FY 2017 Annual Report (Statutory)

Published by the Department of Education, Office of Inspector General on 2017-10-30.

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

                                OFFICE OF INSPECTOR GENERAL

                                                                                                  THE INSPECTOR GENERAL 

October 30, 2017

The Honorable James Risch                                The Honorable Steve Chabot
Chairman, Committee on Small Business                    Chairman, Small Business Committee
And Entrepreneurship                                     U.S. House of Representatives
U.S. Senate                                              2361 Rayburn House Office Building
4218A Russell Senate Office Building                     Washington, D.C. 20515
Washington, D.C. 20510

The Honorable Jeanne Shaheen                             The Honorable Nydia Velazquez
Ranking Member, Committee on                             Ranking Member, Small Business Committee
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 Risch, Chairman Chabot, Ranking Member Shaheen, and Ranking Member

As you know, the National Defense Authorization Act for fiscal year (FY) 2012 reauthorized the
Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR)
programs. Section 5143(c) of the statute requires the Inspector General of a Federal agency
that participates in the SBIR or STTR 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, it does not participate in the STTR 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 2017.
ED SBIR program staff reported that its total SBIR obligation in FY 2017 was $7.9 million.
As ED administers about 100 programs and disburses more than $317 billion each year, the
SBIR is a relatively small program with in ED.

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

       For FY 2017, 0 cases were referred to the OIG involving the SBIR program.

                              400 MARYLAND 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 U.S. Department of Education Office of Inspector General

    (2) 	Report the actions taken in each case iffraud, 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 SBIR
       program, including a description of personnel and resources funded and funds that were
       recovered or saved.

       In September 2017 (FY 2017), the OIG conducted a video training session/webinar
       aimed at assisting SBIR grant recipients in identifying and addressing fraud, waste,
       and abuse involving the SBIR program. As we provided the training via the
       internet, the training costs were nominal ($500).

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.


Kathleen S. Tighe
Inspector General

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