Federal Reports

We conducted an audit to evaluate controls over the Working Capital Fund in FY 2016. Specifically, we sought to determine whether (1) there were effective controls over the billing and algorithm development processes, (2) relationships of reimbursements and billings to services provided were reasonable, (3) projects utilized performance metrics as management tools to assess project performance, (4) projects’ funding levels were adequately supported, and (5) the Office of the Secretary Office of Financial Management Directorate had effective controls over retaining or returning advances received in excess of obligations.

The OIG audited the costs claimed by the State of Nebraska’s Game and Parks Commission, under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling $46.9 million on 115 grants that were open during the State fiscal years that ended June 30, 2015, and June 30, 2016. The audit also covered the Commission’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and reporting program income.We found that the Commission complied with applicable grant accounting and regulatory requirements. We observed that the Commission classified its Wildlife and Sportfish Restoration Program service and cooperative agreements as contracts when they should have been classified as subawards. Based on our audits of other states and, following discussions with Commission and FWS staff, we believe additional Program guidance is needed concerning the determination of subawards and contracts. Therefore, we did not issue a formal recommendation in this final audit report. We will address the issue directly with FWS in a separate report.

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U.S. Postal Service tort claims are claims for damage to or loss of property, or claims for personal injury or death to non-Postal Service personnel caused by the negligent or wrongful act or omission of an employee acting within the scope of his or her employment. The objective was to assess the effectiveness of controls over paid tort claims in the Postal Service's Western Area.

The Postal Service and the federal government share the CSRS pension costs for USPS employees who once worked for the former Post Office Department. However, the Postal Service is currently responsible for all increased pension costs resulting from pay raises given to those employees since its founding on July 1, 1971. Reports issued by the OIG and the Postal Regulatory Commission in 2010 explored alternative ways of splitting CSRS pension costs. The OIG now provides an update to those 2010 reports.

The purpose of the Beneficiary Travel Program is to help alleviate the costs of travel to medical appointments for eligible veterans. Under this program, VA has the authority to pay travel expenses including mileage traveled by an eligible veteran to and from a VA-approved facility for the purpose of examination, treatment, or care. The Veterans Health Administration (VHA) also uses vendors to transport eligible beneficiaries with disabilities using vehicles approved for special mode of transportation (SMT) travel. SMT-approved vehicles include ambulances, air ambulances, wheelchair vans, or other modes of transportation that are specifically designed to transport disabled individuals. The OIG found VA Medical Centers (VAMCs) authorized SMT services for some ineligible beneficiaries, and VAMCs did not adequately validate some SMT vendor invoices prior to authorizing payment. VHA also missed an opportunity to reduce program expenditures on ambulance services by paying more than rates authorized by law for SMT services. VAMCs also allowed some beneficiaries that used SMT services to improperly receive mileage reimbursements for the same appointments. The OIG estimated VAMCs improperly authorized SMT services for 11,900 ineligible beneficiaries and VHA made 59,900 improper payments nationwide valued at $23 million to SMT vendors from October 1, 2014, through December 31, 2015. The OIG also estimated VHA could have saved $11 million from October 1, 2012, through December 31, 2015, by paying Centers for Medicare and Medicaid Services rates for ambulance services. In addition, the OIG estimated VHA made approximately $229,000 in improper payments to beneficiaries for mileage reimbursements when SMT services were also used from October 1, 2014, through December 31, 2015. If oversight controls are not strengthened, improper payments for SMT services may cost taxpayers approximately $173.8 million through December 31, 2020.