Federal Reports

Our objective was to assess the Postal Service’s management of its employees’ use of novel coronavirus disease (COVID-19) leave under the Families First Coronavirus Response Act (FFCRA). Although the FFCRA expired on December 31, 2020, the Postal Service continued to allow liberal leave usage for employees who had a sickness related to COVID‑19. On March 11, 2021, the American Rescue Plan Act was signed into law. This Act is similar to the FFCRA in that it created a new type of leave. Effective March 12, 2021, and continuing through September 30, 2021, the American Rescue Plan Act provides employees with up to 600 hours of paid leave. The OPM issued guidance on using the new leave authority on April 29, 2021.

Sound financial management practices at VA facilities are critical to ensure funds are used appropriately, effectively, and efficiently. For that reason, the VA Office of Inspector General (OIG) conducted a review to examine whether VA’s Maryland Health Care System appropriately managed purchases and payments for medical equipment and supplies. Fiscal oversight of purchase cards and internal controls governing the use of overtime were also reviewed.The OIG found ineffective processes, internal control weaknesses, and inadequate oversight in five areas:1. The healthcare system and the Enterprise Equipment Request (EER) portal need improved controls for approving equipment purchases.2. Healthcare system staff and the prime vendor should prepare timely and accurate planning information to ensure adequate supplies are on hand to fill orders.3. Even though no inaccurate inventory payments were identified, VA’s inventory system needs controls to ensure correct recording of supply units and costs.4. The healthcare system purchase card program requires closer monitoring to ensure purchases are authorized and supported by documentation.5. The healthcare system should strengthen its overtime payment controls to ensure supervisors verify overtime hours were completed before approving timecards for payment.VA concurred with all eight OIG recommendations. The OIG team also identified more than $5 million in questioned costs related to identified issues such as undocumented or unapproved purchases.

Veterans may apply for an annual clothing allowance benefit if they have a service-connected disability and use a prosthetic or orthopedic appliance or use a prescription skin medication that damages clothing. For fiscal year 2019, about 92,000 veterans received about $98 million in payments. The VA Office of Inspector General (OIG) determined whether entitled veterans received their annual clothing allowance benefit.The Veterans Benefits Administration (VBA) jointly administers the benefit with the Veterans Health Administration (VHA). VHA is responsible for administering and awarding benefits. VBA’s role is to inform veterans of potential entitlement, budget for the benefit, and provide data management and information technology support.VA generally ensured entitled veterans received their annual clothing allowance benefit. However, the OIG found that the VHA handbook needs detailed guidance on administering the benefit, including the roles, responsibilities, and functions of all staff involved.The OIG also found that some veterans may no longer meet entitlement requirements. Although most veterans are required to apply each year for benefits, those given “recurring status” are automatically renewed. To prevent overpayment errors, recurring status was eliminated in August 2012. If those cases were reevaluated, an estimated 31,200 veterans may not qualify based on changes in device design or technology. Reevaluation could save about $129.7 million over the next five years.The OIG recommended the under secretary for health revise the VHA clothing allowance handbook to include detailed procedures for determining and monitoring benefit entitlement. The OIG also recommended the under secretary, in collaboration with VBA, reevaluate veterans’ entitlement to recurring clothing allowance benefits.