OIG auditors evaluate FCC programs and operations to determine whether or not information is reliable; resources have been safeguarded; funds have been expended in a manner consistent with related laws, regulations, and policies; resources have been managed economically and efficiently; and desired program results have been achieved.
The OIG audit function has been structured to accomplish the following strategic objectives. An Audit Director has been assigned responsibility for each strategic objective.
Financial Management Audits
Financial management audits include financial statement audits and any other audits relating to the FCC’s financial operations. The first type of audit provides reasonable assurance that the financial statement of an audited entity fairly presents the financial position, results of operation, and cash flows in conformity with generally accepted accounting principles. The second type determines whether:
- financial information is presented in accordance with established or stated criteria,
- the entity has adhered to specific financial compliance requirements, or
- the entity’s internal control structure over financial reporting or safeguarding assets is suitably designed and implemented to achieve objectives.
Program audits include both economy and efficiency. Economy and efficiency audits determine (1) whether the entity is acquiring, protecting, and using its resources (such as personnel, property, and space) economically and efficiently, (2) the causes of any inefficiencies or uneconomical practices, and (3) whether the entity has complied with laws and regulation on matters related to economy and efficiency. Performance audits also include reviews of selected programs and activities to evaluate their overall effectiveness in achieving anticipated results. Program audits determine:
- the extent to which desired results or benefits established by the legislation or other authorizing body are being achieved,
- the effectiveness of organizations, programs, activities or functions, and
- whether the entity has complied with significant laws and regulations applicable to the program.
Major programs that we are currently focusing resources on include:
- The Universal Service Fund – The objective of our effort has been to prevent and detect fraud, waste and abuse in the Universal Service Program.
- The Commission’s Workplace Violence Program - The objective of our effort has been to examine all aspects of the Commission’s workplace violence program and make recommendations for program improvement.
Information Systems (IS) Audits
Information Systems (IS) audits include audits of all aspects of the Commission’s information systems program. In 1994, the Office of Inspector General (OIG) established an Information Systems audit capability. Since that time, the OIG has conducted a variety of Information System audits and special reviews including full scope audits of remote network access to limited scope Internet penetration studies. Initially, most of the review work focused on the security of critical components of the Commission’s Information Technology (IT) infrastructure, however, increasingly OIG reviews are focusing on other aspects of the Commission’s Information Resource Management program including the systems development process and management of mission-critical applications.
Ongoing on-going IS audit activities include audits of the following components of the Commission information systems program:
- information resource management;
- application development and modification;
- end-user and departmental computing;
- application data integrity;
- security; and
- contingency planning.
Contract audits include audits of government contracts and grants with private sector organizations, as well as government and non-profit organizations that determine compliance with contractual terms and Federal Acquisition Regulations (FAR). These audits are conducted on selected FCC administrative and program operations to evaluate the effectiveness and efficiency with which managerial responsibilities are carried out. They focus on whether management controls, practices, processes, and procedures are adequate and effective. Likewise, these audits may include internal contractual administration.