Federal Reports

Consolidated Balance Sheet of the Committee for Purchase from People who are Blind or Severely Disabled – U. S. Ability One Commission as of September 30, 2017 and 2016, and the related Statement of Net Cost, Changes in Net Position and Combined Statement of BudgetaryResources for the year then ended (hereinafter referred to as financial statements).

Seek link below for the full report, report summary, multimedia or any agency follow-up.

OIG conducted a healthcare inspection in response to requests from Senator Cory Booker, Senator Robert Menendez, and Congressman Frank LoBiondo to assess concerns that a patient’s insufficient access to timely mental health (MH) care may have contributed to the patient’s suicide and that general access to MH care was limited at the Atlantic County Community Based Outpatient Clinic (CBOC), Northfield, NJ. The patient at the center of this review received routine MH care at the CBOC for several years through the fall of 2014. The patient requested a MH appointment in late 2015, which was scheduled for 3 months later. In the interim, the patient experienced severe family and vocational stressors and ultimately completed suicide before the date of his scheduled MH appointment. The patient had not been seen by his MH providers for 11 months prior to his death. We identified failures to provide the patient a timely appointment and that instructions for overbooking were either not followed or not communicated. We found the staff failed to follow up on clinic cancellations, patient no-shows, and appointments for approved care in the community, leaving the patient without follow-up appointments and refills for prescribed medications. We found the clinical staff failed to acknowledge and document the lack of appointments and failed to reach out to re-engage the patient in therapy. In addition, staff failed to make appointments for authorized care in the community. In general, the facility did not provide appropriate supervision and oversight of clinic processes for walk-in patients, patient no-shows, clinic cancellations, non-VA care coordination consults, and patient termination.

This Risk Advisory is to report our concerns regarding control weaknesses within the MyPBAweb application. The suggestions contained in this Risk Advisory do not constitute formal auditrecommendations.

Statement of John Roth, Inspector General Department of Homeland Security, before the Committee on Oversight and Government Reform U.S. House of Representatives concerning, “Recommendations and Reforms from the Inspectors General"

The Office of Inspector General issued the audit of the financial statements of the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC) as of and for the years ended September 30, 2017 and 2016 finding:1. The financial statements were presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. This is the 25th consecutive unmodified financial statement audit opinion.2. PBGC maintained, in all material respects, effective internal control over financial reporting as of September 30, 2017. Specifically:(a) Serious internal control weaknesses in PBGC’s programs and operations include three significant deficiencies: (i) Controls over the Present Value of Future Benefit (PVFB) Liability, (ii) Present Value of Nonrecoverable Future Financial Assistance (PV NFFA), and (iii) Access Controls and Configuration Management).(b) 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.3. Instances of noncompliance or other matters that are required to be reported in accordance with Government Auditing Standards.(a) Potential Antideficiency Violation: PBGC maintains operating leases for all office site locations and its COOP site. However, PBGC did not record its full contractual obligation under all of the multiyear lease arrangements. We reported this as a potential violation in our FY 2016 Independent Auditor’s Report. In FY 2017, PBGC general counsel reported the violation to the Office of Management and Budget and is currently awaiting a decision.

Report on the Railroad Retirement Board's Financial Statements

We issued a disclaimer of opinion on the consolidated financial statements of the Corporation for National and Community Service (CNCS) as of September 30, 2017 and for the year then ended. Key audit findings were:• CNCS was unable to provide adequate evidential matter to support a significant number of transactions and account balances due to inadequate processes and controls to support transactions and estimates, and incomplete records to support transactions in accordance with generally accepted accounting principles. Auditors were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion (disclaimer);• Four material weaknesses (Financial Reporting; Trust Fund Unpaid Obligations; Trust Service Award Liability Model; Grants Accrual Payable and Advance) and one significant deficiency (Information Technology Security Controls) in CNCS’s internal control over financial reporting;• No instances of noncompliance with applicable provisions of laws, regulations, contracts, and grant agreements.Had the scope of the auditors’ work been sufficient to enable them to express an opinion on the CNCS consolidated financial statements, other material weaknesses or significant deficiencies, or noncompliance or other matters may have been identified and reported.

We issued a disclaimer of opinion on the audit the National Service Trust Fund financial statements (Trust financial statements) as of September 30, 2017 and for the year then ended. CNCS was unable to provide adequate evidential matter to support a significant number of transactions and account balances due to inadequate processes and controls to support transactions and estimates, and incomplete records to support transactions in accordance with generally accepted accounting principles. Auditors were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion (disclaimer).

As required by law, the Department of Transportation (DOT) Office of Inspector General reports annually on DOT's most significant challenges to meeting its mission. We considered several criteria in identifying ten DOT’s top management challenges for fiscal year 2018, including their impact on safety, documented vulnerabilities, large dollar implications, and the ability of the Department to effect change.

We contracted with the independent public accounting firm, CliftonLarsonAllen LLP (CLA), to audit VA’s financial statements as of September 30, 2017 and 2016, and for the fiscal years (FY) then ended. This audit is an annual requirement of the Chief Financial Officers Act of 1990. CLA provided an unmodified opinion on VA’s financial statements for FYs 2017 and 2016. With respect to internal control, CLA identified six material weaknesses: compensation, pension, burial, and education actuarial estimates; community care obligations, reconciliations, and accrued expenses; financial reporting; loan guarantee liability; Chief Financial Officer organizational structure; and information technology security controls. CLA further identified one significant deficiency: procurement, undelivered orders, accrued expenses, and reconciliations. CLA also reported VA’s substantial noncompliance with Federal financial management systems requirements and the United States Standard General Ledger at the transaction level under the Federal Financial Management Improvement Act (FFMIA). They noted improvements were needed in complying with the Federal Managers’ Financial Integrity Act. They cited instances of noncompliance with Title 38 United States Code §5315 pertaining to the charging of interest and administrative costs; noncompliance with Title 38 United States Code §3733 pertaining to the vendee loan program; and one violation of the Antideficiency Act, as reported to CLA by VA, which has been reported to Congress. VA is in the process of reporting five other violations. They also noted noncompliance with the Improper Payments Elimination and Recovery Act for FY 2016, as reported by the Office of Inspector General. CLA made recommendations for addressing each of the material weaknesses and significant deficiency. CLA is responsible for its audit report dated November 15, 2017 and the conclusions expressed in it.

This report should not be distributed without the accompanying financial statements on which it is based. To request a copy of the financial statements and report, file a Freedom of Information Act request with the Office of the Secretary of Defense: https://www.esd.whs.mil/FOID/foi/

The report begins on page 149 of Section 3 of the United States Department of Defense Agency Financial Report for Fiscal Year 2017, which is hosted on the website of the Under Secretary of Defense (Comptroller). https://comptroller.defense.gov/odcfo/afr2017.aspx

To request the Army financial statement, the independent auditor's report, and our transmittal, please contact Natasha Anderson, Director, General Fund Audit Readiness, at natasha.n.anderson7.civ@mail.mil.

To request the Army financial statement, the independent auditor's report, and our transmittal, please contact Natasha Anderson, Director, General Fund Audit Readiness, at natasha.n.anderson7.civ@mail.mil.

Inspector General Kathy A. Buller's statement before the U.S. House of Representatives Committee on Oversight and Government Reform concerning Recommendations and Reforms from the Inspectors General.

The DATA Act, in part, requires Federal agencies to report financial and award data in accordance with the established Government-wide financial data standards. In May 2015, the Office of Management and Budget (OMB) and Treasury published 57 data definition standards and required Federal agencies to report financial data in accordance with these standards for DATA Act reporting, beginning January 2017. Once submitted, the data will be displayed on USASpending.gov for taxpayers and policy makers.

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Harper, Rains, Knight and Company, P.A (HRK) to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal year 2017. The contract required that the audit be done in accordance with U.S. generally accepted government auditing standards(GAGAS) contained in Government Auditing Standards issued by the Comptroller General of the United States and Office of Management and Budget (OMB) Bulletin 17-03, Audit Requirements for Federal Financial Statements.HRK reported that EEOC’s fiscal year 2017 financial statements and notes were fairly presented, in all material respects, in accordance with accounting principles generally accepted in the United States of America. HRK noted no instances of material weaknesses or significant deficiencies FY 2017 Financial Statements. HRK noted no instances of noncompliance or other matters that were required to be reported under Government Auditing Standards or OMB Bulletin 17-03.

CMS usually selected DMEPOS suppliers, calculated the sampled Durable Medical Equipment Prosthetics, Orthotics, and Supplies (DMEPOS) single-payment amounts (SPAs), and monitored suppliers in accordance with its established procedures and applicable Federal requirements. We determined that CMS consistently followed its established program procedures and applicable Federal requirements for 192 of the 215 winning suppliers associated with the sampled SPAs reviewed.

KPMG LLP (KPMG), under contract with the Department of Homeland Security (DHS) Office of Inspector General, conducted an integrated audit of DHS’ fiscal year (FY) 2017 consolidated financial statements and internal control over financial reporting. KPMG issued an unmodified (clean) opinion over the Department’s financial statements, reporting that they present fairly, in all material respects, DHS’ financial position as of September 30, 2017. However, KPMG identified six significant deficiencies in internal control, two of which are considered material weaknesses. Consequently, KPMG issued an adverse opinion on DHS’ internal control over financial reporting. KPMG also reported instances in which DHS did not comply with four laws and regulations. DHS concurred with all of the recommendations.

Under a contract monitored by NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s closing package schedule as of September 30, 2017. KPMG’s audit report for the FY 2017 Consolidated Financial Statements of the U. S. Government includes an opinion on the closing package schedule, internal control over financial reporting specific to the closing package financial statements, and compliance and other matters specific to the closing package schedule.

This report transmits KPMG LLP’s report on its financial statement audit of the NCUA financial statements for the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), which comprise the balance sheets as of September 30, 2017 and December 31, 2016, and the related statements of net cost, changes in net position, and combined statements of budgetary resources for the periods then ended, and the related notes to the financial statements. On September 28, 2017, the NCUA Board voted unanimously to close the TCCUSF effective October 1, 2017, ahead of its sunset date of June 30, 2021.

Enclosed is our report on the Denali Commission’s Top Management and Performance Challenges for fiscal year (FY) 2018. According to a study by the United States Government Accountability Office (GAO), the Commission faces several challenges in fulfilling its statutory purpose of providing, among other things, infrastructure and economic development services to rural Alaskan villages. The Commission’s role, combined with continued budget reductions, poses a substantial challenge for the agency. In addition, the upcoming vacancy in the federal co-chair position presents a new challenge that has not been encountered since FY 2014.

SB & Company, LLC (SBC)—an independent public accounting firm—presented an unmodified opinion on the Denali Commission’s (the Commission’s) fiscal year (FY) 2017 financial statements.1 SBC performed the audit in accordance with U.S. generally accepted government auditing standards and Office of Management and Budget (OMB) Bulletin 17-03, Audit Requirements for Federal Financial Statements.In its audit of the Commission, SBC• identified no instances of deficiency or material weakness in internal control over financial reporting;• identified no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or OMB audit guidance; and• determined that the financial statements were fairly presented in all material respects and in conformity with U.S. generally accepted accounting principles. The Denali Commission OIG oversaw the audit performance, including the review of SBC’s report and related documentation and inquiries of its representatives. Our review disclosed no instances where SBC did not comply, in all material respects, with U.S. generally accepted government auditing standards. As differentiated from an audit in accordance with these standards, our review was not intended to enable us to express any opinion on the Commission’s financial statements. Therefore, we do not express any opinion on the Commission’s financial statements, conclusions about the effectiveness of internal control, or conclusions on compliance with laws, regulations, contracts, and grant agreements. SBC is solely responsible for the attached audit report, dated November 6, 2017, and the conclusions expressed in it.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2017 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.

This report includes EAC OIG’s independent assessment of the top management challenges facing EAC in fiscal year 2018.

Audit of NARA's financial statements for fiscal years 2017 and 2016; and the results of the Office of Inspector General (OIG) oversight of the audit and the report.

Texas Medicaid did not always stop making capitation payments after a beneficiary's death, despite its efforts to identify and recover any unallowable payments. Specifically, Texas Medicaid paid managed care organizations $1.8 million ($1 million Federal share) for capitation payments between January 1, 2013, and December 31, 2015, for deceased beneficiaries.

A Brief report on visits in connection with the J-1 Waiver Program

This Newsletter provides a bimonthly summary of selected investigative accomplishments.

The report objective was to emphasize the potential challenges that FEMA will face in providing Public Assistance funding for facilities that may have sustained damages from back-to-back disasters. Hurricanes Harvey, Irma, and Maria — some of the most catastrophic disasters in recent United States history — resulted in multiple disaster declarations and billions of dollars in damages to areas within several Gulf Coast and Southeast states, Puerto Rico, and the U.S. Virgin Islands. We noted many of the same designated disaster areas for Hurricanes Harvey and Irma overlapped areas also declared for incidents earlier in 2017 and 2016. As a result, many of the same facilities affected by an earlier incident may have also received damage under Hurricanes Harvey or Irma before repairs to the facility had been completed. To avoid obligating duplicate repair costs to an affected facility, FEMA will need to discern which incident caused damages to the facility and whether repairs necessitated by the previous incident were complete. Therefore, FEMA needs to make certain that it has effective controls in place to minimize the risk of funding duplicate or ineligible repair costs of facilities damaged by back-to-back incidents.

We determined that the Coast Guard does not have sufficient controls to adequately identify information technology (IT) acquisition programs. Although the Coast Guard approved the procurement of approximately $1.8 billion of IT investments between fiscal years 2014 and 2016, it does not know if almost 400 systems are receiving proper acquisition oversight. This occurs because the Coast Guard’s controls over IT investments lack synergy and create weaknesses that affect its ability to adequately identify, designate, and oversee non-major IT acquisition programs. As a result, the Coast Guard IT investments risk wasting money, missing milestones, and not achieving performance requirements We recommended that the Coast Guard conduct a comprehensive analysis of related acquisition and IT review processes to identify redundancies, gaps, and potential improvements; implement a verifiable process to identify non-major IT programs; evaluate and identify existing IT investments; and improve the quality of IT investment information and guidance. We made four recommendations that the Coast Guard concurred with and when implemented will improve the Coast Guard’s IT investment process.

During the financial statement audit, we assessed PBGC’s information security infrastructure for technical weaknesses in PBGC’s computer systems that may allow employees or outsiders to cause harm to, and/or impact, PBGC’s business processes and information. Current year testing found weaknesses in the areas of vulnerability management, software support, authentication, malicious traffic detection, and data protection. This report includes seven new and three repeat recommendations. This work was conducted by CliftonLarsonAllen LLP under contract with the OIG.The Office of Inspector General has determined that this report is for official use only. The report detailing the vulnerability assessment has been redacted in its entirety because it contains privileged and confidential information.

We determined that FEMA is not meeting its monitoring of Operation Stonegarden grantee responsibilities because it does not have accurate financial data to identify grantees that require additional monitoring. Also, FEMA has included just 4 of 79 Operation Stonegarden awards made during FYs 2011–14 in its financial monitoring reviews required under the Homeland Security Act of 2002, as amended. Additionally, FEMA and U.S. Customs and Border Protection (CBP) have not issued adequate guidance or conducted thorough reviews of proposed Operation Stonegarden spending. As a result, FEMA and CBP approved more than $14.6 million (or 72 percent of the amount audited) in overtime costs and more than $390,500 (or 4 percent of the amount audited) in equipment costs without addressing the risk of supplantation. Moreover, FEMA and CBP have not collected reliable program data or developed measures to demonstrate program performance resulting from the use of more than $531.5 million awarded under Operation Stonegarden since fiscal year 2008. We made seven recommendations, aimed at improving oversight of the Operation Stonegarden Program. FEMA and CBP concurred with six recommendations and non-concurred with one.

The auditors found that the fiscal years 2017 and 2016 financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. They identified two significant deficiencies in internal control over financial reporting: (1) controls over the Department’s modeling activities need Improvement, and (2) Department and Federal Student Aid management need to mitigate persistent information technology control deficiencies. They also identified one instance of reportable noncompliance with Federal law related to referring delinquent student loan debts to Treasury.

The auditors found that the fiscal years 2017 and 2016 financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. They identified two significant deficiencies in internal control over financial reporting: (1) controls over the Department’s modeling activities need Improvement, and (2) Department and Federal Student Aid management need to mitigate persistent information technology control deficiencies. They also identified one instance of reportable noncompliance with Federal law related to referring delinquent student loan debts to Treasury.

The report begins on page 86 of the Fiscal Year 2017 United States Army Annual Financial Report.

To request the Report on the Suitability of the Design of Controls in the United States Army's System Supporting the Delivery of Munitions Inventory Management Services and our transmittal, please contact Natasha Anderson, Director, General Fund Audit Readiness, at natasha.n.anderson7.civ@mail.mil.

States must make medical assistance available for Medicare deductibles, coinsurance, and copayments (cost-sharing) for certain individuals who are dually eligible to be enrolled in both Medicare and Medicaid.

This report summarizes the oversight work performed by EAC OIG during the 6-month period ended September 30, 2017.

The objectives of this independent evaluation of the FMC's information security program were to evaluate its security posture by assessing compliance with the Federal Information Security Management Act (FISMA). More specifically, the purpose of the evaluation was to identify areas for improvement in the FMC’s information security policies, procedures, standards, and guidelines.

The objectives of this engagement are to assess the FMC’s: (1) completeness, timeliness, quality, and accuracy of fiscal year 2017, second quarter financial and award data submitted for publication on USAspending.gov; and (2) implementation and use of the Government-wide financial data standards established by OMB and Treasury. The scope of this first engagement was fiscal year 2017, second quarter financial and award data the FMC submitted for publication on USAspending.gov, and any applicable procedures, certifications, documentation, and controls to achieve this process.

Seek link below for the full report, report summary, multimedia or any agency follow-up.

The objective of this audit was to determine whether internal controls were in place and effective over the reconciliation of Voyager card transactions for detecting and disputing potentially fraudulent activity at the Loch Raven Branch in Towson, MD.

OIG Independent Evaluation of the FTC's Compliance with the Provisions of the Digital Accountability and Transparency Act of 2014

Please find the attached updated Marine Corp AFR (FY17USMC.AFR12-5) and the Errata memorandum (Errata DoDIG-2018-024) to correct the project number in report DODIG-2018-024.Our report begins on page 21 of the FY17 USMC Annual Financial Report.

Financial Statement Audit