Federal Reports

This report presents the results of our audit of Ginnie Mae’s fiscal year 2020 financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws, regulations, and contracts applicable to Ginnie Mae. In fiscal year 2020, we were able to obtain sufficient, appropriate evidence to express an unmodified opinion on the fairness of Ginnie Mae’s financial statements. We also reported one significant deficiency in its Report on Internal Control Over Financial Reporting and no reportable compliance issues in its Report on Compliance With Laws, Regulations, and Contracts. Specifically, we reported that Ginnie Mae had a significant deficiency in the control design of its organizational structure for two key functions, estimation model development and model verification, within its Office of Enterprise Risk. We further reported that this control deficiency potentially prevents an effective challenge to models used to develop significant estimates for financial reporting.

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

We found the EPA's financial statements to be fairly presented and free of material misstatement.

The CSB received an unmodified opinion on its fiscal years 2020 and 2019 financial statements.

Manufacturer Credits and Payment Reductions for Medical DevicesFederal regulations and guidance specify how hospitals must report the replacement of a beneficiary’s implanted device if a hospital receives a full or partial credit from the manufacturer for a medical device that is covered under warranty or replaced because of a defect or recall. Medicare does not cover items or services for which neither the beneficiary, nor anyone on his or her behalf, has an obligation to pay (Social Security Act (the Act) § 1862(a)(2)). Federal regulations generally require reductions in both IPPS and OPPS payments for the replacement of certain implanted devices if: (1) the device is replaced without cost to the hospital, (2) the hospital receives full credit for the device cost, or (3) the hospital receives a credit equal to 50 percent or more of the device cost (42 CFR §§ 412.89 and 419.45). Cardiac Medical DevicesCommon cardiac medical devices used to treat beneficiaries include defibrillators, pacemakers, and their associated electrical leads. These devices are implanted during either an inpatient or outpatient procedure. Occasionally, devices may require replacement because of defects, recalls, battery depletions, or mechanical complications, which may be covered under the device manufacturer’s warranty. Generally, cardiac medical device manufacturers provide warranties for defects in materials or workmanship that happen at any time during the life of the product. Such defects may result in recalls or premature failures. When a hospital follows a manufacturer’s warranty process for its cardiac medical device, the manufacturer may issue a full or partial credit to the hospital to cover the cost of the failed or recalled device or provide a replacement without charge.

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