Federal Reports

The audit of a CNCS Social Innovation Fund award to Youthprise and four of its six subgrantees (Amherst H. Wilder Foundation, MIGIZI Communications, Sauk-Rapids Rice, and Guadalupe Alternative Programs) identified questioned Federal costs of $626,099, questioned match costs of $990,137, and compliance findings. These costs tested were incurred between August 1, 2016 and June 30, 2018. Most of the questioned costs identified were associated with (1) Youthprise improperly awarding sole-source contracts; and (2) subgrantees’ timekeeping deficiencies. Overall, CNCS’s proposed actions addressed our recommendations. CNCS disagreed with five of 14 recommendations due to the grant period ending and the absence of future funding. CNCS has committed to monitoring Youthprise’s compliance with Federal regulations for future grants – which satisfies the intent of these recommendations.Also, Youthprise and its subgrantees took corrective actions to improve controls over monitoring contractors; implemented a new timekeeping system and engaged CNCS preferred vendors to enhance its compliance with National Service Criminal History Checks.

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) conducted this study to follow up on information we shared previously regarding what information servicers of mortgage loans insured by Federal Housing Administration (FHA) are providing to borrowers regarding forbearance options available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).We reported on April 27, 2020, that our review of 30 FHA servicers who service approximately 90 percent of FHA loans, revealed that FHA servicer websites provided incomplete, inconsistent, dated, and unclear guidance to borrowers related to their forbearance options under the CARES Act. We cautioned that lack of clear and consistent guidance from FHA servicers and enforcement by FHA of that guidance allows servicers to leave struggling homeowners unable to make informed decisions about paying their mortgages and relief that may be available to them during this pandemicWe found that despite virtually all of the top 30 servicers updating information on their websites on options available to borrowers during this COVID-19 emergency, some servicer websites continue to provide information that could mislead or confuse borrowers or provide little or no information to borrowers related to their forbearance options under the CARES Act.

OIG Survey on FTC Metrics and Challenges

Audit of Federal Trade Commission Interagency Agreement Processes

The Postal Service outsources all relocation services to a relocation management firm (RMF). The RMF provides guidance to relocating employees on Postal Service policies and processes, ensures prompt payment of authorized expenses, and assists with arrangements for moving and storing household goods. On September 19, 2018, the Postal Service entered into a contract with the current RMF to manage its relocation program beginning February 1, 2019. Based on data from February 1, 2019, through May 12, 2020, this program authorized over 800 employee relocations and paid over $21 million in relocation benefits. Our objectives were to determine whether relocation benefits were reasonable and properly paid, the current RMF complied with contractual requirements, and the Postal Service effectively managed the relocation benefits program.

Advance Electronic Data (AED) refers to electronic messages with information about the shipper, the recipient, and the contents of a cross-border postal package. AED helps U.S. Customs and Border Protection (CBP) identify packages from foreign posts that may contain opioids and other illicit goods. Under the STOP Act of 2018, all incoming postal packages must have AED by January 1, 2021. To provide AED, USPS relies on foreign posts’ capability to digitize and transmit data from shippers’ customs declaration forms. The OIG found that the Postal Service will not be able to fully meet the STOP Act requirement to provide Advance Electronic Data (AED) on all incoming packages as from January 1, 2021. The absence of AED regulations, including a definition of compliance, limits the Postal Service’s ability to prepare for STOP Act implementation. Collaboration among posts, compliance incentives, and penalties could be key success factors.

The Office of the Inspector General contracted with Williams Adley to conduct this audit. The audit objective was to evaluate the effectiveness of the Smithsonian’s information security program in fiscal year 2019.