Federal Reports

This report presents the results of our self-initiated audit of Delivery and Customer Service Issues – College Station, New York, NY. College Station is in the New York District of the Northeast Area. This audit was designed to provide U.S. Postal Service management with timely information on potential delivery and customer service risks at College Station.

We audited the Housing Authority of the County of Los Angeles’ intergovernmental agreements due to our Public and Indian Housing Intergovernmental Agreements Auditability Survey. The objective of that review was to identify public housing agencies with intergovernmental agreements for potential external reviews due to a previous audit (audit report 2018-LA-1008), which identified the Housing Authority of the City of Los Angeles as not always following U.S. Department of Housing and Urban Development (HUD) requirements and its intergovernmental agreement when it managed its legal services with the City of Los Angeles. Our audit objective was to determine whether the Authority executed and administered its intergovernmental agreements in compliance with HUD requirements, its own policies and procedures, and the terms of its agreements.The Authority generally executed and administered its intergovernmental agreements in compliance with HUD requirements, its own policies and procedures, and the terms of the agreements. In addition, it generally ensured that program expenses for supplemental law enforcement services were adequate in accordance with the terms of its agreements and HUD requirements. However, the Authority did not ensure that its agreements were updated to include the current HUD requirements.We recommend that the Director of HUD’s Los Angeles Office of Public Housing require the Authority to change its intergovernmental agreements for supplemental law enforcement services to include the current HUD requirements.

FEMA’s December 2017 Eligibility Determination of Cobra contract costs for its Public Assistance (PA) program was unsound. Federal regulations and FEMA policy require all costs claimed under the PA program to be necessary and reasonable to accomplish the work properly and efficiently. FEMA conducted an analysis of the Cobra contract rates and determined that contract costs were reasonable and eligible for the PA program. However, FEMA did not evaluate the actual time and materials costs incurred under the contract for reasonableness, and its analyses of the contract rates for labor, equipment, and other costs were not always logical, complete, and supported. As a result, FEMA approved a PA grant and reimbursed millions of dollars for Cobra contract costs based on an unsound eligibility determination. We made one recommendation that, when implemented, will correct the deficiencies with FEMA’s evaluation of cost reasonableness of Cobra contract costs. FEMA concurred with our recommendation and described the corrective actions necessary to address the issues we identified in our report. Specifically, FEMA will update its October 2018 Public Assistance: Reasonable Cost Evaluation Job Aid and the Public Assistance Program and Policy Guide to include additional guidance specific to Time and Materials contracts. FEMA is also conducting additional analyses of the actual time and material costs to determine the reasonability and eligibility of Cobra contract costs for PA funding.

The Office of Inspector General (OIG) has identified significant vulnerabilities in the Medicare hospice benefit and found that hospices did not always provide needed services to beneficiaries and sometimes provided poor quality care. Hospice care can provide great comfort to beneficiaries, their families, and other caregivers at the end of a beneficiary's life. To promote compliance and quality of care, the Centers for Medicare & Medicaid Services (CMS) relies on State agencies and accrediting organizations to survey hospices. As part of this process, surveyors review clinical records, visit patients, and cite hospices with deficiencies when they do not meet Medicare requirements. Hospices must be surveyed at least once every 3 years. Surveyors also investigate complaints. This report provides a first-time look at hospice deficiencies nation-wide in that it includes both hospices that were surveyed by State agencies and those surveyed by accrediting organizations. This report is the first in a two-part series. The companion report addresses beneficiary harm in depth.