Federal Reports

The Reports Consolidation Act of 2000 requires the U.S. Department of Education (Department) Office of Inspector General to identify and report annually on the most serious management challenges the Department faces. The Government Performance and Results Modernization Act of 2010 requires the Department to include in its agency performance plan information on its planned actions, including performance goals, indicators, and milestones, to address these challenges. To identify management challenges, we routinely examine past audit, inspection, and investigative work, as well as issued reports where corrective actions have yet to be taken; assess ongoing audit, inspection, and investigative work to identify significant vulnerabilities; and analyze new programs and activities that could post significant challenges because of their breadth and complexity. Last year, we presented five management challenges: improper payments, information technology security, oversight and monitoring, data quality and reporting, and information technology system development and implementation. Although the Department made some progress in addressing these areas, four of the five remain as a management challenge for fiscal year (FY) 2018. We removed information technology system development and implementation because our current body of work does not support its continued reporting as a challenge to the Department. Our planned work for FY 2018 includes audits of the Department’s implementation of the Federal Information Technology Acquisition Reform Act and the Department’s implementation of the Portfolio of Integrated Value-Oriented Technologies Contracts. Our conclusions from this and other work could result in this area returning as a management challenge in future years.The FY 2018 management challenges are: (1) Improper Payments, (2) Information Technology Security, (3) Oversight and Monitoring, and (4)Data Quality and Reporting.

The report begins on page 25 of the Fiscal Year 2017 Military Retirement Fund Audited Financial Report.

Audit Report

Ernst & Young (EY), under its contract with the HHS Office of Inspector General (OIG), audited the second quarter for fiscal year (FY) 2017 to determine HHS's compliance with the Digital Accountability and Transparency Act (DATA Act; P.L. No. 113-101) and related guidance.

The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA) directly affects both the Children's Health Insurance Program and Medicaid. Under CHIPRA, Congress appropriated $3.2 billion for qualifying States to receive bonus payments to offset the costs of increased enrollment of children in Medicaid.

The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA) directly affects both the Children's Health Insurance Program and Medicaid. Under CHIPRA, Congress appropriated $3.225 billion for qualifying States to receive bonus payments to offset the costs of increased enrollment of children in Medicaid.

The OIG used data analytics to identify offices with a surge of potentially fraudulent Voyager credit card activity. We identified 128 potentially fraudulent fuel transactions totaling $7,199, made primarily in Florida with a Voyager card assigned to the Southeast (SE) Austin Station, between January 1 and July 31, 2017.