Federal Reports

The OIG's audit of the NARA) Refile Processes in Federal Records Centers assessed the effectiveness and adequacy of management controls in place for the refile processes at selected FRCs.

During the audit, our independent public accountant, CliftonLarsonAllen LLP, identified certain matters related to PBGC's internal control and operations that while significant were not of sufficient magnitude to impact the financial statement opinion and were not included in the report on internal control dated November 13, 2015 (AUD-2016-3/ FA-15-108-3). This management letter summarizes CliftonLarsonAllen's findings and recommendations regarding these matters and includes the status of prior years' management letter recommendations. PBGC management agreed with the recommendations and provided planned corrective actions and estimated completion dates.

Freeman Hospital (the Hospital) (operating in Joplin, Missouri) complied with Medicare billing requirements for 180 of the 225 inpatient and outpatient claims we reviewed. However, the Hospital did not fully comply with Medicare billing requirements for the remaining 45 claims, resulting in overpayments of $311,000. Specifically, 42 inpatient claims had billing errors, resulting in overpayments of $304,000, and 3 outpatient claims had billing errors, resulting in overpayments of $7,000. These errors occurred primarily because the Hospital did not have adequate controls to prevent the incorrect billing of Medicare claims within the selected risk areas that contained errors.

At the request of the Tennessee Valley Authority (TVA) Supply Chain, the OIG examined a cost proposal submitted for construction and modification services. Our objective was to determine if the vendor's cost proposal was fairly stated for a planned $100 million contract. In our opinion, the proposal (1) included inconsistent and overstated labor markup rates; (2) did not comply with the request for proposal requirements related to nonmanual wages, resulting in overstated wage rates; and (3) included multiple fees in the Paradise Fossil Plant baseline costs. We estimated TVA could avoid about $3.34 million by (1) negotiating reduced labor markup rates and (2) reimbursing the contractor's actual salaries within established wage ranges instead of paying a single estimated wage rate for each labor classification. In addition, we found the contract's compensation terms and related attachments were inconsistent with the methodology TVA intends to use to compensate the contractor.(Summary Only)