Federal Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined a company's standard design rates (i.e., indirect cost recovery rates) contained in the BWRX-300 Technology Collaboration Agreement (TCA). Our examination objective was to determine if the company's proposed indirect cost recovery rates were fairly stated.In our opinion, the company's proposed rates for the recovery of its fringe benefits, overhead, and general and administrative costs were fairly stated. However, we determined the total cumulative indirect rate listed in the TCA did not accurately represent the total rate that would be applied to the company's salary costs. Specifically, we found the TCA's total cumulative indirect rate and accompanied calculation represent a salary rate multiplier, instead of the indirect cost recovery rate, as it is labeled in the TCA. We suggest TVA management negotiate appropriate changes to the TCA to more accurately reflect the total indirect cost recovery rate.(Summary Only)

An Amtrak Electrical Journeyman based in Miami, Florida, resigned from his position on May 16, 2023, prior to his administrative hearing. Our investigation found that the former employee violated company policies by engaging in outside employment while on a medical leave of absence.

The U.S. International Development Finance Corporation (DFC), Office of Inspector General (OIG) Spring 2023 Semiannual Report to Congress (SARC) for the reporting period, October 1, 2022 through March 31, 2023. This report was submitted in accordance with the requirements of Section 5 of the Inspector General Act of 1978, as amended. DFC OIG has made significant progress to support our oversight mission of protecting America’s international development finance investments from fraud, waste, abuse, and mismanagement.

This independent auditors’ report on the U.S. Small Business Administration’s (SBA) improper payment reporting is required by the Payment Integrity Information Act of 2019. We contracted with the independent certified public accounting firm KPMG LLP to conduct a performance audit of SBA’s Fiscal Year (FY) 2022 compliance with the Act. The auditor was engaged to review the payment integrity section of SBA’s Agency Financial Report Fiscal Year 2022 (AFR) and accompanying materials to determine whether the agency complied with the reporting requirements under the Act.In the report, KPMG auditors found SBA was not compliant with 9 of the 10 reporting requirements under the Act and Office of Management and Budget (OMB) guidance.• The agency’s risk assessment methodology did not consider certain identified risk factors to adequately conclude whether the Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and the payments for covered loans in the 7(a) and 504 Certified Development Company loan guaranty programs under the debt relief assistance program were likely to include improper and unknown payments above or below the statutory threshold.• The sampling and estimation methodology plans were not appropriate for the SBA disaster assistance loans, COVID-19 Economic Injury Disaster Loans (COVID-19 EIDL), and Economic Injury Disaster Loan Targeted Advance programs and activities. • SBA did not demonstrate improvements to payment integrity for 7(a) loan guaranty purchases because the improper payment estimate increased between fiscal years 2021 and 2022, and• SBA did not publish improper and unknown payment estimates, corrective action plans, and reduction targets within the AFR and accompanying materials for PPP loan guaranty purchases and forgiveness activities.SBA indicates that it is committed to reducing the dollar amount of improper payments, ensuring program integrity, and continuing to implement effective risk management procedures in accordance with improper payment legislation.