Federal Reports

We conducted this audit in response to an inquiry we received from The White House, Office of Presidential Correspondence, on March 25, 2020, on behalf of a constituent who raised concerns of alleged theft by a postal employee. The inquiry was initially referred to the OIG’s Office of Investigations (OI). OI did not find evidence of misconduct by the employee. However, OI suggested that the High Shoals (NC) Post Office restrict stamp inventory and conduct surprise counts. This audit was designed to provide Postal Service management with additional information on financial control risks at the High Shoals Post Office. The objective was to determine whether the internal controls over stamps, money orders, and cash at the High Shoals Post Office were managed effectively.

The OIG investigated allegations that QEP Energy Company (QEP) failed to properly value minerals produced from Tribal and Indian Allottee properties for 2013 and 2014.We found that QEP underpaid mineral royalties owed to Indian mineral owners in North Dakota, Oklahoma, and New Mexico by $118,716. Subsequently, the Office of Natural Resources Revenue (ONRR) discovered QEP also undervalued natural gas liquids associated with the leases included in our investigation. This separate violation directly affected QEP’s overall royalty obligation. As a result, ONRR needed to complete an audit to determine any further extent of QEP’s royalty obligations. This matter was referred to ONRR for administrative resolution.

Ryan Taylor Minter, of Calumet City, Illinois, was sentenced in United States District Court, Central District of Illinois, on October 6, 2020, to 18 months in prison, one-year probation and was ordered to pay restitution of $15,938 for wire fraud charges. Our investigation found that Minter participated in a scheme to defraud Amtrak and others by using stolen credit card information from at least 216 different credit or debit cards to purchase Amtrak tickets online valued at over $29,000. Minter used Amtrak’s mobile application and website to purchase the tickets and then advertised them at a discounted price on social media sites frequented by college students.

Our objective was to analyze the risk of illegal, improper, and erroneous purchases made through the Social Security Administration's (SSA) charge card programs.

We identified and evaluated AMS’ management controls over SCBGP.

We audited the U.S. Department of Housing and Urban Development’s (HUD) implementation of the prevailing wage provisions of the Davis-Bacon Act for its Federal Housing Administration (FHA)-insured multifamily construction projects.  We conducted the audit because we received an anonymous complaint alleging that HUD did not implement correct wage determinations for a $33 million multifamily construction project located in Oxnard, CA.  Our audit objectives were to determine whether (1) the allegation in the complaint had merit and (2) HUD implemented the correct Davis-Bacon wage determinations for its multifamily construction projects.The allegation that HUD did not implement correct wage determinations for the FHA-insured multifamily construction project in Oxnard, CA, had merit.  HUD’s use of incorrect wage determinations caused wage rates paid to laborers and mechanics to be incorrect.  Additionally, our review of wage determinations associated with four other FHA-insured multifamily construction projects not mentioned in the complaint showed that HUD also did not implement correct wage determinations for them.  This condition occurred because HUD lacked controls and did not implement guidance provided by the U.S. Department of Labor’s longstanding policy regarding the application of multiple wage determinations for construction categories in construction projects covered by prevailing wage provisions of the Davis-Bacon Act.  As a result, workers could have been underpaid.We recommend that HUD (1) seek guidance from the Department of Labor to correct the wage determinations for the five projects addressed in this report; (2) determine the correct wages to be paid to workers and ensure that appropriate actions are taken to pay the workers; (3) update HUD’s guidance to comply with the Department of Labor’s policies and guidance on the application of multiple wage determinations for construction projects; and (4) develop and implement controls to ensure that the appropriate Davis-Bacon wage rate determinations are implemented in the contracts of FHA-insured multifamily construction projects that require multiple wage determinations, including the requirement that contract specifications clearly identify the portions of the contract subject to each assigned wage determination.