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Dod IG Projects by Category is report, as well as audit reports and testimony text, are available on the Internet at: www.dodig.mil Additional information and/or copies of this report may be obtained by contacting: Department of Defense Inspector General Office of Communications and Congressional Liaison 4800 Mark Center Drive Alexandria, VA 22350-1500 Mr. John R. Crane 703-604-8324; DSN 664-8324 Department of Defense Department of Defense Inspector General Inspector General 4800 Mark Center Drive 4800 Mark Center Drive Alexandria, VA 22350-1500 Alexandria, VA 22350-1500 www.dodig.mil www.dodig.mil Defense Hotline 1.800.424.9098 Defense Hotline 1.800.424.9098 INSPECTOR GENERAL DEPARTMENT OF DEFENSE 4800 MARK CENTER DRIVE ALEXANDRIA, VIRGINIA 22350-1500 I am pleased to present the Department of Defense Inspector General Semiannual Report to the Congress for the reporting period October 1, 2011 through March 31, 2012. We are dedicated to keeping the Secretary of Defense and Congress fully and currently informed about problems and defi ciencies within DoD in order to improve programs and operations. To this end, we detect and prevent fraud, waste, and abuse and promote economy, effi ciency, and eff ectiveness to help ensure the warfi ghter and DoD personnel are best equipped to achieve the critical mission of defending our country. Driven by our core values of integrity, effi ciency, accountability, and excellence, we conduct oversight which, in this reporting period, identifi ed defi ciencies in the areas of contract management, fi nancial reporting, and acquisition; information assurance, security and privacy; public corruption; health care fraud; whistleblower reprisal; senior offi cial misconduct; procurement fraud; and other issues aff ecting the Department. We issued 69 reports that identifi ed $90 million in potential monetary benefi ts during this reporting period. Investigations conducted by the Defense Criminal Investigative Service resulted in 61 arrests, 155 criminal charges, 87 criminal convictions, 103 suspensions, and 78 debarments, generating a return of $304 million to the U.S. government. Th e Defense Hotline handled 8,985 contacts. Acting Inspector General Lynne Halbrooks testifi es Th is issue highlights support we provide to the Department to include the Defense Hotline, before Congress. Contractor Disclosure Program, and Whistleblower Protection. Other agencies within the Defense oversight community also contributed to this report, and we thank our counterpart agencies, which include the Army Audit Agency, Naval Audit Service, Air Force Audit Agency, Army Criminal Investigation Command, Naval Criminal Investigative Service, Air Force Offi ce of Special Investigations, and the Defense Contract Audit Agency. We thank the soldiers, sailors, airmen, and Marines whose sacrifi ces for our Nation continue to motivate us to fulfi ll our mission. Finally, we thank Congress and the Department for their valuable and continued support in improving DoD operations and programs. Lynne M. Halbrooks Acting Inspector General STATISTICAL HIGHLIGHTS SUMMARY OF AUDIT ACTIVITIES Reports Issued 48 Monetary Benefits Recommendations Made on Funds Put to Better Use $90.2 million SUMMARY OF DEFENSE CRIMINAL INVESTIGATIVE SERVICE ACTIVITIES Total Returned to the U.S. Government1 $290.1 million Recovered Government Property $1.6 million Civil Judgments/Settlements $127.3 million Criminal Fines, Penalties, Restitution and Forfeitures $159.4 million Administrative Recoveries2 $1.7 million Investigative Cases Arrests 61 Charges 155 Convictions 87 Suspensions 103 Debarments 78 SUMMARY OF ADMINISTRATIVE INVESTIGATIONS Complaints Received 711 Complaints Closed 601 Senior Official 316 Whistleblower Reprisal 285 SUMMARY OF POLICY AND OVERSIGHT ACTIVITIES Existing and Proposed Regulations Reviewed 185 Evaluation Reports Issued 9 Inspector General Subpoenas Issued 280 SUMMARY OF INTELLIGENCE ACTIVITIES Intelligence and Special Program Assessment Reports Issued 4 SUMMARY OF SPECIAL PLANS AND OPERATIONS ACTIVITIES Assessment Reports Issued 6 SUMMARY OF DEFENSE HOTLINE ACTIVITIES Contacts 8,985 Cases Opened 1,398 Cases Closed 1,269 1 Includes investigations conducted jointly with other law enforcement organizations. 2 Includes contractual agreements and military non-judicial punishment. ii SEMIANNUAL REPORT TO THE CONGRESS CONTENTS 1. OVERVIEW MISSION & ORGANIZATION ............................................................................................................................................2 MISSION ...............................................................................................................................................................2 ORGANIZATION .................................................................................................................................................3 EXECUTIVE SUMMARY ........................................................................................................................................................4 OVERVIEW ...........................................................................................................................................................4 PRIORITIES ...........................................................................................................................................................4 CORE MISSION AREAS .....................................................................................................................................5 ENABLING MISSION AREAS ..........................................................................................................................6 OVERSEAS CONTINGENCY OPERATIONS .....................................................................................................................7 IG HIGHLIGHTS ......................................................................................................................................................................9 DEFENSE HOTLINE ............................................................................................................................................9 CONTRACTOR DISCLOSURE PROGRAM .................................................................................................10 DEPARTMENT OF DEFENSE WHISTLEBLOWER PROGRAM .............................................................12 2. CORE MISSION AREAS AUDITS .................................................................................................................................................................................. 16 ACQUISITION PROCESSES AND CONTRACT MANAGEMENT ..........................................................16 FINANCIAL MANAGEMENT .........................................................................................................................23 INFORMATION ASSURANCE, SECURITY AND PRIVACY .....................................................................28 JOINT WARFIGHTING AND READINESS ..................................................................................................29 NUCLEAR ENTERPRISE..................................................................................................................................31 INVESTIGATIONS ................................................................................................................................................................ 32 PROCUREMENT FRAUD ...............................................................................................................................32 PRODUCT SUBSTITUTION ...........................................................................................................................34 PUBLIC CORRUPTION ...................................................................................................................................34 HEALTH CARE FRAUD ...................................................................................................................................36 TECHNOLOGY PROTECTION ......................................................................................................................38 COMPUTER CRIME .........................................................................................................................................39 INSPECTIONS ...................................................................................................................................................................... 40 HEALTH AND SAFETY...................................................................................................................................... 40 JOINT WARFIGHTING AND READINESS.................................................................................................. 42 3. ENABLING MISSION AREAS DEFENSE HOTLINE ............................................................................................................................................................ 46 SENIOR OFFICIALS AND WHISTLEBLOWER PROTECTION ................................................................................... 48 CONGRESSIONAL TESTIMONY AND BRIEFINGS ..................................................................................................... 51 OUTREACH ACTIVITIES .................................................................................................................................................... 52 4. SERVICES ARMY ....................................................................................................................................................................................
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