RD510 - Virginia Office of the State Inspector General Annual Report Fiscal Year 2019

Executive Summary:


In accordance with Title 2.2 Chapter 3.2 (§ 2.2-307 through 2.2-313) of the Code of Virginia, the Office of the State Inspector General (OSIG) is responsible for:

• Investigating complaints alleging fraud, waste, abuse or corruption by an executive branch state agency, non-state agency or officers, employees or contractors of those agencies.

• Administering the Fraud and Abuse Whistle Blower Reward Fund.

• Overseeing the State Fraud, Waste and Abuse Hotline.

• Conducting performance reviews of state agencies.

• Providing training and coordination of standards for the Commonwealth’s internal audit functions.

• Performing inspections and making policy and operational recommendations for Behavioral Health and Developmental Services facilities and providers.

• Reviewing operations of the Virginia Tobacco Region Revitalization Commission. Consistent with these responsibilities, OSIG completed the following activities during fiscal year (FY) 2019:

• Investigations and Law Enforcement Services

o Opened 23 executive branch state agency investigations.
o Investigated allegations of fraud, conflict of interest, misappropriation, procurement violations and ineffective management.
o Referred 12 cases to the Office of the Attorney General.
o Closed 22 cases.

• State Fraud, Waste & Abuse Hotline

o Assigned 859 cases for investigation.
o Of the 726 cases closed, 19 percent were substantiated, 48 percent were unsubstantiated, and 33 percent were referred to other agencies.
o Investigated 19 cases in-house for allegations that involved an agency head, internal audit employee or an “at-will" employee.
o Completed 10 work paper reviews of internal audit departments or hotline coordinators and three follow-up investigative reviews for compliance with recommendations.

• Behavioral Health and Developmental Services

o Received and coordinated responses to 269 complaints.
o Reviewed 18 complaints in-house, referred 104 to the Department of Behavioral Health and Developmental Services (DBHDS), opened 82 cases with the DBHDS Central Office, and opened 65 cases with facility directors, local community services boards and other agencies/organizations.

• Performance Audit Services

o Published four performance audits.
o Issued 23 findings and observations.
o Issued 32 audit recommendations.
o Conducted four follow-up reviews.
o Launched an unannounced inspection project of 13 DBHDS facilities.

• Internal Audit Oversight and Training Services

o Conducted two quality assurance reviews.
o Coordinated eleven training courses, providing 77 continuing education credits
to 322 individuals.

• Communications and Outreach

o Presented before 28 state and national organizations.
o Responded to 80 Freedom of Information Act (FOIA) inquiries.
o Appeared on local NBC affiliate Call 12 program taking calls for the State Fraud, Waste and Abuse Hotline.
o Handled more than 40 responsive and proactive media contacts.
o Drafted and distributed 11 news releases resulting in multiple statewide media placements.