Federal Reports

Management and Performance Challenges report for the PAR.

As required by FISMA, OIG reviewed USDA’s ongoing efforts to improve itsinformation technology security program and practices during fiscal year 2018.

We included an audit of loan obligations and receivables relating to the Tennessee Valley Authority’s (TVA) EnergyRight® Solutions loan program in our annual audit plan after a review of TVA’s financial statements indicated a significant outstanding receivables balance. As of September 30, 2017, TVA’s loan obligations under the program were approximately $144.1 million, and the related loans receivable balance (net of discounts) was approximately $125.2 million.Our audit objectives were to (1) determine whether loans were issued in accordance with TVA policies and procedures, (2) confirm loan balances to verify the receivables, and (3) determine the extent to which loans were charged-off as bad debt and evaluate compliance with TVA’s policies and procedures. We found loans were generally issued in compliance with TVA’s policies and procedures. However, we were unable to confirm individual loan balances to verify the TVA receivable amount because neither TVA nor Regions (the bank servicing the loans) track individual loan balances. In addition, we found (1) loan write-offs were generally not made in accordance with the program guidelines, (2) summary-level, loan-program balances reported to TVA by local power companies did not agree to those provided by Regions, (3) local power company loan documentation retention needs improvement, and (4) installation inspections are not required.

The OIG investigated an allegation that a Bureau of Safety and Environmental Enforcement (BSEE) investigator violated Government ethics regulations by applying for a position with an oil company while he was investigating an incident involving the same company.We found that the employee notified his supervisor of his intent to apply for the position, and a BSEE ethics official provided timely guidance regarding the potential conflict of interest. The BSEE investigator never applied for a position with the oil company.

The OIG investigated allegations that a U.S. Fish and Wildlife Service (FWS) law enforcement officer stole Government property from the wildlife refuge where he was assigned, to include lawn maintenance equipment, furniture, and ammunition. The complainant also alleged that the officer’s spouse offered to sell them the stolen Government ammunition.We found no evidence that the officer stole Government property, nor did we corroborate that his spouse offered to sell Government ammunition to anyone. We reviewed refuge records and property and confirmed that no property was missing.

The OIG investigated allegations that a tribe removed approximately $11 million from the bank account of a tribally controlled school funded by the Bureau of Indian Education (BIE). We investigated whether the funds had been removed as alleged and whether the removal violated any law or regulation.We found that the tribe did remove the funds, but did not violate any law or regulation by doing so. The tribe took the funds to reimburse itself for unpaid indirect costs that had accumulated since 2001.

During an investigation of the use of self-bonds in coal operations, the Office of Inspector General (OIG) identified an issue with access to the Wyoming Department of Environmental Quality’s (WDEQ’s) records related to its grant from the Office of Surface Mining, Reclamation, and Enforcement (OSMRE). We found that the WDEQ may be restricting OSMRE personnel’s ability to remove records from WDEQ offices for OSMRE review and audit. This may impede OSMRE’s ability to review information submitted to the WDEQ by companies that mine on Federal lands.We made one recommendation to help enable the OSMRE to adequately review and audit grant records and clarify the requirement for Federal grantees and program administrators to cooperate with OIG investigations.