Federal Reports

The U.S. Postal Service needs effective and productive operations to fulfill its mission of providing prompt, reliable, and affordable mail service to the American public. It has a vast transportation network that moves mail and equipment among about 330 processing facilities and 31,100 post offices, stations, and branches. The Postal Service is transforming its processing and logistics networks to become scalable, reliable, visible, efficient, automated, and digitally integrated. This includes modernizing operating plans and aligning the workforce; leveraging emerging technologies to provide worldclass visibility and tracking of mail packages in near real-time; and optimizing the surface and air transportation network. The U.S. Postal Service Office of Inspector General (OIG) reviews the efficiency of mail processing operations at facilities across the country and provides management with timely feedback to further the Postal Service’s mission.

An Amtrak lead service attendant based in Miami, Florida, entered into a forbearance and workout agreement on May 22, 2024, with the Small Business Administration (SBA) and agreed to a payment schedule to satisfy his settlement and restitution amounts. The employee agreed to pay a total of $124,631 including fines, fees, and interest. The employee applied for and received an SBA‐backed Economic Injury Disaster Loan (EIDL) for economic losses resulting from the pandemic related to self‐employment or businesses he allegedly owned. Our investigation found that the employee submitted an application to the SBA that included false statements and information to qualify for the EIDL loan. As a result, the employee received an EIDL loan in the amount of $120,000 to which he was not entitled.

We are pleased to present our report for the period October 1, 2023, to March 31, 2024. Serving in our oversight role, the Office of the Inspector General continues to identify risks to operations, ways to save or recover money, make recommendations to improve operations, and prevent and detect fraud, waste, and abuse. In this semiannual period, our audit, evaluation, and investigative activities identified more than $13 million in questioned costs; recoveries, fees, and fines; waste/other monetary loss; and opportunities for Tennessee Valley Authority (TVA) to improve its programs and operations.TVA has a deep and rich history of building power generating assets to electrify the Tennessee Valley. At its inception, river systems were harnessed and electricity was provided by TVA built dams. As industry and populations grew, TVA kept pace with the increasing power demands with massive construction programs, including the building of 11 coal-fired power plants during the 1950s and 1960s and six nuclear power units in the 1970s and 1980s. TVA’s ability to provide low-cost electricity while facing changing circumstances and expectations with and increasingly diverse portfolio has served the people of the Valley well for the past 90 years.

The Office of Inspector General (OIG) is issuing this Inspection Report to assess the Small Business Administration’s (SBA) process for approving 7(a) loans for borrowers with unresolved pandemic loan compliance issues.From October 1, 2019 through May 8, 2023, SBA approved and disbursed 172,598 7(a) loans, totaling $83.4 billion. The 7(a) lenders who have delegated approval authority approved 92 percent of these loans and SBA approved the remaining 8 percent. SBA implemented a process to screen 7(a) loan applications for eligibility, which included screening for Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) hold codes prior to loan approval. However, SBA did not implement the process until August 2023, after we initiated this review. Prior to August 2023, neither SBA nor lenders reviewed approved 7(a) loans to ensure borrowers did not have unresolved compliance issues that could negatively impact their eligibility for the 7(a) loan. As a result, there were 5,044 approved and disbursed 7(a) loans, totaling $4.5 billion, where the borrower had a PPP loan or COVID-19 EIDL with an unresolved eligibility or potential fraud issue.SBA stated it resolved hold codes for 3,015 of 5,044 loans and we did not assess the agency’s methodology or whether it appropriately removed hold codes. We will assess the appropriateness of SBA’s removal of hold codes for the 3,015 loans prior to closing our recommendation.We recommended SBA review and appropriately resolve hold codes related to the 5,044 7(a) loans to determine impact on 7(a) eligibility and seek remedy or repayment of all 7(a) loans deemed ineligible.

The Payment Integrity Information Act of 2019 (Public Law 116-117) (PIIA) requires the Office of Inspector General (OIG) to annually review its agency’s improper payment and payment reporting made in the annual Performance and Accountability Report (PAR) or Agency Financial Report (AFR) to determine compliance.

The VA Office of Inspector General (OIG) reviewed system leaders’ actions taken in response to allegations related to access to behavioral health care and patient privacy at the El Paso VA Health Care System (system) in Texas and evaluated whether the system sustained the actions.In August 2022, the OIG received allegations that patients who presented at the system for behavioral health services were denied care, patients who declined virtual care did not receive appointments, and behavioral health clinic staff violated patient privacy. The OIG requested a written response to the allegations in November 2022. The OIG initiated an inspection after reviewing subsequent system responses in February and July 2023.The OIG determined the actions taken by system leaders, including those initiated before the OIG inspection and those implemented after OIG inquiries, ensured that the system’s behavioral health clinic staff did not deny patients access to care, and that patients were seen in the time frame and at the location that met their preferences and needs. The OIG also determined that actions taken by system leaders ensured patient privacy was maintained during behavioral health services for which patients used tablets.While conducting the inspection, the OIG identified a potential vulnerability resulting from the varied locations of providers and the settings in which patients receive care. While no cases of concern were identified, due to some system providers residing in Texas and New Mexico, and virtual providers residing in different states altogether, the OIG noted potential issues arising from advice given by providers in emergent and urgent patient situations who may not be versed in state-specific emergency detention order laws.The OIG made one recommendation to the System Director related to system policies and guidance aligning with federal and state laws.

The U.S. International Development Finance Corporation Office of Inspector General (DFC OIG) contracted with RMA Associates, LLC (RMA) to conduct a review of DFC’s compliance with Payment Integrity Information Act of 2019 (PIIA) for fiscal year (FY) ending September 30,2023. The review was conducted in accordance with 1) the Office of Management and Budget (OMB) Memorandum M-21-19, Transmittal of Appendix C to OMB Circular A-123, Requirements for Payment Integrity Improvement and 2) OMB Circular A-136, Financial Reporting Requirements, May 19, 2023. Our review period was from February through May 2024.

This report presents the results of our audit of Mail Theft Mitigation and Response at the Jamaica Main, South Richmond Hill, and Woodside stations in Queens, NY (Project Number 24-037). The stations are in New York 2 District of the Retail and Delivery Operations, Atlantic Area. Our objective was to assess the U.S. Postal Service’s actions taken to mitigate and respond to mail theft in Queens, NY. The Postal Service’s mission is to provide the nation with trusted, safe, and secure mail services, including the more than 107 million pieces of mail volume collected and delivered in Queens, NY, in fiscal year (FY) 2023. Unfortunately, mail theft occurs in various ways. Criminals use stolen universal keys—called arrow keys—to access collection boxes, outdoor parcel lockers, cluster box units, and apartment panels. Mail theft can also occur by individuals fishing or breaking into collection boxes with force, residential mailbox break-ins, package theft, and carrier robberies. It is imperative for the Postal Service to address mail theft issues to protect the Postal Service and retain the public’s trust.