Federal Reports

An Amtrak Red Cap/Baggageman based in Chicago was terminated from employment on July 21, 2022, following his administrative hearing. Our investigation found that the former employee violated company policies by failing to remit parcel check revenue for cash paying customers on 22 occasions between March 18 and March 26, 2022 and kept the cash for himself instead. We also found that he falsified a parcel check form in order to remit only half of the revenue he collected and was observed putting the cash in his pocket.

VA recognizes exposure to smoke from the large burn pits used by the US military to dispose of waste from its bases in Iraq, Afghanistan, and Djibouti as a potential cause of disabilities. Veterans Benefits Administration (VBA) staff processed more than 21,100 burn pit-related claims from June 2007 through September 2021. Given the potential impact on many eligible veterans, the VA Office of Inspector General (OIG) conducted this review to determine whether VBA staff followed regulations and procedures when addressing conditions that could be associated with burn pit exposure.VBA treats burn pit-related claims like most other disability compensation claims, though it also considers exposure to environmental hazards based on a veteran’s service location. VBA provides medical examiners a burn pit fact sheet to help ensure any opinion is fully informed based on all known objective facts.The review team examined three distinct samples of claimed conditions potentially related to burn pit exposure completed from May 1, 2020, to May 1, 2021, and found VBA could improve its processing and oversight. Though VBA staff nearly always made the correct decision in granting compensation for conditions identified as burn pit-related, the OIG found most denials were premature.The OIG made seven recommendations to VBA management, including correcting four errors involving improperly granted conditions, and reviewing denied cases, correcting errors they identify, and certifying that corrections were made. VBA should also update its adjudication procedures manual to provide separate and specific guidance for handling claims based on burn pit exposure and modify its examination request application to add specialty language from the burn pit fact sheet into medical opinion requests. Finally, VBA should update training materials and ensure they are consistent with the adjudication procedures manual guidance.

AmeriCorps’ security program has not been effective in accordance with Federal Information Security Management Act (FISMA) since Fiscal Year 2017. In order to determine its current status, AmeriCorps OIG engaged an independent certified public accounting firm to conduct an internal penetration test of AmeriCorps’ network. The independent auditors tested AmeriCorps’ network to evaluate the effectiveness of its information security program and to identify areas of weakness. This evaluation was comprised of three phases: network penetration testing, a phishing campaign, and the testing the effectiveness of controls in preventing and detecting the execution of malicious code. The independent auditors found two weaknesses related to preventive and detective security controls. AmeriCorps concurred and agreed to implement our recommendations to (1) develop and implement a plan to modify external emails to include information to assist the recipient of the level of risk posed by external email, (2) implement a plan to increase the frequency of behavior training directed at the identification of unwanted spam emails, and (3) implement a process to improve the detection rate to reduce the occurrence of email spam that reaches the users’ inboxes. AmeriCorps Management’s response can be found in Appendix II of the report.

Since 1990, some 3.5 million veterans have served in areas that potentially exposed them to airborne hazards and open burn pit toxins, which have been associated with health problems. In 2013, Congress ordered VA to establish a registry to research the potential health impacts of exposures. The VA Office of Inspector General (OIG) reviewed the management of registry exams, including whether VA medical facilities conducted them within the 90-day prescribed period.The Veterans Health Administration (VHA) began collecting and recording data in the registry in May 2014 through an online questionnaire and free in-person exams. The OIG found many veterans did not complete the 140-item questionnaire, which is not clear and veteran-centric. Veterans also did not always realize they were responsible for scheduling their own exams.Improvements in the registry exam process would help ensure more eligible and interested veterans receive them. VHA plans to establish a call center to assume some of the scheduling and coordination responsibilities by October 2022. This is well-timed given the number of veterans indicating they would like an exam has further increased since August 2021, when VA established a presumptive “service connection” for respiratory conditions due to exposure to particulate matter, such as asthma, sinusitis, and rhinitis. Whether the call center will mitigate the issues identified by the OIG cannot yet be determined, and its rollout does not negate the need for corrective actions.The OIG made seven recommendations to the under secretary for health that include revising the questionnaire to be more veteran-centric, identifying whether veterans with unscheduled exams are still interested in one, and implementing processes and metrics to ensure exams are completed. Further, the OIG recommended developing guidance to ensure responsible parties review and discuss performance data and the enhancement of registry information systems.

To see our report, click on the link below

The three regional procurement offices (RPO) of the Veterans Health Administration (VHA) procure supplies and services to support the medical facilities within their regions: Central, East, and West. In fiscal year 2021, RPO West obligated about $2.7 billion in contracts. The VA Office of Inspector General (OIG) reviewed whether RPO West contracting officials administered contracts and accepted supplies and services in accordance with federal and VA regulations. To protect veterans and taxpayer dollars, contracting officials must maintain the necessary evidence to demonstrate compliance with contract terms and conditions.The review team examined files for a random sample of 49 contracts, valued at over $100,000 each, awarded from January 1 through June 30, 2020, and 93 invoices associated with these contracts. The OIG found RPO West contracting officers and contracting officers’ representatives did not always maintain documentation to demonstrate proper acceptance of supplies and services. The team determined several factors contributed to noncompliance, including officials not understanding their responsibilities, heavy workload, ineffective oversight, and prioritization of awarding contracts.RPO West contracting officials’ noncompliance with developing and maintaining required documentation resulted in $12.8 million in questioned cost. Until VHA improves oversight of contracting officials and ensures their compliance with federal regulations, it lacks assurance that veterans are receiving critical supplies and services.The OIG made eight recommendations to RPO West’s executive director, including establishing controls to ensure electronic files are created for all contracts requiring a representative, delegation memorandums are completed when required, and representatives upload required acceptance documentation. The executive director should also assess existing contracts for compliance and correct as needed. In addition, branch chiefs should consistently monitor contract administration documentation, and create a quality assurance process that ensures requirements are met.

What We Looked AtTo help combat highway fatalities, the Fixing America’s Surface Transportation Act (FAST Act) of 2015 authorized over $2.7 billion in highway safety grant funds for fiscal years 2016 through 2020. The National Highway Traffic Safety Administration (NHTSA) awarded these safety grants to States, which distributed them to a network of sub-grantees, then monitored the funds’ use for each State Highway Safety Office. Due to the significant amount of grant funding authorized by the FAST Act and the importance of NHTSA’s oversight, we initiated this audit as a follow up to our 2014 recommendations to help the Agency improve oversight controls for safety grants. Specifically, we reviewed NHTSA’s actions to improve controls over (1) mitigation of deficiencies identified by the Agency’s triennial management reviews of States, (2) monitoring States’ compliance with Federal grant requirements, (3) States’ timeliness in expending grant funds, and (4) developing and implementing an electronic database to identify and monitor recurrent or systemic grant oversight findings. What We FoundNHTSA implemented our 2014 recommendations to improve the Agency’s oversight of highway safety grants. Specifically, NHTSA worked with States to mitigate deficiencies and revised its grant oversight policies and procedures to require documentation of States’ corrective actions and management approval for closing actions. The Agency also implemented updated monitoring procedures and a risk assessment process for improving States’ compliance with Federal grant requirements and for monitoring the timeliness of States’ expenditure of highway safety grant funds. Finally, NHTSA is evaluating options to replace its grant information system. RecommendationsWe made no recommendations.

For our final report on our audit of the United States Patent and Trademark Office’s (USPTO’s) patent legacy systems, our audit objective was to review USPTO’s progress towards retiring its patent legacy systems. Specifically, we assessed USPTO’s (1) cost, schedule, and capabilities of select patent legacy systems and (2) ongoing activities to transition from the legacy systems to next-generation systems. We found the following: I. USPTO’s cost estimating and scheduling processes are not comprehensive and II. USPTO needs to improve Agile adoption practices when developing next-generation patent systems.