NASA OFFICE OFINSPECTOR GENERAL SEMIANNUAL REPORTApril 1September 30, 2012
Mars Atmosphere and Volatile Evolution (MAVEN) Project. NASAs twin Radiation Belt Storm Probes launched aboard an Atlas V rocket. X-48B Blended Wing Body aircraft. NASAs Curiosity rover touches down on the Martian surface. SpaceX Dragon commercial cargo craft.
FROM THE INSPECTOR GENERAL coveries and technical innovations. For example, in August 2012 NASA celebrated the for which the Agency, its employees, and its contractors should rightfully be proud. to launch than originally promised. For example, Curiositys mission to the Red Planet came 2 years behind schedule resulting in an 83 percent increase in development costs. development from both inside and outside the Agency including current and former Admin greatest challenges to successfully meeting cost, schedule, and performance goals: A sum mary of this important review can be found on page 3 of this Semiannual Report. Pa ul K. Martin October 31, 2012
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1 OFFICE OF INSPECTOR GENERALHE NASA OFFICE OF I gations of NASA programs and operations to prevent and detect fraud, waste, abuse, and lion to support the work of 202 employees in their audit, investigative, and administrative mission an independent assessment of the Agencys strategic direction and management in response to a congressional directive. HE I and serves as an independent voice to the Administrator and Congress by identifying and conducts special reviews of NASA programs and personnel.
2HE OFFICE OF M P human resources, administrative, and information technology services and support to HE OFFICE OF A statements. HE OFFICE OF I gations, OI develops recommendations for NASA management to reduce the Agencys vul nerability to criminal activity and misconduct. HE OFFICE OF C I provides legal advice and assis
3 AUDITS AND INVESTIGATIONSAcquisition and Project Management that NASA engages in sound management practices that provide the Agency and the tax of fraud and other misconduct related to NASA contracts and operations. NASAs Challenges to Meeting Cost, Schedule, and Performance Goals NASA has been at the forefront of science and space exploration, and the Agencys missions have resulted and technological innovations. Unfortunately, in addition to their more to complete and take longer to launch than originally planned. development from both inside and outside the Agency, including current and former present NASA with its greatest challenges to successfully meeting cost, schedule, and performance goals: NASA Astronaut Buzz Aldrin and the Lunar Excursion Module Eagle (far right) on the Moon in July 1969.Source: NASA Optimistic Agency Culture A culture of optimism and a can-do spirit permeate all levels of the NASA workforce. Although essential to overcoming the extraordinary technological challenges inherent in the development of same optimism can lead managers to overestimate their ability to overcome
4 and unique technologies, managers lack historical data, cost models, lessons learned, and other information to help estimate the effort that will be needed combining several interdependent technologies and the resulting complexities systems function remotely in space where repair or replacement is extremely types of development efforts. Finally, because space systems are often one-offrom economies of scale in which the average cost would decrease as the quantity manufactured increases. Space Shuttle Atlantis robotic arm lifts the refurbished Hubble Space Telescope from the Shuttles cargo bay on May 19, 2009.Source: NASAFunding Instability stated that funding instability whether resulting from decisions made by the President and Congress or internally within NASA was among the
5 managers may need to defer development of critical technologies to a time costs of material and labor may be greater. goals effectively. However, they expressed concern that NASA does not have a NASA engineers spend most of their time overseeing contractor efforts rather to gain practical hands-on experience. needs a unity of effort including strong, consistent, and sustained leadership by the President, Congress, and Agency managers to meet the challenges outlined in the necessary resources to execute that vision is a critical cornerstone of success. For their part, NASA leaders must temper the Agencys culture of optimism by that funding is adequate and properly phased and that funding instability is elements are not present. In response to a draft of this report, NASA generally concurred with the challenges we outlined and stated that the Agency has implemented a number of performance based on overly optimistic plans. He also stated that NASA now uses Formulation the Agency.
6funding due to internal factors. However, he stated that external changes to funding account for continuing resolutions and notify stakeholders when external funding with the need for maturing and retaining an experienced workforce to lead NASA and other knowledge sharing initiatives. We agree that these initiatives, if properly implemented, could help NASA mitigate that NASAs culture of optimism is necessary for the Agency to accomplish the challenging tasks it undertakes. However, the Agencys response did not address our primary conclusion regarding the need for strong leadership by the President, Congress, and the Agency to address the long-standing challenges to meeting the cost, schedule, and performance goals management action. NASAs Challenges to Meeting Cost, Schedule, and Performance Goals (IG-12-021, September 27, 2012) NASA Research Announcements One way that NASAs Mission Directorates support their research, development, solicitations that announce research opportunities and provide a formal mechanism across its Mission Directorates.
7 NASAs aeronautics research goals and whether associated costs were allowable and properly supported. We found that NASAs aeronautics-related NRA awards, including awards funded by the Recovery Act, aligned with one or more goals set the knowledge needed to advance those goals. However, we also found that 18 of the We recommended that the Assistant Administrator for Procurement provide additional training to NASA procurement personnel to ensure that costs are corrective actions that met the intent of our recommendations. NASAs Use of Research Announcement Awards for Aeronautics Research (IG-12-011, April 30, 2012) Oversight and Management of NASA Grants challenge of ensuring these grants are administered appropriately and are reported that NASA did not have an adequate system of controls in place to ensure proper administration and management of its grant program and that as a result some grant funds were not being used for their intended purposes.1 Subsequently, we conducted three audits examining whether particular NASA grants are being used for their intended purpose and whether associated costs are allowable, reasonable, and in accordance with applicable laws, regulations, guidelines, and Philadelphia College Opportunity Resources for Education reside in Philadelphia, plan to attend a Pennsylvania college or university full time, September 2009 and August 2010. 1 NASA OIG, NASAs Grant Administration and Management (IG-11-026, September 12, 2011).
8 accounting and internal control environment, as well as areas where NASA could obtain a required audit of its operations for 2010, inaccurately recorded and reported expenditures, and failed to maintain appropriate time and attendance documentation displayed NASAs name and insignia on its website. for Procurement strengthen policies and procedures to ensure that grantees obtain award documentation the requirements for use of NASAs logo and insignia. We also recommended that the NSSC Executive Director and the Associate Administrator for Education work together to ensure that CORE remedies the NASA and Department of Education grants, and ensure that CORE submits all required reports. Finally, we recommended that prior to awarding any additional grants to CORE the Executive Director and the Associate Administrator ensure that CORE has strengthened and formally documented its internal controls to of our recommendations. Accordingly, we will close the recommendations upon Audit of NASA Grants Awarded to the Philadelphia College Opportunity Resources for Education (IG-12-018, July 26, 2012) HudsonAlpha Institute for Biotechnology is to conduct genomics-based research to improve human health, spark economic development, and provide educational outreach to nurture the next generation of biotech researchers and entrepreneurs. Pursuant to a congressional earmark,
9 We found that HudsonAlpha generally managed the grant in accordance with its HudsonAlpha had a strong system of accounting and internal controls, adequately Procurement implement a series of corrective actions, including providing enhanced training programs for NASA procurement personnel and discontinuing the practice of suspending the grant closeout process until all audits have been completed. In addition, we recommended that the Executive Director of the NSSC take action to ensure costs charged to the grant were appropriate and to establish procedures that will address our concerns with regard to future grants. In response, the Assistant Administrator for Procurement stated that the NASA corrective actions in response to most of our other recommendations. Although our report states that the recommendation to the Executive Director to establish controls in the closeout process and update the corresponding NSSC Service to take those actions, thus resolving that recommendation. Audit of NASA Grant Awarded to HudsonAlpha Institute for Biotechnology (IG-12-019, August 3, 2012)
10Alabama Space Science Exhibit Commissions U.S. Space and Rocket Center Marshall Space Flight Center and the site of Space Camp, a program founded in 1982 to promote the study of math, science, and technology using classroom instruction and hands-on activities to teach teamwork, decision-making, and restoration of the Centers Saturn V rocket exhibit, the development of educational exhibits, upgrades to the Space Camp mission simulation program, and an educational workshop. performance reports, maintained a strong system of accounting and internal controls, appropri ately requested reimbursement for allowable and reasonable costs, and adequately accounted for expenditures. However, we also found that NASA needs to strengthen its policies, proce dures, and internal controls to ensure that it uses contracts, grants, and cooperative agree ments in the appropriate cir cumstances and needs to develop a standard process to mended corrective action to address these issues and the Assistant Administrator for Procurement agreed to act on our recommendations. Saturn V Rocket Exhibit at the Rocket Center in Huntsville, Alabama.Source: U.S. Space and Rocket CenterAudit of NASA Grants Awarded to the Alabama Space Science Exhibit Commissions U.S. Space and Rocket Center (IG-12-016, June 22, 2012) University Proposes Administrative Remedy with cost-sharing provisions of a cooperative agreement with NASA to educate and
11 sixth years of the agreement at no cost to NASA, thereby reducing NASAs overall Government Contractor Enters Civil Settlement and technical services it provided to NASAs Dryden Flight Research Center from Government Contractor Agrees to Civil Settlement In August 2012, a company that had obtained contracts from NASA and several civil settlement following an investigation into the contractors Online However, the contractor had previously entered into a plea agreement related to Investigation Command on this investigation. guilty in U.S. District Court for the Eastern District of Virginia to charges that he position to approve contract payments to a company with which he was negotiating employment. When the employee retired from NASA, he went to work for the
12Former NASA Scientist Enters Pretrial Diversion Program NASA the employee drafted a statement of work creating a position for himself with a NASA contractor. Upon retiring from NASA, the scientist went to work for the contractor. Former Contractor Employee Receives Deferred Adjudication vouchers in connection with his work for NASA. Technology Firm and Principals Suspended from Federal Procurements that the principals had failed to disclose that they were primarily employed by a university when they submitted proposals to participate in the NASA and Navy require disclosure of the principals primary employment in the proposals. Contract Canceled for Engineering Services Company In September 2012, NASA and Pyxisvision Inc. agreed to a no-cost cancellation of Ongoing Audit Work NASAs Mars Atmosphere and Volatile Evolution Project
13 NASAs Orbiting Carbon Observatory-2 Project orbiting satellite designed to make precise, global measurements of atmospheric carbon dioxide with the hope of improving predictions of the impact on Earths metrics, as well as whether NASA has properly tracked and accounted for Recovery NASAs Awards to Small and Disadvantaged Businesses evaluating NASAs oversight of these awards, including examining whether they effective controls to manage the risk of fraud and abuse. NASAs Management of Energy Savings Performance Contracts 13123, issued in 1999, required agencies to reduce energy consumption 35 percent annual payments for these contracts are not to exceed the annual savings generated these contracts to ensure that payments have not exceeded the energy savings
14NASAs Use of Award-Fee Contracts contractors the opportunity to earn monetary incentives known as award fees by meeting or exceeding criteria outlined in their contracts. Our audit will examine whether NASAs use of award-fee contracts is consistent with requirements, policies, and procedures and whether the Agency is effectively using award fees to motivate contractor performance. NASAs Strategic Sourcing Program sourcing strategies with the goal of acquiring goods and services in a more costdevelop strategic sourcing plans that would result in reduced prices, reduced administrative costs, improved performance, and increased small business this Program to determine whether it has resulted in cost savings for the Agency.
15 Space Operations and Exploration Apollo era to development of a new heavy-lift rocket. With the retirement of the Space Shuttle Program last year, the emergence of commercial companies seeking to provide new technologies for future long-term exploration, NASAs space exploration challenges have become increasingly complex. NASAs Decision to Modify the Ares I Mobile Launcher to Support the Space Launch System Originally designed to support the Constellation Programs Ares I rocket, NASA completed construction of the canceled the Constellation Program and rockets capable of deep space exploration. extent practicable, existing investments and infrastructure in developing and launch platform or modify one of the three mobile launch platforms previously used evaluated all possible alternatives to ensure that modifying the Ares I Mobile The Ares I Mobile Launcher at Kennedy Space Center on November 30, 2011.
16 were based on preliminary assumptions and limited information about the In addition, the three components of NASAs planned deep space exploration Development and Operations programs are still in the relatively early stages of development. Successful integration of these three elements will require an interdependent management structure to ensure the programs are effectively communicating their individual and collective requirements. Comparison of Ares I launch vehicle and planned versions of the SLS.NASAs Plans to Modify the Ares I Mobile Launcher in Support of the Space Launch System (IG-12-022, September 25, 2012)
17Apollo 11 Samples Returned to NASA On May 31, 2012, Assistant Inspector Winters returned to NASA lunar samples collected by astronauts Neil Armstrong and Mounted on a commemorative plaque, the samples were presented to the government plaque was stolen and ended up in the NASAs custody while discussions with the U.S. Department of State are ongoing. Alaska Moon Rock Recovered Alaska was dismissed. Anderson was seeking title to a plaque containing lunar material. President Nixon presented the plaque, known as the Alaska Moon Rock, discounted Andersons claim. In March 2012, the Alaska courts ordered Anderson which he did. Valuable Documents Returned to NASA In August 2012, thousands of historic documents dating from the 1940s to the late and William Pickering.
18Ongoing Audit Work NASAs Efforts to Fully Utilize the U.S. Segment of the International Space Station NASAs low Earth orbit activities through at least 2020. In 2005, Congress designated the U.S. segment of the ISS as a national laboratory and this audit is laboratory. NASAs Development of the Multi-Purpose Crew Vehicle is managing development of the multi-purpose crew vehicle in response to the Act. We will also examine whether NASA has properly accounted for its use of Recovery Act funds on the Program. the importance of commercial space programs in meeting the Agencys human exploration needs, the inherent technological challenges of developing the systems, and the likelihood of constrained future funding, it is imperative that the Agency meet its cost, schedule, and performance goals for its cargo and crew programs.
19 Infrastructure and Facilities Management comprehensive study examining the Agencys institutional assets, paying particular atten tion to identifying and removing unneeded or duplicative infrastructure. NASA completed the study in February 2012 and reported that it will develop a framework for how the Agency plans to address its infrastructure challenges in the future. In light of the enormity of NASAs NASAs Real Property Leasing Practices approximately 5,400 buildings and structures that support the Agencys research, challenges facing NASA, Agency managers must balance the need to reduce NASAs real property footprint with ensuring that NASA retains currently underused facilities that it may need to support future missions. In this audit, we examined NASAs leasing practices for its underused facilities. NASA has several options for addressing underused real property, including making Properly implemented, leasing can generate revenue to offset facilities operations and maintenance costs. However, Federal law requires NASA to dispose of property for which it does not have a current or future mission use. Moreover, leasing unneeded property impedes the Agencys efforts to reduce its real property footprint. Accordingly, NASA must be careful not to use leasing as a substitute for disposing of underused property for which it has no current or future use. H211 Alpha Jet Plane at Ames Research Centers Moffett Field.Source: NASA photographWe found that while NASA has made improvements to its leasing program in recent inventory of space available for lease as well as an effective marketing program to
20 arrangement. We concluded that absent better controls and improved guidance help reduce the cost of maintaining underused facilities while meeting its obligation to ensure that leasing does not become a substitute for disposing of excess property. Satellite antennas at Ames, which were to have been used as part of an in-kind consider ation agreement. However, approval to use the antennas was not granted and Ames has not We recommended that the Agency strengthen its guidance, training, and agreements and that the agreements are made in the most transparent manner to ensure fairness to all parties. NASA agreed to take actions to address each of our recommendations. NASAs Infrastructure and Facilities: An Assessment of the Agencys Real Property Leasing Practices (IG-12-020, August 9, 2012)
21Ongoing Audit Work NASAs Efforts to Reduce Unneeded and Duplicative Infrastructure recent report assessing the quality of the data used to manage the Agencys real property assets.2 NASAs Environmental Remediation Efforts at the Santa Susana Field Laboratory required to remedy. In 2010, NASA signed an Administrative Order of Consent for Remedial Action with the State of California that requires the Agency to clean the soil at the site to background levels, which means restoring the area to its natural that normally govern such cleanups, and NASA estimates such an effort will cost NASAs efforts to remedy the environmental contamination at Santa Susana.2 NASA OIG, NASA Infrastructure and Facilities: Assessment of Data Used to Manage Real Property Assets (IG-11-024, August 4, 2011).
22 Information Technology Security and Governance sonnel to collaborate with colleagues around the world. Hundreds of thousands of NASA rity program that adversely affect the Agencys ability to protect the information and sys tems vital to its mission. During this semiannual reporting period, we continued to work NASAs Computer Security Incident Detection and Handling Capability In this audit, we examined the effectiveness of NASAs Security Operations Center In November 2008, NASA consolidated its former Center-based computer security incident detection and response programs into the SOC in an effort to improve its capability to detect and respond to evolving threats posed by increasingly to provide a single, Agency-wide computer security incident handling capability. In In general, our audit found that the SOC has improved NASAs computer security incident handling capability by providing continuous incident detection coverage for all NASA Centers. In addition, the SOCs communication processes, including weekly conference calls and security bulletins, were effective for sharing security incident and threat information with responders across the Agency. However, we also found that the SOC does not currently monitor all of NASAs computer networks. Even though each of the Agency networks we reviewed had its own incident management program that included network monitoring, dedicated staff to respond to incidents, and documented processes, these management by the SOC. In addition, NASA needs to increase its readiness to combat sophisticated but increasingly common forms of cyber attack known as Advanced Persistent intrusion detection system, and other perimeter defenses and often are launched by
23 the attacker may covertly maintain a foothold inside the targets system for future networks may be breached and sensitive data stolen. proposed corrective actions that we consider responsive. Review of NASAs Computer Security Incident Detection and Handling Capability (IG-12-017, August 7, 2012) Romanian Hacker Pleads Guilty to NASA Computer Intrusions court to charges of illegally accessing numerous systems belonging to NASA, the District of Maryland on this investigation. NASA Contractor Employee Charged with Illegal Firearm Purchase In May 2012, a NASA contractor employee was charged in the U. S. District Court thereby allowing that individual to avoid the required Federal background check. Hacker Sentenced in Australia A Singaporean national was sentenced in an Australian court to 3 years in prison
24Former NASA Security Guard Charged with Theft In May 2012, a former security guard at Stennis Space Center was charged in Mississippi State court with felony theft for stealing a token critical to operation of the Centers computer system that controls building access. Ongoing Audit Work NASAs Information Technology Security Assessment and Monitoring Tools NASAs IT Governance Structure the CIO has limited ability to direct NASAs Mission Directorates to fully implement recommendations for improvement. NASAs Compliance with FISMA Requirements for FY 2012 NASAs Progress in Adopting Cloud-Computing Technologies deployment of computing resources, a decreased need to buy hardware or rely on
25with potential risks, such as loss or compromise of information. In this audit, we are evaluating NASAs efforts to adopt secure, cost-effective cloud-computing solutions. NASAs Mobile Computing Devices appropriate security controls for its smartphones and tablet computers and assess whether it has taken appropriate actions to eliminate unneeded and duplicative mobile computing devices and services.
26 Financial Management NASAs Efforts to Identify Improper Payments In this audit, we examined whether NASA was identifying, reporting on, and supporting documentation to ensure NASAs methodology and determinations were sound, accurate, and complete. We found that NASA had limited the scope of its IPIA efforts, which in turn payments. Although the Agency had completed the steps required by IPIA and grouped disbursement data from the Agencys accounting system potentially masking improper payment rates, while other programs were excluded from the and activities, the Agency did not meet IPIA requirements to conduct a programWe also reported concerns that the Agencys method for evaluating risk is inconsistent across various programs and activities and that NASA relies too heavily on the IPIA contractor to evaluate the level of risk in the Agencys programs. Further, we PAR that led us to question whether NASAs reporting efforts were accurate and complete and whether its oversight and review of the contractors work was adequate. percent of the Agencys total disbursements, and NASA did not target known high
27a result, the Agency may be missing an opportunity to identify and recover a larger population of improper payments. concurred with all but one of our recommendations and agreed to take corrective action. program remains unresolved, she subsequently agreed to include those payments. NASAs Efforts to Identify, Report, and Recapture Improper Payments (IG-12-015, May 1, 2012) Ongoing Audit Work Fiscal Years 2011 and 2012 NASA-Sponsored Conferences to audit expenses incurred for agency-sponsored conferences with costs exceeding requirements for several larger NASA-sponsored conferences over a 2-year period. NASAs FY 2012 Financial Statements PricewaterhouseCoopers.
28 Other MattersInvestigation into Allegations that Members of a NASA-Supervised into allegations that members of a NASA-supervised advisory committee charged a nationwide wireless broadband network. improperly participated in a particular matter that had a direct and predictable
29However, we also determined that Parkinsons actions were not motivated by a national resource he had helped create. In particular, we noted that Parkinson had made no attempt to hide his board membership or stock ownership. We also found issue. recommended that the Agency adopt additional procedures to help members of whenever possible. Report of Investigation into Allegations that Members of a NASA-Supervised August 2, 2012) Independent Assessment of NASAs Strategic Direction and Management Academy of Sciences to conduct this assessment, and the NRC subsequently appointed a committee composed of the following 12 experts: Chancellor Emeritus and Professor, University of California Vice President for Applied Research, Colorado State University Research Foundation and Woodward Professor of Systems Engineering, Colorado State University
30Mark R. Abbott Dean of the College of Earth, Ocean, and Atmospheric Sciences, Oregon State University Advisor to the president of Centre National dEtudes Spatiales, the French national space agency Aerospace Consultant Former Director, Kennedy Space Center, and retired president of development and budget policy Professor of Mechanical and Aerospace Engineering, University of California Engineering, University of Maryland Marcia S. Smith Rauner Distinguished Service Professor and Director of the Kavli Institute for Cosmological Physics, University of Chicago Warren M. Washington Former head of the Climate Change Research Section and Director of During this reporting period, the NRC committee held public meetings in Washington, During these meetings, the committee received testimony from current and former
31 assess whether NASAs strategic direction remains viable and whether the Agencys of the potential for constrained budgets for the foreseeable future. In keeping with committee should be predicated on the assumption that NASAs future budget A detailed description of the assessments scope can be found at Additional information about the progress of the assessment is on the NRCs website at Former Langley Exchange Employee Sentenced for Theft Center was sentenced in U.S. District Court for the Eastern District of Virginia to the payroll to increase her annual salary. Former NASA Employee Pleads Guilty to Copyright Infringement and Department of Homeland Security found that the employee knowingly purchased Financial Disclosure Reports
32 she received while serving as pastor at a local church. In August 2012, the former Two Former NASA Contractor Employees Sentenced for Copper Theft of Protective Services. Copper Thieves Charged copper from Cape Canaveral Air Force Station. One of the men admitted that he had been stealing copper from Kennedy Space Center and Cape Canaveral Air Force Station since 2010. Ongoing Audit Work NASAs Internal Controls for the Safe Accounting, Storage, and Use of Explosives, Pyrotechnics, and Propellants and handle explosive materials, pyrotechnics, and propellants. Such materials, for the procurement, transportation, storage, and handling of energetic materials.
33LEGAL ISSUESEthics and the rules governing Federal conferences. issues, and developments in criminal discovery and Federal labor law.
34REGULATORY REVIEW NASA Procedural Requirements (NPR) 8900.1A, NASA Health and Medical Requirements for Human Space Exploration Center level. Headquarters Procedural Requirement 8710, NASA Headquarters Occupant Emergency Plan at NASA Headquarters should take in preparing for, responding to, and recovering plan be revised to include requirements for an appropriate threat and vulnerability assessment and compliance with related NASA policy. NPR 1620, Facility Security Assessments (Draft 2) and NPR 1620.3A, Physical Security Requirements for NASA Facilities and Property measures to be applied for safeguarding and mitigating the risks to NASA assets. for improving the quality and currency of NASA facility risk assessments. NPR 8735.2B, Management of Government Quality Assurance Functions for NASA Contracts requirements for several periodic evaluations, audits, and reviews expected to be conducted as part of the quality assurance function.
35NPR 8735.1C, Procedures for Exchanging Parts, Materials, Software, and Safety Problem Data Utilizing the Government-Industry Data Exchange Program (GIDEP) and NASA Advisories both internally and externally to NASA through preparation, distribution, and
36OUTREACH ACTIVITIES management system and electronic audit workpapers of the Special Inspector Federal Housing Finance Agency, and Amtrak. OAs Financial Management Directorate participated in monthly meetings of the Financial Statement Audit Network. Representatives from the Federal new accounting and auditing standards and revised reporting requirements Members of the Financial Management and Mission Support Directorates are
37 OI personnel and members of OAs Science and Aeronautics Research Directorate materials, and delivery. NASA AIGI Kevin Winters (left) exchanges seals with Lev Kubiak, Director of the National Intellectual Property Rights Coordination Center.OI representatives attended an Agency Seal Exchange Ceremony in August Members of OAs Mission Support Directorate assisted the Recovery to provide a review of NASAs Recovery Act funds. In keeping with its mission quarterly updates of the information at Recovery.gov. accountants who perform single audits related to NASA.
38 Development Conference in Washington, D.C., in May 2012 concerning the
39AWARDS OI Supervisor Receives Federal Law Enforcement Award for exemplifying the role of women in law enforcement through her professionalism, successes in combating crimes against NASA that have threatened the procurement Left to right: OIG Special Agent-in-Charge John Corbett, RAC Patty Searle, and AIGI Kevin Winters.
42Appendix A. Inspector General Act Reporting Requirements Section 4(a)(2) Review of Legislation and Regulations 34 Section 5(a)(1) Signicant Problems, Abuses, and Deciencies 3 Section 5(a)(2) Recommendations for Corrective Actions 3 Section 5(a)(3) Prior Signicant Audit Recommendations Yet to Be Implemented 45 Section 5(a)(4) Matters Referred to Prosecutive Authorities 50 Section 5(a)(5) and 6(b)(2) Summary of Refusals to Provide Information None Section 5(a)(6) OIG Audit Products Issued Includes Total Dollar Values of Questioned Costs, Unsupported Costs, and Recommendations that Funds Be Put to Better Use 43 Section 5(a)(7) Summary of Signicant Audits and Investigations 3 Section 5(a)(8) Total Number of Reports and Total Dollar Value for Audits with Questioned Costs 48 Section 5(a)(9) Total Number of Reports and Total Dollar Value for Audits with Recommendations that Funds Be Put to Better Use 48 Section 5(a)(10) Summary of Prior Audit Products for which No Management Decision Has Been Made 48 Section 5(a)(11) Description and Explanation of Signicant Revised Management Decisions None Section 5(a)(12) Signicant Management Decisions with which the Inspector General Disagreed None Section 5(a)(13) Reporting in Accordance with Section 5(b) of the Federal Financial Management Improvement Act of 1996 Remediation Plan None Section 5(a)(14) Peer Review Conducted by Another OIG 52 Section 5(a)(15) Outstanding Recommendations from Peer Reviews of the NASA OIG None Section 5(a)(16) Outstanding Recommendations from Peer Reviews Conducted by the NASA OIG None
43Appendix B. Statistical InformationTable 1: Audit Products and Impact REPORT NO./ DATE ISSUED TITLE IMPACT Audit Area: Acquisition and Project Management IG-12-011 NASAs Use of Research Announcement Awards for Identied $25.2 million in questioned costs and 4/30/12 Aeronautics Research provided specic areas of focus for preventing NASAs ARMD NRA awards from containing approximately $3.6 million of unallowable and unsupported costs annually. IG-12-016 Audit of NASA Grants Awarded to the Alabama Identied an internal control deciency that 6/22/12 Space Science Exhibit Commissions U.S. Space and Rocket Center NASA should address to improve the Agencys ability to ensure sound grant oversight for the pre-award process. IG-12-018 Audit of NASA Grants Awarded to the Philadelphia Identied internal control deciencies that 7/26/12 College Opportunity Resources for Education both NASA and the grantee should address to improve the Agencys ability to provide sound grant oversight, and identied $216,920 in questioned costs. IG-12-019 Audit of NASA Grant Awarded to HudsonAlpha Identied internal control deciencies that 8/3/12 Institute for Biotechnology both NASA and the grantee should address to improve the Agencys ability to provide sound grant oversight and identied $44,567 in questioned costs. IG-12-021 NASAs Challenges to Meeting Cost, Schedule, and Provided specic areas of focus for addressing 9/27/12 Performance Goals challenges in NASAs management of science and space programs that should enhance the Agencys ability to achieve cost, schedule, and performance goals. Audit Area: Space Operations and Exploration IG-12-022 NASAs Plans to Modify the Ares I Mobile Launcher Identied issues and challenges that NASA must 9/25/12 in Support of the Space Launch System address to successfully identify additional technical risks of modifying the Mobile Launcher and accurately estimate future operating costs.
44Table 1: Audit Products and Impact (continued) REPORT NO./ DATE ISSUED TITLE IMPACT Audit Area: Infrastructure and Facilities Management IG-12-020 NASAs Infrastructure and Facilities: An Assessment of the Agencys Real Property Leasing Practices Provided suggestions for NASA to maximize the full potential of its leasing program to help reduce the cost of maintaining underused facilities while meeting its obligation to reduce its real property footprint. 8/9/12 Audit Area: Information Technology Security and Governance IG-12-017 Review of NASAs Computer Security Incident Detection and Handling Capability Provided specic areas of focus for addressing challenges NASA faces to ensure IT security of its computer network. 8/7/12 Audit Area: Financial Management IG-12-015 NASAs Eorts to Identify, Report, and Recapture Improper Payments Provided specic areas of focus to ensure the Agencys compliance with the Improper Payments Information Act (IPIA) of 2002 and the Improper Payments Elimination and Recovery Act (IPERA) of 2010. 5/1/12
45Table 2: Prior Audit Recommendations Yet to Be Implemented open recommendations, 140 are from 10 reports issued during the last semiannual reporting REPORT NO./ DATE ISSUED TITLE DATE RESOLVED NUMBER OF RECOMMENDATIONSLATEST TARGET CLOSURE DATEOPEN CLOSEDNEW SINCE LAST REPORTING PERIODAudit Area: Acquisition and Project Management IG-12-013 3/1/12 Audit of NASAs Process for Transferring Technology to the Government and Private Sector 3/1/2012 3 3 2/1/2013 IG-12-012 3/6/12 Review of NASAs Lessons Learned Information System 3/6/2012 4 0 3/29/2013 IG-12-009-R 2/2/12 NASAs Management of Small Business Innovation Research and Small Business Technology Transfer Contracts Funded by the Recovery Act (Redacted) 2/2/2012 3 2 6/30/20121Audit Area: Space Operations and Exploration IG-12-007 12/8/11 NASAs Management of Moon Rocks and Other Astromaterials Loaned for Research, Education, and Public Display 12/8/2011 5 3 9/30/20122Audit Area: Infrastructure and Facilities Management IG-12-008 12/19/11 NASAs Infrastructure and Facilities: An Assessment of the Agencys Real Property Master Planning 12/19/2011 3 0 1/31/2013 Audit Area: Information Technology Security and Governance IG-12-006 12/5/11 NASA Faces Signicant Challenges in Transitioning to a Continuous Monitoring Approach for Its Information Technology Systems 12/5/2011 7 0 11/30/2012 Audit Area: Financial Management IG-12-010 2/16/12 Audit of NASAs Purchase and Travel Card Programs 8/31/2012 9 6 12/28/20121 e OIG is working with management to determine the adequacy of corrective actions taken.2 e OIG is reviewing managements request for closure.
46Table 2: Prior Audit Recommendations Yet to Be Implemented (continued) REPORT NO./ DATE ISSUED TITLE DATE RESOLVED NUMBER OF RECOMMENDATIONSLATEST TARGET CLOSURE DATEOPEN CLOSEDNEW SINCE LAST REPORTING PERIOD (continued)Audit Area: Financial Management (continued) IG-12-004 11/15/11 Audit of the National Aeronautics and Space Administrations Fiscal Year 2011 Financial Statements 11/15/2011 8 0 11/30/2012 IG-12-003 11/23/11 Final Report, FY 2011 NASA Financial Statement Audit Management Letter, Prepared by PricewaterhouseCoopers LLP in Connection with the Audit of NASAs FY 2011 Financial Statements 11/23/2011 65 0 11/30/2012 IG-12-001 10/12/11 Final Report, FY11 Financial Statement Audit: Network Penetration Testing, Prepared by PricewaterhouseCoopers in Connection with the Audit of NASAs FY 2011 Financial Statements 10/12/2011 33 0 11/30/2012 REPORTED IN PREVIOUS SEMIANNUAL REPORTS Audit Area: Acquisition and Project Management IG-10-015 6/18/10 Review of NASAs Microgravity Flight Services 6/18/2010 1 2 12/31/2012 IG-09-017 7/27/09 Opportunities to Improve the Management of the Space Flight Awareness Honoree Launch Conference Event 7/27/2009 1 0 12/31/2012 Audit Area: Space Operations and Exploration IG-11-016 3/15/11 Preparing for the Space Shuttle Programs Retirement: Review of NASAs Controls over Public Sales of Space Shuttle Property 3/15/2011 4 3 2/28/2013 IG-10-016 7/6/10 NASAs Astronaut Corps: Status of Corrective Actions Related to Health Care Activities 7/6/2010 1 1 12/31/2012 Audit Area: Infrastructure and Facilities Management IG-11-024 8/4/11 NASA Infrastructure and Facilities: Assessment of Data Used to Manage Real Property Assets 8/4/2011 1 2 12/20/2012
47Table 2: Prior Audit Recommendations Yet to Be Implemented (continued) REPORT NO./ DATE ISSUED TITLE DATE RESOLVED NUMBER OF RECOMMENDATIONSLATEST TARGET CLOSURE DATEOPEN CLOSED Audit Area: Information Technology Security and Governance IG-11-017 3/28/11 Inadequate Security Practices Expose Key NASA Network to Cyber Attack 3/28/2011 3 0 12/31/2012 IG-10-024 9/16/10 Review of NASAs Management and Oversight of Its Information Technology Security Program 9/16/2010 2 1 12/31/2012 IG-10-019 9/14/10 Audit of NASAs Eorts to Continuously Monitor Critical Information Technology Security Controls 9/14/2010 2 0 12/28/2012 IG-10-018-R 8/5/10 Audit of Cybersecurity Oversight of [a NASA] System (Redacted) 9/14/2010 1 14 9/30/20123IG-10-013 5/13/10 Review of the Information Technology Security of [a NASA Computer Network] 5/13/2010 2 0 12/28/2012 IG-10-013-a 7/1/10 Addendum IG-05-016 5/12/05 NASAs Information Technology Vulnerability Assessment Program 5/12/2005 1 3 2/29/20122Audit Area: Other IG-11-026 9/12/11 NASAs Grant Administration and Management 3/8/2012 6 3 8/1/2013 IG-11-023 8/10/11 NASAs Payments for Academic Training and Degrees 10/27/2011 6 0 2/28/2013 IG-11-004 12/13/10 Review of the Jet Propulsion Laboratorys Occupational Safety Program 1/18/2011 6 9 1/31/2013 IG-09-003 11/13/08 Final Memorandum on the Review of NASA Stolen Property at Goddard Space Flight Center and Marshall Space Flight Center 11/13/2008 1 4 6/30/20132 e OIG is reviewing managements request for closure.3 e OIG is working with management to determine a revised target closure date.
48Table 3: Audits with Questioned Costs NUMBER OF AUDIT REPORTS TOTAL QUESTIONED COSTS No management decision made by beginning of period 1 $2,186,330 Issued during period 3 $25,498,785 Needing management decision during period 4 $27,685,115 Management decision made during period Amounts agreed to by management Amounts not agreed to by management 1 1 $27,324,622 $99,006 No management decision at end of period Less than 6 months old More than 6 months old 2 0 $261,487 n/aTable 4: Audits with Recommendations that Funds Be Put to Better Use NUMBER OF AUDIT REPORTS TOTAL FUNDS TO BE PUT TO BETTER USE No management decision made by beginning of period 2 $61,750,000 Issued during period 1 $3,577,794 Needing management decision during period 3 $65,327,794 Management decision made during period Amounts agreed to by management Amounts not agreed to by management 1 2 $4,313,759 $61,014,035 No management decision at end of period Less than 6 months old More than 6 months old 0 0 n/a n/aTable 5: Status of A-133* Findings and Questioned Costs Related to NASA Awards Total audits reviewed 40 Audits with ndings 21 Findings and Questioned Costs NUMBER OF FINDINGS QUESTIONED COSTS Management decisions pending, beginning of reporting period Findings added during the reporting period Management decision made during reporting period Agreed to by management Not agreed to by management Management decisions pending, end of reporting period 258 52 (11) 299 $18,380,725 302,378 (231,426) 18,451,677 OMB Circular A-133, Audits of States, Local Governments, and Non-Prot Organizations, requires Federal award recipients to obtain audits of their Federal awards.
49Table 6: Legal Activities and Reviews FOIA matters 21 Appeals 2 Inspector General subpoenas issued 72 Regulations reviewed 19Table 7: Oce of Investigations Activities a. Complaint Intake Disposition SOURCE OF COMPLAINT ZERO FILES1ADMINISTRATIVE INVESTIGATIONS2MANAGEMENT REFERRALS3PRELIMINARY INVESTIGATIONS4TOTAL Hotline 45 13 2 17 77 All others 58 12 4 80 154 Total 103 25 6 97 2311 Zero les are complaints for which no action is required or that are referred to NASA management for information only or to another agency .2 Administrative investigations include non-criminal matters initiated by OI as well as hotline complaints referred to OA.3 Management referrals are complaints referred to NASA management for which a response is requested.4 Preliminary investigations are complaints where additional information must be obtained prior to initiating a full criminal or civil investigation.b. Full Investigations Opened this Reporting Period Full criminal/civil investigations*21* F ull investigations evolve from preliminary investigations that result in a reasonable belief that a violation of law has taken place.c. Cases Pending at End of Reporting Period Preliminary investigations 102 Full criminal/civil investigations 85 Administrative investigations 43 Total 230d. Qui Tam1 Investigations2 Opened this reporting period 4 Pending at end of reporting period 111 A qui tam is a civil complaint led by an individual on behalf of the U.S. Government under the civil False Claims Act.2 e number of qui tam investigations is a subset of the total number of investigations opened and pending.
50Table 7: Oce of Investigations Activities (continued) e. Judicial Actions Cases referred 50 Indictments/criminal informations 16 Convictions/plea bargains 9 Sentencing 11 Civil settlements/judgments 2f. Administrative Actions Recommendations to NASA management for disciplinary action 17 Involving a NASA employee 4 Involving a contractor rm 4 Involving a contractor employee 7 Other 2 Administrative/disciplinary actions taken 11 Against a NASA employee 3 Against a contractor rm 1 Against a contractor employee 7 Recommendations to NASA management on program improvements 5 Matters of procedure 4 Safety issues or concerns 1 Program improvement actions taken 6 Matters of procedure 6 Referrals to NASA management for review and response 7 Referrals to NASA management information only 8 Referrals to the Oce of Audits 7 Referrals to Security or other agencies 6 Suspensions or debarments from Government contracting 3 Involving an individual 2 Involving a contractor rm 1g. Investigative Receivables and Recoveries Judicial $8,708,410 Administrative* $8,189,929 Total $16,898,339 Total to NASA $9,005,392 Includes amounts for cost savings to NASA as a result of investigations.
51Defense Contract Audit Agency Audits of NASA Contractors reimbursable basis. DCAA provided the following information during this period on reports involving NASA contract activities. DCAA Audit Reports Issued During this period, DCAA issued 145 audit reports on contractors who do business with NASA. Corrective actions taken in response to DCAA audit report recommendations usually result from negotiations between the contractors following table shows the amounts of questioned costs and funds to be put to better use included in DCAA reports issued during this semiannual reporting period and the amounts that were agreed to during the reporting period. Table 8: DCAA Audit Reports with Questioned Costs and Recommendations that Funds Be Put to Better Use; Amounts Agreed To1, 2 AMOUNTS IN ISSUED REPORTS AMOUNTS AGREED TO3Questioned costs $ 86,804,000 $20,043,000 Funds to be put to better use $125,453,000 $29,129,0001is data is provided to the NASA OIG by DCAA and may include forward pricing proposals, operations, incurred costs, cost accounting standards, and defective pricing audits. Because of limited time between availability of management information system data and legislative reporting requirements, there is minimal opportunity for DCAA to verify the accuracy of reported data. Accordingly, submitted data is subject to change based on subsequent DCAA authentication.2 e data presented does not include statistics on audits that resulted in contracts not awarded or in which the contractor was not successful.3 Amounts agreed to include amounts from reports issued in previous semiannual reporting periods.
52Appendix C. Peer Reviews include in their semiannual reports any peer review results they provided or received during the relevant reporting period. Peer reviews are required every 3 years. In com pliance with the Act, we provide the following information. our system of quality control was suitably designed and whether we were complying with the quality control system, in order to provide us with reasonable suitably designed and complied with to provide us with reasonable assurance of performing and reporting in conformity with applicable professional standards highest rating available. We have implemented all of the Department of there are no outstanding recommendations from this or any previous peer report to the appropriate entities. 2012) Peer Review of Small Business Administration OIG Also during this semiannual reporting period, we performed a peer review of system in place for the period of April 1, 2010, through March 31, 2011. We recommendation we made as the result of our review. We have no outstanding recommendations related to this or past peer reviews that we have conducted.
53 Appendix D. Glossary and AcronymsGlossaryAdministrative Investigation. An administrative investigation is an inquiry into alle gations of misconduct, wrongdoing, or administrative matters, the results of which could lead to disciplinary action. A questioned cost that management, in a management decision, has sustained or agreed should not be charged to the I nvestigative Recoveries. Investigative recoveries are the total dollar value of court settlements, including administrative actions resulting in non-court settlements. Investigative Referrals. Investigative referrals are cases that require additional inves to agencies for management or administrative action. An individual case may be referred for disposition to one or more of these categories. Judicial Actions. Investigative cases referred for prosecution that are no longer under ments, indictments, or convictions. Indictments and convictions represent the number of Latest Target Closure Date. Managements current estimate of the date it will complete tions, including actions that management concludes are necessary. A cost that is questioned by the cooperative agreement, or other agreement or document governing the expenditure of is unnecessary or unreasonable.
54Recommendation Resolved. ing recommended improvements related to the operations of the establishment, a contractor, generally allow the Agency to use the amounts more effectively in the accomplishment of Qui Tam. Latin for who as well. A lawsuit brought by a whistleblower on behalf of the the whistleblower. An unsupported cost is a cost that is supported by adequate documentation.
55 AcronymsAIGI APT ARMD Aeronautics Research Mission Directorate AS&M Analytical Services and Materials, Inc. CIGIE CIO CORE College Opportunity Resources for Education DCAA Defense Contract Audit Agency DIG DOJ EXCOM Executive Committee FCC Federal Communications Commission FISMA Federal Information Security Management Act FOIA Freedom of Information Act FY GAO GIDEP GPS IG IPERA Improper Payments Elimination and Recovery Act IPIA Improper Payments Information Act ISS International Space Station
56IT ITS JPL MAVEN Mars Atmosphere and Volatile Evolution NASA National Aeronautics and Space Administration NPR NASA Procedural Requirements NRA NASA Research Announcement NRC National Research Council NSSC NASA Shared Services Center OA OCO-2 Orbiting Carbon Observatory-2 OI OIG OMB OMP ORCA PAR Performance and Accountability Report RAC Resident Agent-in-Charge SBIR SLS SOC Security Operations Center WIFLE
57 Appendix E. NASA OIG Ofces of Audits and Investigations Ames Research Center California Jet Propulsion Laboratory California Johnson Space Center Texas Stennis Space Center Mississippi Marshall Space Flight Center Alabama Kennedy Space Center Florida Langley Research Center Virginia NASA Headquarters Washington, DC Goddard Space Flight Center Maryland Glenn Research Center Ohio AMES DRYDEN FLIGHT RESEARCH CENTER GLENN RESEARCH CENTER GLEN RESEARCH CENTER PLUMBROOK STATION GODDARD INSTITUTE FOR SPACE STUDIES GODDARD SPACE FLIGHT CENTER JET PROPULSION LABORATORY JOHNSON SPACE CENTER KENNEDY SPACE CENTER LANGLEY RESEARCH CENTER MARSHALL SPACE FLIGHT CENTER STENNIS SPACE CENTER ALABAMA CALIFORNIA FLORIDA LOUISIANA MARYLAND MISSISSIPPI NEW MEXICO NEW YORK OHIO TEXAS VIRGINIA WEST VIRGINIA NASA OIG Headquarters 300 E Street SW, Suite 8V39 Ames Research Center Ames Research Center Moffett Field, CA 94035-1000 Glenn Research Center Mail Stop 14-9 Cleveland, OH 44135-3191 Goddard Space Flight Center Code 190 402 East State Street Jet Propulsion Laboratory Pasadena, CA 91109-8099 Mail Stop 180-202 Mail Stop 180-203 Suite 5120 Johnson Space Center 2101 NASA Parkway Kennedy Space Center Langley Research Center 9 East Durand Street Marshall Space Flight Center Mail Stop M-DI 35812-0001 Stennis Space Center Stennis Space Center, MS
HOTLINE1-800-424-9183 / TDD: 1-800-535-8134GO TO: http://oig.nasa.gov/hotline.html WRITE: NASA Of f i ce of Inspector General P.O. Box 23089, LEnfant Plaza Station Washington, DC 20026 WEBSITE: http://oig.nasa.gov