In the United States, the Office of Inspector General (OIG) is a generic term for the oversight division of a federal agency, state agency aimed at preventing inefficient or illegal operations within their parent agency. Such offices are attached to many federal executive departments, independent federal agencies, as well as state and local governments. Each office includes an Inspector General (or I.G.) and employees charged with identifying, auditing, and investigating fraud, waste, abuse, embezzlement and mismanagement of any kind within the executive department.
In the United States, the first Office of Inspector General (OIG) was established by act of congress in 1976 under the Department of Health and Human Services to fight waste, fraud and abuse in Medicare, Medicaid and more than 100 other HHS programs. With approximately 1,600 employees, the OIG performs audits, investigations, and evaluations to establish policy recommendations for decision-makers and the public.
There are 73 federal offices of inspectors general, a significant increase since the statutory creation of the initial 12 offices by the Inspector General Act of 1978. The offices employ special agents (criminal investigators, often armed) and auditors. In addition, federal offices of inspectors general employ forensic auditors, or "audigators," evaluators, inspectors, administrative investigators, and a variety of other specialists. Their activities include the detection and prevention of fraud, waste, abuse, and mismanagement of the government programs and operations within their parent organizations. Office investigations may be internal, targeting government employees, or external, targeting grant recipients, contractors, or recipients of the various loans and subsidies offered through the thousands of federal domestic and foreign assistance programs. The Inspector General Reform Act of 2008 (IGRA) amended the 1978 act by increasing pay and various powers and creating the Council of the Inspectors General on Integrity and Efficiency (CIGIE).
Some inspectors general, the heads of the offices, are appointed by the president and confirmed by the senate. For example, both the inspector general of the U.S. Department of Labor and the inspector general of the U.S. Agency for International Development are presidentially appointed. The remaining inspectors general are designated by their respective agency heads, such as the U.S. Postal Service inspector general. Presidentially appointed IGs can only be removed, or terminated, from their positions by the President of the United States, whereas designated inspectors general can be terminated by the agency head. However, in both cases Congress must be notified of the termination, removal, or reassignment.