Audits and inspections in the area of the Department's internal operations show that it must establish effective accountability for its contractors and employees. The work concluded during this reporting period shows inadequacies in oversight, monitoring and accountability by Department management and staff. A summary of audits and inspections in this area is covered in the fourth section of this report. OIG constantly strives to improve its operations. The OIG identifies emerging threats to the integrity of the Department's programs and capitalizes on new and evolving techniques to help address these issues. This report highlights some of the additional activities and accomplishments in the fifth section. In the sixth and final section of this report are compilation tables of the audits, inspections and investigations that were concluded during this reporting period, as required by the Inspector General Act. (Contains 8 tables.).