Federal Reports

In this semiannual period, our audit, evaluation, and investigative activities identified more than $33.4 million in questioned costs, funds put to better use, recoveries, and waste, as well as opportunities for TVA to improve its programs and operations.

We substantiated allegations that an oil and gas company submitted inaccurate royalty reports and claimed improper transportation allowances.

The Whitley City (leased), Monticello (owned), and West Somerset (owned) post offices are in the Kentucky – West Virginia District. The Postal Service is required to maintain a safe and healthy environment for both employees and customers in accordance with its internal policies and procedures and Occupational Safety and Health Administration (OSHA) safety laws. Our objective was to determine if Postal Service management is adhering to building maintenance, safety and security standards, and employee working condition requirements at post offices.We found that building maintenance and safety at the Whitley City, Monticello, and West Somerset post offices did not meet prescribed standards. We identified 42 deficiencies (16 were corrected during or after our site visits) at the three facilities that ranged from minor to more serious violations. We did not identify any security issues at the three facilities.

We found that a senior political employee’s communications with a former employer did not comply with paragraph 6 of the Federal ethics pledge.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program (CHIP) report provides a focused evaluation of Veterans Integrated Service Network (VISN) 1 and 8 facilities’ COVID-19 pandemic readiness and response. This evaluation focused on emergency preparedness; supplies, equipment, and infrastructure; staffing; access to care; community living center patient care and operations; facility staff feedback; and VA and VISN 1 and 8 vaccination efforts.The OIG has aggregated findings on COVID-19 preparedness and responsiveness from routine inspections to ensure prompt dissemination of information given the quickly changing landscape as infection rates and demands on facilities continually shift. Findings of inspected medical facilities are grouped by VISN, which are regional offices that provide oversight of medical centers in their area.This report, the third in a series, describes findings on COVID-19 practices from healthcare inspections performed at facilities within VISNs 1 and 8 during the second quarter of fiscal year 2021 (January 1 through March 31, 2021). It also provides a more recent snapshot of the pandemic’s demands on these facilities’ operations based on data compiled as of July 2021. Interviews and survey results provide additional context on lessons learned and perceptions of both preparedness and response. This report also provides data that illustrates the tremendous COVID-19-related demands on VA healthcare services. It describes leader and staff experiences, assessments, shared sentiments, and best practices to help improve operations and clinical care during public health crises.At the time of the inspections, the Veterans Health Administration and VISNs were in the midst of VA’s third pandemic peak, which was longer and involved more patients than the previous peaks, and had valuable information to share about their experiences to date.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report provides a focused evaluation of the leadership performance and oversight by Veterans Integrated Service Network (VISN) 1: VA New England Healthcare System in Bedford, Massachusetts, covering leadership and organizational risks and key processes associated with promoting quality care. This inspection also focused on COVID-19: Pandemic Readiness and Response; Quality, Safety, and Value; Medical Staff Credentialing; Environment of Care; Mental Health: Suicide Prevention; Care Coordination: Inter-facility Transfers; and Women’s Health: Comprehensive Care.Most of the VISN’s executive leadership team had worked together since 2018; however, the Chief Medical Officer had served in an acting capacity since October 2020. Employee satisfaction survey scores indicated that leaders were engaged and promoted a culture of safety where employees felt safe bringing forward issues and concerns. Patient experience survey scores were higher than VHA averages. The OIG’s review of access metrics and clinical vacancies identified potential organizational risks at select facilities, with wait times over 20 days and clinical vacancies in certain specialties.The OIG issued five recommendations for improvement in three areas:(1) Medical Staff Credentialing• Physician credentials file review and appointment approval(2) Mental Health• Designated mental health professional to serve on state suicideprevention council or workgroup(3) Women’s Health• Quarterly program updates to VISN leaders• Staff education gap assessments and development of educational material• VISN-level support staff availability

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In February 2021, the Office of the Chief Information Officer (OCIO) identified funding risks with the development contract under which HUD contracted for Federal Housing Administration (FHA) Catalyst’s development. In response, HUD officials took steps to slow FHA Catalyst spending on the contract while awaiting approval for additional contract funds. Despite efforts to slow project spending, it was not enough to prevent funding shortfalls before the contract’s base year end. Poor contract oversight enabled OCIO to exhaust funds before the end of the base year, which stopped work on FHA Catalyst. Additionally, several issues also hindered FHA Catalyst development activities. As of August 2021, HUD had resumed FHA Catalyst development work at limited capacity. As of October 2021, HUD estimated that it would complete FHA Catalyst development in March 2025.

The attached report presents the results of an integrated audit of the Department of Homeland Security’s (DHS’) consolidated financial statements for fiscal years 2021 and 2020 and internal control over financial reporting as of September 30, 2021. This audit is required by the Chief Financial Officers Act of 1990, as amended by the Department of Homeland Security Financial Accountability Act (October 16, 2004).

Compliance-monitoring activities are important to ensure that facilities comply with applicable Clean Air Act requirements and air regulations to protect human health and the environment and deter violations that result in excess emissions.

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) ability to effectively complete information technology (IT) acquisitions.  HUD’s IT systems and its modernization plans depend heavily on contractors, yet HUD has historically faced significant challenges with implementing effective acquisition processes. Therefore, HUD’s acquisition capacity represents a key potential risk within HUD’s IT environment. We found that a lack of staffing capacity, implementation of effective coordination and communication practices, and effective oversight of management controls over acquisition processing. HUD officials acknowledged that IT acquisition process improvements are needed and have taken steps toward addressing deficiencies.This evaluation report contains five recommendations to assist in continued successes for future acquisition efforts.

The Semiannual Report to Congress summarizes the results of VA OIG oversight, provides statistical information, and lists all reports issued from April 1 to September 30, 2021. During this reporting period, VA OIG audits, evaluations, investigations, inspections, and other reviews identified more than $2.9 billion in monetary impact for a return on investment of $29 for every dollar spent on oversight. During this reporting period, the VA OIG issued 214 reports and publications on VA programs and operations, made 849 recommendations, and conducted investigations that led to 113 arrests.

In this semiannual report, we discuss both the major accomplishments and activities of OIG from April 1, 2021 through September 30, 2021, as well as its goals and future plans.

We conducted a limited review of the U.S. Department of Housing and Urban Development’s (HUD) Coronavirus Aid, Relief, and Economic Security (CARES) Act supplemental public housing operating funds (supplemental funds). Our objective was to assess public housing agencies’ (PHA) experiences and challenges and HUD’s efforts in providing guidance related to the administration of the supplemental operating funds under the CARES Act.We found that the PHA survey respondents generally cited positive experiences and no major challenges related to the administration of supplemental funds under the CARES Act. Although there are no recommendations in this memorandum, we provided two key considerations for HUD. HUD should consider continuing toKeep the lines of communication open with PHAs to (1) clarify guidance when warranted and (2) ensure that the PHAs know how to properly use the reporting portal, once it is functional, to meet the quarterly reporting requirements.Monitor the PHAs that are slow in drawing down supplemental funds and offer assistance as applicable to ensure that funds are spent by the deadline of December 31, 2021.

The Chief Financial Officers Act of 1990 (Public Law 101-576), as amended, requires the Office of Inspector General to audit the financial statements of the Government National Mortgage Association (Ginnie Mae) annually. Attached are the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) results of the audit of Ginnie Mae fiscal years 2021 and 2020 financial statements and reports on internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements.We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of Ginnie Mae as of and for the fiscal years ended September 30, 2021, and 2020, to provide reports on Ginnie Mae’s internal control over financial reporting and compliance with laws, regulations, contracts, and grant agreements in its financial reporting. Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of Ginnie Mae, CLA reported:Ginnie Mae’s financial statements as of and for the fiscal years ended September 30,2021, and 2020, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles;no material weaknesses for fiscal year 2021 in internal control over financial reporting, based on limited procedures performed; andno reportable noncompliance issues for fiscal year 2021 with provisions of applicable laws, regulations, contracts, and grant agreements tested and no other matters.In connection with the contract, we reviewed CLA’s reports and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on Ginnie Mae’s financial statements or conclusions about 1) the effectiveness of Ginnie Mae’s internal control over financial reporting and 2) Ginnie Mae’s compliance with laws, regulations, contracts, and grant agreements. CLA is responsible for the attached Independent Auditors’ Report, dated November 15, 2021, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.We will provide a replacement report for posting, once Ginnie Mae publishes its annual report, which will include the audited financial statements. The replacement posting will include the IPA’s report as well as the audited financial statements.

The OIG conducted a review of select aspects of operations and performance at two Veterans Health Administration (VHA) facilities in the same Veterans Integrated Service Network (VISN) that historically ranged from lower performing (Facility A) to higher performing (Facility B).Facilities are usually identified, but the OIG is not disclosing facility names in this report. Given that the focus was on comparing performance characteristics, and not a comprehensive inspection, it was determined not to identify each one.In general, the OIG found that both facilities approached and addressed many patient safety and quality-of-care issues similarly. However, after an in-depth review of data, policies, governance structures, and leadership interviews, the OIG found several factors directly shaped each facility’s ability to accomplish progressively higher performance. The two broad factors were (1) leadership and (2) integration of an effective quality, safety and value (QSV) program and high-reliability organization (HRO) principles. Facility culture and human resource-related considerations affected operations and performance.Most facilities can and should identify, evaluate, and address opportunities to improve patient care and safety within their organizations. VHA facilities that have experienced high leadership turnover and challenges recruiting permanent, high-caliber managers and leaders may benefit from more proactive VISN and VHA support. A careful examination of leadership, strength of the QSV program, and the integration of HRO principles may reveal underlying themes and additional opportunities for improvement.In that this was not a traditional compliance or quality review, the OIG did not make formal recommendations. Rather, the OIG identified opportunities for VISNs to provide meaningful and timely assistance to both struggling and better performing facilities and provided eight suggestions for VISNs to consider. Those suggestions relate to mentors; external evaluation and development teams, leadership assignment, and development and succession planning; quality- and safety-related policy updates; staffing methodology; and meeting minute documentation.

To view our interactive report, click here: https://oig.justice.gov/reports/top-management-and-performance-challeng…

Audit report on the data accuracy of the NLRB's NxGen Case Management System

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2021 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2021. TVA management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found: • The FY 2021 WP goals for the Enterprise measures were properly approved. There was one change form that affected one measure.• The FY 2021 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the Enterprise measures agreed with the underlying support, without exception.• The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception.• The FY 2021 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 5, 2021, was mathematically accurate and agreed with the Office of the Inspector General’s recalculation.

The OIG contracted with the independent certified public accounting firm, Allmond & Company, LLC (Allmond), to audit the Commission’s financial statements and related footnotes. Allmond found the financial statements present fairly, in all material respects, the financial position of the Commission as of September 30, 2021 and 2020, and its net costs, changes in net position, and budgetary resources for the fiscal year then ended in accordance with generally accepted accounting principles. Allmond also found one material weakness and four significant deficiencies in internal control over financial reporting, and one reportable noncompliance with applicable provisions of laws, regulations, and contracts tested. The report offers 23 recommendations to help the Commission improve its controls over financial management operations and reporting.

This audit report shows Kearney found that thefinancial statements were fairly presented in all material respects, in conformity with U.S.generally accepted accounting principles. Kearney identified two significant deficiencies in internal control over financial reporting

To view the report, please click on the link below

This report details KPMG’s findings of its audit of financial statements from the U.S. Department of the Interior for fiscal years 2021 and 2020.

The Chief Financial Officers Act of 1990, as amended, requires an annual independent audit and report on the U.S. Small Business Administration’s (SBA’s) consolidated financial statements.The Office of Inspector General contracted with the independent certified public accounting firm KPMG LLP to conduct an audit of SBA’s consolidated balance sheets as of September 30, 2021, and for 2020 and the related notes to these statements. KPMG was also engaged to audit the consolidated statements of net cost and changes in net position and combined statement of budgetary resources for the year ended September 30, 2020, as well as the related notes to those statements. You may review the report by CLICKING HEREKPMG auditors found significant matters for which they were unable to obtain sufficient, appropriate audit evidence to provide a basis for an audit opinion on SBA’s consolidated financial statements for the year ended September 30, 2021. Accordingly, KPMG issued a disclaimer of opinion on the consolidated financial statements as of and for the year ended September 30, 2021, and for 2020.Due to inadequate processes and controls, SBA was unable to provide adequate evidential matter in support of a significant number of transactions and account balances related to the expanded Paycheck Protection and Economic Injury Disaster Loan programs and the newly implemented Restaurant Revitalization and Shuttered Venues Operators Grant programs.For the year ended September 30, 2021, KPMG identified six material weaknesses and two significant deficiencies in internal controls over financial reporting. We provided a draft of KPMG’s audit report to SBA’s Acting Chief Financial Officer, who did not concur with the severity of five material weaknesses.

OIG audited USDA’s consolidated financial statements for fiscal years 2021 and 2020.

OIG reviewed the Commodity Credit Corporation’s (CCC) financial statements for the fiscal years ending September 30, 2021 and 2020.

OIG reviewed the Natural Resources Conservation Service’s (NRCS) financial statements for the fiscal years ending September 30, 2021 and 2020.

Since FY 2017, independent auditors have declined to issue an opinion on AmeriCorps’ financial statements. This year, they again issued a disclaimer of opinion, reporting nine material weaknesses and one significant deficiency. Eight of the material weaknesses are recurring, three of them since FY 2017 and five since FY 2018. AmeriCorps acknowledged at the beginning of the audit that it had not made progress in addressing five of the material weaknesses and requested that they be excluded from the scope of the audit. The auditors have therefore continued to report the following findings and the associated recommendations related to: data underlying the Trust Obligations and Liability Model; Undelivered Orders for Procurement; Undelivered Orders for Grants; Recoveries of Prior Year Obligations; and Other Liabilities, as well as noncompliance with the Single Audit Act.Based on their work in FY 2021, the auditors found modified-repeat material weaknesses in AmeriCorps’ Internal Controls Program; Financial System and Reporting; and Grant Accrual Payable and Advances, plus a new material weakness related to AmeriCorps’ Migration to a Shared Services Provider.AmeriCorps has closed ten of the 75 recommendations outstanding since FY 2019. The remaining 65 recommendations continue to be valid, eight of them in modified form. The auditors also made eight new recommendations, for a total of 73.The auditors noted that AmeriCorps lacks a strategic plan to bring the agency to an auditable condition and had not created corrective action plans for most of the material weaknesses and the significant deficiency. In recognition of the pervasive weaknesses, AmeriCorps included in its Annual Management Report (AMR) a Statement of No Assurance, acknowledging that the agency could not provide reasonable assurance as to the effectiveness of internal control over financial reporting, operations, including programmatic operations, and compliance with laws. FY 2021 AMR, p. 22. This is the second year that AmeriCorps has issued a No Assurance statement. AmeriCorps has been unable to produce auditable financial statements for the last five years. Given the state of internal control at AmeriCorps, the unaudited financial statements published by the agency likely contain material errors and should not be relied upon. AmeriCorps’ response to the audit report acknowledged the findings and recommendations but did not agree or disagree with them. In promising improvements, the Chief Financial Officer stated: AmeriCorps is committed to implementing strategic reforms to the agency’s audit management and resolution efforts, focusing heavily on agency audit readiness, improving operational and programmatic internal controls, and increasing senior leadership engagement in corrective action planning and oversight. Audit Report, p, 27.The independent accounting firm of CliftonLarsonAllen LLP, performed the audit of the AmeriCorps FY 2021 consolidated financial statements, under contract with AmeriCorps-OIG.

The National Service Trust holds the funds set aside to pay the education awards of national service members who successfully complete their service terms. Responsibility for the education awards that have been earned or will be earned in the near future is the largest liability on AmeriCorps’ financial statements at $356 million. Since FY 2017, independent auditors have declined to issue an opinion on the financial statements of AmeriCorps and the National Service Trust. This year, they again issued a disclaimer of opinion, reporting four material weaknesses and one significant deficiency. Three of the material weaknesses date back to FY 2017.AmeriCorps acknowledged at the beginning of the audit that it had not made progress in validating the data underlying the Trust Obligation and Liability Model (TOLM), which AmeriCorps uses to estimate its future education award payments. Accordingly, the TOLM remains listed as a material weakness. The auditors also found modified-repeat material weaknesses in AmeriCorps’ Internal Controls Program and its Financial System and Reporting, plus a new material weakness related to AmeriCorps’ Migration to a Shared Services Provider.AmeriCorps has closed seven of the 37 prior year recommendations outstanding since FY 2019. The remaining 30 recommendations remain unimplemented, six of them in modified form. The auditors also made seven new recommendations, for a total of 37.The auditors noted that AmeriCorps lacks a strategic plan to bring the agency to an auditable condition and had not created corrective action plans for most of the material weaknesses and the significant deficiency. AmeriCorps acknowledged the findings and recommendations but did not agree or disagree with them. In promising improvements, the Chief Financial Officer stated: AmeriCorps is committed to implementing strategic reforms to the agency’s audit management and resolution efforts, focusing heavily on agency audit readiness, improving operational and programmatic internal controls, and increasing senior leadership engagement in corrective action planning and oversight. Audit Report, p, 27.The independent accounting firm of CliftonLarsonAllen LLP, performed the audit of the AmeriCorps FY 2021 National Service Trust Fund financial statements, under contract with AmeriCorps-OIG.

We have audited the Reclassified Financial Statements of the U.S. Postal Service, which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report – Reclassified Balance Sheet as of September 30, 2021, and the related GTAS Reconciliation Reports – Reclassified Statement of Net Cost and Reclassified Statement of Changes in Net Position, for the year then ended (hereinafter referred to as reclassified financial statements) and accompanying Note 45 (Project Number 21-203).

KPMG LLP’s (KPMG) Independent Auditors’ Report on its audit of the National Credit Union Administration’s (NCUA’s) schedule of other assets and contributed capital as of September 30, 2021.

What We Looked AtWe contracted with the independent public accounting firm Allmond & Company, LLC (Allmond), to audit the Surface Transportation Board’s (STB) financial statements as of and for the fiscal year ended September 30, 2021; provide an opinion on those financial statements; and report on internal control over financial reporting, compliance with laws, and other matters. The contract required the audit to be performed in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review (QCR) of Allmond’s report dated November 11, 2021, and related documentation, and inquired of its representatives. What We FoundOur quality control review disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsAllmond made no recommendations.

Fiscal Year 2021 Financial Statement Opinion

Report on Internal Control Fiscal Year 2021

Report on Compliance with Laws and Regulations Fiscal Year 2021

In this audit, we assessed the schedule and projected costs for the first several missions of the Artemis program and NASA's ambitious effort to return humans to the Moon and establish a long-term presence.

This annual report identifies the top management and performance challenges facing NASA in 2021.

Allmond & Company found the CSB’s financial statements to be fairly presented and free of material misstatements.

We are pleased to provide the Top Management Challenges Report. In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General reports on the most serious management and performance challenges facing the U.S. AbilityOne Commission. In this year’s Top Management and Performance Challenges Report, we include the most pressing challenges and added two watch list items. Challenges: 1) enhancement of program compliance, 2) breakdowns in internal control over financial management and reporting (formerly named, in 2020 Report, Addressing Anti-deficiency Violations and Strengthening Financial Management), 3) growing list of unimplemented OIG audit recommendations, 4) successful implementation of the Section 898 Panel recommendations, 5) allocation of roles, resources responsibilities, and authorities and responsibilities among the Commission senior staff, 6) higher level of transparency and communication needed to enhance program confidence, 7) establishing an enterprise-wide risk management framework, 8) implementation of cooperative agreements given Central Nonprofit Agencies (CNA) growth, and 9) erosion of statutory program authority; Watch List Items: 1) Accessibility, and 2) AbilityOne Program growth and program risk.

The Office of the Inspector General is required by the Federal Information Security Modernization Act of 2014 (FISMA) to conduct an annual independent evaluation that determines the effectiveness of the information security program (ISP) and practices of its respective agency. Our objective was to evaluate the Tennessee Valley Authority’s ISP and practices as defined by the FY 2021 IG FISMA Reporting Metrics Version 1.1. Our audit scope was limited to answering the FY 2021 IG FISMA metrics developed as a collaborative effort by the Office of Management and Budget, Department of Homeland Security, and Council of Inspector Generals on Integrity and Efficiency in consultation with the Federal Chief Information Officer Council. The FY 2021 IG FISMA metrics recommend a majority of the functions be at a maturity level 4 (managed and measurable) or higher to be considered effective. Based on our analysis of the metrics and associated maturity levels defined with the IG FISMA metrics, we found TVA’s ISP was operating in an effective manner.