Agency IG offices typically produce savings far above the costs of operating those offices, with the highest return on investment, or ROI, at agencies that are more focused on paying out grants, loans, contracts and direct payments, according to a report by the Brookings Center for Effective Public Management.
“The Social Security Administration consistently has the highest ROI, and one that is stable. This is sensible given that the function of SSA is to deliver direct payments to the public. For a large entitlement program like Social Security, there exist serious public concerns over waste, fraud, and abuse. The SSA’s OIG is on the front lines, doing an effective job combating those concerns,” it said.
Over a five-year average, that office has produced $43.60 in savings for every dollar spent, while the IGs at VA, HUD and Transportation were next, at $38, $29.59 and $25.89. Those departments “also focus on the distribution of funds, and thus they face serious risks of revenue losses,” it said.
The report noted that the calculation is a difficult one and can be affected by special circumstances, such as a settlement the Interior Department received related to the 2009 Gulf of Mexico oil spill. Certain data are inconsistent across departments, and some of the savings result from cooperative efforts among several agencies or with state and local law enforcement.
In addition, IGs “perform a variety of audit and investigative functions that are not revenue-generating (such as compliance recommendations) which are nevertheless important and beneficial.”