Federal Reports

In January 2024, we conducted onsite, unannounced inspections atfour U.S. Customs and Border Protection (CBP) facilities in the DelRio area, specifically three U.S. Border Patrol (Border Patrol)facilities and one Office of Field Operations (OFO) port of entry(POE).

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Multifamily Housing Programs’ efforts to address multifamily mortgage application processing delays. When applications for these loans are delayed, it slows the production and availability of affordable multifamily housing units. During the COVID-19 pandemic, HUD took action to eliminate a backlog of over 500 applications waiting to be assigned to underwriters for review. We did this audit to assess HUD’s efforts for receiving and screening applications and assigning them to underwriters.HUD took steps to address delays in assigning applications to underwriters, but its methods and systems could be improved to help it manage applications and future challenges. HUD used several methods to address delays, including implementing (1) a nationwide queue, (2) an application completeness screening, (3) priority application processing, (4) use of contract underwriters, (5) workload sharing, and (6) an option to bypass initial feasibility reviews for certain applications (one-step processing). Although HUD eliminated the nationwide queue in November 2022, it was unable to transition successfully to a state-of-the-art processing platform. As a result, HUD still uses multiple systems, email, and other manual methods to process applications. We found this creates a future risk that HUD cannot process applications as quickly and effectively as possible. With a more integrated system and a plan for which methods will be used when applications exceed underwriter capacity, HUD can more easily identify, monitor, and address processing delays; evaluate its performance and processes; and manage future challenges, such as fluctuations in application volume. We recommend that HUD enhance its system for receiving, processing, and assigning applications in several important ways. These include tracking applications and capturing application intake, screening, and status, including key dates; capturing data on the type of underwriter used; developing a portal for receiving documents and communicating with lenders; and generating Federal Housing Administration (FHA) loan numbers. Further, we recommend that HUD update its policies and procedures to include methods that will be used when applications exceed underwriter capacity, align intake and screening processes, and explain when timeframes will be enforced. Last, we recommend that HUD issue an industry wide letter to reinforce how intake, screening, and enforcement of timeframes will be handled.

Michael Holder, an Amtrak assignment clerk based in Chicago, Illinois, pleaded guilty on June 5, 2024, in U.S. District Court, Northern District of Indiana, to two counts of Wire Fraud related to the fraudulent receipt of benefits under the Coronavirus Aid, Relief, and Economic Security Act. Our investigation found that Holder provided false and fictitious information to support an Economic Injury Disaster Loan application to the Small Business Administration. Further, Holder provided false and fictitious information to a financial institution to support a Paycheck Protection Program loan. Holder obtained a total of $30,833 to support his purported personally owned business. Holder will be sentenced at a future date.

Artemis IV will be the first flight of NASA’s more powerful heavy-lift rocket—the Space Launch System Block 1B. However, Block 1B development efforts have encountered multiple issues including Boeing’s ineffective quality management and inexperienced workforce, continued cost increases and schedule delays, and the delayed establishment of a cost and schedule baseline.

VA provides dental care to a wide range of eligible veterans. Those eligible can be referred to the community for this care if they do not live near a Veterans Health Administration (VHA) facility, are expected to experience lengthy wait times for an appointment, or community care is in their best medical interest.In fiscal year (FY) 2022, VA provided dental care to about 607,000 veterans and referred 186,500 veterans to the community, where they received care from non-VA dentists. Between FY 2018 and FY 2022, VA and community dental care costs have increased 65 percent and 173 percent, respectively. VA is required to pay for dental care in the community only when VA dentists provide authorization for the specific dental procedures to be performed. The VA Office of Inspector General (OIG) conducted this audit to determine the extent to which VHA may be paying for unauthorized community care dental procedures.The team estimated that between FY 2022 and FY 2025 VA will improperly pay $325.5 million for 847,800 unauthorized dental procedures performed by community dentists. This includes $139.1 million that the OIG estimated has already been paid in FY 2022 and FY 2023 and another $186.4 million that VA will pay in FY 2024 and FY 2025 if it does not reduce payments for unauthorized procedures. The unauthorized dental procedures fell within three categories: major changes to veterans’ treatment plans, minor changes to treatment plans that exceeded VHA’s maximum allowed amount during a rolling 12 month period, and referrals that did not specify the authorized dental procedure codes as required.To help VA address these improper payments, the OIG made five recommendations to the under secretary for health related to strengthening prepayment adjudication and postpayment review processes, as well as ensuring preauthorization requirements are followed.