Federal Reports

The OIG performed four agreed-upon procedures which were requested solely to assist management in determining the validity of the TVA Winning Performance payout awards for the fiscal year (FY) ended September 30, 2013. In summary, we found:The FY 2013 Winning Performance goals were properly approved. One change form for FY 2013 was approved on March 3, 2013; two change forms were approved on June 7, 2013; one change form was approved September 16, 2013: and one was signed but not dated. The change forms affected five scorecards and resulted in no change to the payout.The comparison of actual year to date figures for September 2013 for all the measures on the strategic business unit and business unit scorecards noted one exception related to the Nuclear Power Group's Equipment Reliability measure and did not result in a change to the payout. The measures on the strategic business unit and business unit scorecards agreed with the respective supporting documentation provided.A comparison of the actual year to date figures for the incentivized TVA Corporate balanced scorecard measures to the definition sheets noted one exception related to the Total Corporate Spend measure and did not result in a change to the payout. The incentivized TVA Corporate balanced scorecard measures agreed with the underlying support. Subsequent changes to the Total Financing Obligations over Productive Assets actual year to date measure were received on November 4, and 7, 2013, and were compared to the supporting documentation. We determined there would be no impact to the payout percentage.The FY 2013 Winning Performance payout percentages were provided by the Metrics and Performance Analysis organization on October 21, 2013. Subsequent changes to the actual year to date figure for the Total Financing Obligations over Productive Assets measure were received November 4, and 7, 2013. These changes did not impact any payout percentages. Summary Only

EAC OIG, through the independent public accounting firm of McBride, Lock & Associates, LLC, audited $18.0 million in funds received by the North Dakota 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 f 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).

EAC OIG, through an agreement with the Department of the Interior Office of Inspector General, audited the Election System of the Virgin Islands' compliance with the Help America Vote Act of 2002. The objective of the audit was to determine whether the Election System expended HAVA payments in accordance with the act and related administrative requirements, and whether it complied with the HAVA requirements for replacing punch card or lever voting machines, establishing an election fund, and maintaining Virgin Islands expenditures for elections at a level not less than what was expended in fiscal year 2000.

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This report summarizes work we initiated and completed during this semiannual period on a number of critical departmental activities. Over the past 6 months, our office issued 11 audits, inspections, and responses to Congressional requests addressing programs overseen by the Economic Development Administration, National Oceanic and Atmospheric Administration, U.S. Patent and Trademark Office, and the Department itself.

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Semiannual Report to the Congress April 1, 2013 - September 30, 2013

This report summarizes the oversight work performed by EAC OIG during the 6-month period ended September 30, 2013.

We issued a management information report to alert the Department to serious fraud and corruption in Educational Services (SES) tutoring programs. We noted that the OIG has experienced a significant increase in the number of investigations involving fraud and corruption among SES providers. The cases have involved falsification of billing and attendance records, corruption by public officials, conflicts of interest, and the use of improper financial incentives to enroll students into the programs. These investigations, combined with OIG audit work conducted over the last decade, have identified a lack of oversight and monitoring of SES providers by SEAs that leaves SES programs vulnerable to waste, fraud, and abuse. We made a number of recommendations that, if implemented, would mitigate the risk of fraud and corruption in SES or similar programs involving services provided by third parties who bill on a per-child basis.

This Semiannual Report to Congress summarizes the activities of our office for the 6-month period

During the six-month period ending September 30, 2013, NEA OIG issued three reports which contained twelve recommendations based on audits and evaluations performed by OIG personnel. One report, to an NEA grantee, contained four recommendations which remain open. Two reports to NEA relating to grantees contained eight recommendations, all of which were implemented during this reporting period. The annual financial statement and FISMA audits are in process and will be completed by their respective deadlines.

NLRB OIG's October 2013 Semiannual Report

SIGTARP's Quarterly Report to Congress

Inspector General Identified Management Challenges

At the request of Tennessee Valley Authority's (TVA) Supply Chain and TVA's Senior Vice President, Generation Construction, we audited $66.4 million in costs billed to TVA by Phillips and Jordan, Inc. (P&J), under an Advance Authorization (AA) agreement and Contract No. 78268. The AA agreement and contract provided for P&J to unload and dispose of at least four million tons of coal combustion by-products from the coal combustion by-products spill at TVA's Kingston Fossil Plant in December 2008. Our objective was to determine if the costs billed from June 2, 2009, through September 4, 2011, were in compliance with the terms of the AA agreement and the contract.In summary, we determined P&J overbilled TVA $366,401 which included (1) $225,832 in overbilled tonnage costs, (2) $122,921 in overbilled leachate costs, (3) an estimated $11,206 in overbilled standby costs, and (4) $6,442 in overbilled structural adequacy costs. Summary Only

The Tennessee Valley Authority (TVA) identified asset performance and operations as a major risk for the agency. Without effective management of critical spare parts, TVA could face equipment failure which could result in safety and generating failures. This review was initiated to determine if the Nuclear Power Group (NPG) and Coal & Gas Operations (C&GO) were effectively managing critical spare parts.We found critical spare parts could be managed more effectively. We found there were inconsistencies in TVA's management of its critical spare parts. Specifically, we found (1) C&GO does not have written policies to govern its critical spare parts program; (2) preventive maintenance is not being performed on critical spare parts at certain plants; and (3) information maintained in TVA's system for asset and location information, Maximo, regarding critical spare parts, is unreliable. We also found the lack of critical spare parts has negatively affected system and component health. We noted TVA has taken steps to improve identification and procuring of critical spare parts but has not followed through with implementing steps recommended by a management consulting firm. Additionally, our physical inventory counts at the plants were consistent with the information contained in Maximo.We recommended the Executive Vice President and Chief Generation Officer, Generation, (1) develop C&GO procedures to govern the identification and procurement of critical spare parts; (2) ensure proper maintenance is performed on spare parts; (3) take steps to follow-up on actions recommended by a management consulting firm, (4) work with Engineering Environmental & Support Services to implement controls over the information maintained in Maximo, including who can identify what are critical spare parts; and (5) work with Supply Chain to accurately update Maximo to reflect what items should be listed as critical spare parts. TVA management agreed with our recommendations.

Top management challenges report.

This report highlighted security vulnerabilities associated with the Federal student aid Personal Identification Number (PIN) Registration System (PIN system) that were identified through various OIG investigations. Vulnerabilities identified included inadequate PIN recovery mechanisms that have the potential to allow unauthorized users to access FSA’s student loan Web sites and databases and obtain sensitive personal information contained in the PIN system; students sharing their PINs with Internet-based loan servicers that provide an opportunity for bad actors at a company to change and misuse the students’ personal data; and third-party FAFSA preparers managing student PINs without identifying themselves on the FAFSA, controlling student PIN accounts, and receiving electronic correspondence from FSA that is intended for the student. We recommended that FSA make specific improvements to its PIN system to ensure personal information stored on its databases and Web sites is adequately protected. We also suggested that the Department consider developing a capability to enable students to permit companies providing loan-related services read-only access to relevant areas of their accounts that do not contain sensitive personal information, and that it create preparer-specific access accounts that would allow a student to authorize a preparer to access and modify only certain sections of the FAFSA.

Hurricane Sandy on October 29, 2012, caused billions of dollars in damages on the eastern seaboard, including about $39.6 million in total costs and damages to the U.S. Postal Service. In the wake of this national disaster, we assessed the Postal Service’s efforts to protect employees, mail, and other assets in the storm’s immediate aftermath and whether the Postal Service’s Address Management System (AMS) could benefit other agencies in response to future national emergencies. The AMS contains a National Change of Address process that allows customers to update their addresses.

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

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

Older grants approved for which no disbursements have been reported or for which no recent disbursements were reported.

ARC continued its emphasis on follow-up on ARC administered grants with limited disbursements of ARC funds

In 2010, the ARC Code was amended to permit the basic agency function for the administration of ARC construction grants to be exercised for ARC by State agencies that are experienced in the management of federally funded construction projects in the same manner as Basic (Child) agencies administer ARC construction related grants.

ARC has initiated actions to emphasize and include performance measures with respect to LDD and TA grants

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