FY 2019 Annual Report (Statutory)

Published by the Department of Education, Office of Inspector General on 2019-10-28.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

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                                                                    OFFICE OF INSPECTOR GENERAL

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                                                                                                                               THE INSPECTOR GENERAL

               October 28, 2019

               The Honorable Marco Rubio                                               The Honorable Nydia Velazquez
               Chairman, Committee on Small Business                                   Chair, Committee on Small Business
               And Entrepreneurship                                                    U.S. House of Representatives
               U.S. Senate                                                             2361 Rayburn House Office Building
               428A Russell Senate Office Building                                     Washington, D.C. 20515
               Washington, D.C. 20510

               The Honorable Ben Cardin                                                The Honorable Steve Chabot
               Ranking Member, Committee on                                            Ranking Member, Committee on Small Business
               Small Business and Entrepreneurship                                     U.S. House of Representatives
               U.S. Senate                                                             2069 Rayburn House Office Building
               428A Russell Senate Office Building                                     Washington, D.C. 20515
               Washington, D.C. 20510

                Dear Chairman Rubio, Chairwoman Velazquez, Ranking Member Cardin, and Ranking Member

                As you know, the National Defense Authorization Act for fiscal year (FY) 2017 reauthorized the
                Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STIR)
                programs. Section 5143(c) of the statute requires the Inspector General of a Federal agency
                that participates in t he SBIR or STIR programs to submit an annual report describing its
                investigations involving those programs. The U.S. Department of Education (ED) participates in
                the SBIR program; however, ED does not participate in the STIR program as it does not have an
                extramural research or research and development budget in excess of $1 billion.

                Below you will find data required from my office for the SBIR program covering FY 2019 .
                ED SBIR program staff reported that its total SBIR obligation in FY 2019 was approximately
                $10.2 million.

                            (1) The number of cases referred to the Office of Inspector General {OIG} that relate to
                                fraud, waste, or abuse with respect to the 58/R program.

                                       For FY 2019, 0 cases were referred to the OIG involving the SBIR program.

                                                             400 J',,IARYLAND AVENUE, S.W., WASHINGTON, DC 20202-1510

                                             Promoting the efficiency, effectiveness, and integrity ofthe Department's programs and operations.
Page 2 - SBIR Report from the ED Office of Inspector General

   (2) Report the actions taken in each case if fraud, waste, or abuse was determined to have


   (3) If no action was taken, report the justification for action not being taken.


   (4) Provide an accounting of the funds used to address fraud, waste, and abuse in the 58/R
       program, including a description of personnel and resources funded and funds that were
       recovered or saved.

       For the last several years, including most recently in October 2018, the OIG has
       conducted video training sessions/webinars aimed at assisting SBIR grant recipients in
       identifying and addressing fraud, waste, and abuse involving the SBIR programs. As they
       are conducted over the internet, the training costs are nominal, averaging about $500.
       The next training is scheduled for October 29, 2019.

We will track and follow up on any allegations or complaints we receive involving ED's SBIR
program and will be certain to describe our efforts in future reports. If you have any questions
or if you need any additional information, please do not hesitate to contact me directly at
(202} 245-6900, or have a member of your staff contact our Congressional Liaison,
Catherine Grant, at (202) 245-7023.

Sandra D. Bruce
Deputy Inspector General Delegated the Duties of Inspector General

cc: The Honorable Betsy DeVos, Secretary, U.S. Department of Education