Federal Reports

The National Credit Union Administration (NCUA) Office of Inspector General (OIG) conducted this self-initiated audit to assess the NCUA’s use of cloud computing services. Our objectives were to determine whether the NCUA: (1) adequately addressed risk when contracting cloud computing services; and (2) effectively managed operational and security risks of implemented cloud computing services. Results of our audit determined that the NCUA needs an enterprise-wide approach to cloud computing to effectively contract and manage cloud computing services. The NCUA should align policies and procedures with this enterprise-wide approach. Our audit also determined the NCUA implemented cloud computing services as the situation or business need occurred to meet mission priorities. We believe this approach has not allowed the NCUA to clearly address federal guidance, has created inconsistent processes, and allowed for decisions and implemented services to be made unsystematically. Therefore, we are making two recommendations in our report and note that management has agreed to both recommendations. Given the current approach to the agency’s cloud computing services, the OIG plans to conduct a follow-up audit on the contracting and risk management of its use of cloud computing services once the recommendations in this report have been implemented.

Hanna Dinh, a California resident, was sentenced on February 12, 2024, in U.S. District Court, Central District of California, for conspiracy to commit wire fraud. Dinh was sentenced to 20 months in prison, followed by 3 years’ probation, of which 7 months is to be served as home confinement.Our investigation found that Dinh and others made false statements to lenders in connection with fraudulent applications for Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loans for her company, HD Financial Firm. The applications included false representations regarding the number of employees on the company’s payroll and false certifications that the loans would be used for permissible business purposes. Dinh incorporated HD Financial Firm in June 2020 and was its sole officer and registered agent. Dinh and others submitted fraudulent EIDL and PPP loan applications seeking approximately $260,672.This investigation is part of a nationwide law enforcement action that resulted in criminal charges against 18 defendants for their alleged participation in fraud schemes that exploited the COVID-19 relief funds. A co-defendant in this case, Dr. Anthony Hao Dinh, a licensed doctor of osteopathy who was an ear, nose, and throat specialist and a facial plastic surgeon, was charged in September 2023 for allegedly defrauding the Health Resources and Services Administration Uninsured Program of approximately $230 million. Anthony Hao Dinh allegedly submitted fraudulent claims to the Uninsured Program for treatment of patients, including Amtrak employees, who were, in fact, insured. In addition, Anthony Hao Dinh allegedly billed for services not rendered and for services that were not medically necessary.

We reviewed how RMA administered and oversaw the Federal Crop Insurance Program’s requirements for prevented planting.

The Federal Election Commission (FEC) has experienced a significant decline in staffing levels over the last 20 years, losing 20% of its full-time workforce from 2002 to 2022. Based on this observed decline, the Office of Inspector General (OIG) initiated this evaluation to identify root and proximate causes of this decline and to evaluate related issues.