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Fiscal Year 2019 Oversight Plan

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Fiscal Year 2019 Oversight Plan U.S. Department of Defense Inspe�tor Genera� FISCAL YEAR 2019 OVERSIGHT PLAN INTEGRITY INDEPENDENCE EXCELLENCE INTEGRITY INDEPENDENCE EXCELLENCE Mission To detect and deter fraud, waste, and abuse in Department of Defense programs and operations; Promote the economy, efficiency, and effectiveness of the DoD; and Help ensure ethical conduct throughout the DoD Vision Engaged oversight professionals dedicated to improving the DoD For more information about whistleblower protection, please see the inside back cover. INSPECTOR GENERAL DEPARTMENT OF DEFENSE 4800 MARK CENTER DRIVE ALEXANDRIA, VIRGINIA 22350-1500 October 15, 2018 I am pleased to present the FY 2019 Oversight Plan for the Department of Defense Office of the Inspector General (DoD OIG). The Oversight Plan describes our planned oversight projects, linked with one or more of the top management and performance challenges facing the DoD. In this document, we briefly describe the top management and performance challenges facing the DoD and discuss the oversight projects we intend to conduct that relate to each of those challenges. At the end of this Oversight Plan, we provide an appendix (Appendix 1) of all projects by responsible office. The top 10 DoD management and performance challenges are not listed in order of importance or by magnitude of the challenge. All are critically important management challenges facing the DoD. As reflected in this document, the top DoD management and performance challenges are: 1. Implementing DoD Reform Initiatives 2. Countering China, Russia, Iran, and North Korea 3. Countering Global Terrorism 4. Financial Management: Implementing Timely and Effective Actions to Address Financial Management Weaknesses Identified During the First DoD-Wide Financial Statement Audit 5. Improving Cybersecurity and Cyber Capabilities 6. Ensuring Ethical Conduct 7. Enhancing Space-Based Operations, Missile Detection and Response, and Nuclear Deterrence 8. Improving Readiness Throughout the DoD 9. Acquisition and Contract Management: Ensuring that the DoD Gets What It Pays For On Time, at a Fair Price, and With the Right Capabilities 10. Providing Comprehensive and Cost-Effective Health Care The projects in this plan are designed to help fulfill our critically important mission to detect and deter waste, fraud, and abuse in DoD programs and operations; improve the efficiency and effectiveness of the DoD; and help ensure ethical conduct throughout the DoD. Glenn A. Fine Principal Deputy Inspector General Performing the Duties of Inspector General CONTENTS Marines prepare to use a CH‑53E Super Stallion helicopter to move an M777 howitzer to its firing position during a training exercise at Marine Corps Air Ground Combat Center Twentynine Palms, California. (U.S. Marine Corps photo) CONTENTS Oversight Plan FISCAL YEAR 2019 Introduction 2 Challenge 1: Implementing DoD Reform Initiatives 6 Challenge 2: Countering China, Russia, Iran, and North Korea 8 Challenge 3: Countering Global Terrorism 12 Challenge 4: Financial Management: Implementing Timely and Effective Actions to Address Financial Management Weaknesses Identified During the First DoD-Wide Financial Statement Audit 16 Challenge 5: Improving Cybersecurity and Cyber Capabilities 22 Challenge 6: Ensuring Ethical Conduct 28 Challenge 7: Enhancing Space-Based Operations, Missile Detection and Response, and Nuclear Deterrence 32 Challenge 8: Improving Readiness Throughout the DoD 36 Challenge 9: Acquisition and Contract Management: Ensuring that the DoD Gets What It Pays For On Time, at a Fair Price, and With the Right Capabilities 40 Challenge 10: Providing Comprehensive and Cost-Effective Health Care 46 Appendix 49 Office of Inspector General FY 2019 Oversight Plan | iii INTRODUCTION The USS Dewey transits the Pacific Ocean while underway in the U.S. 3rd Fleet area of operations, July 19, 2018. (U.S. Navy photo) 1 | Office of Inspector General FY 2019 Oversight Plans INTRODUCTION Introduction The Department of Defense Office of the Inspector General (DoD OIG) prioritizes its oversight efforts to ensure projects are timely, relevant, and responsive to the strategic environment in which the DoD operates. The FY 2019 Oversight Plan addresses statutory mandates, congressional and DoD leadership concerns, and significant vulnerabilities and risks across the DoD. One of the key ways the DoD OIG identifies vulnerabilities and risks is through the development of the DoD’s Top Management and Performance Challenges Facing the DoD. This annual report is required by the Reports Consolidation Act of 2000, which mandates that each Inspector General prepare an annual statement that summarizes what the Inspector General considers to be the “most serious management and performance challenges facing the agency.” The DoD OIG’s report was published as part of the DoD Agency Financial Statement on November 15, 2018, and is a forward-looking document that identifies risks for the DoD for FY 2019 and beyond. When determining specific oversight projects to perform, the DoD OIG carefully considered the DoD OIG-identified management and performance challenges facing the DoD, DoD strategic goals, DoD OIG resourcing requirements, and potential benefit to the DoD of the project being considered. While developing the management challenges and the oversight plan, the DoD OIG: • reviewed strategic documents, such as the 2018 National Defense Strategy, the DoD FY 2019 Budget, and the National Defense Business Operations Plan; • reviewed the Government Accountability Office high-risk areas, other organizations’ oversight reporting, and information gathered during audit and investigative efforts; • conducted outreach with Department leadership in financial management, acquisition, procurement, health care, cybersecurity, and military operations; and • sought feedback from congressional representatives. The oversight plan is organized by management challenge. Each chapter contains a brief description of the challenge facing the DoD, followed by a listing of the oversight projects that directly align to the challenge. For each planned project, we provide a title for the project and a brief summary of the objective of the planned project. Because most DoD OIG projects are aligned Office of Inspector General FY 2019 Oversight Plan | 2 INTRODUCTION against more than one management challenge, a These activities include the DoD Hotline; DoD OIG primary management challenge was identified. senior official investigations, whistleblower Each project is only listed once, under the reprisal investigations, and fraud awareness primary challenge. briefings; whistleblower reprisal protection education;, DoD policy development; processing In addition, there are two appendixes in this of contractor disclosures; and investigation of document. The first is a list of the planned criminal allegations related to DoD programs oversight projects for FY 2019, the challenge with and operations. which each is aligned, the objective of the project, and a reference to the page in this document where The DoD OIG’s planning process is dynamic, the project is discussed. allowing adaptability to respond to emerging requirements throughout the fiscal year. While The second appendix lists the planned projects for the plan is only published once a year, the DoD OIG FY 2019 that align to the DoD Reform Initiatives views oversight planning as an ongoing process. Management Challenge (Chapter 1), because over We are constantly reassessing this plan, adding 65 percent of the projects in the DoD OIG Oversight new projects when necessary and removing others. Plan are related to the DoD’s reform initiatives in addition to other management challenges. The following section discusses the DoD OIG’s planned oversight work in support of DoD In addition to the planned oversight work outlined reform initiatives. in this document, the DoD OIG conducts a variety of other oversight activities that seek to improve DoD program efficiency and effectiveness; detect and deter waste, fraud, and abuse; and ensure statutory compliance. However, due to the nature of these activities, they are not identified as planned oversight projects in this document. 3 | Office of Inspector General FY 2019 Oversight Plans INTRODUCTION U.S. Army Staff Sgt. Christopher Doyle, , 25th Infantry Division, prepares to move his squad forward during a combined arms live-fire exercise at Schofield Barracks, Hawaii, August 3, 2018 (U.S. Army photo) Office of Inspector General FY 2019 Oversight Plan | 4 IMPLEMENTING DOD REFORM INITIATIVES A U.S. Navy Aircrewman rides in an MH-60S Seahawk helicopter during composite training unit exercise (COMPTUEX) in the Pacific Ocean. (U.S. Navy photo) 5 | Office of Inspector General FY 2019 Oversight Plan IMPLEMENTING DOD REFORM INITIATIVES Challenge 1: Implementing DoD Reform Initiatives The 2019 National Defense Strategy articulates the Secretary of Defense’s vision and guidance to reform the Department of Defense for greater performance and affordability. The strategy states that the DoD must “transition to a culture of performance where results and accountability matter.” It also directs the DoD to put into place a management system that ensures effective stewardship of taxpayer resources. As outlined in the National Defense Strategy, the reform line of effort demands budget discipline and affordability; a streamlined approach to developing and fielding new systems; rapid integration of new capabilities; a healthy and secure national security innovation base; and strong international
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