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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
Federal Reports
Report Date
Agency Reviewed / Investigated
Report Title
Type
Location
Department of Defense
Management Advisory: Inadequate Housing of Soldiers Supporting the Southern Border Mission
The audit concluded that the Peace Corps’ financial statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP), and noted two significant deficiencies in the agency’s internal control over financial reporting, as well as one instance of reportable noncompliance related to provisions of applicable laws, regulations, contracts, and grant agreements.
The previously-issued audit report containing the Annual Financial Statements of the Federal Prison Industries, Inc. (FPI) for fiscal year (FY) 2021, dated December 2021, was withdrawn and removed from the OIG’s website and Oversight.gov as a result of material misstatements in FPI’s financial statements that were discovered in FY 2023. The report now linked to this page contains the auditor’s report on the FPI’s restated financial statements for FY 2021.
The previously-issued audit report containing the Annual Financial Statements of the Federal Prison Industries, Inc. (FPI) for fiscal year (FY) 2022, dated March 2023, was withdrawn and removed from the OIG’s website and Oversight.gov as a result of material misstatements in FPI’s financial statements that were discovered in FY 2023. The report now linked to this page contains the auditor’s report on the FPI’s restated FY 2022 financial statements and completed FY 2023 financial statements.
VHA pharmacies cannot dispense drugs that are damaged or expired or will be expiring soon. To address this issue and to recover some costs, VA contracted with Pharma Logistics LLC to provide national reverse distribution services, where manufacturers accept returned drugs in exchange for credits toward future purchases. Pharma Logistics collected returned drugs, sorted them, returned them to the manufacturers, disposed of nonreturnable products, and coordinated the application of credits from manufacturers to VA accounts. The OIG’s objective was to determine whether Pharma Logistics complied, in all material respects, with its contract regarding drug return credits and billing. Of the about $114.4 million in manufacturer credits for drugs that VA facilities expected from reverse distribution services as of March 2024, VA received only about $110.3 million. Of the $4.1 million variance, over $3.6 million of the unapplied credits were related to Pharma Logistics improperly closing jobs and $526,520 was used for contract-prohibited processing fees. VA agreed with the OIG’s three recommendations for it to confer with VA’s Office of General Counsel regarding the potential recovery of credits.