The IG s Role in Promoting Ethics in Government John A. Carey INSPECTOR GENERAL

Transcription

1 ENHANCING PUBLIC TRUST IN GOVERNMENT The IG s Role in Promoting Ethics in Government John A. Carey INSPECTOR GENERAL

2 History of U.S. Inspectors General. The Palm Beach County Office of Inspector General. The IG s Contributions Related to the Value of Compliance and Ethics in Government.

3 What are Inspectors General? Why do we need Inspectors General? How can management, government employees, vendors, and citizens work together with Inspectors General?

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5 Where did this thing called Inspector General come from? Is this another new great idea some think tank or the bureaucracy created? 5

6 1777 George Washington, commander of the Continental Army, establishes the position of Inspector General. IG would promote standardization, efficiency, and effectiveness in the Army. 6

7 The first IG was much like our IGs today: Independent, objective fact-finder. Promoting efficiency, effectiveness, and integrity. 7

8 Political climate of late 1970s. Serious fraud, waste, and abuse at large Federal agencies. Congress felt that broad reform was needed to root out fraud, waste, and abuse government-wide. Answer to this problem was the Inspector General Act. 8

9 200 years after the first IG was appointed, the IG Act created statutory and independent IGs. Reporting to both their establishment heads and to Congress with unique authorities and responsibilities to: 1. Promote efficiency and effectiveness. 2. Prevent and detect fraud, waste, and abuse. 9

10 In the 1970s, state, county, and municipal OIGs followed suit based on the federal model. Currently, in the US there are approximately 35 state IGs, as well as, numerous county and municipal IGs. The Association of IGs was created to establish core/consistent IG standards based on strict federal standards.

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12 Palm Beach County Ethics Movement : Arrests/Prosecutions of high level County and City officials. 2009: State Attorney convenes a Grand Jury. December 2009: County Code of Ethics, Commission on Ethics, and the Office of Inspector General created.

13 The Creation of the Palm Beach County IG November 2010, by over a 72% majority, the people of Palm Beach County voted to expand the IG s jurisdiction over all 38 municipalities. The Palm Beach County IG is unique in that this is the only IG that reports to its citizens.

14 The Palm Beach County Inspector General Committee Composition of the IG Committee (CoE plus 2): County Chiefs of Police Rep County Bar Associations Rep Florida Atlantic University Faculty (Ethics) Rep Palm Beach Chapter of CPAs Rep Palm Beach County League of Cities Rep State Attorney Public Defender

15 The Palm Beach County Inspector General Committee Responsibilities of the IG Committee: Select the IG Determine whether or not to renew the IG s contract Receive six month update (briefing) from the IG Review, offer questions, comments, recommendations Receive IG Annual Report May investigate and remove IG for cause

16 PBC OIG s Mission and Functions Our mission is to provide independent and objective insight, oversight, and foresight in promoting efficiency, effectiveness, and integrity in government. We accomplish this mission by conducting audits, investigations, and contract oversight activities. Ultimately, enhancing public trust in government.

17 Oversight Holding government accountable for resources and performance Insight Helping good people do things better. Promoting efficiency & effectiveness Foresight Looking ahead Preventing fraud, waste, and abuse

18 Fire or discipline employees. Conduct Criminal Investigations. Arrest people. Make policy.

19 Fact Finders. Issue Recommendations to Enhance Policies, Procedures, Rules, and Internal Controls. Make Recommendations to Take Appropriate Corrective Action(s). Provide Transparency to the Public.

20 County, Cities, SWA, and CSC Employees: 13,000 (+) County, Cities, SWA, and CSC Combined Budgets: $7.5 Billion Contract Value Monitored: $1 Billion

21 Investigate, audit, and review. Receive full and unrestricted access to records. Grant Whistleblower status. Obtain sworn statements. Issue subpoenas. Contract outside entities. Make criminal referrals to LEAs.

22 Publish Audit, Investigative, and Contract Oversight Reports. Meet with Inspector General Committee every six months. Issue an Annual Report. Maintain OIG Website. Public Forums

23 Annual Budget: $2.8 Million Total Office Structure: 40 people Current Funded Level: 23 people

24 The County and municipalities shall fund the OIG proportionally, based on the actual expenses of each government entity as recorded in the most recent audited year and reported in LOGER. In no event shall the funding base be reduced below one quarter of one percent Lawsuit filed by 15 municipalities.

25 The Office of Inspector General is organized into three services: Organization Investigations Contract Oversight Audits

26 Calls and Correspondences 1,127 Complaints 191 Management Referrals 32 Management Inquiries 15 Formal Investigations 10

27 INSPECTOR GENERAL SIX MONTH ACTIVITIES Investigation # Palm Beach County CCNA Short List ALLEGATIONS: A County Department Deputy Director, as the Chair of a Committee: o Improperly voted for firms with whom she maintained close personal relationships. o Improperly influenced the votes of subordinate Committee members. A County Department s policies were not in compliance with Florida Statutes. 2 Allegations were deemed inconclusive because there were no restrictions in place.. Should do Must do Gray Zone: Conduct technically legal, but questionable. Compliance: Conduct governed by laws, policy, rules. The Deputy Director was immediately removed from the Committee. The County also took immediate action to begin scoring all consultants proposals and is in the process of finalizing revised PPMs related to this subject matter.

28 INSPECTOR GENERAL SIX MONTH ACTIVITIES Contract Oversight Notification 2015-N-0001 Delray Beach Solid Waste and Recyclable Materials The City s previous Commission rejected the OIG recommendation to competitively solicit waste collection services. The City incurred additional costs until a new Commission competitively procured these services. By implementing previous OIG recommendation (2012-N- 0002) and entering into a contract resulting from a competitive procurement, the City and its residents will realize significantly reduced waste collection fees. Questioned Costs $3 million Avoidable Costs $9 million

29 INSPECTOR GENERAL SIX MONTH ACTIVITIES Audit Report 2015-A-0003 South Central Regional Wastewater Treatment and Disposal Board FINDINGS: Significant control weakness identified; resulting in 40 recommendations. Contracts Not Competitively Procured Questionable Payroll and Benefits Transactions Unsubstantiated Credit Card Transactions Unauthorized Bank Account and Questionable Activities No Policies and Procedures for Raw Materials Disposal No Policies and Procedures for Fixed Assets No Policies and Procedures for Fuel Program Accounting Procedures Deficiencies Inadequate Oversight and Monitoring of Financial Activities Questioned Costs $2,247,519 Identified Costs $61,274 Potential Avoidable Costs $1,630,407 Corrective Actions: All 40 recommendations accepted; 21 implemented as of September 22, Criminal Action: Questionable transactions referred to State Attorney s Office. Former Executive Director arrested for Larceny-Grand Theft.

30 EXAMPLE: South Central Regional Wastewater Treatment and Disposal Board Office of Inspector General (OIG) Hotline OIG Investigations Citizen/Gov. Employee Observed Wrongdoing Benefit to Citizens/Government $2.2M in Questioned Cost, $61K that can be recovered, $1.6M in potential future savings to taxpayers. Identified $145,000 in questioned transactions OIG Audit State Attorney Office Public Corruption Unit (PCU) Justice is Served Arrest for Larceny -Grand Theft

31 TRAINING AND OUTREACH FY 2015 Education/Awareness Publications & Announcements Presentations, training, meetings with over 3,000 citizens Updates from your Inspector General May and November 2015

32 We Listen. 7,000 Hotline/Office Calls 1,600 Correspondences Data since PBC IG s inception in 2010

33 We Guard and Save Taxpayers Dollars. $18M Found in Questioned Costs $1.8M Found in Identified Costs $20M Discovered in Avoidable Costs

34 Input: Cost of OIG to date ( ) = $11.2 M Output: $1.8M Found in Identified Costs + $20M Discovered in Avoidable Costs = $21.8M Potential Savings for Taxpayers

35 But return on investment is MUCH MORE than dollars and cents. We make government better. We level the playing field. We offer an independent office for citizens in and out of government to bring concerns, questions, complaints. We promote transparency and accountability.

36 We Make Government Better. 500 Recommendations/Corrective Actions 94% Management Acceptance Rate

37 We Hold People Accountable. Investigations and Audits have led to 11 arrests and/or prosecutions. Culture changes are happening. Enhancing trust in government.

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39 Should do Gray Zone: Conduct technically legal, but questionable. Must do Compliance: Conduct governed by laws, policy, rules.

40 A champion for accountability and integrity in government. An honest broker on the peoples side. The strength of a democracy is in its citizenry s trust in government. Inspectors General enhance that trust in government.

41 In the fight between culture and compliance, culture will always win. So while the IG promotes accountability, integrity, and ethics in government; building and maintaining a culture of ethics is a team effort.

42 Ultimately Building and Maintaining a Culture of Ethics is Everyone s Business

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