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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
Federal Reports
Report Date
Agency Reviewed / Investigated
Report Title
Type
Location
Department of Health & Human Services
CMS Did Not Adequately Address Discrepancies in the Coding Classification for Kwashiorkor
Providers incorrectly billed diagnosis code 260 for Kwashiorkor for inpatients who did not have the disease. We reviewed the medical records for 2,145 inpatient claims at 25 providers and found that all but 1 claim incorrectly included the diagnosis code for Kwashiorkor, resulting in overpayments in excess of $6 million.
Two Indian Health Service Hospitals Had System Security and Physical Controls for Prescription Drug and Opioid Dispensing but Could Still Improve Controls
We conducted this review to assess the Indian Health Service's (IHS) physical and information technology controls over prescription drugs such as opioids and to identify measures that could prevent drug diversions.
Our objective was to determine whether travel and representation expense reimbursements requested by U.S. Postal Service officers during fiscal year 2017 were properly supported and compliant with Postal Service policies and procedures.
In House Report (H. Rept. 114-497) to accompany the House of Representatives, Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, 2017 (H.R. 4974), the Committee on Appropriations requested the OIG review VA’s reimbursement of the Department of the Treasury’s Judgment Fund relating to the payment of contractors for major medical construction projects to settle claims arising from contract disputes.We found VA did not reimburse the Treasury Judgment Fund in accordance with Title 31 Code of Federal Regulations (CFR) §256.40. From October 1, 2011 through September 30, 2016, Treasury paid 23 claims related to 10 major medical facility construction projects totaling $247,748,686. Of this amount, $226,328,422 remained unpaid as of January 31, 2017, with an average delinquency of 221 days. VA has been delinquent in reimbursing the Judgment Fund because VA has not been requesting sufficient funding for the reimbursement of Contract Disputes Act of 1978 (CDA) claims. VA’s FY 2017 congressional submission requested funding of only $9 million to reimburse the Judgment Fund for the payment of claims. By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities not covered by budgetary resources. VA will require significant future funding to satisfy the outstanding claims.We recommended the Acting Assistant Secretary for Management and Acting Chief Financial Officer establish procedures to ensure VA reimburses the Treasury Judgment Fund within 45 business days of receipt of demands for reimbursement, or establish appropriate payment plans for CDA claims. The Acting Assistant Secretary for Management concurred with the intent of the recommendation and reported VA will update policy to reflect the requirements in Treasury Policy, and 31 CFR §256.40 and §256.41.
During this period, we closed 25 investigations involving fraud or corruption related to the Department’s programs and operations, securing more than $20 million in restitution, settlements, fines, recoveries, forfeitures, and savings. In addition, as a result of our investigative work, criminal actions were taken against a number of people, including school officials, vendors, and service providers who cheated both students and taxpayers. We also issued 7 audits that contained recommendations to improve program operations.
Office of Inspector General issues its Semiannual Report to Congress summarizing the office’s activities and accomplishments from April 1 – September 30, 2017.
The TVA OIG meets its legal requirement to report to Congress on its results twice a year through its Semiannual Report to Congress (SAR). This SAR edition takes a walk through the past 14 years of TVA's first Presidentially-appointed and longest-running Inspector General, Richard Moore, who became the U.S. Attorney for the Southern District of Alabama in late September 2017. This issue also includes an introduction to Acting Inspector General Jill Matthews, formerly the Deputy Inspector General, who has served in the TVA OIG since its inception in the mid-1980s.
(Reissued on 11/27/17)This audit report was reissued on November 27, 2017 to correct an error in a number reported for deobligations on page 16 from $206.9 million to $71.9 million.
U.S. Fish and Wildlife Service Wildlife and Sport Fish Restoration Program Grants Awarded to the State of Hawaii, Department of Land and Natural Resources From July 1, 2013, Through June 30, 2015
New Jersey did not follow Federal regulations and CMS guidance when it developed its payment rates for Medicaid school-based services and, as a result, claimed $300.5 million in unallowable costs. New Jersey claimed an additional $306.2 million in reimbursement using payment rates developed with unsupported costs.
I am pleased to submit our latest Semiannual Report to the United States Congress. This report highlights the activities of our office for the six months ending September 30, 2017, pursuant to the Inspector General Act of 1978, as amended. Throughout this period, our office continued to provide independent and objective oversight of Amtrak focusing on opportunities to improve its efficiency and effectiveness, and by detecting and deterring fraud, waste, and abuse. Notably, our investigative team participated in a series of complex health care fraud investigations, including two that were part of the largest-ever health care fraud enforcement action by the Department of Justice. Other investigative activities uncovered instances of criminal activity and misconduct by Amtrak employees and those doing business with Amtrak including conflicts of interest, procurement fraud, and thefts of Amtrak property.
EAC OIG, through the independent public accounting firm of CliftonLarsonAllen, conducted this audit to assess EAC's compliance with the Federal Information Security Management Act (FISMA) and related information security policies, procedures, standards, and guidelines for fiscal year 2017.
Investigative Summary: Findings of Misconduct by a DEA Special Agent-in-Charge for Engaging in an Unprofessional Personal Relationship with, and Showing Favoritism Toward, a Subordinate and Participating in a Wasteful Travel Assignment
This report contains information about recommendations from the OIG’s audits, evaluations, and reviews that the OIG had not closed as of the specified date because it had not determined that the Department of Justice had fully implemented them. The information omits recommendations that the Department of Justice determined to be classified or sensitive, and therefore unsuitable for public release.The status of each recommendation was accurate as of the specified date and is subject to change. Specifically, a recommendation identified as not closed as of the specified date may subsequently have been closed.
Our objective was to determine whether travel and miscellaneous expenses of the U.S. Postal Service Board of Governors, including external professional fees, were properly supported, reasonable, and in compliance with U.S. Postal Service and Board of Governors’ policies and procedures.
CBP took sufficient steps to resolve the January 2, 2017 outage on the same day it occurred. CBP’s initial actions to resolve this outage were unsuccessful for several hours. Ultimately, the CBP Assistant Commissioner of the Office of Information and Technology (OIT) decided to revert system queries from the TECS Modernization server environment to the TECS Legacy mainframe environment. As a result of this action, airports began to report that they could process passengers again. After 4 hours, airports began reporting that they were back online. The transition back to the legacy environment worked to resolve the January 2, 2017 system outage. Nevertheless, underlying causes that might result in future outages were not addressed and persist today in the CBP environment. we identified inadequate CBP software capacity testing, leaving the potential for the recurrence of processing errors; deficient software maintenance, resulting in high vulnerabilities that remain open; ineffective system status monitoring to ensure timely alerts in case of mission-business disruptions; and inadequate business continuity and disaster recovery processes and capabilities to minimize the impact of system failures on the traveling public. Until such deficiencies are addressed, CBP lacks a means to minimize the possibility and impact of similar system outages in the future.
A limited number of prescription drugs—generally those that are injected or infused in physicians' offices or hospital outpatient settings—are covered under Medicare Part B. With certain exceptions, Part B does not cover drugs that are self-administered by patients, including drugs administered by self-injection. However, in a small number of cases, self-administered drugs that typically would be used in situations not covered under Part B are being included by CMS when setting payment amounts.
To request the Army schedule, the independent auditor's report, and our transmittal, please contact Natasha Anderson, Director, General Fund Audit Readiness, at natasha.n.anderson7.civ@mail.mil.
This Lead IG report to the United States Congress on Operation Freedom’s Sentinel is the 10th quarterly report detailing the overseas contingency operation.
In this FY 2018 Oversight Plan, we describe the top management and performance challenges facing the DoD and detail the oversight projects we intend to initiate that relate to each of those challenges.
The following is the DoD Office of Inspector General’s (OIG) statement on the top management and performance challenges facing the DoD. The challenges outlined in this statement were identified based on a variety of factors, including DoD OIG oversight work, research, and judgment; oversight work done by other DoD components; oversight projects conducted by the GAO; and input from DoD officials. While we also reviewed DoD statements, documents, and assessments of these and other critical issues, we identified these top challenges independently.
The Office of Inspector General issued an audit report on internal control over financial reporting for the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC).This report provides a more detailed discussion of the specifics underlying the unmodified opinion on internal control over financial reporting reported in the internal control deficiencies section of the combined Independent Auditor’s Report dated November 15, 2017 (AUD-2018-4/FA-17-119-1). We reported:• Internal control deficiencies in PBGC’s programs and operations that include three significant deficiencies: (1) Controls over the Present Value of Future Benefit (PVFB) Liability, (2) Present Value of Nonrecoverable Future Financial Assistance (PV NRFFA), and (3) Access Controls and Configuration Management.• PBGC strengthened its control environment by implementing management practices to mitigate control deficiencies reported in previous years. Further, management improved its current business processes to address specific financial reporting and information technology control deficiencies. However, management should continue to focus its efforts to resolve outstanding conditions.
This audit report should not be distributed without the accompanying financial statements on which it is based. To request a copy of the financial statement including the audit opinion, file a Freedom of Information Act request with the Secretary of the Air Force at https://www.foia.af.mil/
This is the evaluation of the NEA's information technology systems security. Due to security concerns, this report is not published on the internet. You can obtain a copy of this report through a freedom of information act request at the following link: https://www.arts.gov/freedom-information-act-guide
The subject report has been reissued to correct the memorandum number. This reissued memorandum now correctly shows the report number.The number was corrected from 2018-AT-0801 to 2018-AT-1801.
La Región 2 pudo haber utilizado ineficientemente más de $217,000 en fondos públicos al no confirmar que se usó el equipo tal como estaba planeado ni que obtuvo apoyo para costos complementarios previamente solicitados.
As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Bechtel Power Corporation (Bechtel) for providing engineering, procurement, construction, and related services in support of the completion of TVA's Watts Bar Nuclear Plant Unit 2 under Contract No. 65419. Our audit included about <br> $502 million in craft labor costs billed to TVA from January 1, 2010, to June 30, 2015. Our audit objective was to determine if Bechtel billed TVA in accordance with the contract terms and conditions. In summary, we determined Bechtel overbilled TVA $6,828,935. Specifically, Bechtel overbilled:$3,826,970 in ineligible craft labor and related costs, which included (1) $3,584,707 for ineligible overtime and double time costs billed, (2) $195,850 for ineligible personnel history questionnaire incentive payments, and (3) $46,413 for ineligible and/or unsupported meal allowances.</li>$2,932,151 for ineligible and excessive craft labor costs for material handling.</li>$60,808 in overbilled craft labor due to using an incorrect rate for the craft labor Helmets to Hardhats contribution.</li>$9,006 in other unsupported and ineligible craft labor costs.</li>(Summary Only)
In March 2017, U.S. Customs and Border Protection (CBP) issued a summons to Twitter, Inc., regarding the @ALT_USCIS user account for the purpose of identifying the owner of the account under 19 U.S.C. 1509. During our review, we identified issues concerning CBP's policies and practices with respect to Section 1509 summonses which resulted in inconsistent and, in some cases, improper use of such summonses. We determined that CBP can and should do more to ensure that its personnel are properly informed and educated about the appropriate use of Section 1509 summonses. We made one recommendation to CBP to immediately update its internal operating procedures to reflect the guidance of the use of Section 1509 summonses, train relevant staff on the use of such summonses and review the use of such summonses across the agency to determine how the summonses are used and whether its use comports with the law and updated policy.
In August 2016, Amtrak (the company) received a federal loan1 to purchase 28 new high-speed trainsets for $1.6 billion and undertake 10 infrastructure improvements needed to operate and maintain these trains for $850 million. Collectively, these projects—called the Acela Express 2021 program—represent the company's largest single investment in its 46 years of service. The new equipment will replace the 20 Acela trainsets currently providing high-speed service on the Northeast Corridor, allowing the company to increase service frequency between Washington, D.C., and Boston, Massachusetts.
The auditors determined that NEA substantially complied with the DATA Act for FY 2017 Q2. Quarter 2 data was submitted timely with over 95 percent of its data submitted accurately, completely, and in accordance with government-wide data standards. However, we noted six procurement awards included in File C that were not listed in File D1. These transactions were erroneously included in File C due to timing issues and a misunderstanding about what types of transactions should be included. These six files represent 2.3% of the sample tested.We recommend that NEA enforce the validations required by the Standard Operating Procedures (SOP) to ensure all obligations in File C correspond to the award data in File D1. Moreover, NEA should update their DATA Act SOP to reflect the type of awards that should be excluded and/or included from DATA Act reporting.
We have audited the accompanying Balance Sheet of the National Endowment for the Arts (NEA)as of September 30, 2017 and 2016 and the related Statements of Net Cost, Changes in NetPosition, and Budgetary Resources for the years then ended, and the related notes to thefinancial statements.In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the National Endowment for the Arts as of September 30, 2017 and 2016, and its net cost, changes in net position, and budgetary resources for the years then ended, in accordance with accounting principles generally accepted in the United States of America.Although not considered to be material weaknesses or significant deficiencies, we noted certain other matters that were communicated to management in a separate letter. Additionally, we have provided the status of the prior year findings in Appendix I.
In our fiscal year 2017 audit, we did not identify any deficiencies in internal control over financialreporting that we consider to be material weaknesses. We noted three matters in FY 2017 thatare discussed in Appendix I and one matter from our FY 2016 audit that remains open.Additionally, we have provided the status of the prior year management letter comments inAppendix I.
Review of Alleged Use of Inappropriate Wait Lists for Group Therapy and Post Traumatic Stress Disorder Clinic Team, Eastern Colorado Health Care System
In September 2016, a complainant and letters from several Senators and Representatives alleged the Eastern Colorado Health Care System (ECHCS) used unofficial wait lists for group therapies. Also alleged was that the Colorado Springs Community Based Outpatient Clinic did not take timely action on Post Traumatic Stress Disorder Clinic Team (PCT) consults and falsified medical documentation following a veteran’s suicide. We substantiated ECHCS staff improperly used unofficial wait lists for group therapies. This occurred because management misinterpreted national guidance. As a result, management did not have access to accurate wait times and lacked assurance that staff scheduled all requests. We substantiated PCT staff did not timely process consults. In fiscal year 2016, staff did not initiate scheduling within VHA’s goal of 7 days for an estimated 38 percent of consults or provide care within VHA’s goal of 30 days for an estimated 64 percent of consults. We determined PCT staff inaccurately recorded dates for calculating wait times for an estimated 91 percent of consults that resulted in care, and improperly closed an estimated 40 consults without adequate documentation of scheduling efforts. These conditions occurred for a variety of reasons, including that PCT staff didn’t prioritize consult processing, have sufficient staffing resources, properly record dates, or always record scheduling attempts as required. As a result, veterans experienced underreported delays by an estimated 50 days for initial treatment, and management did not have assurance that staff attempted to schedule all veterans. For an estimated 210 consults, veterans were inappropriately denied the Veterans Choice Program. We did not substantiate Colorado Springs PCT staff falsified medical records. We reviewed medical documentation, interviewed the complainant, and ensured that the Office of Healthcare Inspections reviewed the records. We recommended the ECHCS Director ensure staffing resources are sufficient and staff follow policy when scheduling. The ECHCS Director concurred with all recommendations and provided corrective actions. We closed two recommendations and will monitor remaining corrective actions.
The Consolidated Reports Act of 2000 and Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, require that the Office of Inspector General provide the agency head with a summary of the top management and performance challenges facing the agency. It is our assessment that the areas of financial management, human capital, information technology, administrative services, and awardee accountability represent the top management and performance challenges for the National Endowment for the Arts (NEA). Following is a discussion of each challenge area.
EAC OIG, through the independent public accounting firm of Brown & Company CPAs and Management Consultants, PLLC, audited EAC's financial statements for the fiscal years ended September 30, 2017, and September 30, 2016.
In our opinion, the closing package financial statements present fairly, in all material respects, the financial position of the Postal Service as of September 30, 2017, and its net costs and changes in net position for the year then ended in accordance with U.S. generally accepted accounting principals.
Napa State Hospital must improve its policies, procedures, and business practices to account for and expend FEMA grant funds according to Federal regulations and FEMA guidelines. Specifically, it did not properly document and adequately account for project costs; comply with its overtime policy; and comply with Federal requirements for insurance. Additionally, there were major differences in the damage estimates FEMA and the Hospital calculated
The Office of Inspector General issued the audit of PBGC's Financial Statement Closing Package for Fiscal Year 2017 and 2016.The financial statements and accompanying notes contained in the closing package were prepared for the purpose of complying with the requirements of the U.S. Department of the Treasury's Financial Manual (TFM) Volume I, Part 2, Chapter 4700 for the purpose of providing financial information to the U.S. Department of the Treasury and U.S. Government Accountability Office to use in preparing and auditing the Financial Report of the U.S. Government, and are not intended to be a complete presentation of PBGC's financial statements.We reported that the financial statements and accompanying notes presented fairly, in all material respects, the financial position of PBGC as of September 30, 2017 and 2016, and its net costs and changes in net position for the years then ended in conformity with accounting principles generally accepted in the United States of America and the presentation pursuant to the requirements of the TFM Volume I, Part 2 Chapter 4700.
