The Red Book: Cost-Saver Handbook (1996)

The Red Book is a compendium of significant Office of Inspector General (OIG) monetary recommendations that have not been substantially implemented. These recommendations may require one of three types of actions: legislative, regulatory, or administrative actions, such as changes to manual issuances. Some complex issues can involve two or all three types of actions. The Inspector General Act requires that the OIG's semiannual reports to the Congress include "an identification of each significant recommendation described in previous semiannual reports on which corrective action has not been completed." Thus, the OIG highlights significant recommendations in each semiannual report. Because of the abbreviated nature of this list and the potentially significant impact of the OIG's recommendations, however, we prepare the Red Book to highlight even further our most significant monetary issues. Not only does the Red Book amplify our OIG reporting requirements for unimplemented recommendations, but it brings together in one document significant cost-saving recommendations for review by Department and Office of Management and Budget (OMB) officials, and the Congress. Recommendations for proposed legislation remain in the Red Book until the law has been enacted. On administrative issues, recommendations are removed when the action has been substantially completed. Recommendations from draft reports represent the tentative position of the OIG and are subject to change when the final versions of the reports are issued. Included for each of our proposals are current law, reason for action, resultant savings and status of actions taken. Full implementation of the recommendations contained in this 1996 edition of the Red Book could produce over $23 billion in annual savings to the Department. Over the past 5 years, over $37 billion in savings, settlements, fines, restitutions and receivables have resulted from OIG activities and implementation of OIG recommendations.

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