Federal Reports

NDF did not always claim and account for HHS grant funds in accordance with Federal requirements. We identified unallowable claims for indirect costs totaling $142,104. We also identified other costs totaling $15,618 that did not fully meet Federal requirements but were related to the purpose of the grant. These costs included $9,968 for contractual services and $5,650 for cost transfers. In addition, NDF's financial management system was not in compliance with Federal regulations. NDF claimed unallowable costs because it did not always follow its policies and procedures for claiming and accounting for HHS grant funds.

We determined that PBGC could reduce the risk of property loss or theft by strengthening its internal controls. PBGC does not ensure that bar-coded inventory labels are consistently affixed to newly received property within a reasonable time and does not ensure that accountable property is entered into the property management system in a timely manner after property is received. PBGC does not require any follow-up to be performed to locate accountable property “not found” during the annual inventory process, and such property is simply written off after two or three years. Such property includes assets such as flash drives that could contain personally identifiable information (PII), and loss or theft of such property in particular could result in serious reputational harm to the Corporation. We made two recommendations related to receiving of new inventory and follow-up on items not located during the annual inventory. PBGC agreed with the recommendations and plans to compete action by November 2020.

The Acquisition Management Function at the Railroad Retirement Board Was Not Fully Adequate or Effective

The Implementaton of the Disability Program Improvement Plan at the Railroad Retirement Board Did Not Result in a Fully Established Fraud Risk Assessment Process