Federal Reports

Overtime pay is a premium that eligible employees receive when they perform work in excess of eight paid hours in a day, or 40 paid hours in a week. Per union contracts, regular overtime is paid at one and one-half times an employee’s hourly rate to non-exempt employees, while penalty overtime is paid at double an employee’s hourly rate under specific conditions. Employees must be paid for all overtime work they perform, even if that time was not authorized. Unauthorized overtime occurs when an employee’s clock time exceeds eight hours in a day or 40 hours in a week without prior authorization from a manager. Our objective was to assess Postal Service controls over managing overtime.

We audited Task Order No. 140G0218F0251 and Contract No. G16PC00016 between Quantum Spatial, Incorporated (QSI) and the U.S. Geological Survey (USGS) to determine whether (1) QSI complied with all applicable Federal regulations and terms and conditions of the task order and the governing contract, (2) the USGS complied with all applicable Federal regulations, USGS policies and procedures, and award terms and conditions when awarding and monitoring the contract and the task order, and (3) the USGS negotiated a fair and reasonable price for services rendered under the task order. We reviewed supporting documentation and compliance from the beginning of the solicitation phase in October 2014 through December 2018.We found that QSI and the USGS did not always comply with applicable regulations, policies, and contract terms and conditions. Specifically:• QSI submitted invoices that were mathematically incorrect.• QSI submitted invoices that did not include contract line item numbers as required.• The USGS did not include a required clause in the contract.• The USGS did not document the contract negotiations properly.In addition, we found that the USGS negotiated a fair and reasonable price for the task order.We make two recommendations regarding invoice review and three recommendations regarding contract administration to help the USGS improve its contract oversight and maintain complete and comprehensive documentation. Based on the USGS’ response to our draft report, we consider all five recommendations to be resolved but not implemented.

We audited the costs claimed by the State of Kansas, Department of Wildlife, Parks and Tourism (Department), under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling $49.3 million on 69 grants that were open during the State fiscal years that ended June 30, 2017, and June 30, 2018. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and the reporting of program income.We found that the Department generally ensured that grant funds and hunting and fishing license revenue were used for allowable fish and wildlife activities and complied with applicable laws and regulations, FWS guidelines, and grant agreements. We noted, however, issues with indirect costs, subawards, and equipment management. We questioned $139,087 ($103,191 Federal share) as ineligible. We recorded a potential diversion of $30,728 in license revenue. We also found control deficiencies with the Department’s subaward reporting policies, and we repeated a finding on real property.The FWS concurred with our six recommendations and repeat recommendations and will work with the Department to implement corrective actions.

Medicaid telemedicine services are health services delivered via telecommunication systems. A Medicaid patient at an originating site uses audio and video equipment to communicate with a health professional at a distant site. Before the COVID-19 public health emergency, Medicaid programs were seeing a significant increase in payments for telemedicine services and expect this trend to continue. This audit, conducted before the COVID-19 public health emergency, is one in a series of audits to determine whether selected States complied with Federal and State requirements when claiming Federal reimbursement for telemedicine services.Our objective was to determine whether Illinois made payments for Medicaid telemedicine services in accordance with Federal and State requirements.

The Medicaid program pays for nonemergency medical transportation (NEMT) services that a State determines to be necessary for beneficiaries to obtain care. Prior OIG audit reports have consistently identified NEMT services as vulnerable to fraud, waste, and abuse.Our objective was to determine whether Indiana claimed Federal Medicaid reimbursement for NEMT service claims in accordance with Federal and State requirements.

For a covered outpatient drug to be eligible for Federal reimbursement under the Medicaid program’s drug rebate requirements, manufacturers must pay rebates to the States. States bill the manufacturers for rebates to reduce the cost of drugs to the program. However, previous Office of Inspector General (OIG) audits found that States did not always bill and collect all rebates due for drugs administered by physicians to enrollees of Medicaid managed-care organizations (MCOs). For this audit, we reviewed the Michigan Department of Health and Human Services’ (State agency’s) billing of rebates for both pharmacy and physician-administered drugs dispensed to MCO enrollees. Our objective was to determine whether the State agency complied with Federal Medicaid requirements for billing manufacturers for rebates for drugs dispensed to MCO enrollees.

When an overpayment is identified in Medicare Part A or Part B, providers have the right to contest the overpayment amount using the Medicare administrative appeals process. If a statistical estimate of an overpayment (an extrapolated overpayment) is overturned during the administrative appeals process, then the provider is liable for the overpayment identified in the sample but not the extrapolated amount. Given the large difference between overpayment amounts in the sample and extrapolated amounts, it is critical that the process for reviewing extrapolations during an appeal is fair and reasonably consistent. In the first and second levels of the appeals process, such extrapolated overpayments are reviewed by Medicare administrative contractors (MACs) and qualified independent contractors (QICs), respectively.Our objective was to determine whether the Centers for Medicare & Medicaid Services (CMS) ensured that MACs and QICs reviewed appealed extrapolated overpayments consistently and in a manner that conforms with existing CMS requirements.

In accordance with our Annual Performance Plan Fiscal Year 2020, dated October 2019, the Office of Inspector General (OIG) conducted a review of the United States Capitol Police (USCP or the Department) Office of Professional Responsibility (OPR). The scope of the review included existing policies and procedures related to OPR for Fiscal Year (FY) 2019 through March 31, 2020.  OIG objectives were to determine if the Department (1) established adequate internal controls and processes for ensuring compliance with Department policies and (2) complied with policies and procedures, laws, regulations, and best practices.