Federal Reports

The U.S. Postal Service has an opportunity to generate additional revenue by offering micro-warehousing and other logistics support services. Its extensive processing, retail, and transportation network – combined with its significant shipping capabilities – could likely meet customers’ demands for one-stop micro-warehousing and logistics solutions to support e-commerce. Foreign suppliers selling goods in the U.S. via e-commerce could be particularly well served by the Postal Service’s entry into this market.

At the request of the Chief of Police. the Office of Inspector General (OIG) conducted a performance audit of the United States Capitol Police (USCP or Department) controls over ammunition.  The objectives of our audit were to determine: (1) effectiveness of USCP's internal controls over ammunition and ensure accountability of those sensitive items; (2) whether USCP complied with applicable policies and procedures, laws, and regulations; and (3) whether USCP inventory records reconciled to actual ammunition on hand and official inventory records. Our scope included controls, processes, and operations in place from October 1, 2011, through September 30, 2013.

In response to Congressional requests and media reports about whether the terms and conditions of the debit cards that servicers use to deliver Title IV credit balances to students were in the best interest of students, we conducted a review that determined that FSA should take action to better ensure that student interests are served. Among our findings, we noted that (1) Schools that outsourced credit balance delivery gave servicers significant control over the Title IV funds delivery process and relied on them to comply with Title IV regulations but did not routinely monitor servicers’ Title IV compliance or their handling of student complaints; (2) Schools had financial incentives in their contracts with servicers that created the potential for conflicts of interest that could influence school officials’ decisions and actions at the expense of student interests; and (3) Schools provided, or servicers collected, student information that was not needed to deliver credit balances.

The U.S. Postal Service earns revenue when domestic customers send mail to foreign destinations and when foreign postal operators deliver mail from their countries to the U.S. Each postal operator that receives mail has the right to collect payment from the originating post to compensate for costs incurred to deliver that mail; these charges are called terminal dues. To offset the impact of low terminal dues rates, the Postal Service can negotiate separate (bilateral) agreements with countries to exchange international mail at higher rates. Currently, the Postal Service has many different types of bilateral agreements with multiple countries, ranging from comprehensive (multiple mail products) to product-specific. Even with these international bilateral agreements, it is difficult for the Postal Service to cover the costs of delivering inbound market-dominant international mail subject to terminal dues.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

We conducted an inspection to determine the adequacy of FSA’s risk assessment and contingency planning for the closure of schools or locations by a for-profit entity and its procedures in the event of a closure. We determined that FSA had performed risk assessments and developed strategies to mitigate identified risks associated with for-profit schools; however, it did not fully incorporate into its work processes and implement some of its risk mitigation strategy action items. We also found that although FSA had contingency plans in place in the event of a school closure, the information posted on its Web site was not as comprehensive as it could be and was located in multiple places, making relevant information difficult to find. Additionally, we noted that FSA had developed procedures that described the steps it would take when it was notified or otherwise became aware that a school or school location had closed or would close; however, the procedures did not provide clear guidance on how student outreach should be performed or provide a process that should be followed in the event of a precipitous school closure.

The U.S. Postal Service had annual operating revenue plans of $63.8 billion and $64.74 billion during FYs 2012 and 2013, respectively. Actual operating revenues were $65.21 billion and $65.89 billion in FYs 2012 and 2013, respectively. This white paper discusses how the Postal Service performed on its revenue plans at the national, area, and district levels.

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 2013 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 detailed accounting report and performance summary report are not fairly stated in all material respects.

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 2013 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 detailed accounting report and performance summary report are not fairly stated in all material respects.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

Our audit found that additional safeguards and improvements were needed for the Department’s adaptation of Federal student aid (Title IV) requirements and guidance to mitigate the unique risks inherent in distance education and for the Department’s, accrediting agencies’, and State agencies’ oversight of schools to provide assurance of their compliance with Title IV requirements unique to distance education. As part of this audit, we interviewed officials and reviewed records from OPE and FSA, nine accrediting agencies, and two schools from each of four categories: 4-year public schools, 2-year public schools, private nonprofit schools, and proprietary schools. For the time period of our review, the eight schools reviewed disbursed nearly $222 million in Federal student aid to more than 42,000 distance education students who did not earn any credits during a payment period. Although we found that the Department issued regulations and provided guidance to accrediting agencies and schools to address distance education issues associated with verification of student identity and attendance to decrease the likelihood of fraud, the regulations and guidance did not sufficiently mitigate the risks of fraud, abuse, and noncompliance. We also found that the collective oversight provided by the Department, accrediting agencies, and States did not ensure compliance with requirements unique to distance education. Further, although both OPE and FSA officials acknowledged that high-risk areas existed in the distance education environment, the Department was not collecting data or other information that could help it identify additional risks. The Department agreed with our recommendations to identify and correct the issues found during our reviews of schools and other issues unique to the distance education environment.

We commissioned a survey to gain insight into what Internet-connected Americans want from the Postal Service, as well as what future role it could play in their lives. What Americans need from the Postal Service is much less than what they want, but they are willing to make trade-offs to maintain a certain level of service. The white paper highlights the differences and similarities in preferences for postal offerings throughout a sample population of Americans.

The enclosed report presents the results of the audit of the Commission’s financial statements for the fiscal year ended September 30, 2013

Unlike most national employers, the Postal Service does not adjust wages to reflect local pay rates or cost-of-living differences. The Postal Service should consider locality pay as a means of instituting a more fair system that could save expenses in some areas and enhance the quality and stability of its workforce in others.

The Non-Nuclear Employee Concerns Program (ECP) is important to the Tennessee Valley Authority's current culture and environment. The OIG conducted a review to determine whether the program was addressing employee concerns in a timely and effective manner.We found improvements in the Non-Nuclear ECP have been made in addressing concerns in a timely manner, but the effectiveness of the program could be improved. We found (1) instances where the Non-Nuclear ECP was not adequately addressing employee concerns, and (2) some employees felt concerns were not being adequately addressed and reported experiencing pressure and repercussions from management and team members.We recommended TVA management (1) identify an individual to perform audits and assessments of closed concerns, (2) coach individuals addressing concerns on what constitutes a sufficient investigation, and (3) develop an instrument to send to complainants to indicate instances of retaliation and investigate as necessary. TVA management agreed with our findings and recommendations. Summary Only

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

Charge Card

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

SIGTARP's Quarterly Report to Congress

EAC OIG, through the independent public accounting firm of McBride, Lock & Associates, LLC, audited $45.8 million in funds received by the Colorado Secretary of State under the Help America Vote Act. The objectives of the audit were to determine whether the Secretary of State (1) used payments authorized by Sections 101, 102, and 251 of the grant in accordance with grant and applicable requirements; (2) accurately and properly accounted for property purchased with Grant payments and for program income; and (3) met HAVA requirements for Section 251 funds for creation of an election fund, providing required matching contributions, and meeting the requirements for maintenance of a base level of state outlays, commonly referred to as Maintenance of Expenditures (MOE).