Federal Reports

Introduction

This management alert presents issues the U.S. Postal Service Office of Inspector General (OIG) identified during the Counterfeit Postage Program audit (Project Number 25-072). Our objective is to provide immediate notification of these issues related to an identified deficiency in the prevention of Enterprise Payment Account (EPA) fraud.

Background

The Postal Service offers mailers the ability to obtain and pay for package labels through various systems designed to improve customer experience.

The audit of AmeriCorps’ Grant Closeout Process found that AmeriCorps’ grant closeout policies and procedures generally complied with the provisions of 2 C.F.R. § 200.344 with the following issues identified: 1) AmeriCorps did not have adequate policies and procedures for processing grant funds returned post-closeout; 2) AmeriCorps did not have sufficient internal controls to ensure timely grant closeout; and 3) AmeriCorps’ recording of grant data into USAspending.gov was inconsistent and inaccurate. These issues stemmed from AmeriCorps’ lack of a formal procedure to process grant funds returned after closeout, which led to data discrepancies between the Payment Management System and AmeriCorps’ grant system of record, eGrants. AmeriCorps relies on manual data entry methods to report grant award information to USAspending.gov, without sufficient system controls or independent reviews to detect and correct errors prior to submission. Furthermore, AmeriCorps failed to effectively utilize administrative closeouts when grant recipients did not provide final reports within one year of the award’s period of performance end date. AmeriCorps’ response to the findings and recommendations is included in the report.

A high-speed rail technician based in New York City resigned from his position on February 10, 2026, prior to his administrative hearing. We found that the former employee violated company policies by working a second full-time job at a hospital while he was on company time. The former employee is not eligible for rehire.

We found that unsupported costs were charged to an IRA grant and BOR did not properly oversee a grant and cooperative agreement. 

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

Evaluation

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.