NEA OIG Recovery Act Final Work Plan 06 01 09 OIG Recovery Act Plan Overview National Endowment for the

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NEA OIG Recovery Act Final Work Plan 06 01 09 OIG Recovery Act Plan Overview National Endowment for the Powered By Docstoc
					                                                                              OIG Recovery Act Plan Overview
                                                   National Endowment for the Arts, Office of Inspector General

                                                   The overall objectives of the NEA OIG’s (OIG) oversight of the Recovery Act funds are to ensure (1) timely and effective implementation of NEA
                                                   stimulus related activities, (2) proper internal control procedures are established and maintained, (3) fund recipients meet eligibility requirements;
                                                   and (4) fund recipients properly comply with award requirements. The OIG will continuously monitor the agency’s Recovery Act activities,
                     OIG Broad Recovery Act Goals:
                                                   including monitoring recipients of funding and subgranting activities. A preliminary plan has been developed to provide a systematic approach
                                                   designed for continuous and effective oversight throughout the period of Recovery funds program.

                                                The OIG has taken proactive steps to work with the Agency to provide and efficiently disseminate outreach materials, such as fraud awareness
                                                literature and hotline reporting information to both agency personnel and recipients of funding. The fraud awareness literature identifies potential
                                                fraud indicators and common mistakes made in the management of Recovery and federal funds and will be sent to all Recovery fund recipients and
         OIG Broad Outreach Recovery Act Goals:
                                                posted on the OIG website. The OIG continues to provide best practices and areas of vulnerability in Recovery and federal funding which have been
                                                identified by the federal investigative and auditing community. The OIG will continue to work with the Agency and recipients of Recovery funding
                                                to advise and recommend areas for improvement of controls and accountability of funds.
                                                The OIG will work closely with the agency, in an advisory capacity, to identify areas of vulnerability and improving controls throughout the
                                                Recovery Fund program period. The OIG will also continue to monitor and evaluate the agency’s compliance activities such as reporting
      OIG Recovery Act Risk Assessment Process: requirements and the accountability and transparency guidelines. The OIG will also monitor recipients during the award period to identify potential
                                                or actual fraud, waste, and abuse; and ensure program goals are achieved and stimulus funds are accurately tracked and reported. A priority will
                                                be placed on quick turn-around reports notifying the agency of any problems as quickly as possible so that immediate corrective action can be taken.

                         OIG Recovery Act Funds:                                                                                                                                                               0
      Expiration Date of OIG Recovery Act Funds:                                                                                                                                                               0
          *FY 2009 OIG Non-Recovery Act Funds:                                                                                                                                                          $425,553

      Number of OIG Planned Recovery Act Hires:                                                                                                                                                                   1

       OIG Recovery Act Funds to be Allocated to
              Purpose of Recovery Act Contracts:                                                                                                                                                                  0
     Types of Recovery Act Contracts Awarded to

     Link to OIG FY 2009 Recovery Act Work Plan:

    *NEA IG is funded from the NEA’s annual appropriation.
    Funds are allocated to NEA IG from the NEA’s Salaries &
    Expense budget line item. FY 2009 budget is $425,553.

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                                                                                                   OIG FY 2009 Recovery Act Work Plan

                                                                                                                                                                                                                                      Expected    Expected
                                                     Type of Review        Entity Performing
                               Agency Recovery Act                                                                                                                                                                                    Quarter in Quarter in Expected
                                                    (Administrative / Review (OIG Staff,
    Agency      Program Area    Funds Associated                                                     Project Title                            Background                                            Objective                          Which     which Final Number of
                                                   Financial, Eligibility,    Contractor,
                                 w/Program Area                                                                                                                                                                                       Work will Report will   Reports
                                                   Performance, Other)           Other)
                                                                                                                                                                                                                                        Start     be Issued

                                                                                                                          $50 million was appropriated to the NEA to be
                                                                                                                          distributed in direct grants to fund arts projects
                                                                                                                          and activities which preserve jobs in the non-
                                                                                                                          profit arts sector threatened by declines in
                                                                                                                          philanthropic and other support during the
                                                                                                                          current economic downturn. $500,000 of those
                                                                                                                          funds will be used for administration and program
                                                                                                                          support (see below). Sixty percent of the
                                                                                                                          $49,500,000 will be available for competitively
                                                                                               Review sample of                                                              To determine if the Agency made awards in
                                                                                                                          selected grants to non-profit arts organizations
     NEA              ALL              $49,500,000        Eligibility         OIG Staff        recipient application                                                         accordance with ARRA guidance and Agency                 Q4 FY 09      Q1 FY 10             2
                                                                                                                          and forty percent will be distributed to the State
                                                                                               packages                                                                      policies.
                                                                                                                          arts agencies and regional arts organizations --
                                                                                                                          which, when subgranting, will distribute funds
                                                                                                                          through competitive and qualitative reviews.
                                                                                                                          Funding is limited to salary support and fees for
                                                                                                                          artists or contracted personnel and, in cases of
                                                                                                                          subgranting a portion may be used for
                                                                                                                          administration of the program.

                                                                                                                          The NEA anticipates using approximately               Evaluate the Agency's monitoring efforts of ARRA
                                                                                               Review the effectiveness
                                                                                                                          $500,000 of the funds for administrative and          funding recipients as outlined in its Program
                                                                                               of NEA systems and
                                                                                                                          program support purposes such as costs                Specific Plan. The review will include the Agency's
                                                                                               procedures for tracking,
                                                       Administrative/                                                    associated with panels and travel, contractual        monitoring of quarterly reports, sampling and
     NEA              ALL      $          500,000                             OIG Staff        reporting, and                                                                                                                         Q2 FY10       Q4FY10               1
                                                         Financial                                                        support associated with Information Technology        time and effort reports and tracking of ARRA
                                                                                               accounting for ARRA
                                                                                                                          operations, and staffing. The Agency plans to         funds. Review will also determine if the Agency's
                                                                                               expenditures and
                                                                                                                          monitor recipients to determine compliance with       use of ARRA funds was in compliance with ARRA
                                                                                                                          NEA and ARRA guidelines.                              and NEA guidelines.

                                                                                                                                                                                Evaluate whether ARRA recipients are in
                                                                                                                          Approximately $29.7 million would be available        compliance with NEA and ARRA guidelines for
                                                                                               Review of Recipient        for competitive ARRA grants which will be award       accounting and tracking for ARRA funds. This
     NEA              ALL                                                     OIG Staff        Financial Management       July-September 2009. Approximately $19.8              includes tracking, monitoring and proper spending     Q3 FY10       Q4 FY10              2
                                                                                               of ARRA Funds.             million would be available to the SAAs and RAOs       of ARRA funds and appropriate use of ARRA funds
                                                                                                                          which will be award May -June 2009.                   for the preservation of jobs and administrative
                                                                                                                                                                                and program support.

                                                                                                                                                                                Evaluate the impact of ARRA funding to preserve
                                                                                                                                                                                and retain jobs in the nonprofit arts sector. This
                                                                                                                                                                                will include direct grants and subgranting
                                                                                               Review of the program                                                            programs of State and Regional and designated
                                                                                                                          Preserving jobs in the arts will directly impact an
                                                                                               outcomes to determine                                                            Local Arts Agencies. Reviews for State and
                                                                                                                          organization's stability and capability, thereby
     NEA              ALL                               Performance           OIG Staff        if NEA met its objective                                                         Regional Arts Agencies will be performed later        Q4 FY 10      Q1 FY 11             2
                                                                                                                          enhancing its ability to realize its artistic and
                                                                                               to preserve jobs in the                                                          because the project period is longer due to
                                                                                                                          public service goals.
                                                                                               non project arts sector.                                                         subgranting activities (approx. 2 years). The OIG
                                                                                                                                                                                will verify and analyze the number, types and
                                                                                                                                                                                location of jobs reported as preserved to
                                                                                                                                                                                determine outcome.

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                                                                                                    OIG FY 2009 Recovery Act Work Plan

 Type of Reviews
 Administrative/Financial Reviews - reviews of management administrative issues, management internal controls, or financial systems/processes
 Eligibility Reviews - reviews to determine if eligibility requirements were met for a given program
 Performance Reviews - reviews to determine the effectiveness of a given program
 Other Reviews - reviews that do not fit within the above categories

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