Federal Reports

This report details the Office of Inspector General's Fall 2018 Semiannual Report to Congress. The following topics are included:Overview of the SBA and the OIGSmall Business Access to CapitalDisaster Loan ProgramProcurement AssistanceAgency ManagementOther Significant OIG ActivitiesStatistical HighlightsAppendices

This report contains information about recommendations from the OIG’s audits, evaluations, and reviews that the OIG had not closed as of the specified date because it had not determined that the Department of Justice had fully implemented them. The information omits recommendations that the Department of Justice determined to be classified or sensitive, and therefore unsuitable for public release.The status of each recommendation was accurate as of the specified date and is subject to change. Specifically, a recommendation identified as not closed as of the specified date may subsequently have been closed.

The Office of Inspector General assessed NASA’s management of a mission to Europa (one of Jupiter’s 79 known moons) with respect to achieving its technical objectives, meeting milestones, controlling costs, and addressing congressional directives.

The agreed-upon procedures review of AmeriCorps grant funds awarded to the Serve Guam Commission and two subgrantees, Sanctuary Incorporated and Guam Homeland Security, identified questioned Federal costs of $14,447, questioned match costs of $18,761, and compliance findings. Most of the questioned costs identified were caused by inadequate pre-award evaluations and post-award monitoring. The costs tested were incurred between January 1, 2016 and June 30, 2018.The Serve Guam Commission concurred with most of the findings and is working on corrective actions. CNCS management also concurred with most of the recommendations and stated it will resolve the questioned costs during audit resolution.

The Office of the Inspector General audited TVA’s compliance with Office of Management and Budget’s (OMB) memorandum (M) 15-13, Policy to Require Secure Connections across Federal Websites and Web Services, and Department of Homeland Security’s (DHS) binding operational directive (BOD) 18-01, Enhance E mail and Web Security, regarding Web site and e-mail security practices. We determined that TVA was not in compliance with OMB M-15-13 and DHS BOD-18-01. In addition, we found TVA’s Web site inventory was incomplete. TVA management agreed with our findings and recommendations.

This audit was in response to two congressional requests for the OIG to assess allegations of unsafe facility conditions, delayed and unprocessed mail, and understaffing at post office (PO) facilities in Albuquerque, NM. The objectives of this audit were to determine whether the Postal Service complied with applicable building maintenance, safety, and security standards; and assess mail distribution to carriers and PO Box sections and staffing levels at facilities in Albuquerque, NM.

We audited the State of New York’s Community Development Block Grant Disaster Recovery-funded New York Rising Buyout and Acquisition program. We initiated this audit based on observations related to the appraised fair market values made during a previous audit (2015-NY-1010) of the State’s program. Our objectives were to determine whether the State ensured that (1) the appraised fair market values used to determine award amounts under its program were supported and (2) appraisal costs for its program complied with applicable requirements and were for services performed in accordance with Federal, State, and industry standards. The State did not ensure that (1) appraised fair market values used to determine award amounts under its program were supported and (2) appraisal costs complied with applicable requirements and were for services performed in accordance with applicable Federal, State, and industry standards. The State also did not ensure that it had a clear and enforceable agreement with the City of New York before relying on appraisal services provided by the City’s contractor and did not ensure that the appraisal services were properly procured and performed. These issues occurred because the State did not have adequate controls over its program. As a result, the U.S. Department of Housing and Urban Development (HUD) and the State did not have assurance that (1) more than $367.3 million paid to purchase properties was supported; (2) more than $3.4 million disbursed for appraisal services was for costs that were reasonable, necessary, and adequately documented; and (3) appraisal services were properly procured and performed. If the State improves controls over its program, it can ensure that up to $93.4 million not yet disbursed is put to better use. We recommend that HUD require the State to (1) provide documentation to support the appraised values of the properties purchased; (2) provide support to show that appraisal costs were reasonable, necessary, supported, and for services that were performed in accordance with requirements; (3) execute an agreement with the City for the use of appraisal services and show that services were properly procured; and (4) strengthen controls to ensure that Disaster Recovery funds used for appraisal services are for costs that are reasonable, necessary, supported, and for services that comply with applicable requirements.

We found that the Department complied with IPERA because it met each of the six compliance requirements. We also found that the Department’s improper payment estimates and methodologies were generally accurate and complete. Lastly, we found that some information in the Department’s improper payment reporting was inaccurate and incomplete, as described in Finding 1. As a result, we could not accurately evaluate the Department’s performance in recapturing improper payments.