Federal Reports

We conducted this review to assess the Indian Health Service's (IHS) physical and information technology controls over prescription drugs such as opioids and to identify measures that could prevent drug diversions.

Our objective was to determine whether travel and representation expense reimbursements requested by U.S. Postal Service officers during fiscal year 2017 were properly supported and compliant with Postal Service policies and procedures.

In House Report (H. Rept. 114-497) to accompany the House of Representatives, Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, 2017 (H.R. 4974), the Committee on Appropriations requested the OIG review VA’s reimbursement of the Department of the Treasury’s Judgment Fund relating to the payment of contractors for major medical construction projects to settle claims arising from contract disputes.We found VA did not reimburse the Treasury Judgment Fund in accordance with Title 31 Code of Federal Regulations (CFR) §256.40. From October 1, 2011 through September 30, 2016, Treasury paid 23 claims related to 10 major medical facility construction projects totaling $247,748,686. Of this amount, $226,328,422 remained unpaid as of January 31, 2017, with an average delinquency of 221 days. VA has been delinquent in reimbursing the Judgment Fund because VA has not been requesting sufficient funding for the reimbursement of Contract Disputes Act of 1978 (CDA) claims. VA’s FY 2017 congressional submission requested funding of only $9 million to reimburse the Judgment Fund for the payment of claims. By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities not covered by budgetary resources. VA will require significant future funding to satisfy the outstanding claims.We recommended the Acting Assistant Secretary for Management and Acting Chief Financial Officer establish procedures to ensure VA reimburses the Treasury Judgment Fund within 45 business days of receipt of demands for reimbursement, or establish appropriate payment plans for CDA claims. The Acting Assistant Secretary for Management concurred with the intent of the recommendation and reported VA will update policy to reflect the requirements in Treasury Policy, and 31 CFR §256.40 and §256.41.

During this period, we closed 25 investigations involving fraud or corruption related to the Department’s programs and operations, securing more than $20 million in restitution, settlements, fines, recoveries, forfeitures, and savings. In addition, as a result of our investigative work, criminal actions were taken against a number of people, including school officials, vendors, and service providers who cheated both students and taxpayers. We also issued 7 audits that contained recommendations to improve program operations.