OPM Congressional Budget Justification and Annual Performance Plan

U.S. Office of Personnel Management

FY 2000
Budget Justification/Performance Plan

(Advances and Reimbursements - continued)
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By the year 1999, resolve material weaknesses and improve financial systems and internal controls to maintain the integrity of the benefit trust funds totaling more than $60 billion in annual benefit payments and OPM’s appropriated and reimbursable funds.

Ensure Federal Employees’ Health Benefits and Federal Employees’ Group Life Insurance contract compliance through financial and performance audits, and quality assurance standards. (Continuing)

OIG Goal 1:

Independent oversight of agency programs, operations, functions, and activities is provided.

Identify and monitor sensitive, significant, or costly agency initiatives.

Pursue a comprehensive plan of audit in which priorities are focused on performing independent audits of OPM's financial statements, health insurance carriers and life insurance carriers.

Perform audits, investigations, evaluations, and inspections in accordance with appropriate professional standards and applicable laws and regulations to ensure both the quality and objectivity of work.

Number of audits, investigations, evaluations, or reviews completed. New databases being established in FY 1999 will provide baseline data for performance measures where results are not currently reported.

Performance Indicators	FY 1998	FY 1999	FY 2000
Insurance Audit Reports Questioned Costs OIG Goals 1,2	47 $126M	47 $95M	50 $100M
CFO Audit Oversight, TF CFO Audit Oversight, S&E and RF OIG Goals 1,2,4	1 1	1 1	1 1
Investigative Cases Worked OIG Goals 1,2,3	628	650	680
Investigative Complaints Handled OIG Goals 1,2,3 - Hotlines	1,985	2,000	2,200
Administrative Sanctions Issued OIG Goals 2,3	2,926	3,125	3,300

Conduct inspections of the general administrative procedures used by local Combined Federal Campaigns (CFC) with more in-depth evaluations performed on problem areas identified either by OPM CFC program office or issues discovered through the inspections. FY 1999 is the first year that OIG will conduct these reviews using evaluative techniques. Accomplishment also applicable to OIG Goal 2.

Increase the number of rate reconciliation audits (RRA) in FY 1999 to 20 which is an increase of 42 percent over FY 1998. The RRA concept is designed to assist OPM contracting officials in negotiating the best FEHBP premium rates possible by ensuring that they have been provided with current, complete and accurate information by participating community-rated HMOs. Accomplishment also applicable to OIG Goal 2.

Dollars saved, recovery rate, and return on investment.
Outlays from the retirement and insurance trust funds are highly susceptible to fraud. Working with limited resources, the OIG has achieved an impressive record of cost effectiveness in combating this fraud. For FY 1998, OIG activities resulted in recoveries and disallowed costs of $76.4 million in favor of the trust funds. Of this amount, $71 million is associated with FEHBP audits, $1.9 is associated with FEHBP and retirement investigations, and $3.5 million is associated with joint audit and investigative projects. This trust fund oversight by the OIG will continue to result in significant positive financial impact. Accomplishment also applicable to OIG Goal 2 and OIG Goal 4.

In addition to this financial impact, OIG audits and investigations also provided a significant deterrent against future instances of fraud, waste and abuse. Accomplishment also applicable to OIG Goal 2 and OIG Goal 4.

Audit cycle, average number of unaudited years, and lost audit years for FEHBP carriers.

Meet Inspector General Act reporting requirements.

Prepare semiannual reports on OIG activities for the Director of OPM and Congress as required by the Inspector General Act. Accomplishment also applicable to OIG Goal 2, OIG Goal 3 and OIG Goal 4.

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Web Page Created 14 May 1999