Federal Reports

The OIG inspection team sought tounderstand how the U.S. GovernmentPublishing Office (GPO) maintainsindoor air quality (IAQ) at the CentralComplex Buildings in Washington, DC.

The OIG conducted this inspection to assess the stewardship and oversight of funds by the VA Memphis Healthcare System in Tennessee. This inspection assessed financial activities and administrative processes to determine whether appropriate controls and oversight were in place. These included open obligations, purchase card use, inventory and supply management, and pharmacy operations.After analyzing a judgmental sample of 20 open obligations, the team found that 10 obligations totaling approximately $11.5 million were more than 90 days past the end of the performance period, and the team could not verify whether healthcare system staff reviewed these obligations, as required. In another sample, the team found that four obligations had residual funds of $7,200 that should have been deobligated.Using a sample of 40 purchase card transactions, the team estimated that staff may have made noncompliance errors in over 18,500 transactions resulting in approximately $19.8 million in questioned costs.For inventory and supply management, the team found that training issues, inadequate staffing levels, poor oversight, and data validity issues affected the healthcare system’s stock levels. Healthcare system staff also could not provide documentation to show that required physical inventories were completed or that the chief supply chain officer reviewed the list of personnel with access to the inventory system.The team also found that the healthcare system can further improve pharmacy efficiency by adhering to inventory management best practices, such as adding scannable barcodes to shelving, increasing inventory turnover rates for “A” and “C” items in accordance with Pharmacy Benefit Management target rates, and ensuring compliance with the B09 reconciliation process.The OIG made nine recommendations to the healthcare system director to address the issues identified.

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

KPMG LLP’s (KPMG) report on its financial statement audit of the National Credit Union Administration’s (NCUA) financial statements, which includes the Share Insurance Fund, the Operating Fund, the Central Liquidity Facility, and the Community Development Revolving Loan Fund, as of and for the years ended December 31, 2023 and 2022. The NCUA prepared financial statements in accordance with the Office of Management and Budget (OMB) Circular No. A-136 Revised, Financial Reporting Requirements, and subjected them to audit.Under a contract monitored by the NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s financial statements as of December 31, 2023. The contract required that the audit be performed in accordance with generally accepted government auditing standards issued by the Comptroller General of the United States, OMB audit guidance, and the Government Accountability Office/President's Council on Integrity and Efficiency Financial Audit Manual. KPMG’s audit report for 2023 includes: (1) an opinion on the financial statements, (2) conclusions on internal control over financial reporting, and (3) a section addressing compliance and other matters. In its audit of the NCUA, KPMG found:• The financial statements were fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles,• There were no deficiencies in internal control identified as material weaknesses or significant deficiencies and• No instances of reportable noncompliance with laws and regulations it tested or other matters that are required to be reported under Government Auditing Standards or OMB guidance.

We audited costs claimed by the Iowa Department of Natural Resources under grants awarded by FWS through WSFR.