Federal Reports

VA contracts for Medical Disability Examinations from non-VA medical sources on behalf of veterans and active military members. One of the companies VA contracts with to conduct these exams is QTC Medical Services (QTC). The VA Office of Inspector General (OIG) and independent auditors have previously conducted reviews of QTC’s contracts, which identified significant questioned costs largely due to differences in Medicare billing rates and use of proprietary Medicare codes. Later reviews performed by independent auditors found additional deficiencies in subsequent QTC contracts. The OIG review could not determine if or how these were resolved with QTC. This OIG review was conducted to ensure corrective measures to address prior identified issues were sustained and to follow up on recent billing practices. The review team focused on one of four contracts that VA awarded to QTC effective November 28, 2018, because the four contracts were identical except for geographical coverage. The OIG team sampled two months of billings totaling more than $12 million under the selected contract. This review focused on two issues found to be of concern in previous reviews: 1. Contract overbilling; 2. National Correct Coding Initiative (NCCI) edits to prevent duplicate billing. The review resulted in no negative findings or recommendations. The OIG review team concluded that QTC adequately followed billing requirements for the contract and did not materially overbill VA for services rendered through February 28, 2019. VA’s Office of Acquisition, Logistics, and Construction commented in its review of the report, “OALC appreciates this follow-up review. It demonstrates that our corrective actions were successful and fully integrated into VA practices….”

A Customer Service Representative in Joliet, Illinois, was terminated from employment on March 16, 2020, following an administrative hearing for violating company policy. Our investigation found that the employee inappropriately used leave granted under the Family Medical Leave Act to engage in outside employment. Additionally, the employee was dishonest with our agents when we interviewed him during this investigation.

A Computer Tech based in Bear, Delaware, violated Amtrak policies by conducting consultation work for a travel agency while using company equipment and resources on company time. Although the employee was instructed and counseled by her supervisors to discontinue doing so, we found occasions where the unauthorized activity continued afterbeing counseled. On March 16, 2020, the employee retired in lieu of disciplinary action.

We audited the Puerto Rico Department of Housing (PRDOH) in accordance with the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) goal to review disaster funding and based on a congressional request for HUD OIG to conduct capacity reviews for Hurricanes Harvey, Irma, and Maria grantees. Our audit objectives were to determine whether the PRDOH had the capacity to (1) administer its Community Development Block Grant Disaster Recovery (CDBG-DR) grants in accordance with applicable regulations and requirements and (2) whether it had in place financial and procurement policies and procedures that promote the expenditure of funds and the acquisition of goods and services in accordance with Federal requirements. The PRDOH should strengthen its financial and procurement capacity to administer its CDBG-DR grants in accordance with applicable regulations and requirements. Specifically, it could strengthen its capacity by (1) improving its financial controls, (2) improving its processes for preventing duplication of benefits, (3) improving its procurement controls, and (4) continuing to increase its staffing. Strengthening its capacity would help ensure that the PRDOH properly administers more than $19 billion in CDBG-DR funds in accordance with applicable requirements. The PRDOH did not follow Federal and its own procurement requirements when it acquired goods and services. As a result, HUD had no assurance that purchases totaling $416,511 were reasonable, necessary, and allowable. We recommend that HUD require the PRDOH to (1) develop adequate procedures outlining steps for tracking monthly grant expenditures and reprogramming funds and program income and develop and implement a financial management system for its 2008 CDBG-DR grant, (2) review and update its policies and procedures to prevent duplication of benefits, (3) review and update its procurement policies and procedures, and (4) continue to fill its vacancies. In addition, HUD should require the PRDOH to submit supporting documentation showing compliance with procurement requirements and that $416,511 were reasonable and necessary costs or reimburse the program $55,010 from non-Federal funds and cancel $361,501 of CDBG-DR obligations.

In accordance with our Annual Performance Plan Fiscal Year 2020, dated October 2019, the Office of Inspector General (OIG) conducted an assessment of the United States Capitol Police (USCP or the Department) Leadership Training Program. Our objectives were to determine whether (1) sworn supervisors received leadership training prior to and after promotion, and (2) that training aligned with policies, procedures, laws, regulations, and best practices. Our scope of the assessment included training received as of September 30, 2019.