Federal Reports

FY 2022 Management Challenges Facing the U.S. Department of Education

Our objective was to determine whether the U. S. International Development Finance Corporation (DFC) implemented and effective information security program for fiscal year (FY) 2021, in support of the Federal Information Security Modernization Act of 2014 (FISMA). The OIG contracted with the independent certified public accounting firm of CliftonLarsonAllen LLP (CLA) to conduct the audit. CLA evaluated the effectiveness of DFC’s implementation of CLA reviewed FISMA reporting metrics and also assessed DFC’s implementation of selected controls outlined in the National Institute of Standards and Technology’s Special Publication 800-53, Revision 4, “Security and Privacy Controls for Federal Information Systems and Organizations.” CLA reviewed three of the four internal and external systems in DFC’s inventory dated February 12, 2021.We found DFC implemented an effective information security program. For example, DFC established an effective security training program, maintained an effective information system continuous monitoring program, and implemented an effective incident handling and response program. However, we did make recommendations to address weaknesses in four of the nine FY 2021 IG FISMA metric domains.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Vega Corporation of Tennessee for general construction and modification services performed under Contract No. 14626. Our audit included approximately $8.76 million in costs billed to TVA from contract inception, November 11, 2019, through April 30, 2021. Our objective was to determine if Vega billed TVA in accordance with the contract's terms. In summary, we determined (1) Vega overbilled TVA $4,070 in ineligible fee, and (2) TVA paid an additional $187,786 in labor costs because Vega used statutory payroll tax rates instead of effective payroll tax rates in the buildup of its craft labor billing rates. We also noted opportunities to improve contract administration by TVA. Specifically, we found the contract contained (1) language requiring subcontractor approval that does not match TVA's intent and (2) inconsistent language regarding markups on subcontractor costs.(Summary Only)

The coronavirus pandemic impacted Resource Conservation and Recovery Act state program operations and resulted in fewer inspections.

Objective: To review the Social Security Administration’s (SSA) telephone services, especially as they relate to the COVID-19 pandemic.

The OIG, through an IPA (SB & Company, LLC (SBC)) conducted a risk assessment of the Commission’s purchase and travel card program. SBC performed an audit of the purchase card and travel card programs. Overall, we concluded that the risk of illegal, improper, or erroneous purchases and payments through the Commission’s charge card programs during the scope period was low for the purchase and travel card program.

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Objective: To summarize information about State disability determination services’ (DDS) workloads during the COVID-19 pandemic period of April 2020 to March 2021 and compare it to DDS workloads in prior years.

NGA OIG Fall Semiannual Report to Congress, 1 April - 30 September 2021

This report summarizes the oversight work performed by EAC OIG during the 6-month period ended September 30, 2021.

Semiannual report to Congress for April 1, 2021 through September 30, 2021.

On behalf of the Office of the Inspector General, U.S. Nuclear Regulatory Commission and Defense Nuclear Facilities Safety Board, it is my pleasure to present this Semiannual Report to Congress, covering the period from April 1, 2021 to September 30, 2021. I continue to be grateful for the opportunity to lead this extraordinary group of managers, auditors, investigators, and support staff, and I’m extremely proud of their exceptional work.During this reporting period, we issued twelve audit and evaluation reports, and recommended several ways to improve NRC and DNFSB safety, security, and corporate management programs. We also opened nine investigative cases and completed nine, three of which were referred to the Department of Justice, and seven of which were referred to NRC management for action.Our reports are intended to strengthen the NRC's and the DNFSB's oversight of their myriad endeavors and reflect the legislative mandate of the Inspector General Act, which is to identify and prevent fraud, waste, and abuse. Summaries of the reports herein include reviews of the NRC's prohibited security ownership process; enterprise risk management process; nuclear materials and waste oversight process; use of request for additional information process; oversight of decommissioning trust funds; grant proposals and awards oversight; DNFSB compliance with Improper Payment Laws; and, the DNFSB safety culture and climate survey. Further, this report includes summaries of cases involving interference with inspection findings, inaccurate information in an inspection test report, theft of the NRC's laptop computers, retaliation for a differing professional opinion, mismanagement of a desk audit, and claim of a hostile work environment.

We conducted this evaluation due to the growing homeless crisis and the U.S. Department of Housing and Urban Development’s (HUD) establishing a goal of ending homelessness. Our objective was to evaluate the challenges that participating public housing agencies (PHA) face in meeting the goals and objectives of the HUD Veterans Affairs Supportive Housing (VASH) program.The results from our limited review may help HUD in addressing PHAs’ challenges in addressing homelessness among veterans. In addition, the results of our review will help HUD determine what is working and not working toward meeting its VASH goals and objectives.We sent an electronic questionnaire to a universe of 662 PHAs with a HUD VASH program. The majority of responding PHA executives and designated points of contact found that they had excellent or good relationships with their designated Veterans Affairs Medical Centers (VAMCs) and local HUD field offices to help administer their HUD VASH programs. In addition, the respondents believed that the local HUD and U.S. Department of Veterans Affairs (VA) field offices had excellent or good working relationships. Also, respondents expressed that the HUD requirements, including waivers and alternative requirements, were helpful in meeting their program goals and objectives. However, respondents were not able to use all of their allocated program vouchers. One of the reasons was the high cost of housing.

The NASA Office of Inspector General examined the costs associated with the Station’s continued use and maintenance, risks to its structure, NASA’s utilization of the ISS, and the Agency’s plans for commercialization of low Earth orbit.

We produced this Management Advisory to notify Small Business Administration (SBA) officials of serious concerns about potential improper payments in SBA’s Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loan (EIDL) program.Our review of Treasury’s analysis of processed COVID-19 EIDL and emergency EIDL grants from March to November 2020 revealed that SBA’s lack of adequate pre-award controls during this period of review led to 75,180 COVID-19 EIDLs totaling over $3.1 billion and 117,135 emergency EIDL grants totaling over $550 million being disbursed to potentially ineligible recipients. Our preliminary review of Treasury’s DNP analytical summaries indicated SBA should reassess controls to ensure only eligible recipients obtained COVID-19 EIDLs and emergency EIDL grants. A portion of these applications have been identified as potential fraud risks in previous OIG reports. A significant percentage of COVID-19 EIDLs and emergency EIDL grants that Treasury found in federal data sources had also been identified in earlier OIG audit reports. SBA’s lack of adequate front-end controls to determine eligibility contributed to the distribution of COVID-19 EIDLs and emergency EIDL grants to potentially ineligible recipients.SBA should take immediate action to limit improper payments by strengthening existing controls and implementing additional internal controls to address improper payments, especially through the use of the DNP portal.To prevent potential improper payments, we recommended SBA use the batch match or continuous monitoring functions available in Treasury’s Do Not Pay portal to identify potentially ineligible applicants before disbursing COVID-19 EIDL program funds.

Resilience and Continuity. Semiannual Report to Congress for April 1, 2021 - September 30, 2021.

This report details the Office of Inspector General's Fall 2021 Semiannual Report to Congress. The following topics are included:• Overview of the SBA and the OIG• Pandemic Response Oversight• Small Business Access to Capital• Disaster Loan Program• Procurement Assistance• Agency Management• Other Significant OIG Activities• Statistical Highlights• Appendices

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month periods. The semiannual reports are intended to keep the Secretary and the Congress fully informed of significant findings, progress the Agency has made and recommendations for improvement.

Review of Denali Commission's Compliance with Fiscal Year 2020 Improper Payments Requirements.

This report contains information about recommendations from the OIG's audits, evaluations, reviews, and other reports that the OIG had not closed as of the specified date because it had not determined that the Department of Justice (DOJ) or a non-DOJ federal agency had fully implemented them. The list omits information that DOJ determined to be limited official use or classified, and therefore unsuitable for public release.

Semiannual report to Congress for April 1, 2021 through September 30, 2021.

U.S. Department of Labor Office of Inspector General Semiannual Report Vol. 86 covering April 1 - September 30, 2021.

Review of TIGTA OA by DOE.

The OIG contracted with the independent public accounting firm CliftonLarsonAllen LLP (CLA) to audit VA’s financial statements. This audit is an annual legislative requirement. CLA provided an unmodified opinion on VA’s financial statements for FY 2021 and FY 2020. It identified three material weaknesses in internal control in the following areas: (1) controls over significant accounting estimates; (2) financial systems and reporting; and (3) IT security controls. The material weakness involving information technology security controls has been reported for more than 10 years. CLA made recommendations for addressing each of the material weaknesses. CLA also identified two significant deficiencies, previously reported as material weaknesses in FY2020, in the following areas: 1) obligations, undelivered orders, and accrued expenses; and 2) entity-level controls including chief financial officer organizational structure. The firm is responsible for its audit report dated November 15, 2021, and the conclusions expressed in it.CLA also reported instances of noncompliance with laws and regulations. Among these, VA did not substantially comply with federal financial management systems requirements and the United States Standard General Ledger at the transaction level, as required by the Federal Financial Management Improvement Act. The auditors attributed this to VA’s complex, disjointed, and legacy financial management system architecture, which no longer supports stringent and demanding financial management and reporting requirements. VA continued to be challenged in consistently enforcing established policies and procedures throughout its geographically dispersed portfolio of outdated applications and systems.

We determined that DHS made some progress in improving cybersecurity collaboration and coordination in accordance with the CAP and memorandums. Over the past 6 years, DHS participated in critical infrastructure programs, improved cyber situational awareness, collocated DHS and DoD liaisons, and conducted cybersecurity readiness training.

Semiannual Report summarizing the activities of the Office of Inspector General

Semiannual Report to the Congress

This semiannual report summarizes the work we completed from April 1, 2021, through September 30, 2021, to deter fraud, waste, and abuse.

This Semiannual Report to Congress reflects how the EPA OIG is achieving its mission of preventing and detecting fraud, waste, abuse, mismanagement, and misconduct related to the programs and operations of the U.S. Environmental Protection Agency and the U.S. Chemical Safety and Hazard Investigation Board. During the reporting period, April 1, 2021, through September 30, 2021, among other accomplishments, the OIG coled a federal investigation into unreliable water quality testing results, recommended how the EPA could address the adverse impact of the coronavirus pandemic on tribal drinking water systems, and determined the root causes of decline in the EPA’s federal enforcement actions.

The VA Office of Inspector General (OIG) conducted an inspection to assess concerns regarding delays in clinical care and deficiencies in care coordination that led to a delay in the diagnosis of lung cancer in a patient who died at the Raymond G. Murphy VA Medical Center (facility). The OIG also evaluated facility leaders’ responses to quality and timeliness of care. During the inspection, the OIG discovered limitations in the facility’s teleradiology processes.The OIG determined that poor oversight of resident physicians (residents) likely contributed to the patient’s delayed lung cancer diagnosis. A resident ordered an abdomen and pelvis computed tomography (CT) scan. Although a follow-up chest CT scan was recommended within 90 days, it took 175 days to complete. The chest CT scan results included resolution of a spiculated lung nodule and worsening of opacities in the lung representing a cavitary infection or cancer, and a positron emission tomography/CT (PET/CT) scan was recommended. The follow-up PET/CT scan showed a lesion in the right lung, but a biopsy was not done. The patient was examined and diagnosed with cancer at a non-VA hospital.The OIG concluded that deficiencies in care coordination between Primary Care, Pulmonary, and Emergency Departments’ staff also contributed to delays. In addition, contract teleradiologists did not use available prior images for comparison.The facility failed to use quality management and patient safety processes to evaluate the care of the patient.The OIG made six recommendations to the Facility Director related to oversight of residents; care coordination between primary, emergency, and specialty care; review of the patient’s care; leader’s review of facility responses provided to the OIG; consistency in the review of relevant radiological images by facility radiologists and contract teleradiologists; and patient safety reporting.

The Federal Election Commission (FEC) Office of Inspector General (OIG) initiated aninvestigation on June 3, 2021, at the request of the Office of the Staff Director concerning an incident on June 1, 2021 that involved a potential information systems breach associated with agency-provided employee identification cards. The OIG identified two findings and developed five recommendations to the Commission.

The Office of the Inspector General conducted a review of the Southaven Combined Cycle (SCC) Plant to identify factors that could impact SCC’s organizational effectiveness. During the course of our evaluation, we identified behaviors that had a positive impact on SCC. These were related to teamwork and interactions with others; however, we also identified risks related to employee and managerial behaviors that had a negative impact on SCC morale. In addition, we identified risks to operations that could hinder SCC’s effectiveness. These were related to (1) ineffective work management, (2) inaccurate plant drawings, (3) inadequate staffing, and (4) perceived negative interactions with an internal TVA business partner.

This audit assessed the Peace Corps' internal controls over the budget, obligation, and disbursement of CARES Act funds, including compliance with the law and other implementing guidance. We concluded that the Peace Corps complied with necessary provisions of the law and other relevant policies and did not issue any recommendations with this report.

Chanh Van Le, aka Kevin Le, a resident of Chino, California, was sentenced on November 22, 2021, in United States District Court, Central District of California, to eight months in prison, three years’ probation, and was ordered to pay $1,150,000 in joint restitution. Kevin Le previously pleaded guilty to one count of conspiracy to defraud the United States. Our investigation found that Kevin Le opened bank accounts for Thu Van Le, a.k.a. Tony Le, a California pharmacist, and allowed Tony Le to deposit funds into the accounts knowing they were proceeds from reimbursements paid by Tricare for medically unnecessary compounded medications. Tony Le was previously sentenced to 70 months in federal prison and ordered to pay $10,982,759 to Tricare and $768,488 to Amtrak’s health care benefit plan. Tony Le’s pharmacy submitted more than $13 million in fraudulent claims for unnecessary compounded medications, of which $929,000 was billed to Amtrak’s health care benefit plans.

OIG issues this advisory regarding Fraudulent Emergency Broadband Benefit (EBB) Enrollments Based On USDA National School Lunch Program Community Eligibility Provision.

OIG issues this advisory regarding Fraudulent Emergency Broadband Benefit (EBB) Enrollments Based On USDA National School Lunch Program Community Eligibility Provision.

Audit of NLRB IT Security for the FY 2021 FISMA submission

We conducted this audit in response to allegations made to the Department’s hotline. The objective of our audit was to determine whether Enterprise Services (ES) effectively and efficiently managed contractor performance in accordance with federal regulations and Department policy. Overall, we found significant weaknesses in ES’ management and oversight of the Accenture BPA. Overall, we found significant weaknesses in ES’ management and oversight of the Accenture blanket purchase agreement. Specifically, we found the following: (I) ES was not effective in enforcing performance requirements to ensure contract quality and timeliness standards were met and did not timely assess or adequately document contractor performance in CPARS; and (II) ES contracting officers and the assigned contracting officer’s representatives did not properly maintain invoices or supporting documentation to demonstrate that invoices were reviewed and work was performed prior to approving invoices for payment.

Objective: To report internal control weaknesses, noncompliance issues, and unallowable costs identified in the single audit to the Social Security Administration (SSA) for resolution.

Objective: To determine whether the Social Security Administration (SSA) had adequate controls to ensure it took appropriate actions for beneficiaries in a suspended payment status who may have been deceased.

I am pleased to submit the Amtrak Office of Inspector General Semiannual Report to the United States Congress for the six months ending September 30, 2021. For the past six months, Amtrak continued its recovery after its ridership plunged—losing 97 percent at one point—at the onset of the coronavirus pandemic. During this reporting period, however, ridership has significantly returned, and Amtrak appears to be at an inflection point in its 50-year history with significant plans in the offing ranging from capital projects, to acquisitions, and to proposed new routes.

The Office of Inspector General is tasked with ensuring efficiency, accountability, and integrity in the U.S. Postal Service. We also have the distinct mission of helping to maintain confidence in the mail and postal system, as well as to improve the Postal Service's bottom line. We use audits and investigations to help protect the integrity of the Postal Service. Our Semiannual Report to Congress presents a snapshot of the work we did to fulfill our mission for the six-month period ending September 30, 2021. Our dynamic report format provides readers with easy access to facts and information, as well as succinct summaries of the work by area. Links are provided to the full reports featured in this report, as well as to the appendices.

Our objective was to evaluate U.S. Postal Service’s preparedness for the fiscal year (FY) 2022 peak mailing season.Each year, increased mail volume during the Postal Service’s peak mailing season —November through January — significantly strains the Postal Service’s processing and distribution network.During the peak mailing season of FY 2021, package volume increased by about [redacted] million pieces, or 37 percent, compared to package volume during the prior peak mailing season. This increase in packages was largely due to the impact of the COVID-19 pandemic. Service performance for all mail classes declined by 13 percent during the FY 2021 peak season, including a nearly [redacted] percent decline in service performance for packages.

KPMG LLP audited the consolidated financial statements of the United States Department of Education, which comprise the consolidated balance sheets as of September 30, 2021 and 2020, and the related consolidated statements of net cost, and changes in net position, and combined statements of budgetary resources for the years then ended, and related notes to the consolidated financial statements.

KPMG LLP audited the consolidated financial statements of the Federal Student Aid, a component of the United States Department of Education, which comprise the consolidated balance sheets as of September 30, 2021 and 2020, and related consolidated statements of net cost, and changes in the net position, and combined statements of budgetary resources for the years then ended, and the related notes to the consolidated financial statements.