Federal Reports

Objective: To determine whether the Social Security Administration met all requirements of the Payment Integrity Information Act of 2019 in the Fiscal Year 2023 Agency Financial Report and accompanying materials.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Modis, Inc. (Modis) for contract-to-hire services within TVA's Technology and Innovation organization under Contract No. 16781. Modis was to provide recruiting, staff augmentation, and hiring services to supplement TVA's standard hiring processes in preparation for increased hiring. The contract provided for TVA to compensate Modis for its labor and related indirect costs by (1) reimbursing straight time and overtime wages paid in accordance with a schedule of defined job classifications and corresponding wage ranges and (2) payment of fixed salary burden rates (markups) for the recovery of payroll taxes, payroll-related insurance, fringe benefits, overhead, general and administrative costs, and profit. In addition, the contract provided TVA would pay a conversion fee if TVA converted a Modis recruited employee to full-time TVA employment within the first six months of their assignment.Our audit objective was to determine if costs were billed in accordance with the terms of the contract. Our audit scope included about $11.56 million in costs billed to TVA from January 31, 2022, through November 6, 2023.In summary, we determined:- Modis overbilled TVA $18,000 for an ineligible conversion fee.- Although the contract provided for TVA to reimburse Modis' actual labor costs plus a fixed markup, wage ranges and fixed labor markup rates were never established in the contract. Instead, Modis billed hourly labor rates that were not based on the contract's compensation provisions. As a result, TVA personnel approving invoices from Modis had no basis for validating the appropriateness of the rates that were billed.Based on limited pay rate information we reviewed, we determined the markups Modis included in its billing rates were substantially higher than markups TVA is paying under similar staff augmentation labor contracts. Based on this comparison, we estimated TVA paid between $1.6 million and $3.1 million more to Modis than it would have if actual wages and fixed markups similar to other staff augmentation contracts had been used for this contract.(Summary Only)

We audited costs billed to the Tennessee Valley Authority (TVA) by Universal Protection Service, LP dba Allied Universal Security Services (Allied) under Contract No. 16681 for nonnuclear security guard services. Our audit objective was to determine if costs billed were in compliance with the contract's terms. Our audit scope included about $8.76 million in costs billed to TVA from January 7, 2022, through October 31, 2023. In summary, we determined costs billed by Allied complied with the contract's terms.(Summary Only)

Servicers followed the COVID-19 pandemic foreclosure moratorium requirements. However, they could have better communicated the moratorium requirements to delinquent borrowers who were subject to foreclosure proceedings. This situation occurred because HUD did not require servicers to notify borrowers directly about the foreclosure moratorium and that occupancy would pause the foreclosure process. Borrowers who were not informed about the moratorium or impacts of vacancy could have abandoned their homes, not realizing that remaining in the home would have afforded them additional time to explore retention options or sell the home to recoup equity. Borrowers who were not informed about the moratorium or impacts of vacancy could have abandoned their homes, not realizing that remaining in the home would have afforded them additional time to explore retention options or sell the home to recoup equity. Servicers missed an opportunity to inform as many as 25 of 88 sampled borrowers who vacated their homes during the moratorium that remaining in their homes protected them from foreclosure.We recommend that HUD (1) update Handbook 4000.1 to require servicers to share information regarding foreclosure moratoriums with borrowers; (2) simplify the process for accessing its FAQs on its website, including adding a clickable link on its Single Family website home page that will take borrowers directly to the FAQs; and (3) review the two loans in our sample that did not receive appropriate servicing and take administrative actions if appropriate. Prior to issuing the final report, HUD took steps to address the second recommendation. We verified that a link is now available that will take users directly to the FHA Resource Center’s FAQ site. Therefore, we consider this recommendation resolved, and we will close it once the final report is issued.

I am pleased to submit the Amtrak Office of Inspector General (OIG) Semiannual Report to the United States Congress for the six months ending March 31, 2024, which summarizes our independent and objective reviews and investigations related to Amtrak’s programs and operations.With historic levels of investment from the Infrastructure Investment and Jobs Act (IIJA), Amtrak remains at an important juncture in its 53-year history. Not only is it responsible for safely delivering thousands of passengers each day to more than 500 locations across the country and Canada, it is also charged with implementing or partnering on generational infrastructure and acquisition programs that will impact passenger train travel far into the future. With several multi-billion dollar infrastructure projects already underway, Amtrak is both a passenger railroad and now, a major construction company.The opportunities afforded by the IIJA will rightly draw upon Amtrak’s attention and resources, but it must also stay focused on upholding its non-negotiable pact with the American public to ensure its passengers, employees, and train operations are safe. That said, Amtrak appears to fully recognize the complex portfolio of challenges it faces at this historic moment, which includes an unprecedented influx of funds, the addition of thousands of new workers, the speed at which it plans to execute these programs and acquisitions, and the inherent risks. Consequently, management attention and collective oversight of Amtrak’s programs and operations has never been more important.Effective oversight not only includes the important work of our auditors and investigators, the Department of Transportation, and that of Congress, but it also requires the attention of Amtrak’s Board of Directors to scrutinize and approve the planning and expenditures of the company’s capital programs. The recent confirmation of three Directors for Amtrak’s Board has helped to ensure continued Board oversight, but the Board is operating with only six of eight seats filled, and three directors are selflessly serving well beyond their five-year terms. In addition, the IIJA requires that one director is an individual with a disability who is experienced with accessibility, mobility, and inclusive transportation in passenger or commuter rail—a requirement that is currently unfilled. A director with this experience would be invaluable as Amtrak brings it stations into compliance with the Americans with Disabilities Act and updates its fleet. Understanding that there are multiple competing national priorities, the continued nomination and confirmation of new Board members will help give Amtrak, the Administration, Congress, and the American taxpayers additional assurance that Amtrak has the necessary oversight as it implements historic levels of federal investments.In the following report, we provide a complete review of Amtrak OIG’s oversight work during the reporting period. For example, our investigative work helped achieve more than $545 million in recoveries, restitution, and forfeitures, while our auditors identified $14.4 million in funds that could have been put to better use. Some highlights of our work include an investigation that resulted in a guilty plea by a New York acupuncturist who participated in a health care fraud scheme to bill Amtrak’s health care plan for services that weren’t provided and were medically unnecessary. Notably, the acupuncturist conspired with dozens of Amtrak employees, providing them with cash in return for allowing her to use their personal and insurance information to submit false and fraudulent insurance claims. This case is ongoing but has so far resulted in more than $9 million in forfeitures, five guilty pleas, and five pending sentencings.