Federal Reports

We found that EEOC generally had sound information security controls for its Information Security Program and has implemented security controls in all seven DHS Inspector General (IG) FISMA Reporting Metrics. Based on our audit work, we concluded that the EEOC’s Information Security Program is generally compliant with the FISMA legislation and applicable Office of Management and Budget (OMB) guidance and the security controls tested demonstrated operating effectiveness.

Manufacturers with rebate agreements are required to report all of their covered outpatient drugs to the Medicaid Drug Rebate Program (Medicaid rebate program). CMS calculates rebate amounts using manufacturer reported pricing and classification data. Congress asked OIG to evaluate the accuracy of manufacturer reported data in the Medicaid rebate program, and CMS's oversight of that data. The Food and Drug Administration's (FDA's) marketing categories, which also are manufacturer reported, can be used to help determine whether a drug is classified as an innovator, e.g., brand name, or noninnovator, e.g., generic, product, for the purposes of calculating Medicaid rebates. Innovator products are generally subject to higher base rebate amounts. Manufacturers are required to pay an additional, inflation adjusted rebate if a drug's price increases faster than inflation. When information provided by drug manufacturers is incorrect or missing, State Medicaid agencies may not be able to collect all appropriate rebates.

The Inspector General Empowerment Act of 2016 mandated that the Council of the Inspectors General on Integrity and Efficiency (CIGIE) conduct an analysis of critical issues that involve the jurisdiction of more than one individual federal agency. In response, we have consulted within the Inspector General community to determine six high-impact issues where coordination and collaboration would continue to be most beneficial.

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In response to a hotline complaint, the Office of Inspector General (OIG) reviewed allegations that the Carl T. Harden VA Medical Center (VAMC) in Phoenix, AZ did not consistently process beneficiary travel mileage claims. In response, OIG determined whether the VAMC reimbursed beneficiaries more than once for the same travel, approved travel mileage claims using Post Office Boxes instead of physical addresses, and reimbursed beneficiaries primarily through cash or check and not electronic funds transfer (EFT).We did not substantiate the allegation that VAMC staff improperly reimbursed beneficiaries more than once for the same travel. Although we did not substantiate the allegation, we observed the VAMC did not have written procedures requiring staff to perform actions when automated controls alerted them of potential duplicate claims and payments. Although we determined it was not a widespread issue, we substantiated the allegation that VAMC staff inappropriately approved beneficiary travel mileage claims using Post Office Boxes as beneficiaries’ departure addresses instead of physical addresses, which violated policy. We found this occurred because the VAMC lacked a local quality review program to ensure staff document and use physical addresses when calculating mileage reimbursements.We substantiated the allegation that VAMC staff unnecessarily reimbursed most beneficiary travel in cash, rather than by EFT. However, the VAMC Director, appointed in December 2015, supported the facility's adoption of cash reduction goals and approved a plan to advance those measures soon after her appointment. Accordingly, VAMC staff have been implementing this plan, which has resulted in a significant reduction of the VAMC’s percentage of cash payments. Because we confirmed significant actions have been taken, we did not make any recommendations for this area. We made two recommendations. The VAMC Director concurred with our recommendations, and we will perform follow-up on corrective action implementation.