract Administration area will determine whether:\n\n \xe2\x88\x92 The Stanford Positron-Electron Asymmetric Ring 3 Upgrade Project is\n on schedule and within budget. (A03LL019)\n\n \xe2\x88\x92 The Total System Life Cycle Cost for the permanent repository is\n supported by approved change orders. (A03LV023)\n\n \xe2\x88\x92 Controls are in place to ensure that non-facilities acquisitions are\n adequately competed, comply with Federal and Department directives,\n and contain appropriate performance measurement attributes.\n (A03CH001)\n\n \xe2\x88\x92 Small Business Innovative Research grantees are receiving funding from\n multiple Federal sources for the same research and development work.\n (A03CH002)\n\n \xe2\x88\x92 NNSA\xe2\x80\x99s Elimination of Weapons Grade Plutonium Production Program is\n effectively meeting its program goals. (A03LL018)\n\n\n\n\n 34\n\x0c \xe2\x88\x92 Oak Ridge has implemented a cold standby program at Portsmouth that\n ensures the plant\xe2\x80\x99s capability to resume production within 24 months\n of the restart decision. (A03OR010)\n\n \xe2\x88\x92 Non-Federal work at the Office of Science laboratories is directly\n related to the Department\xe2\x80\x99s mission, does not compete with the\n private sector, and is not subsidized by Department funds. (A03PR010)\n\n \xe2\x88\x92 The Department is ensuring that contractors are taking full advantage\n of and expanding consortium-buying opportunities. (A03PR011)\n\n \xe2\x88\x92 Project costs are being accurately charged and reported and whether\n non-project funds are being used to subsidize projects. (A03PR012)\n\n \xe2\x88\x92 The Department is applying sound project management practices to\n projects that receive directed funding. (A03SC016)\n\n \xe2\x88\x92 The Department has adequate internal controls to monitor grantee\n performance for construction or major project-related awards made by\n the Office of Science. (A03SC018)\n\n \xe2\x88\x92 The Department is on track to meet the Administration\xe2\x80\x99s competitive\n outsourcing goals. (A03DN002)\n\n \xe2\x88\x92 The Department is paying its fair share of remediation costs at Kerr-\n McGee\xe2\x80\x99s West Chicago Thorium Processing Facility. (A03OR011)\n\n \xe2\x88\x92 The Pit Disassembly and Conversion Facility is on schedule to meet the\n Department\xe2\x80\x99s weapons-grade plutonium conversion goals at the\n Savannah River Site. (A03SR021)\n\nHuman Capital. Strategic Management of Human Capital is one of the\nPresident\xe2\x80\x99s Management reform initiatives and also one of the most serious\nchallenges facing the Department. The Department\xe2\x80\x99s staff has been criticized\nfor its lack of project and contract management skills required to oversee large\nprojects, such as the cleanup of radioactive and hazardous waste sites. The\nDepartment is highly dependent on its Federal workforce for its mission\naccomplishment. Since 1995, the Department has experienced a 27 percent\nreduction in the workforce. In addition, other factors such as a moratorium on\nhiring, the relative age of the workforce, reductions in force, and buyouts,\nhave contributed to the decline in staff that has left the Department with a\nsignificant management challenge. Currently, only nine percent of the\nworkforce is under the age of 35 and the situation is even more severe for the\ntechnical workforce, which has only six percent of its population under 35.\nThis high average age combined with a very low number of younger employees\n\n\n\n 35\n\x0cleads to concerns about succession planning and the infusion of new ideas and\nsustaining technical capabilities.\n\nIn addition, some of the Department\xe2\x80\x99s major contractors have experienced\nsimilar losses. Many of those retiring or resigning take with them technical and\nscientific knowledge that is not easily replaced. The experienced designers\nand engineers who built the weapons in the stockpile and understand how they\nwork are reaching or past retirement age. The Department is also faced with\nshortages of technicians skilled in techniques associated with weapons\nproduction, such as the plutonium pit manufacturing process. The Department\nneeds to address the challenge of recruiting and training the next generation of\ntechnical and managerial staff before it reaches crisis proportions by the end of\nthis decade.\n\nAudits in the Human Capital area will determine whether:\n\n \xe2\x88\x92 Los Alamos National Laboratory\xe2\x80\x99s recruitment and retention program is\n meeting program goals. (A03LA016)\n\n \xe2\x88\x92 The Department is able to recruit and retain sufficient numbers of\n administrative personnel. (A03PT015)\n\n \xe2\x88\x92 Bechtel is effectively managing human resources at the INEEL.\n (A03IF008)\n\n \xe2\x88\x92 The current retention allowances paid by the Rocky Flats Field Office\n are justified. (A03DN032)\n\nPerformance Management. The President\xe2\x80\x99s Management Agenda identified\nBudget and Performance Integration as a Governmentwide initiative and\noutlined a plan to provide a results-oriented management process for the\nFederal Government. A primary focus of the President\xe2\x80\x99s Plan is that funding\nallocations are based on the achievement of goals. Under-performing programs\nwould have to demonstrate evidence of attaining meaningful goals or face\nreduced funding or elimination. In the past, the Department has been\ncriticized for deficiencies that include: (1) performance measures that are not\nquantifiable; (2) performance measures that do not support key goals; and (3)\nunderlying processes that are not results oriented. In response to this\ncriticism, the Department created the Office of Program Analysis and\nEvaluation and is moving toward a 5-year planning, programming budget and\nevaluation system, which is intended to better integrate improved performance\nmeasures with the budget. The Department needs to ensure that it has metrics\nin place and uses them to manage its programs and activities effectively.\n\nAudits in the Performance Management area, scheduled to begin in FY 2003,\nwill determine whether:\n\n\n 36\n\x0c \xe2\x88\x92 The Office of Science performance measures reflect overall program\n performance. (A03SC017)\n\n \xe2\x88\x92 The Department has established research plans and budgets to\n evaluate the technological readiness of the Carbon Sequestration\n Process. (A03PT014)\n\n \xe2\x88\x92 The Department is meeting the goals for the Recovery and Recycling\n Program for plutonium, enriched uranium and tritium. (A03DC007)\n\n \xe2\x88\x92 The Idaho Operations Office will meet performance expectations for\n the Advanced Mixed Waste Treatment Project. (A03IF006)\n\n \xe2\x88\x92 The Department\xe2\x80\x99s Cleanup Reform projects are meeting their\n performance targets and reducing risk to the public, employees, and\n environment. (A03OR012)\n\n \xe2\x88\x92 The Department is achieving its goals for the Waste Management\n Program at the Oak Ridge Reservation. (A03OR014)\n\n \xe2\x88\x92 The Groundwater/Vadose Zone Integration Project has met the\n Department\xe2\x80\x99s goals and provided a sound technical basis for making\n cleanup decisions at the Hanford Site. (A03RL016)\n\n \xe2\x88\x92 Performance-based incentive fees paid to Westinghouse were\n consistent with performance objectives established at the start of the\n performance period. (A03SR020)\n\n\n\n OFFICE OF INVESTIGATIONS\n\nThe Office of Investigations conducts investigations into alleged violations of\nlaw that impact Department programs, operations, facilities, and personnel.\nPriority is given to investigations of suspected violations of criminal and civil\nstatutes, as well as serious administrative misconduct. Particular focus is\nplaced on the prevention and detection of contract and grant fraud;\nenvironment, safety and health violations; computer crimes; and issues that\nreflect on the integrity and credibility of Department officials. This generally\ninvolves the investigation of Department personnel, contractors, and others\nreceiving Department funds. As the law enforcement arm of the OIG, Special\nAgents work closely with prosecutors and are afforded a full range of law\nenforcement authorities\xe2\x80\x94carry firearms, apply for and execute search\nwarrants, and make arrests.\n\n\n\n 37\n\x0cSignificant accomplishments over the past 5 years illustrate the positive impact\nthat the office has in deterring and preventing wrongdoing and improving\nprograms and operations within the Department. Since 1997, the Office of\nInvestigations has referred 152 cases for prosecution, with 116 accepted, for an\naverage acceptance rate of 76 percent. Investigative work has resulted in 57\nindictments, 67 convictions, 13 pretrial diversions, and 24 civil actions. The\nOffice of Investigations has issued 99 investigative reports to Department\nmanagement, with 267 recommendations for positive change. Results included\n50 debarments and 57 suspensions of individuals and companies, and 80\ndisciplinary actions against Federal and contractor employees. Other notable\noutcomes include over $88 million in recoveries and fines resulting from\ninvestigations. This office has averaged $17.6 million per year in recoveries\nand fines.\n\nAs we enter FY 2003, the Office of Investigations plans to build on its existing\nefforts in combating fraud, waste, and abuse within the Department. The\noffice is committed to preserving the integrity of investigative work by\ncontinuing to adhere to the Quality Standards for Investigations issued by the\nPresident\xe2\x80\x99s Council on Integrity and Efficiency.\n\nNational Program Area Initiative\nThe Office of Investigations is unique when compared to the other functional\noffices. The work performed by the Office of Investigations has been\nhistorically reactive in nature\xe2\x80\x94responding to allegations of wrongdoing. The\noffice, however, has begun to proactively identify areas in the Department that\nseem to be most vulnerable to waste, fraud, and abuse, better known as the\nNational Program Area Initiative. The program focuses on four primary areas:\n(1) contract and grant fraud; (2) Environment, Safety, and Health (ES&H)\nviolations; (3) qui tam matters; and (4) technology crimes. Beginning in FY\n2003, the office\xe2\x80\x99s goal is to have 75 percent of open investigations address at\nleast one of the four program areas.\n\nContract and Grant Fraud. A majority of the Department\xe2\x80\x99s budget is\nexpended on contracts and grants. One major investigative success in this area\ninvolved a subcontractor paying the Government a total of $2.2 million to\nresolve allegations that employees submitted false per diem claims for long-\nterm temporary assignment to a Department facility. Given the continuing\npotential for significant fraud, in FY 2003, the Office of Investigations will\ncontinue to: (1) identify and pursue contract and grant fraud investigations\nproactively; (2) prioritize contract and grant fraud investigations, placing\nemphasis on cases with a potential high dollar recovery to the Department; (3)\nprovide fraud awareness briefings throughout the Department, including NNSA;\n(4) work with established contract and grant task forces, and identify\nopportunities to establish new task forces; (5) attend appropriate contract and\ngrant fraud training; (6) work with the Department of Justice in delivering anti-\n\n\n 38\n\x0ctrust briefings to the Department and its contractors; and (7) coordinate and\npursue leads referred by the OIG Offices of Audit Services and Inspections.\n\nEnvironment, Safety and Health Violations. The Department funds one of the\nlargest environmental cleanup projects in history. In FY 2002, one major ES&H\ninvestigation determined that a contractor improperly stored contaminated\nwaste in violation of the Resource Conservation and Recovery Act. During the\ncourse of the investigation the contractor\xe2\x80\x99s parent company paid $14.5 million\nin remediation and disposal cost to clean up waste stored improperly.\nAdditionally, the Office of Investigations continued its participation in\nenvironmental task forces located in multiple States, including New Mexico,\nNevada, Colorado, and Tennessee. The office also maintained its role in the\n\xe2\x80\x9cEnvironmental Consortium,\xe2\x80\x9d a multi-agency effort which serves to: (1)\nconduct a proactive review of the potential \xe2\x80\x9coverlapping\xe2\x80\x9d environmental\nprojects between agencies; (2) seek opportunities for information sharing and\nliaison; and (3) identify joint cooperative initiatives.\n\nIn FY 2003, the Office of Investigations will continue to: (1) work with\nestablished ES&H task forces, and identify opportunities to establish new task\nforces; (2) develop and maintain ES&H contacts in the Department, NNSA and\nother Government agencies; and (3) identify proactive investigative activity\nwith the assistance of environmental task force members\xe2\x80\x99 proactive\ninvestigative activity.\n\nQui Tams. The Office of Investigations continues to actively pursue qui tam\nmatters and, in the process, work closely with the Department of Justice, Civil\nDivision, Commercial Litigation Branch. Through the qui tam process, private\ncitizens may file a civil suit under the False Claims Act on behalf of the\nGovernment. These investigations have a major impact on the Department,\nand generally involve significant allegations of fraud involving millions of\ndollars and multiple Federal agencies. Settlement amounts are divided among\nthe Department of Justice, the U.S. Treasury, affected agencies, and the\ncomplainants. The office is currently working with the Department of Justice\non 27 qui tam lawsuits involving alleged fraud against the Government in the\namount of approximately $186 million.\n\nIn FY 2003, the Office of Investigations will continue to: (1) provide assistance\nto the Department of Justice in investigating and providing analysis of the qui\ntam cases; (2) adjust resources appropriately to ensure priority qui tam cases\nare being resolved in a timely manner; and (3) identify specific qui tam training\nfor Office of Investigations personnel.\n\nTechnology Crimes. A Technology Crimes Section within the Office of\nInvestigations is staffed by investigators with the specialized skills necessary to\nproactively and reactively respond to complex computer crimes committed\nagainst the Department and to provide computer forensic support during\n\n\n 39\n\x0cgeneral fraud investigations. This is essential because risks and vulnerabilities\n(i.e., fraud, employee misuse, virus attacks, security breaches, and computer\nsystems intrusions) are on the increase, and historic methodologies for\ncommitting crime, especially white-collar crime, have been successfully\nadapted to modern technology. The Technology Crimes Section worked\naggressively in FY 2002, and obtained several criminal convictions against\nindividuals who hacked into Department computer networks, as well as others\nwho used Government equipment to download and view child pornography.\n\nDuring FY 2003, the Technology Crimes Section will continue to:\n(1) proactively contribute to and support criminal investigations through\nconsultations and forensic media analysis; (2) investigate incidents of\ntechnology crimes and noncompliance with applicable regulations involving\nprotection of the information infrastructure throughout the Department\xe2\x80\x99s\ncomplexes; (3) clarify and extend the office\xe2\x80\x99s role in technology incident\nresponse and investigations in the Department; (4) refine and provide\ntechnology crimes awareness briefings throughout the Department complex;\nand (5) provide basic technology crimes training to Criminal Investigators.\n\nOther Initiatives\nIn addition to its work within the four program areas in FY 2003, the Office of\nInvestigations will, as resources allow, address other initiatives aimed at\nimproving operational effectiveness and efficiency.\n\nProactive Work\nDuring FY 2002, the Office of Investigations dedicated an increasing amount of\nattention and resources to proactive investigations rather than merely reacting\nto incoming allegations\xe2\x80\x94thus, enhancing the office\xe2\x80\x99s ability to target\nvulnerable areas. In FY 2003, the office will streamline and formalize its\nproactive case development process. In prior years, the process had been\neffective, but ad hoc. A more targeted approach will ensure an efficient and\neffective use of resources. Additionally, partnerships with other law\nenforcement agencies and Department managers and employees will be\nexpanded, and productive sources of information will be further cultivated.\nOne area that will continue to receive proactive attention is Government\npurchase cards that provide the Government with a means to simplify its small\npurchase procedures and improve its cash management. The Office of\nInvestigations obtained notable criminal convictions involving significant misuse\nand abuse of such cards. The office expects to continue to obtain such notable\ncriminal convictions as reflected in the FY 2002 performance results.\n\n\n\n\n 40\n\x0cQuality Assurance Reviews\nDuring FY 2002, the Internal Review Process was redesigned and renamed the\nQuality Assurance Review (QAR) program. The program is designed to evaluate\nwhether: (1) investigative offices are operating in compliance with the PCIE\nQuality Standards for Investigations, relevant Federal laws and regulations,\nDepartment and OIG directives and orders, and internal Office of Investigations\npolicies, objectives and priorities; and (2) field managers are administering\npersonnel, fiscal, and other resources in an efficient and effective manner.\n\nDuring FY 2003, the initial round of quality assurance reviews will be\ncompleted. In addition to providing assessments of organizational\nperformance, the process will also be used to identify opportunities to\nimprove, streamline, and reduce redundancies in office policies and programs.\n\nCase Opening Thresholds\nIn FY 2003, the Office of Investigations will continue to conduct reviews of its\nminimum case opening thresholds. Such reviews are an essential component of\nthe office\xe2\x80\x99s effort to focus on the Department\xe2\x80\x99s programs and operations most\nvulnerable to fraud, waste, and abuse. In 1996, the Office of Investigations\nestablished policy whereby dollar loss to the Government became one of the\nprimary criteria for committing resources to investigations. As in other years,\nthe Office of Investigations will reevaluate the dollar threshold and determine\nif investigative resources dictate the need to increase the minimum case\nopening dollar amount.\n\n\n\n OFFICE OF INSPECTIONS\n\nThe Office of Inspections employs a wide range of analytical techniques and\nmethodologies to perform multiple missions. The office conducts performance-\nand allegation-based inspections and manages the OIG Hotline and Management\nReferral Systems. Additionally, the office conducts special inquiries in\nresponse to concerns raised by Congress and senior levels of the Department\ninvolving Department programs and operations. The office serves as a key\nplayer in facilitating management reform in the Department by evaluating and\nproviding recommendations to improve program performance. Although the\noffice plans a portion of its annual inspection work, it exercises a degree of\nflexibility to promptly address non-criminal complaints and allegations received\nduring the course of the year. The office initiated an annual average of 14\nallegation-based inspections over the last 3 years.\n\n\n\n\n 41\n\x0cWhen planning its performance inspection work, the office identifies and\nprioritizes topics responsive to the President\xe2\x80\x99s Management Agenda, the\nSecretary\xe2\x80\x99s Priorities, and the Department\xe2\x80\x99s Management Challenges as\nidentified by the OIG. Inspections are initiated with consideration given to\ntheir significance and potential impact on Department programs and\noperations. In light of current heightened concerns over homeland security,\nthe office is focusing its resources to address critical safety and security issues\naffecting programs and operations throughout the Department complex. The\nfollowing represents open inspections that the office will carry into FY 2003\nand performance inspections that it plans to initiate.\n\nNational Security\nEighteen inspections will be carried into FY 2003 and 16 are planned that focus\non National Security. These include inspections of:\n\nCarry-In\n\n \xe2\x88\x92 Aircraft requirements for the Department\xe2\x80\x99s Joint Technical Operations\n Team mission. (S02IS040)\n\n \xe2\x88\x92 Internal control of firearms at selected Department sites. (S02IS039)\n\n \xe2\x88\x92 Internal controls over the use and inventory of laptop computers at\n selected Department sites. (S02IS038)\n\n \xe2\x88\x92 Security policies and procedures for the Department\xe2\x80\x99s aircraft.\n (S02IS036)\n\n \xe2\x88\x92 Security and inventory controls for hazardous/toxic chemicals at\n selected Department sites. (S02IS035)\n\n \xe2\x88\x92 Department participation in the international cooperative effort to\n study sabotage involving civil nuclear/radioactive material in storage\n and transit. (S02IS034)\n\n \xe2\x88\x92 Concern regarding a hazardous waste shipment. (S02IS031)\n\n \xe2\x88\x92 Use of memorandums of agreement for security and safety support at a\n selected Department site. (S02IS030)\n\n \xe2\x88\x92 Department policies and procedures for control and accountability of\n special nuclear material from foreign countries. (S02IS028)\n\n \xe2\x88\x92 Safety of explosives at selected Department sites. (S02IS001)\n\n\n 42\n\x0c \xe2\x88\x92 Security policies and procedures to protect spent nuclear fuel\n shipments during transport. (S02IS027)\n\n \xe2\x88\x92 Status of action to correct deficiencies identified during force-on-force\n exercises. (S02IS021)\n\n \xe2\x88\x92 Nuclear waste security at a selected Department site. (S02IS017)\n\n \xe2\x88\x92 Followup on safeguards and security survey activity at a Department\n site. (S02IS013)\n\n \xe2\x88\x92 Security of explosives while in storage or in transit. (S02IS012)\n\n \xe2\x88\x92 Security of key assets while in transport. (S02IS005)\n\n \xe2\x88\x92 Management of the Department-sponsored visa program. (S02IS037)\n\n \xe2\x88\x92 Intelligence oversight (fourth quarter) as required by Executive Order\n 12863, \xe2\x80\x9cPresident\xe2\x80\x99s Foreign Intelligence Advisory Board,\xe2\x80\x9d with a report\n to the President\xe2\x80\x99s Intelligence Oversight Board. (S02IS041)\n\nPlanned\n\n \xe2\x88\x92 The Department\xe2\x80\x99s role in analyzing the cumulative effect of the export\n of dual-use and munitions commodities.\n\n \xe2\x88\x92 Physical security of bioagents at Department facilities.\n\n \xe2\x88\x92 Aviation support to Department programs and operations.\n\n \xe2\x88\x92 Sensitive information on Department websites.\n\n \xe2\x88\x92 Status of recommendations made in prior export control-related\n reports.\n\n \xe2\x88\x92 Personnel reliability program at selected Department sites.\n\n \xe2\x88\x92 Role of the Office of Counterintelligence in the Department\xe2\x80\x99s counter-\n terrorism efforts.\n\n \xe2\x88\x92 Compliance with intelligence requirements at a selected field site.\n\n \xe2\x88\x92 Demilitarization of excess military equipment.\n\n \xe2\x88\x92 Oversight of shock sensitive chemicals at a selected Department site.\n\n\n 43\n\x0c \xe2\x88\x92 Handling of export controlled information associated with grants to\n academic institutions and work-for-others contracts with non-\n Government entities at a selected Department site.\n\n \xe2\x88\x92 Use of emergency medical coordination memorandums of agreement at\n a selected Department facility.\n\n \xe2\x88\x92 Intelligence activities, as required by Executive Order 12333, \xe2\x80\x9cUnited\n States Intelligence Activities,\xe2\x80\x9d and Executive Order 12863, \xe2\x80\x9cPresident\xe2\x80\x99s\n Foreign Intelligence Advisory Board\xe2\x80\x9d (quarterly reviews, with reports\n to the President\xe2\x80\x99s Intelligence Oversight Board).\n\nEnvironmental Quality\nThe following two inspections focusing on Environmental Quality will be carried\ninto FY 2003:\n\nCarry-In\n\n \xe2\x88\x92 Reportable incident reports at a Department laboratory. (S01IS022)\n\n \xe2\x88\x92 Applicability and implementation of Price Anderson Act and\n Department nuclear safety rules at a Department site. (S01IS030)\n\nEnergy and Science\nThe following inspection focusing on Energy and Science will be carried into\nFY 2003:\n\nCarry-In\n\n \xe2\x88\x92 The Department\xe2\x80\x99s efforts to reduce energy consumption to meet\n prescribed energy levels. (S01IS016)\n\n\n\n\n 44\n\x0cCorporate Management\nSix inspections will be carried into FY 2003 that focus on Corporate\nManagement, and two inspections are planned in this area. These include\ninspections of:\n\nCarry-In\n\n \xe2\x88\x92 Grants awarded to the States of South Carolina and Georgia for\n emergency response and law enforcement related activities.\n (S02IS026)\n\n \xe2\x88\x92 Possible unauthorized use of discretionary funds and over-payment of\n funds to a contractor for leased space. (S02IS015)\n\n \xe2\x88\x92 Alleged procurement irregularities involving a Department office.\n (S02IS003)\n\n \xe2\x88\x92 Procurement concerns in connection with a Department solicitation.\n (S01IS034)\n\n \xe2\x88\x92 Concerns involving assignment of tasks for site upgrade at a\n Department National Laboratory. (S01IS032)\n\n \xe2\x88\x92 Remarketing concerns. (S02IS029)\n\nPlanned\n\n \xe2\x88\x92 Objective merit review and evaluation of grants and cooperative\n agreements at a selected Department site.\n\n \xe2\x88\x92 Disposition of property, equipment, and chemicals at a selected\n Department site.\n\n\n\n OFFICE OF PROGRAM\n REVIEW AND SPECIAL\n INQUIRIES\n\nIn May 2002, the Inspector General established the Office of Program Review\nand Special Inquiries to perform special, expedited reviews or inquiries\nconcerning high profile or particularly sensitive matters. The newly formed\n\n\n\n 45\n\x0coffice employs an inter-disciplinary staff whose major initiatives include\nperforming such expedited fact-finding inquiries, including particularly\nsensitive NNSA matters, as well as proactive reviews of major program areas.\nThe office\xe2\x80\x99s efforts are initiated based on requests from Congress, the\nSecretary or other senior Department officials, the Inspector General or the\nPrincipal Deputy Inspector General.\n\nEarly in FY 2003, the Office of Program Review and Special Inquiries initiated a\nmajor fact-finding inquiry, requested by the Acting NNSA Administrator, into\nallegations of integrity concerns involving the management of the Los Alamos\nNational Laboratory and its handling of instances of waste, fraud, or abuse.\nThis effort is expected to consume a substantial portion of resources. During\nFY 2003, the Office of Program Review and Special Inquiries also intends to\ncontinue developing proactive initiatives in the areas of purchase cards and\ngrants, and to continue to be responsive to congressional, Secretarial, as well\nas other special expedited reviews and inquiries.\n\n\n\n\n 46\n\x0c FY 2003 Performance Plan\n Schedule\nOffice of Audit Services\nAUDIT\nNUMBER TITLE\n\n Fiscal Year 2003 Performance Carry-in Audits\n\nA02AL035 PLANNING AND BUDGETING FOR NNSA\xe2\x80\x99S INFRASTRUCTURE\nA02AL036 REPAIRS IDENTIFIED BY STOCKPILE SURVEILLANCE PROGRAM\nA02AL048 NNSA\xe2\x80\x99S PLANNING, PROGRAMMING AND BUDGETING SYSTEM PROCESS\nA02AT012 WIRELESS COMMUNICATIONS\nA02AT015 FOLLOWUP AUDIT OF INTERNET PRIVACY\nA02CF008 DOE\xe2\x80\x99S SAFETY ANALYSIS REQUIREMENTS\nA02CF038 NUCLEAR FACILITIES\nA02CG004 SCIENCE INFRASTRUCTURE\nA02CG022 CLEARANCES AND BADGE ACCESS CONTROLS AT SELECTED FIELD LOCATIONS\nA02CG029 FOLLOWUP AUDIT OF DOE\xe2\x80\x99S MANAGEMENT OF FIELD CONTRACTOR EMPLOYEES\n ASSIGNED TO HEADQUARTERS AND OTHER FEDERAL AGENCIES\nA02CG030 DOE\xe2\x80\x99S CONTROLS OVER FOREIGN VISITORS\nA02CG032 PROJECT MANAGEMENT PRACTICES IN THE OFFICE OF SCIENCE\nA02CH001 REMOTE TREATMENT FACILITY AT ARGONNE-WEST\nA02CH002 INITIATIVES FOR NUCLEAR NONPROLIFERATION\nA02DN028 PROCUREMENT AT ROCKY FLATS\nA02EM039 BERYLLIUM METAL INVENTORIES\nA02EM041 CALUTRON ISOTOPE PRODUCTION\nA02EM044 BERYLLIUM OPERATIONS AT Y-12\nA02IF010 DISPOSAL OF REMOTE HANDLED TRANSURANIC WASTE\nA02IF011 DOE\xe2\x80\x99S SPENT NUCLEAR FUEL LEAD LABORATORY\nA02IF013 IDAHO SETTLEMENT AGREEMENT MILESTONES AT INEEL\nA02IF032 PERFORMANCE EVALUATION MANAGEMENT PLAN AT INEEL\nA02LA021 DUAL AXIS RADIOGRAPHIC HYDRODYNAMIC FACILITY\nA02LL018 NATIONAL IGNITION FACILITY PROJECT\n\n\n\n 47\n\x0cA02LL019 LIVERMORE\xe2\x80\x99S RECRUITMENT AND RETENTION PROGRAM\nA02LL037 W80 REFURBISHMENT\nA02LV043 DISPOSAL OF SURPLUS/EXCESS PERSONAL PROPERTY AT THE NEVADA TEST SITE\nA02LV047 LOCAL GOVERNMENT USE OF NUCLEAR FUNDS\nA02OR007 DOMESTIC PLUTONIUM-238 PRODUCTION\nA02OR029 REINDUSTRIALIZATION AT THE EAST TENNESSEE TECHNOLOGY PARK (ETTP)\nA02OR030 TREATMENT OF MIXED INCINERABLE WASTE\nA02OR033 DOE\xe2\x80\x99S AGREEMENT FOR UTILITY SERVICES AT THE ETTP\nA02PR010 WEATHERIZATION ASSISTANCE PROGRAM\nA02PT027 SECURITY FORCE ADMINISTRATION\nA02PT033 ADMINISTRATION OF FINANCIAL INSTRUMENTS AT NATIONAL LABORATORIES\nA02PT034 RESEARCH AND DEVELOPMENT INVESTMENT CRITERIA FOR FOSSIL ENERGY\n PROGRAM\nA02RL022 PLANNED WASTE CHARACTERIZATION\nA02RL024 FACILITY MAINTENANCE ACTIVITIES\nA02SR013 SUBCONTRACTING PRACTICES AT SAVANNAH RIVER\nA02SR031 WASTE PROCESSING FACILITY AT SAVANNAH RIVER\n\n\n GMRA Fiscal Year 2003-Carry-in Audits\n\nA01DN040 WESTERN AREA POWER ADMINISTRATION \xe2\x80\x93 FY 2001\nA02FN001 DOE \xe2\x80\x93 FY 2002\nA02FN002 ISOTOPE PRODUCTION DISTRIBUTION \xe2\x80\x93 FY 2002\nA02FN003 DECOMMISSIONING AND DECONTAMINATION \xe2\x80\x93 FY 2002\nA02FN004 FEDERAL ENERGY REGULATORY COMMISSION \xe2\x80\x93 FY 2002\nA02FN008 WESTERN AREA POWER ADMINISTRATION - FY 2002\n\n\n Other Fiscal Year 2003 Financial Carry-in Audits\n\nA02CH015 ARGONNE NATIONAL LABORATORY FY 2001 FINANCIAL CERTIFICATION\nA02DN027 NREL FY 1999-2001 FINANCIAL CERTIFICATION\nA02LA045 COMMISSIONING LOS ALAMOS LABORATORY'S DUAL AXIS RADIOGPAPHIC\n HYDROTEST FACILITY\nA02LV029 BECHTEL NEVADA FY 2001 FINANCIAL CERTIFICATION\nA02PRO24 NASA CONTRACT WITH PRINCETON\nA02RL032 BATELLE MEMORIAL FY 2001 FINANCIAL CERTIFICATION\nA02SR020 WESTINGHOUSE SAVANNAH RIVER SITE FY 2001 FINANCIAL CERTIFICATION\n\n\n\n\n 48\n\x0c Planned Fiscal Year 2003 Performance Audits\n\n\nA03AL001 INTERNATIONAL MATERIALS PROTECTION, CONTROL & ACCOUNTING PROGRAM\nA03AL002 DISPOSITION OF SURPLUS HIGHLY ENRICHED URANIUM\nA03AL003 SAFEGUARDS OF NUCLEAR/SENSITIVE TECHNOLOGIES IN THE TECHNOLOGY\n TRANSFER PROGRAM\nA03AL004 NNSA\xe2\x80\x99S CURRENT AND PLANNED LINE ITEM PROJECTS\nA03AL036 CONTROLS OVER EXPENDITURES WITHIN THE OFFICE OF TRANSPORTATION\n SAFEGUARDS\nA03CH001 CONTROLS OVER RECURRING ACQUISITIONS\nA03CH002 DUPLICATE FUNDING OF SMALL BUSINESS INNOVATIVE RESEARCH PROJECTS\nA03CH003 THE DEPARTMENT\xe2\x80\x99S TRANSPORTATION PROGRAM\nA03DC005 CHEMICAL AND BIOLOGICAL NATIONAL SECURITY DOMESTIC DEMONSTRATION\n AND APPLICATIONS PROGRAMS\nA03DC006 NUCLEAR WEAPONS INCIDENT RESPONSE PROGRAM\nA03DC007 MATERIAL RECYCLE AND RECOVERY PROGRAM\nA03DC008 NUCLEAR SURVIVABILITY OF THE ENDURING STOCKPILE\nA03DC009 ENHANCED SURVEILLANCE PROGRAM\nA03DC010 TIMELY RESOLUTION OF SAFETY DEFICIENCIES\nA03DC011 DISPOSAL OF UNNEEDED WEAPONS PARTS\nA03DN001 DELIVERY OF GOVERNMENT-FURNISHED SERVICES AND ITEMS IN SUPPORT OF\n SITE CLOSURE\nA03DN002 DOE\xe2\x80\x99S IMPLEMENTATION OF GOVERNMENT OUTSOURCING INITIATIVES\nA03DN003 WESTERN AREA POWER ADMINISTRATION\xe2\x80\x99S PATH 15 PROJECT\nA03DN004 POWER MARKETING ADMINISTRATION INFRASTRUCTURE PROTECTION\nA03DN005 POST-CLOSURE RESPONSIBILITIES AT ROCKY FLATS\nA03DN032 RETENTION ALLOWANCES AT ROCKY FLATS OFFICE\nA03FF004 POWER MARKETING ADMINISTRATION INVESTMENT ACTIVITIES\nA03FF005 FOLLOWUP AUDIT OF GROUNDWATER MONITORING ACTIVITIES AT DOE\nA03ID030 FUNDING FOR MISSION DEVELOPMENT ACTIVITIES AT INEEL\nA03IF006 ADVANCED MIXED WASTE TREATMENT PROJECT AT INEEL\nA03IF008 HUMAN RESOURCE MANAGEMENT AT INEEL\nA03IF009 REVISED PIT 9 CLEANUP PLAN AT INEEL\nA03LA012 CONTAINMENT VESSELS\nA03LAO13 NUCLEAR MATERIALS STABILIZATION PROGRAM\nA03LA014 HYDROTEST PROGRAM\nA03LA015 DEFENSE TECHNOLOGIES\nA03LA016 RECRUITMENT AND RETENTION PROGRAM AT LANL\n\n\n\n 49\n\x0cA03LL017 NONPROLIFERATION TECHNOLOGY IMPLEMENTATION\nA03LL018 RUSSIAN PLUTONIUM PLANT CONVERSION\nA03LL019 UPGRADE OF THE STANFORD SYNCHROTRON RADIOLOGICAL LAB\nA03LL020 USE OF FACILITIES AND INFRASTRUCTURE AT LIVERMORE\nA03LL021 CONSOLIDATION OF HYDRODYNAMIC TEST INFRASTRUCTURE\nA03LL022 STOCKPILE LIFE EXTENSION PROGRAM\nA03LV023 TOTAL SYSTEM LIFE CYCLE COSTS FOR SPENT NUCLEAR FUEL AND HIGH LEVEL\n WASTE\nA03LV024 EXECUTION OF ROUTINE OPERATIONS AT THE NEVADA TEST SITE\nA03LV025 TRANSPORTATION NEEDS WITHIN THE STATE OF NEVADA\nA03NE007 FERC\xe2\x80\x99S FORMULATION AND MONITORING OF REGIONAL TRANSMISSION\n ORGANIZATIONS\nA03NE008 ISOTOPE PRODUCTION AND DISTRIBUTION PROGRAM\nA03NE009 SAFEGUARDS AND SECURITY FUNDING AT DOE FIELD SITES\nA03OR010 COLD STANDBY PROGRAM AT THE PORTSMOUTH GASEOUS DIFFUSION PLANT\nA03OR011 COST SHARING AT THE WEST CHICAGO THORIUM PROCESSING FACILITY\nA03OR012 ENVIRONMENTAL MANAGEMENT CLEANUP REFORM APPROPRIATION\nA03OR013 REMEDIATION OF THE WASTE SILOS AND PITS AT FEMP\nA03OR014 WASTE MANAGEMENT AT THE OAK RIDGE RESERVATION\nA03PR010 NON-FEDERAL WORK AT SCIENCE LABORATORIES\nA03PR011 CONSORTIUM BUYING BY DEPARTMENT CONTRACTORS\nA03PR012 SCIENCE PROJECT COSTING PRACTICES\nA03PR013 DISTRIBUTED ENERGY RESOURCES PROGRAM\nA03PT014 DOE\xe2\x80\x99S CARBON SEQUESTRATION PROGRAM\nAO3PT015 DOE\xe2\x80\x99S RECRUITMENT AND RETENTION EFFORTS\nAO3RL015 PLUTONIUM FINISHING PLANT AT HANFORD\nAO3RL016 GROUNDWATER/VADOSE ZONE INTEGRATION PROJECT AT HANFORD\nA03RL017 WASTE RECEIVING AND PROCESSING FACILITY AT HANFORD\nA03RL018 PLANNING FOR THE WASTE TREATMENT PLANT AT HANFORD\nA03SC016 MANAGEMENT OF DIRECTED PROJECTS\nA03SC017 OFFICE OF SCIENCE PERFORMANCE MEASURES\nA03SC018 OFFICE OF SCIENCE GRANTS ADMINISTRATION\nA03SC019 DOE'S NANOSCALE SCIENCE RESEARCH CENTERS\nA03SR019 SAVANNAH RIVER SITE MEDICAL SERVICES\nA03SR020 PERFORMANCE BASED INCENTIVES AT WESTINGHOUSE SAVANNAH RIVER\nA03SR021 PIT DISASSEMBLY AND CONVERSION FACILITY AT SAVANNAH RIVER\nA03SR022 REQUIREMENTS FOR TRITIUM\nA03SR031 FOREIGN RESEARCH REACTOR SPENT NUCLEAR FUEL PROGRAM\n\n\n\n 50\n\x0cA03TG020 DOE\xe2\x80\x99S ELECTRONIC COMMERCE STRATEGIES\nA03TG023 CRITICAL ENERGY INFRASTRUCTURE PROTECTION\nA03TG031 DOE\xe2\x80\x99S UNCLASSIFIED INFORMATION SYSTEMS\nA03TG032 DOE\xe2\x80\x99S CLASSIFIED INFORMATION SYSTEMS\nA03TG033 INTELLIGENCE COMMUNITY INFORMATION SYSTEMS\nA03TG034 FERC INFORMATION SYSTEMS\nA03TG035 DOE\xe2\x80\x99S INTEGRATED SECURITY SYSTEM\nA03TG036 IMPLEMENTATION OF THE INDICATIONS, WARNING, ANALYSIS AND REPORTING\n CAPABILITY\nA03TG037 SENSITIVE EQUIPMENT ACCOUNTABILITY\nA03YT026 RECONFIGURATION OF THE KANSAS CITY PLANT\nA03YT027 ENRICHED URANIUM OPERATIONS\nA03YT028 HIGHLY ENRICHED URANIUM MATERIALS STORAGE PROJECT AT Y-12\n\n\n\n Planned Fiscal Year 2003 GMRA Audits\n\nA03FN001 DOE \xe2\x80\x93 FY 2003\nA03FN002 ISOTOPE PRODUCTION DISTRIBUTION \xe2\x80\x93 FY 2003\nA03FN003 DECOMMISSIONING AND DECONTAMINATION \xe2\x80\x93 FY 2003\nA03FN004 FEDERAL ENERGY REGULATORY COMMISSION \xe2\x80\x93 FY 2003\nA03FN005 WESTERN AREA POWER ADMINISTRATION \xe2\x80\x93 FY 2003\n\n\n Other Planned Fiscal Year 2003 Financial Audits\nA03AL029 LOCKHEED MARTIN SANDIA CORP FY 2002 FINANCIAL CERTIFICATION\nA03AL030 HONEYWELL FY 2002 FINANCIAL CERTIFICATION\nA03DN023 MIDWEST RESEARCH FY 2002 FINANCIAL CERTIFICATION\nA03FF024 ARGONNE NATIONAL LAB FY 2002 FINANCIAL CERTIFICATION\nA03FF025 AMES FY 2002 FINANCIAL CERTIFICATION\nA03IF0124 BECHTEL BWXT IDAHO FY 2002 FINANCIAL CERTIFICATION\nA03FF006 WORKING CAPITAL FUND\nA03FF007 FMFIA FY 2002\nA03FF026 STRATEGIC PETROLEUM RESERVE FY 2002 FINANCIAL CERTIFICATION\nA03LA031 LOS ALAMOS NATIONAL LABORATORY FY 2002 FINANCIAL CERTIFICATION\nA03LL032 LAWRENCE LIVERMORE NATIONAL LABORATORY FY 2002 FINANCIAL\n CERTIFICATION\n\nA03LL033 ROCKET DYNE FY 2002 FINANCIAL CERTIFICATION\n\n\n\n 51\n\x0cA03OR025 UT-BATTELLE FY 2002 FINANCIAL CERTIFICATION\nA03OR026 OAK RIDGE ASSOCIATED UNIVERSITY FY 2002 FINANCIAL CERTIFICATION\nA03OR027 BECHTEL JACOBS FY 2002 FINANCIAL CERTIFICATION\nA03RL028 BATTELLE MEMORIAL FY 2002 FINANCIAL CERTIFICATION\nA03SR029 WESTINGHOUSE SRS FY 2002 FINANCIAL CERTIFICATION\nA03YT035 BWXT Y-12 FY 2002 FINANCIAL CERTIFICATION\n\n\nOffice of Inspections\n\nNational Security\nINSPECTION TITLE\nNUMBER\n\n Carry-In\nS02IS041 FY 2002 FOURTH QUARTER INTELLIGENCE OVERSIGHT\nS02IS040 DOE AIRCRAFT SUPPORT OF THE JOINT TECHNICAL OPERATIONS TEAM\nS02IS039 FIREARMS INTERNAL CONTROLS\nS02IS038 LAPTOP COMPUTER INTERNAL CONTROLS\nS02IS037 DEPARTMENT\xe2\x80\x99S VISA PROGRAM\nS02IS036 DOE AIRCRAFT SECURITY\nS02IS035 HAZARDOUS/TOXIC CHEMICAL SECURITY\nS02IS034 REVIEW OF INTERNATIONAL MEMORANDUM OF UNDERSTANDING\nS02IS031 SECURITY ISSUES\nS02IS030 MEMORANDUMS OF AGREEMENT AT A SELECTED DOE SITE\nS02IS028 SPECIAL NUCLEAR MATERIALS RECEIVED FROM FOREIGN COUNTRIES\nS02IS027 SECURITY OF SPECIAL NUCLEAR FUELS SHIPMENTS\nS02IS021 FORCE-ON-FORCE RECOMMENDATIONS\nS02IS017 REVIEW OF NUCLEAR WASTE SECURITY\nS02IS013 SAFEGUARDS AND SECURITY SURVEY\nS02IS012 EXPLOSIVES TRANSPORTATION AND SECURITY\nS02IS005 TRANSPORTATION SECURITY\nS02IS001 EXPLOSIVES SAFETY\n\n\n\n Planned\n REVIEW OF EXPORT OF MILITARY SENSITIVE TECHNOLOGIES\n PHYSICAL SECURITY REQUIREMENTS OF BIOAGENTS\n\n\n 52\n\x0c DEPARTMENT AVIATION SUPPORT\n SENSITIVE INFORMATION ON DEPARTMENT WEBSITES\n FOLLOW-UP ON PRIOR EXPORT CONTROL RECOMMENDATIONS\n PERSONNEL RELIABILITY PROGRAM AT SELECTED DOE SITES\n ROLE OF COUNTERINTELLIGENCE IN DOE\xe2\x80\x99S COUNTERTERRORISM EFFORTS\n COMPLIANCE WITH INTELLIGENCE REQUIREMENTS AT A SELECTED FIELD SITE\n DEMILITARIZATION OF EXCESS MILITARY EQUIPMENT\n OVERSIGHT OF SHOCK SENSITIVE CHEMICALS AT SELECTED DOE SITE\n EXPORT CONTROL OF SENSITIVE INFORMATION ON GRANTS/WORK-FOR-OTHERS\n MEMORANDUMS OF AGREEMENT AT A SELECTED SITE\n FY 2003 FIRST QUARTER INTELLIGENCE OVERSIGHT REVIEW\n FY 2003 SECOND QUARTER INTELLIGENCE OVERSIGHT REVIEW\n FY 2003 THIRD QUARTER INTELLIGENCE OVERSIGHT REVIEW\n FY 2003 FOURTH QUARTER INTELLIGENCE OVERSIGHT REVIEW\n\n\n\n Corporate Management\n\nINSPECTION TITLE\nNUMBER\n\n Carry-In\nS02IS026 EMERGENCY RESPONSE AND LAW ENFORCEMENT-RELATED GRANTS\nS02IS015 FUNDING AND LEASING ISSUES\nS02IS003 PROCUREMENT ISSUES\nS01IS034 TRANSPORTATION PROCUREMENT\nS01IS032 DIRECTING OF SUBCONTRACT TASKS\nS02IS029 REMARKETING CONCERNS\n\n Planned\n EVALUATION OF GRANTS AND COOPERATIVE AGREEMENTS AT SELECTED DOE\n SITE\n\n DISPOSITION OF ASSETS AT SELECTED DOE SITE\n\n\n\n\n 53\n\x0cEnvironmental Quality\nINSPECTION TITLE\nNUMBER\n\n Carry-In\nS01IS022 REPORTABLE INCIDENT REPORTS\nS01IS030 NUCLEAR SAFETY RULES\n\n\nEnergy and Science\nINSPECTION TITLE\nNUMBER\n\n Carry-In\nS01IS016 IN-HOUSE ENERGY MANAGEMENT\n\n\n\n\n 54\n\x0c Appendix A\n\n\n\n\n Validation and Verification\n\nThe chart below represents how the OIG validates and verifies its performance\nactivities.\n\n\n Data Sources: OIG Semiannual and Quarterly Reports\n to Congress; Inspector General Act of\n 1978, as amended; Government\n Management Reform Act; Government\n Performance and Results Act;\n Government Information Security\n Reform Act; False Claims Act;\n Executive Order 12863, \xe2\x80\x9cPresident\xe2\x80\x99s\n Foreign Intelligence Advisory Board\n Frequency: Annually/Semiannually/Quarterly\n Data Storage: OIG Energy Inspector General Project\n Tracking System\n Verification: OIG policies and procedures; Yellow\n Book Standards; PCIE Quality\n Standards for Investigations and\n Inspections; and internal and external\n peer reviews.\n\n\n\n\n 55\n\x0c Appendix B\n\n\n\n\n Cross-Cutting Program Activities\n\nIn performing its mission, the OIG undertakes many of its activities with other\nexternal organizations to achieve a common goal. Such organizations include:\n\n \xe2\x88\x92 Federal prosecutors in the Department of Justice and United States\n Attorneys Offices throughout the country;\n \xe2\x88\x92 The Defense Contract Audit Agency;\n \xe2\x88\x92 The General Accounting Office;\n \xe2\x88\x92 Other law enforcement agencies on task force/joint agency\n investigations;\n \xe2\x88\x92 State and local prosecutors;\n \xe2\x88\x92 Other Federal agency OIGs for mandated export control reviews;\n \xe2\x88\x92 The Intelligence Oversight Board on intelligence matters concerning\n violations of law, Executive order, Presidential directive, or\n Department Intelligence Procedures;\n \xe2\x88\x92 Intelligence community OIGs for interagency reviews of intelligence\n issues; and\n \xe2\x88\x92 The PCIE and its committees.\n\n\n\n\n 56\n\x0c"