Federal Reports

Connect for Health Colorado (Colorado marketplace), the health insurance exchange established by the State of Colorado under the provisions of the Patient Protection and Affordable Care Act, did not always comply with Federal requirements when expending Federal establishment grant funds allocated for the Shared Eligibility System (SES) costs. (This audit focused on the allocation of SES costs to the Colorado marketplace by the Colorado Department of Health Care Policy and Financing (HCPF), the State Medicaid agency, for the development and implementation of the SES, which is an automated system modified from HCPF’s existing Medicaid eligibility system.) Specifically, the Colorado marketplace allowed (1) SES costs to be allocated to it on the basis of an arbitrary, 50/50 cost allocation ratio, contrary to Federal requirements and to Centers for Medicare & Medicaid Services (CMS) supplemental guidance that the methodology for allocation be based on expected transactions and expected program population and not be arbitrary; and (2) SES costs totaling $2.1 million that were incurred, either entirely or in part, during the initial Cost Allocation Plan (CAP) period to be improperly allocated to it because the marketplace used the cost allocation ratio in effect for the revised CAP period.

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At the time of our audit, Federal Emergency Management Agency (FEMA) estimated that the City of Waterloo, Iowa (City), sustained approximately $1.9 million in damages from severe storms and flooding from September 21 through October 3, 2016. The City did not provide all requested information and explanations necessary to perform our review; therefore, we were unable to assess whether the City’s policies, procedures, and business practices were adequate to account for FEMA Public Assistance grant funds properly. The City’s failure to cooperate with a Federal audit put approximately $1.9 million dollars in potential FEMA grant funding at risk of being deobligated or not funded.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Restoration Services, Inc. (RSI) for project control services for TVA's Generation Construction under Contract No. 6122. Our audit included approximately $12.5 million in costs billed to TVA from January 1, 2015, to June 30, 2017. Our audit objective was to determine if RSI billed TVA in accordance with the contract's terms.In summary, we determined RSI overbilled TVA $109,504, including (1) $85,565 for ineligible and unsupported temporary living allowance costs and (2) $23,939 for unapproved and ineligible travel costs. In addition, RSI billed TVA $104,308 in fringe benefit costs it had not incurred because the contract did not provide a reduced fringe benefit markup rate for RSI employees who did not receive medical benefits.(Summary Only)

We found that FSA did not effectively implement Department requirements for the contractor personnel security screening process. We specifically noted weaknesses in FSA’s development of internal policies and procedures; designation of contract positions and risk levels; maintenance of contract position, risk, and employee information, notification and maintenance of security screening decisions, and contractor employee departure procedures. We found that FSA staff and officials involved in the process were generally unaware of Department requirements and their related responsibilities for processing contractor employees’ security screenings.

We conducted a verification review to determine the adequacy, effectiveness, and timeliness of USCIS' corrective actions to address the seven report recommendations in Better Safeguards Are Needed in USCIS Green Card Issuance, OIG-17-11, November 16, 2016. At the time of our audit fieldwork in spring 2016, USCIS’ efforts to address the errors were inadequate. USCIS conducted a number of efforts to recover the inappropriately issued cards; however, these efforts also were not fully successful. At the time of our audit fieldwork in spring 2016, USCIS’ efforts to address the errors were inadequate. USCIS conducted a number of efforts to recover the inappropriately issued cards; however, these efforts also were not fully successful.

OIG data analytics identified the Atlanta (GA) Main Post Office refund and void amounts for fiscal year 2017 Quarters 3 and 4 exceeded $21,000, an increase of 21 percent from the same period last year. Refunds for Express Mail were $3,838, or 18 percent of the $21,000, and were based on services not rendered or a service failure. Unit personnel made 129 refunds to customers due to Express Mail failures during this time period. The objective of this audit was to determine if Express Mail refunds were valid, properly supported, and processed timely.