Federal Reports

We performed this audit to determine whether Rehabilitation Services Administration (RSA) has sufficient processes for overseeing vocational rehabilitation (VR) program grantees’ effective use of funds in compliance with applicable requirements. We found that RSA generally had sufficient processes for overseeing State VR agencies’ effective use of funds. These processes included communicating clear, accurate, and timely guidance and technical assistance to State VR agencies; performing annual reviews for all State VR agencies; and conducting periodic onsite and offsite monitoring for selected State VR agencies. However, we found that RSA could strengthen its oversight in key areas by developing documented procedures for its annual reviews, improving its risk assessment processes by incorporating a risk factor that accounts for a State VR agency’s technical assistance needs, and establishing a reasonable period during which all State VR agencies must be subject to onsite or offsite monitoring at least once.

The U.S. Postal Service recently begun realigning its network by implementing Regional Processing and Distribution Centers (RPDC) to consolidate mail processing operations, reduce costs, and grow package business. To help support this strategy, the Postal Service deployed the Matrix Regional Sorter (MaRS). The MaRS is designed to increase package processing capacity and efficiency while using less floor space, a critical factor to the success of implementing the Postal Service’s network transformation and increasing their share in the growing package market.

The OIG conducted this follow-up inspection to determine whether information systems at the Southwest Consolidated Mail Order Pharmacy in Tucson, Arizona, were meeting federal security guidance. The OIG inspected the facility in 2021 and made six recommendations to correct security weaknesses.During this inspection, the team identified continuing deficiencies related to configuration management, security management, and access controls designed to protect systems from unauthorized access, alteration, and destruction. Regarding configuration management, the OIG found that the facility did not create plans for remediating vulnerabilities that had not been resolved within established time frames, and that network devices were running software that no longer met security requirements. Security management controls were deficient in that an administrator account was still active five months after the user’s employment was terminated, contrary to policy. Access controls were deficient in two respects: they did not isolate special-purpose system segments from the rest of the network, giving any user access to systems that run 50 potentially vulnerable special-purpose devices; and database audit logs used to assess the effectiveness of other security controls, recognize an attack, and investigate during or after an attack were not properly retained.Unless the facility takes corrective actions, it risks unauthorized access to critical network resources, loss of personally identifiable information, and inability to respond effectively to incidents. To correct the deficiencies, the OIG made five new recommendations.Although the findings and recommendations in this report are specific to the Southwest Consolidated Mail Order Pharmacy, the OIG noted that other VA facilities could benefit from reviewing this information and considering these recommendations.

Market Dominant mail — a category consisting primarily of First-Class Mail, Marketing Mail, and Periodicals — is the Postal Service’s largest source of funding, contributing 53 percent of the agency’s revenue in fiscal year (FY) 2023. Since 2006, however, mail volume has been in decline. The key factor driving ongoing decline in mail volume is “electronic diversion,” a term referring to the replacement of physical mail with electronic alternatives, such as the Internet, email, texting, and social media. This paper examines Market Dominant mail volume from FYs 2008 through 2023, presenting historical volume trends across classes of mail and describing key factors influencing these trends.

We found that an Area Foreman instructed platform operators to bypass safety systems before a pollution event.