Policy and Scope

415 FW 1
FWM Number
Originating Office
Branch of Risk Management

1.1 Purpose. This chapter provides policy and responsibilities for cooperating with the Office of Inspector General, Department of the Interior, in the audit of Fish and Wildlife Service (Service) programs and operations.

1.2 Authority. The authority under which the Department of the Interior conducts audits is found in the provisions of the Inspector General Act of 1978 (92 Stat. 1101), as amended; the Budget and Accounting Procedures Act of l950 (31 U.S.C. 2 et seq.); Single Audit Act of l984 (P.L. 98-502); Insular Areas Act (P.L. 97-357); Compact of Free Association Act of l985 (P.L. 99-239; OMB Circular A-73, revised June 20, 1983; OMB Circular A-128, April 12, 1985; OMB Circular A-127, December 19, 1984; OMB Circular A-50, September 29, 1982; and OMB Circular A-123, revised August 4, 1986.

1.3 Objectives. The objectives of Departmental audits, as conducted by the Office of Inspector General, are to:

A. Promote economy, efficiency, and effectiveness in the administration of programs and operations.

B. Aid in the prevention and detection of fraud and abuse in programs and operations.

C. Assist the Office of Inspector General in keeping the Secretary of the Interior and the Congress fully and currently informed about problems and deficiencies relating to the administration of such programs and operations and the necessity for and progress in developing remedies.

1.4 Policy. It is the policy of the Service to:

A. Fully cooperate with the Office of Inspector General in planning, scheduling, and conducting audits.

B. Make available Service management control system documentation during routine audits.

C. Provide timely, objective consideration of and action on audit findings and recommendations.

D. Disseminate the findings and corrective actions throughout the Service to achieve overall improvements.

E. Maintain a system of follow-up on audit findings and recommendations.

1.5 Responsibilities.

A. Regional Directors and Assistant Directors are responsible for preparation of responses to draft and final audit reports and for taking appropriate actions on audit recommendations.

B. The Assistant Director - Policy, Budget and Administration through the Division of Policy and Directives Management is responsible for facilitating the audit of Service programs and for designating an Audit Liaison Officer.

C. The Service Audit Liaison Officer is responsible for:

(1) Acting as liaison with the Department, the Office of Inspector General (OIG), and the General Accounting Office (GAO), relating to audit coordination and audit follow-up matters.

(2) Coordinating audit activities within the Service.

(3) Providing advice to program officials regarding the Service's response to OIG and GAO audit reports.

(4) Tracking and reporting on audit follow-up to the Directorate and the Department.

(5) Stepping down and interpreting guidance from the Department on audits.

1.6 Scope of Audits.

A. Type of Audits.

(1) Internal Audits. Audits performed by the OIG and the GAO of Service programs have historically been referred to as internal audits. The scope of an internal audit, however, may include a review both within the Service and of selected grantees and contractors participating in the program being audited.

(2) External Audits. Audits of Service grantees, contractors, lessees, permittees, and royalty payors, referred to as external audits, are conducted by the Office of Inspector General, other Federal audit agencies under cognizance assignments, State and local government auditors, and independent public accountants.

(3) Investigative Audits. Audits of the activities of individual employees or positions are referred to as investigative audits and come under the purview of the Division of Personnel Management who coordinates with the OIG.

B. Components of Audits. A full scope audit of a Service program or operation will include the following:

(1) A financial and compliance component which determines whether financial operations are properly conducted, financial reports of an audited entity are presented fairly, and operations are in compliance with applicable laws and regulations.

(2) An economy and efficiency component which determines whether resources; e.g., personnel, property, and space, are managed or utilized in an economical and efficient manner and determines the causes of any inefficient or uneconomical practices, including inadequacies in management information systems, administrative procedures, or organizational structure structure
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(3) A program results component which determines whether desired results or benefits are being achieved, objectives established by the legislature or other authorizing body are being met, and alternatives are considered which might yield desired results at lower cost.

C. Distinction Between Internal Audits and Management Control Reviews. Service programs and operations may be audited to fulfill objectives as shown in 1.3, above. The internal audit serves to independently monitor the adequacy of Service programs. The internal audit is not a substitute for Service management control reviews to provide adequate organization, day-to-day operating procedures, and administrative review activities. The internal audit will, however, include an evaluation of the workings of the management control system. A distinction is drawn between an audit and technical assistance such as accounting assistance to tribal governments, and administrative support activities such as cost and price analysis.