Federal Reports

Serve Washington administered $40,328,621 of AmeriCorps funds during the three years ending September 30, 2016. Serve Washington awarded subgrants to 17 organizations and was responsible for programmatic and financial oversight. The agreed-upon procedures (AUP) review included two subgrants—Kitsap Community Resources (KCR) and the Washington State Employment Security Department (ESD), including ESD’s two AmeriCorps programs, the Washington State Reading Corps and the Washington State Service Corps.Cotton & Company LLP found improper and unsupported costs claimed by the two subrecipients totaling $511,070 ($140,231 in Federal costs and $230,646 in match costs), plus an additional $136,773 in questioned education awards and $3,420 in accrued interest. No Serve Washington Commission incurred costs were questioned.The fieldwork found deficiencies with documenting claimed costs, with National Service Criminal History Checks, inaccurate timesheet recording and certifying, AmeriCorps service considered an added bonus to summer work, inadequate supervision of members recording teleservice and/or weekend service, and incomplete end of term evaluations. Serve Washington concurred with some findings and provided explanations for others. Corporation for National & Community Service Management will work with Serve Washington to resolve the findings.

Our objective was to assess the efficiency of the U.S. Postal Service’s transportation consolidation of mail (loading, unloading, and trailer utilization) for long-haul Highway Contract Routes (HCR) for the Chicago and San Francisco Network Distribution Centers (NDC). We determined the Postal Service’s consolidation of long-haul HCR trips for the Chicago and San Francisco CDFs was inefficient.

Treasury OIG Travel Inquiry Memorandum to Inspector General Thorson

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for civil projects and coal combustion residual program management work at TVA's steam electric power plants. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned <br> $300 million contract. In our opinion, the company's cost proposal was overstated. Specifically, we found the company's proposed costs for a Cumberland Fossil Plant (CUF) project and proposed unit rates for a Bull Run Fossil Plant (BRF) project included overstated temporary living assignment (TLA) costs, equipment costs, performance and payment bond costs, labor costs, and insurance costs. In addition, the company (1) understated its small tools rate for the CUF project due to errors in the company's estimate and (2) proposed a fee rate for the CUF project that exceeded the maximum allowable fee rate in TVA's request for proposal (RFP). We also found the company's proposed markup rate for employees who receive no benefits was overstated. We estimated TVA could avoid about $9.62 million on the planned $300 million contract by (1) negotiating appropriate reductions to TLA, equipment, performance and payment bond, labor, and insurance costs; (2) limiting the company's fee rate on the CUF project to the RFP's maximum allowable rate; and (3) negotiating appropriate reductions to unit rates in the BRF proposal. In addition, we suggest TVA negotiate revised markup rates for employees who receive no benefits. (Summary Only)

National Credit Union Administration OIG Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the six-month period ending September 30, 2017.

This report summarizes work we initiated and completed during this semiannual period on a number of critical Departmental activities. Over the past 6 months—in addition to issuing our annual Top Management and Performance Challenges Facing the Department of Commerce—OIG completed nine audits, inspections, and public investigative reports. These products addressed programs and personnel associated with the Economic Development Administration (EDA), Economics and Statistics Administration (ESA), Minority Business Development Agency (MBDA), National Oceanic and Atmospheric Administration (NOAA), National Telecommunications and Information Administration (NTIA), and the Department itself.