Federal Reports

The U.S. Postal Service operates one of the largest vehicle fleets in the U.S. In fiscal year (FY) 2017, the Postal Service used 205,997 vehicles, primarily to deliver and collect mail. Each of these Postal owned vehicles are issued a fleet card to pay for commercially purchased fuel, oil, and maintenance expenses up to $300. In addition to these cards, the Postal Service has fleet specialty cards. Fleet specialty cards are issued to each facility with assigned vehicles and to Vehicle Maintenance Facilities (VMF) to pay for maintenance or repairs over $300. The objective of our audit was to assess the effectiveness of controls over fleet specialty cards for delivery operations in the Pacific Area.

First Coast Service Options, Inc., did not claim $1.06 million of allowable Medicare Supplement Executive Retirement Plan costs for calendar years 2008 through 2010.

First Coast Service Options, Inc., claimed $43,835 of unallowable Medicare pension costs for calendar years 2008 through 2010.

The OIG investigated allegations that an oil and gas company irregularly reported oil sold in the Vernal, UT, area to avoid paying royalties. The Bureau of Land Management (BLM) also suspected that a BLM employee’s signature may have been forged on a document related to one of the company’s oil sales. Our joint investigation with the BLM’s Special Investigations Group did not substantiate either allegation. We found that the BLM had known about a measurement problem with an oil tank owned by the company since 2010 but took no action to resolve the discrepancy until 2016. The company that purchased oil from the tank also knew of the problem and used an alternative measurement method, so no royalty loss occurred. Finally, we found a BLM employee’s signature was not forged; instead, the employee’s name was written on a document to indicate the employee was present as a witness to a sale.

Since FY 2014, DHS improved conference spending reporting and implemented policies and procedures to ensure proper oversight and accurate and timely reporting. However, we found instances where DHS did not comply with annual conference reporting requirements. The Department failed to report two conferences costing more than $100,000 each. The Department also did not always report all hosted conferences costing more than $20,000 to OIG within 15 days of the conclusion of each conference. In addition, the Department did not always properly record actual costs accurately and within 45 days of the conclusion of each conference. Although DHS did not always comply with reporting requirements, in most cases, its FY 2016 conference expenses appeared appropriate, reasonable, and necessary.