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Risk Assessments in a Time of Decreasing Resources

Risk Assessments in a Time of Decreasing Resources. Elliot P. Lewis Assistant Inspector General for Audit Office of Inspector General U.S. Department of Labor. September 26, 2013. PRESENTATION OVERVIEW. Department of Labor Programs Office of Inspector General Resources

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Risk Assessments in a Time of Decreasing Resources

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  1. Risk Assessments in a Time of Decreasing Resources Elliot P. Lewis Assistant Inspector General for Audit Office of Inspector General U.S. Department of Labor September 26, 2013

  2. PRESENTATION OVERVIEW • Department of Labor Programs • Office of Inspector General Resources • Risk Assessment process • How Do We Go From Risk Assessment to Audit Workplan? • What Does Success Look Like?

  3. The U.S. Department of Labor • The Department of Labor is a Large and Diverse Agency with Multiple Missions • Worker safety and health • Mine Safety and Health Administration • 380,000 miners • 14,000 mines • Occupational Safety and Health Administration • 130 million workers • 2,200 compliance officers

  4. The U.S. Department of Labor • Protection of worker benefits • Unemployment Insurance • Employee Benefits Security Administration (retirement & health) • 707,000 retirement plans / 2.3 million health plans • $6.7 trillion in assets • Trade Adjustment Assistance • Federal Employees Compensation Act • Longshore Harbor Workers Compensation • Coal Miner Workers Compensation

  5. The U.S. Department of Labor • Protection of worker rights • Foreign labor certification • Enforce Fair Labor Standards Act • Federal Minimum Wage • Child labor • Overtime pay • Enforce Family Medical Leave Act • Federal Contract Compliance Programs • Labor Management Standards

  6. The U.S. Department of Labor • Timely publishing of data that impacts the U. S. Economy • Bureau of Labor Statistics publishes statistics in nine different subject areas including the following statistics on: • Consumer Prices • National Unemployment • Workplace Injuries • Consumer Expenditures • Industry Productivity

  7. The U.S. Department of Labor • Worker Employment and Training • National Emergency Grants • Workforce Investment Act-Training $3.2 billion • Adult and Dislocated Worker Programs • Youth Programs • One-Stop Centers • Job Corps - $1.7 billion, 125 centers, serves 60,000 at-risk youth • Youthbuild • Senior Community Service Employment Program • Secretary’s Discretionary Grants

  8. Office of Audit Resources • Audit Resources Are Limited: • 145 Audit staff • Nearly 30% of audit resources address mandatory work

  9. Risk-Based Audit Planning • Evolving Process • Risk Assessments • Audit Proposals • Align and Rank Proposals and Risks • Audit Workplan

  10. Risk Assessment Process • Survey All Entity Programs and Identify Risks • What could go wrong? • What is the likelihood that the risk will occur? • If the risk occurs, what is the impact?

  11. Risk Assessment Process • Audit Staff – Performance standards: • Maintain external awareness • Develop audit proposals • Audit Directors – Center of risk assessment process for program and functional areas

  12. Sources to Use When Assessing Risk (Survey) • Prior OIG audit and GAO audit reports • Congressional committee staff • Transcripts of Congressional oversight committee hearings • Agency interviews and/or requests for information • Agency annual performance and accountability report • Agency appropriations and budget • Agency research and evaluation reports • Reports for Federal agencies that operate similar programs • Newspaper articles • Stakeholder newsletters

  13. How do you go from Risk Assessment to Audit Workplan?

  14. Translate From Risk Assessmentto Audit Workplan • Audit Directors meet with AIGA/DAIGA • Risk Assessment vs. Audit Proposals • Align and Rank Risks and Proposals

  15. Translate From Risk Assessmentto Audit Workplan • Risk Tolerance (high or low) of the Congress, the public, the Department if risk should occur • Probability of risk of fraud, waste , abuse or damage to program Integrity occurring (high or low) • Previous experience – would follow up work be beneficial? • Customer/stakeholder interest, time sensitivity

  16. Translate From Risk Assessmentto Audit Workplan • Vet Draft Audit Workplan Within OIG • Legal • Congressional • Management • Investigations • IG • Vet Draft Audit Workplan Within DOL • Final Workplan

  17. Measuring Success • Office of Audit is already working on an issue when we get an inquiry. • Office of Audit issues a report and receives inquiries about the report from members of Congress, program stakeholders, journalists and the public. • Ultimately, it is not possible for a risk assessment to identify all problems.

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