Federal Reports

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Sargent & Lundy, L.L.C. (S&L) for engineering services under Contract Nos. 8444 and 12285. The contracts provided for TVA to compensate S&L for work on either a cost reimbursable or fixed price basis. Our audit objectives were to determine if (1) costs were billed in accordance with the terms and conditions of the contracts and (2) tasks were issued using the most cost efficient pricing methodology. Our audit scope included about $119.3 million in costs billed to TVA from July 19, 2014, through December 30, 2017. This included $21.0 million for cost reimbursable projects and $98.3 for fixed price projects. In summary, we determined:S&L overbilled TVA $46,828 on cost reimbursable projects including (1) $43,080 in labor burden and other direct costs and (2) $3,748 in volume rebates (of which a credit of $2,236 was subsequently provided to TVA).The use of fixed price payment terms on projects caused TVA to pay at least $11.5 million more than it would have if cost reimbursable payment terms had been used for those projects.We also noted issues with TVA's contract administration including inadequate oversight of the (1) fee evaluation process and (2) process for evaluating fixed price proposals. Additionally, TVA may have missed the opportunity to receive $121,083 in volume rebates due to certain contractual language that benefited S&L.(Summary Only)

We audited costs claimed by the State of Illinois Department of Natural Resources (Department) under Wildlife and Sport Fish Restoration grants awarded by the U.S. Fish and Wildlife Service (FWS). The audit included claims totaling approximately $50 million on 90 grants that were associated with the State fiscal years that ended June 30, 2016, and June 30, 2017. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and the reporting of program income.We could not determine with any certainty whether the State ensured the grant funding and State hunting and fishing license revenue was used solely for allowable fish and wildlife activities. The scope of our review coincided with the State of Illinois budget impasse, which removed the Department’s budget authority, preventing the reimbursement of Program funds to the Department and to its subgrantees.We identified unsupported costs of $36,346 related to grant expenditures ($27,260 Federal share) and $131,294 related to license revenue funded expenditures. In addition, we found that the Department: 1) potentially diverted its license revenues, 2) had not reported its barter agreements, and 3) had not adequately documented its in-kind hours. We also determined that the Department’s World Shooting and Recreation Complex did not have standard operating procedures for identifying eligible license revenue fund expenditures.The FWS concurred with our seven recommendations, and it will work with the Department to implement corrective actions.

The VA Office of Inspector General (OIG) conducted a healthcare inspection to assess the validity of allegations regarding a delay in performing an appendectomy, that the delay was caused by inadequate resident oversight, and surgeons paid by the VA were unavailable because they were working for other institutions. The OIG substantiated a delay of approximately three hours occurred in performing an appendectomy. The OIG team determined the delay was due to another patient requiring surgery more urgently and poor communication. No adverse event occurred due to the delay. The facility’s practice for scheduling surgeries did not address communication among key staff during the multiple steps between identifying the need for surgery and the time of surgery. Opportunities existed for facility leaders to evaluate communication between residents and surgeons. The OIG did not substantiate that the appendectomy was delayed because of inadequate resident oversight. Staff interviews and electronic health records confirmed that general surgery attendings were available at all hours to provide resident supervision and discuss patients, and were present in the operating room during surgeries. The OIG team was unable to determine the availability of surgeons or if they were working at other institutions while paid by the VA. Discrepancies existed with general surgeons’ reported hours and timecards for May 2018. The facility indicated that they did not maintain documents detailing part-time physicians’ tours of duty. The Veterans Integrated Service Network Fiscal Quality Assurance Manager also conducted a review of part-time physician hours and determined the facility did not maintain appropriate documentation. The OIG made two recommendations related to evaluating the surgery scheduling processes, and ensuring the adequacy of documentation for part-time physicians’ tours of duty and responsibilities for time and attendance.

The objective was to determine whether local purchases and payments made at the Denver, CO, General Mail Facility Station for miscellaneous services were valid and properly supported and processed.

1n February 2016, the Inspector General for the Intelligence Community (ICIG), I. Charles McCullough, asked the DHS OlG to review a Presidential Policy Directive 19 ("PPD-19") complaint filed by [REDACTED], a former CIA employee. The OHS OIG accepted the request, and in August 2016, the DHS OIG determined that it would conduct a full Wbistleblower Retaliation Investigation.

We issued this to determine whether the Social Security Administration (SSA) correctly exempted Old-Age, Survivors and Disability Insurance (OASDI) benefits from the Windfall Elimination Provision (WEP). Specifically, we reviewed exemptions for (a) workers who had 30 or more years of coverage subject to Social Security earnings, (b) workers who were eligible for a pension before 1986, and (c) Federal employees under the mandatory coverage provision.

According to the Centers for Disease Control and Prevention (CDC), opioids were involved in more than 47,000 deaths in 2017, and opioid deaths were 6 times higher in 2017 than in 1999. CDC has awarded funding to States to address the nonmedical use of prescription drugs and to address opioid overdoses. We are conducting a series of reviews of States that have received CDC funding to enhance their prescription drug monitoring programs (PDMPs). We selected New York for review because it experienced a significant increase in the rate of drug overdose deaths during 2016 and 2017.