Federal Reports

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we performed an audit of costs billed to TVA by ThyssenKrupp Elevator Americas (TKE) for providing elevator maintenance and repair services under Contract No. 8527. Our audit included approximately $2.83 million in costs billed to TVA from October 7, 2014, to December 31, 2016. Our audit objective was to determine if TKE billed TVA in compliance with the contract's terms and conditions.In summary, we determined TKE overbilled TVA $439,620 in elevator service costs, including (1) $184,477 in ineligible modernization costs; (2) $170,900 in unsupported and overbilled repair costs; (3) $68,515 in overbilled preventative maintenance costs, in which a credit of $1,036 has been provided to TVA; and (4) $15,728 in overbilled callback service costs. Additionally, we noted several opportunities to improve contract administration by TVA. Specifically, we found (1) stand-alone purchase orders that should have been referenced to Contract No. 8527, (2) missing Maintenance Control Program documentation, (3) costs administratively paid under another contract that should have been administratively paid under Contract No. 8527, and (4) missed early payment discount opportunities.(Summary Only)

Cahaba Government Benefits Administrators, LLC, claimed $92,392 of unallowable Medicare fiscal intermediary and carrier contract pension costs on its Final Administrative Cost Proposals for fiscal years 2010 through 2013.

Cahaba Government Benefits Administrators, LLC, did not claim $2.7 million of allowable Medicare pension costs on its incurred cost proposals for calendar years 2008 through 2013.

Cahaba Safeguard Administrators, LLC, did not claim $104,958 of allowable Medicare pension costs on its incurred cost proposals for calendar years 2008 through 2013.

On behalf of the National Park Service (NPS), we conducted a quality control review (QCR) of an independent public accountant’s (IPA) fiscal year 2016 single audit of the Northern Virginia Regional Commission, an NPS grantee. The purpose of our QCR was to determine whether the IPA performed the single audit in accordance with all applicable auditing standards and the Code of Federal Regulations.Auditors may receive an overall QCR rating of pass, pass with deficiencies, or fail. Based on our review, we assigned an overall rating of fail to the IPA’s work because its audit documentation did not support the opinions expressed in the audit report. Our QCR revealed several major deficiencies in the IPA’s audit work, including an inadequate understanding of required internal controls, an unreasonable determination of certain compliance requirements, and the selection of an inappropriate type of data for its audit sampling.On January 29, 2018, we gave the IPA our QCR report and requested a response. The IPA disagreed with the rating we assigned, stating, “We believe the audit procedures performed and supporting file documentation were sufficient to allow us to meet our responsibilities as auditors, and that our audit documentation did support the opinions expressed in the audit report.” Because the IPA was unable to provide sufficient documentation of the procedures performed and evidence examined, however, we continue to assign the IPA a rating of fail.