RESTORE Act Oversight
Department of the Treasury
Office of Inspector General
Gulf Consortium
Orlando, Florida
June 20, 2014
Introductions and Treasury OIG Contacts
Office of Audit
Name
Title
Email
Phone
Debbie Harker
Audit Director
HarkerD@oig.treas.gov
202-927-5762
Cecilia
Howland
Audit Manager
HowlandC@oig.treas.gov
202-927-8782
gulfcoastrestorationhotline@
oig.treas.gov
1-855-584GULF (4853)
Office of Investigations
Jerome
Marshall
Special Agent in Charge
Sean McDowell
Assistant Special Agent in
Charge
Anna Sansiveri
Program Support
Specialist
Office of Investigations Hotline
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Purpose
• Introduce ourselves, our office’s mission, and our
oversight responsibilities related to the RESTORE Act
• Discuss “Where are we now?” - the Trust Fund and the
Treasury Regulations
• Provide information on integrity risks and how to report
fraud
• Discuss our completed, in-process, and future RESTORE
Act audit projects
• Discuss our oversight coordination efforts
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Our Mission
•Our mission, consistent with the Inspector General
Act of 1978, is to
• conduct and supervise audits and investigations
• provide leadership and coordination and
recommend polices to promote economy, efficiency,
and effectiveness, and to prevent and detect fraud
and abuse
• keep the Secretary and the Congress fully and
currently informed about problems and
deficiencies, and necessity for and progress of
corrective action
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Treasury OIG RESTORE Act
Authority
RESTORE Act Sec. 1608. Inspector General.
“The Office of the Inspector General of the
Department of the Treasury shall have authority to
conduct, supervise, and coordinate audits and
investigations of projects, programs, and activities
funded under this subtitle and the amendments
made by this subtitle.”
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Where are We Now?
Gulf Coast Restoration Trust Fund
• Treasury received Transocean’s first payment of
$323 million in 2013 and the second payment of
$320 million plus interest on March 6, 2014
• Transocean’s final payment of $160 million plus
interest is due in March 2015
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Where are We Now?
Some Reasons that RESTORE Act Funds
Haven’t Gone Out to the Gulf Coast
Region?
• Treasury Regulations
• BP Trial
• Consideration of the NRDA Process Overlap
with RESTORE Act
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Where are We Now?
Treasury Regulations
• Interim Final Rule – Treasury Regulations
▫ Sent to OMB for review in May 2014
▫ Currently in the final stages of Federal Agency review
8
Potential Integrity Risks
• Integrity risks for the Gulf Coast Restoration Trust Fund
include:
▫ Falsification of applications or statements
▫ Misuse or mismanagement of federal funds
 Irregularities in the award of contracts
 Misallocation of grant proceeds
 Duplication of funding for a project or program
▫ Failure by grantees or contractors to deliver on promised
goods or services
▫ Contracts or grants may be awarded without following laws,
regulations, or standard operating procedures
▫ Failure to properly monitor funded activities
▫ Funding of programs that fail to promote the restoration of
the Gulf Coast region
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Treasury OIG Investigative Oversight
• The Inspector General may receive and investigate
complaints or information regarding RESTORE Act
programs concerning the possible existence of an activity
constituting a violation of law, rules, or regulations, or
mismanagement, gross waste of funds, abuse of
authority, or a substantial and specific danger to the
public health and safety.
• Contact with Gulf Coast State Attorney General’s Offices,
State/Local Law Enforcement, and Federal Law
Enforcement
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Reporting Fraud
• 24/7 Hotline: 1-855-584-GULF (4853)
• Email: gulfcoastrestorationhotline@oig.treas.gov
• Mail:
Treasury Hotline
Office of Inspector General
1500 Pennsylvania Ave., NW
Washington, D.C. 20220
• Fax: 202-927-5799
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Completed Audits
• Treasury Missed Its Statutory Deadline for
Establishing Procedures Governing RESTORE Act
Programs and Activities (April 17, 2013)
• Treasury Needs to Establish Procedures to Expend
and Invest Gulf Coast Restoration Trust Fund
Monies (September 24, 2013)
• Gulf Coast Ecosystem Restoration Council Faces
Challenges in Completing Initial Comprehensive
Plan (October 25, 2013)
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Website for Completed Audits
http://www.treasury.gov/about/organizationalstructure/ig/Pages/default.aspx
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Audits in Progress
• Audit of National Oceanic and Atmospheric
Administration’s (NOAA) Progress to Establish the
Gulf Coast Ecosystem Restoration Science,
Observation, Monitoring, and Technology Program
• Risk Analysis of the Gulf Coast State and Local
Government’s Internal Controls
• Technical Assessment of the Initial Comprehensive
Plan and Programmatic Environmental Assessment
• Audit of Treasury’s Establishment of a Grants
Program for Administration and Oversight of
RESTORE Act Funds
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Audits Planned for Fiscal Year 2015
• We plan to perform audits of Treasury’s grant program
administration of Direct Component funds
• We will also audit recipients of Direct Component funds
• The objective of these audits will be to determine whether
the RESTORE Act program, project, or activity’s grant,
contract, or cooperative agreement was awarded and
administered in accordance with the (1) RESTORE Act, (2)
applicable regulations, and (3) policies and procedures. We
will use contract auditors to assist us with these audits.
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Coordination Activities
• Met with Federal OIG representatives for the six Federal
agencies represented on the Gulf Coast Ecosystem
Restoration Council
• Met with Gulf Coast State audit offices and offices of the
Attorney General
• Met with NRDA representatives
• Presented at the Southeast/Southwest
Intergovernmental Audit Forum
• Presented at the State of Alabama, Department of
Examiners of Public Accounts annual training conference
• Presented at Gulf Coast Ecosystem Restoration Council
meetings
• Attended the State of the Gulf of Mexico Summit
• Met with select Louisiana parishes and Florida counties
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Questions and Discussion
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