Federal Reports

What We Looked AtWe performed a quality control review (QCR) on the single audit that RSM US LLP performed for the City of Fayetteville’s (City) fiscal year that ended June 30, 2018. During this period, the City expended approximately $6.8 million from the U.S. Department of Transportation’s (DOT) grant programs. RSM determined that DOT’s major programs were the Airport Improvement Program and the Federal Transit Cluster. Our QCR objectives were to determine (1) whether the audit work complied with the Single Audit Act of 1984, as amended, and the Office of Management and Budget’s Uniform Guidance, and the extent to which we could rely on the auditors’ work on DOT’s major programs, and (2) whether the City’s reporting package complied with the reporting requirements of the Uniform Guidance. What We FoundRSM’s audit work complied with the requirements of the Single Audit Act, the Uniform Guidance, and DOT’s major programs. We found nothing to indicate that RSM’s opinion on each of DOT’s major programs was inappropriate or unreliable. However, we identified deficiencies in the City’s reporting package that required correction and resubmission.

The Medicaid Program and the State Agency’s Waiver The Medicaid program provides medical assistance to low-income individuals and individuals with disabilities.  The Federal and State Governments jointly fund and administer the Medicaid program.  At the Federal level, CMS administers the program.  Generally, States administer their Medicaid programs in accordance with a CMS-approved State plan.  However, section 1115 of the Social Security Act authorizes the Secretary of Health and Human Services to approve demonstration projects, under a waiver to the State plan, to assist in promoting the objectives of the Medicaid program.  These waivers give States flexibility to design and improve their programs to better serve Medicaid populations. The State agency administers Oregon’s Medicaid program through a waiver initially approved by CMS in 1994.  The goal of the waiver was to expand eligibility and contain costs through managed care.  Initially, various types of managed-care organizations, such as those providing physical, mental, and dental health care, contracted directly with the State agency.  However, in a 2012 waiver amendment, with the establishment of CCOs, the State agency integrated those lines of care under the CCO umbrella. Coordinated Care Organizations A CCO is a network of different types of participating providers (e.g., physical, mental, and dental health-care providers and those that provide addiction treatment) that have agreed to work together in their local communities to serve low-income beneficiaries who receive health care coverage through Medicaid.  CCOs are similar to traditional managed-care organizations but have some key differences, such as more active roles by providers and community members in governance.  CCOs are also accountable for health care access and quality.  In addition to the goal of improving access to care and quality of care, CCOs focus on prevention and helping people manage chronic conditions, such as diabetes, to help reduce unnecessary emergency-room visits and give people support to be healthy.  In 2016 and 2017, 16 CCOs operated in Oregon.

We audited the costs claimed by the State of Wisconsin, Department of Natural Resources (Department), under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program (Program). The audit included claims totaling $103 million on 27 grants that were open during the State fiscal years that ended June 30, 2017, and June 30, 2018. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and the reporting of program income. We found that the Department generally ensured that grant funds and hunting and fishing license revenue were used for allowable fish and wildlife activities and complied with applicable laws and regulations, FWS guidelines, and grant agreements.

Generation Z (Gen Z), currently between 8 and 23 years old, is often branded as a digitally native generation. Because they are still relatively young, little is known about Gen Zers’ engagement with physical mail. More research is vital as older Gen Zers begin to enter college and the labor market, and the Postal Service will have increasing opportunities to educate and boost this generation’s awareness of mail as they become adults. The OIG surveyed Gen Zers and found that, despite their Internet connectivity and access to technology, they are familiar with the Postal Service and a majority agreed the Postal Service is relevant to them. Gen Zers also reported being engaged with mail; the majority both send and receive greeting cards, letters, and packages. As well, nearly half said they share the responsibility of checking and sorting mail with their parents.

During the COVID-19 pandemic, the Bureau of Safety and Environmental Enforcement (BSEE) continued to fulfill its mission by performing safety and environmental inspections for offshore oil and gas operations. We reviewed the actions BSEE’s three regions—the Gulf of Mexico Region, Pacific Region, and Alaska Region—have taken to protect inspectors and offshore employees from COVID-19 and evaluated any impacts the virus had on inspections BSEE conducted since March 2020. We found that BSEE:• Developed, communicated, and updated COVID-19 guidance for all personnel involved with offshore inspections• Continued to complete its required inspections• Adapted its practices and remotely witnessed operators’ blowout preventer (BOP) tests by accessing the operators’ software systemsWe learned that BSEE did not provide the inspectors with guidance on how to witness the BOP remotely. As of July 15, 2020, BSEE officials informed us that they were developing this guidance.Considering the COVID-19 exposure risks for personnel conducting offshore inspections and the potential impact on safety, it is imperative that BSEE continue to update its COVID-19 guidance, work with operators to limit the risks to its inspectors, and finalize its guidance on conducting remote witnessing of operators’ BOP tests.