IGs warn of potential threats to all inspectors general

Inspectors general from 47 agencies are backing three fellow auditors from the Justice Department, the Environmental Protection Agency and the Peace Corps over what they say are limits on access to information put on them by agency senior officials.

In a letter to the leaders of the House Oversight and Government Reform Committee and the Senate Homeland Security and Governmental Affairs Committee, the IGs say auditors from those three agencies recently faced restrictions on their access to certain records.

"In each of these instances, we understand that lawyers in these agencies construed other statutes and law applicable to privilege in a manner that would override the express authorization contained in the IG Act," the IGs wrote. "These restrictive readings of the IG Act represent potentially serious challenges to the authority of every Inspector General and our ability to conduct our work thoroughly, independently, and in a timely manner."

In the letter to the oversight committees, the IGs detail their concerns for each of the three agencies.

The IGs asked for members of Congress to provide a strong reaffirmation of the powers granted them under the IG Act.

Sen. Charles Grassley (R-Iowa) released the letter as part of his long-standing support of IG independence.

Congress has sought to empower IGs even more over the last few years. Sen. Claire McCaskill (D-Mo.) is drafting a bill to give small agency auditors more power.

At a hearing January before the House Oversight and Government Reform Committee, three agency IGs &mash; Justice, Peace Corps and the Small Business Administration — told lawmakers that slashed budgets and dwindling staff sizes are hindering their ability to conduct robust oversight.

Additionally, the Council of the Inspectors General on Integrity and Efficiency (CIGIE) wants Congress to give IGs more authority to use computer matching programs to root out waste, fraud and abuse.

IGs as a group last received a boost in 2008 when Congress passed and then- President George W. Bush signed into law the Inspectors General Reform Act.

-Jason Miller, FederalNewsRadio.com
READ MORE...

FederalNewsRadio - Ask the CFO - Thomas Bellamy (PC)

U.S. Peace Corps

Thomas Bellamy - Deputy Chief Financial Officer

An unqualified audit opinion with no material weaknesses for FY 2007 certainly is reason to celebrate at the Peace Corps. Bellamy says what makes the achievement even more gratifying is that it came sooner than expected. Still, he says it was not easy. Getting the unqualified opinion required the financial managers to work ever more closely with posts across the world to ensure they had the necessary documentation as well as the right amount of flexibility so that funds did not go unused. Bellamy says the process also benefited from strong leadership at all levels, a focus on fiscal responsibility through strong customer service and a solid relationship with the Peace Corps Inspector General.

Listen Here

Commentary: Peace Corps overcomes unique challenges

The Peace Corps is an exceptional federal agency, both in its unique mission and organizational structure. Since its creation in 1961 by President Kennedy, the agency has sent more than 190,000 Americans to serve other nations. In October, the agency reached a 37-year high in the number of volunteers. More good news followed in November as external auditors rendered an unqualified opinion — a clean audit — on the agency’s financial statements for fiscal 2007.

In 2002, Congress passed the Accountability of Tax Dollars Act placing a new audit requirement on several agencies. As a result, the Peace Corps’ financial statements and practices have been subject to annual audits since 2003 by an independent external auditor. The audits are similar to the highly detailed reviews and internal control compliance imposed on private-sector organizations under the Sarbanes-Oxley Act. In 2003, Peace Corps finances were so complex that the agency was unable to even produce financial statements let alone be audited.

Leadership and support from the top, including the personal support of Peace Corps Director Ronald Tschetter, were critical to getting the agency engaged in business changes required under the new statutory mandates. Tschetter, who comes from the financial services industry, has consistently espoused the agency’s fiscal responsibility as a top management priority.

Our unqualified opinion, with no material weaknesses noted, comes after major resource management changes. The Office of the Chief Financial Officer was reorganized functionally, with standard positions, to more closely reflect private-sector practices and ease personnel transition under the five-year rule. A global financial management system, fully integrating financial procedures from purchase requisition to payment, was developed, implemented and certified, connecting internal staff throughout the world, and automating transactions with business partners.

Budget, financial and accounting procedures were modified, streamlined and re-engineered. Updated procedures and policies were documented to ensure standardization of the hundreds of thousands of annual transactions throughout the organization. Governance boards were initiated to include a senior assessment team to review and monitor business risks and internal controls.

Financial staff working collaboratively to review updated procedures with the external and inspector general auditors was also a key to success. Great credit is due to Peace Corps’ finance and administrative staff worldwide who completely redefined their business practices. Through their hard work and long hours, they embraced our internal changes and greatly contributed to this financial success.

- George Schutter, chief financial officer of the Peace Corps, FederalTimes.com

READ MORE...

FederalNewsRadio - Ask the CFO - Thomas Bellamy (PC)

US Peace Corps

Thomas Bellamy - Deputy Chief Financial Officer

An unqualified audit opinion with no material weaknesses for FY 2007 certainly is reason to celebrate at the Peace Corps. Bellamy says what makes the achievement even more gratifying is that it came sooner than expected. Still, he says it was not easy. Getting the unqualified opinion required the financial managers to work ever more closely with posts across the world to ensure they had the necessary documentation as well as the right amount of flexibility so that funds did not go unused. Bellamy says the process also benefited from strong leadership at all levels, a focus on fiscal responsibility through strong customer service and a solid relationship with the Peace Corps Inspector General.

Listen Here

FederalNewsRadio - Ask the CFO - George Schutter (PC)

US Peace Corps

George Schutter - Chief Financial Officer

Keeping the books can be a challenge when you are in 73 countries at once. Schutter says having an integrated planning and budgeting system in place makes all the difference in the world. He says the Peace Corps system has matured to the point where financial information can be seen almost in real-time, making it easier to adjust on the fly. An added benefit is that the system has allowed the Peace Corps to make financial accountability part of the mission, from IT folks at headquarters to posts half a world away. As a result, Schutter says after years of audit disclaimers and a qualified audit opinion last year, the Peace Corps is set to go after its first unqualified audit opinion. Another key challenge at the Peace Corps -- finding the best way to measure results. It's one thing to measure "output" from the efforts of the Peace Corps and its volunteers. It's another to measure the impact on the communities that have been helped.

Listen Here

FederalNewsRadio - Ask the CFO - George Schutter (PC)

US Peace Corps

George Schutter - Chief Financial Officer

Keeping the books can be a challenge when you are in 73 countries at once. Schutter says having an integrated planning and budgeting system in place makes all the difference in the world. He says the Peace Corps system has matured to the point where financial information can be seen almost in real-time, making it easier to adjust on the fly. An added benefit is that the system has allowed the Peace Corps to make financial accountability part of the mission, from IT folks at headquarters to posts half a world away. As a result, Schutter says after years of audit disclaimers and a qualified audit opinion last year, the Peace Corps is set to go after its first unqualified audit opinion. Another key challenge at the Peace Corps -- finding the best way to measure results. It's one thing to measure "output" from the efforts of the Peace Corps and its volunteers. It's another to measure the impact on the communities that have been helped.

Listen Here

FederalNewsRadio - Ask the CFO - George Schutter III (Peace Corps)

George Schutter was appointed Chief Financial Officer of the Peace Corps in June of 2005. In this position, Mr. Schutter is responsible for directing and managing the agency's financial operations as well as developing and monitoring sound financial policy for Peace Corps globally. Peace Corps' financial operations include the internal budget processes, managing agency financial systems, performance reporting, international cash management, fiscal compliance, and accounting operations. He also organizes the development of the Peace Corps' budget requests to Congress.

Listen with Windows Media Player