Federal Reports

The U.S. Postal Service announced that it will convert select facilities around the country into sorting and delivery centers (S&DCs) as part of the 10-year strategic Delivering for America plan. S&DCs will consolidate carrier operations from multiple delivery units into one facility. The Postal Service converted two facilities in Gainesville and Panama City, FL, into S&DCs in February 2023. According to the Postal Service, S&DCs are a vital part of its network modernization and will reduce transportation and mail handling costs.

National Credit Union Administration (NCUA) Office of Inspector General (OIG) Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the 6-month period ending March 31, 2024.

The Semiannual Report to Congress summarizes the results of VA OIG oversight, provides statistical information, and lists all 136 work products issued from October 1, 2023, to March 31, 2024. During this reporting period, VA OIG audits, evaluations, investigations, inspections, and other reviews identified more than $1.45 billion in monetary impact for a return on investment of $12 for every dollar spent. The OIG hotline received and triaged over 15,500 contacts in the past six months—to help identify wrongdoing and address concerns with VA activities. Also, during the past six months, special agents opened 178 investigations and closed 183, with efforts leading to 112 arrests. Collectively, the OIG’s work also resulted in 459 administrative sanctions and corrective actions during the six-month reporting period.

Objective: To determine whether the Social Security Administration met all requirements of the Payment Integrity Information Act of 2019 in the Fiscal Year 2023 Agency Financial Report and accompanying materials.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Modis, Inc. (Modis) for contract-to-hire services within TVA's Technology and Innovation organization under Contract No. 16781. Modis was to provide recruiting, staff augmentation, and hiring services to supplement TVA's standard hiring processes in preparation for increased hiring. The contract provided for TVA to compensate Modis for its labor and related indirect costs by (1) reimbursing straight time and overtime wages paid in accordance with a schedule of defined job classifications and corresponding wage ranges and (2) payment of fixed salary burden rates (markups) for the recovery of payroll taxes, payroll-related insurance, fringe benefits, overhead, general and administrative costs, and profit. In addition, the contract provided TVA would pay a conversion fee if TVA converted a Modis recruited employee to full-time TVA employment within the first six months of their assignment.Our audit objective was to determine if costs were billed in accordance with the terms of the contract. Our audit scope included about $11.56 million in costs billed to TVA from January 31, 2022, through November 6, 2023.In summary, we determined:- Modis overbilled TVA $18,000 for an ineligible conversion fee.- Although the contract provided for TVA to reimburse Modis' actual labor costs plus a fixed markup, wage ranges and fixed labor markup rates were never established in the contract. Instead, Modis billed hourly labor rates that were not based on the contract's compensation provisions. As a result, TVA personnel approving invoices from Modis had no basis for validating the appropriateness of the rates that were billed.Based on limited pay rate information we reviewed, we determined the markups Modis included in its billing rates were substantially higher than markups TVA is paying under similar staff augmentation labor contracts. Based on this comparison, we estimated TVA paid between $1.6 million and $3.1 million more to Modis than it would have if actual wages and fixed markups similar to other staff augmentation contracts had been used for this contract.(Summary Only)

We audited costs billed to the Tennessee Valley Authority (TVA) by Universal Protection Service, LP dba Allied Universal Security Services (Allied) under Contract No. 16681 for nonnuclear security guard services. Our audit objective was to determine if costs billed were in compliance with the contract's terms. Our audit scope included about $8.76 million in costs billed to TVA from January 7, 2022, through October 31, 2023. In summary, we determined costs billed by Allied complied with the contract's terms.(Summary Only)