Federal Reports

Audit Report

The United States District Attorney’s Office, District of Rhode Island (USAO), Providence, RI, found that Mr. Charles Denno, former Finance Director, The Providence Plan (ProvPlan), Providence, RI, an AmeriCorps grantee, embezzled over $500,000, in agency funds, during a check writing and forgery scheme between 2012 and 2016.

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Our review determined that the purchase card program does not pose a high risk to the Department and an audit of the program was not necessary. We found that the Department has policies and procedures that address applicable purchase card internal control requirements. We also noted that the Department has adequate monitoring procedures to reduce the risk that illegal, improper, or erroneous purchases are made within its purchase card program. Further, we found that the Department implemented our suggestions from prior assessmentsto coordinate with its Office of Human Resources regarding the required reporting of data to the Office of Management and Budget on disciplinary actions.

Vidant Medical Center (the Hospital), in Greenville, North Carolina, complied with Medicare billing requirements for diagnosis codes 261 and 262 for 11 of the 100 claims that we reviewed. However, the Hospital did not comply with Medicare billing requirements for the remaining 89 claims. For two of these claims, the medical record documentation supported a secondary diagnosis code other than 261 or 262, but the error resulted in no change to the diagnosis-related group or payment. For the remaining 87 claims, the billing errors resulted in net overpayments of $402,000. These errors occurred because the Hospital used diagnosis code 261 or 262 when it should have used codes for other forms of malnutrition or no malnutrition diagnosis code at all. On the basis of our sample results, we estimated that the Hospital received overpayments of at least $1.4 million over 2 1/2 years.

In accordance with the Office of National Drug Control Policy Circular, “Accounting of Drug Control Funding and Performance Summary,” we authenticated the Department’s accounting of FY 2016 drug control funds and performance measures for key drug control programs by expressing a conclusion about the reliability of each assertion made in the Department’s accounting report and performance report. Based on our review, nothing came to our attention that caused us to believe that management’s assertions contained in the Department’s detailedaccounting report and performance summary report were not fairly stated in all material respects

Annual report to OMB on the Government charge card.

The Office of Inspector General examined NASA's management of its next robotic rover mission to the Martian surface, the $2.4 billion Mars 2020 Project.

We hired an Independent Public Accountant (IPA) to analyze the three multiemployer plan receiving financial assistance from PBGC. The IPA completed the following procedures:1. Verified the accuracy of the original benefit computations performed by the plan’s actuary,2. Verified the benefit payments are being made to eligible participants, and3. Verified the benefits were properly cutback to the PBGC guaranteed level in accordance with Section 4022A of the Employee Retirement Income Security Act of 1974The IPA actuaries evaluated forty-eight (48) different test lives across the three plans, and they noted a number of exceptions. Specifically, they noted 15 of 48 exceptions in AUP No. 1, 25 of 48 exceptions in AUP No. 2, and 22 of 48 exceptions in AUP No. 3. These exceptions do not necessarily denote overpayments requiring recoupment, but they do warrant further examination by PBGC.The OIG recommended corrective action to determine which exceptions require benefit adjustments from plan sponsors, and seek recoupment if necessary.Personal identifiable information in the report has been redacted.

SIGTARP's Quarterly Report to Congress

We found that the Department was complying with appropriate guidance and requirements and appeared to be on track for meeting its milestones. We did not find any evidence to indicate that the Department was not on track for implementing DATA Act reporting requirements by the May 2017 deadline. We did, however, note that the Department could improve its project management process. Specifically, we found that the Department lacked a designated project manager for its DATA Act implementation efforts, as well as applicable project documentation regarding work performed. These weaknesses may increase the risk of erroneous decision-making and future implementation delays.

The New York State Department of Health claimed Federal Medicaid reimbursement for dental services billed by a Westchester County dentist that did not always comply with certain Federal and State requirements. Of the 100 randomly selected beneficiaries that we reviewed, claims associated with 78 beneficiaries complied with Federal and State requirements. However, claims for the remaining 22 beneficiaries did not comply with Federal and State requirements. For 14 of these 22 beneficiaries, the dentist who performed the services was not enrolled in the Medicaid program because their Medicaid enrollment status was not verified prior to the services being provided. For services provided to eight other beneficiaries, the Westchester County dentist did not provide documentation to support services billed. On the basis of our sample results, we estimated that the State agency claimed at least $84,000 in Federal reimbursement for unallowable dental services billed by the Westchester County dentist.

The New York State Department of Health claimed Federal Medicaid reimbursement for dental services billed by a Queens dentist that did not always comply with certain Federal and State requirements. Of the 100 randomly selected beneficiaries that we reviewed, claims associated with 67 beneficiaries complied with Federal and State requirements. However, claims for the remaining 33 beneficiaries were unallowable because the dentist who performed the services was not enrolled in the Medicaid program. On the basis of our sample results, we estimated that the State agency claimed at least $82,000 in Federal reimbursement for unallowable dental services billed by the Queens dentist.

Not all of the Commonwealth of Puerto Rico's Department of the Family's (State agency) controls for provider and client eligibility determinations were effective. Specifically, all of the provider eligibility controls we tested for provider background checks, required provider forms, and provider rate agreements were not effective. Of the client eligibility controls we tested, we determined that the State agency's controls for family income and need-for-service eligibility were not effective. Although we found that the State agency's controls for verifying clients' citizenship were effective, we identified that the State agency was not implementing Federal law regarding client eligibility. Specifically, the State agency was not considering qualified aliens eligible for childcare services. Finally, the State agency's controls for client age and claim processing that we tested were effective.

The Centers for Disease Control and Prevention awarded all 31 selected Ebola-related international grants totaling $122 million in accordance with applicable laws, regulations, and departmental guidance.

John Sevier Fossil Plant (JSF) is the first in a series of planned plant retirements to enter the demolition phase of the Tennessee Valley Authority's (TVA) Decommissioning, Deactivation, Decontamination, and Demolition (D4) process. In the demolition phase, the plant, associated equipment, facilities, and structures are removed. Demolition also includes creating conditions for proper site drainage and establishing vegetation. TVA contracted with Brandenburg Industrial Service Company (Brandenburg) to perform the demolition at JSF. We initiated this evaluation due to inherent safety risks associated with the demolition phase of deconstruction and TVA's lack of recent experience in fossil plant demolition. Our objective was to determine whether demolition activities at JSF were adhering to safety principles found in the TVA D4 Program Guide and were in compliance with selected safety criteria established in Brandenburg's Health and Safety Plan (HASP) for JSF. Our evaluation found TVA and Brandenburg met most of the safety requirements included in TVA's D4 Program Guide and Brandenburg's HASP for JSF and selected for review by the OIG. However, we determined Brandenburg was not in compliance with hazard identification requirements outlined in its HASP and the D4 Overview training records were not maintained at JSF by Brandenburg for 6 of the 25 sampled Brandenburg employees. We also noted potential safety hazards that were corrected subsequent to our site visit.

The report is Classified. To file a Freedom of Information Act request, please submit a request to FOIA Online. https://foiaonline.regulations.gov/foia/action/public/request/publicPre…

This report contains classified information that is exempt from disclosure under the Freedom of Information Act. To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.