Gulf Consortium Orlando, Florida June 20, 2014 RESTORE Act Oversight Department of the Treasury Office of Inspector General Gulf Consortium Orlando, Florida June 20, 2014

Introductions and Treasury OIG Contacts Office of Audit Name Title Email Phone Debbie Harker Audit Director HarkerD@oig.treas.gov 202-927-5762 Cecilia Howland Audit Manager HowlandC@oig.treas.gov 202-927-8782 Office of Investigations Jerome Marshall Special Agent in Charge Sean McDowell Assistant Special Agent in Charge Anna Sansiveri Program Support Specialist Office of Investigations Hotline gulfcoastrestorationhotline@oig.treas.gov 1-855-584-GULF (4853)

Purpose Introduce ourselves, our office’s mission, and our oversight responsibilities related to the RESTORE Act Discuss “Where are we now?” - the Trust Fund and the Treasury Regulations Provide information on integrity risks and how to report fraud Discuss our completed, in-process, and future RESTORE Act audit projects Discuss our oversight coordination efforts

Our Mission Our mission, consistent with the Inspector General Act of 1978, is to conduct and supervise audits and investigations provide leadership and coordination and recommend polices to promote economy, efficiency, and effectiveness, and to prevent and detect fraud and abuse keep the Secretary and the Congress fully and currently informed about problems and deficiencies, and necessity for and progress of corrective action

Treasury OIG RESTORE Act Authority RESTORE Act Sec. 1608. Inspector General. “The Office of the Inspector General of the Department of the Treasury shall have authority to conduct, supervise, and coordinate audits and investigations of projects, programs, and activities funded under this subtitle and the amendments made by this subtitle.”

Where are We Now? Gulf Coast Restoration Trust Fund Treasury received Transocean’s first payment of $323 million in 2013 and the second payment of $320 million plus interest on March 6, 2014 Transocean’s final payment of $160 million plus interest is due in March 2015

Where are We Now? Some Reasons that RESTORE Act Funds Haven’t Gone Out to the Gulf Coast Region? Treasury Regulations BP Trial Consideration of the NRDA Process Overlap with RESTORE Act

Where are We Now? Treasury Regulations Interim Final Rule – Treasury Regulations Sent to OMB for review in May 2014 Currently in the final stages of Federal Agency review

Potential Integrity Risks Integrity risks for the Gulf Coast Restoration Trust Fund include: Falsification of applications or statements Misuse or mismanagement of federal funds Irregularities in the award of contracts Misallocation of grant proceeds Duplication of funding for a project or program Failure by grantees or contractors to deliver on promised goods or services Contracts or grants may be awarded without following laws, regulations, or standard operating procedures Failure to properly monitor funded activities Funding of programs that fail to promote the restoration of the Gulf Coast region

Treasury OIG Investigative Oversight The Inspector General may receive and investigate complaints or information regarding RESTORE Act programs concerning the possible existence of an activity constituting a violation of law, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority, or a substantial and specific danger to the public health and safety. Contact with Gulf Coast State Attorney General’s Offices, State/Local Law Enforcement, and Federal Law Enforcement

Reporting Fraud 24/7 Hotline: 1-855-584-GULF (4853) Email: gulfcoastrestorationhotline@oig.treas.gov Mail: Treasury Hotline Office of Inspector General 1500 Pennsylvania Ave., NW Washington, D.C. 20220 Fax: 202-927-5799

Completed Audits Treasury Missed Its Statutory Deadline for Establishing Procedures Governing RESTORE Act Programs and Activities (April 17, 2013) Treasury Needs to Establish Procedures to Expend and Invest Gulf Coast Restoration Trust Fund Monies (September 24, 2013) Gulf Coast Ecosystem Restoration Council Faces Challenges in Completing Initial Comprehensive Plan (October 25, 2013)

Website for Completed Audits http://www.treasury.gov/about/organizational- structure/ig/Pages/default.aspx

Audits in Progress Audit of National Oceanic and Atmospheric Administration’s (NOAA) Progress to Establish the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring, and Technology Program Risk Analysis of the Gulf Coast State and Local Government’s Internal Controls Technical Assessment of the Initial Comprehensive Plan and Programmatic Environmental Assessment Audit of Treasury’s Establishment of a Grants Program for Administration and Oversight of RESTORE Act Funds

Audits Planned for Fiscal Year 2015 We plan to perform audits of Treasury’s grant program administration of Direct Component funds We will also audit recipients of Direct Component funds The objective of these audits will be to determine whether the RESTORE Act program, project, or activity’s grant, contract, or cooperative agreement was awarded and administered in accordance with the (1) RESTORE Act, (2) applicable regulations, and (3) policies and procedures. We will use contract auditors to assist us with these audits.

Coordination Activities Met with Federal OIG representatives for the six Federal agencies represented on the Gulf Coast Ecosystem Restoration Council Met with Gulf Coast State audit offices and offices of the Attorney General Met with NRDA representatives Presented at the Southeast/Southwest Intergovernmental Audit Forum Presented at the State of Alabama, Department of Examiners of Public Accounts annual training conference Presented at Gulf Coast Ecosystem Restoration Council meetings Attended the State of the Gulf of Mexico Summit Met with select Louisiana parishes and Florida counties

Questions and Discussion