Federal Reports

NGA OIG Spring FY 2024 Semiannual Report to Congress, 1 October 2023 - 31 March 2024

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

This report contains information about recommendations from the OIG's audits, evaluations, reviews, and other reports that the OIG had not closed as of the specified date because it had not determined that the Department of Justice (DOJ) or a non-DOJ federal agency had fully implemented them. The list omits information that DOJ determined to be limited official use or classified, 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.

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

Why We Did This ReportUnder the provisions of the Inspector General Act of 1978 (Public Law 95-452), as amended, the U.S. Environmental Protection Agency Office of Inspector General reports to the Congress semiannually on its activities. SummaryThis report summarizes EPA Office of Inspector General work and accomplishments from October 1, 2023, through March 31, 2024.

The OIG evaluated a power outage that occurred at the Hines Information Technology Center on May 4, 2023. The outage lasted approximately 22 hours and adversely affected more than 10,000 VA employees nationwide, preventing them from accessing critical VA data and systems such as compensation, pension, and education benefits applications.The OIG found the Hines center’s physical access controls were generally adequate but did not have an effective physical control to prevent the activation of a circuit breaker that caused an inadvertent outage at the data center. Also, contrary to design standards that require redundant power distribution paths, the Hines center circuit breaker functions as a master power switch between the uninterruptible power supplies and the information technology equipment. Consequently, when an authorized employee activated the circuit breaker on May 4, 2023, electricity stopped flowing to the data center equipment and critical applications the center hosts. The OIG did not find evidence the employee intended to disrupt power, nor did it make a determination as to whether the incident was accidental.The Hines center also did not have a detailed contingency plan to guide staff in the recovery of facility information systems following a power outage. When the power outage occurred, engineering staff did not coordinate with the Office of Information and Technology and did not correctly prioritize restoration of network devices, prolonging the system downtime.Such power outages could delay veterans and their families in receiving benefits processed by staff using the affected VA data and applications. Therefore, the OIG recommended the Office of Information and Technology provide redundant electrical distribution paths, cover and add warnings to circuit breakers at Hines and other core data centers, and develop and test a detailed contingency plan to reduce system downtime in the event of a power outage.

We have compiled audit recommendations, made by the Office of the Inspector General’s Office of Audit (OA), that had not been implemented by the Social Security Administration (SSA) as of March 22, 2024. The status of each recommendation is subject to change due to SSA’s ongoing efforts to implement them and OA’s follow-up on SSA’s efforts. Specifically, a recommendation identified as not having been closed as of March 22, 2024 may now be closed as a result of actions taken after that date.

Congress enacted the Payment Integrity Information Act (PIIA) in 2019 to help agencies identify and reduce improper payments. For this mandated audit, we evaluated NASA’s compliance with PIIA requirements in fiscal year 2023.

Although the Department of Homeland Security has made improvements to reduce improper payments (IPs) and unknown payments (UPs), DHS did not comply with the Payment Integrity Information Act (PIIA) of 2019 for fiscal year 2023. According to Office of Management and Budget (OMB) Circular A-123, an agency must meet all 10 PIIA requirements to be compliant. DHS complied with 9 of the 10 requirements, but it did not comply with the requirement to publish IP and UP estimates for the Federal Emergency Management Agency’s (FEMA) Public Assistance Validate As You Go (VAYGo) program for FY 2023.

This report presents the results of our audit of the U.S. Postal Service Emergency Preparedness ofHurricane Ian.

We found DOI complied with PIIA, but we made one recommendation to help ensure program risk assessments are more accurate and effective.

Why We Did This ReportThe U.S. Environmental Protection Agency Office of Inspector General conducted this audit to determine whether the EPA complied with the Payment Integrity Information Act of 2019 for fiscal year 2023 reporting and to evaluate the EPA’s corrective action plans and efforts to prevent and reduce improper payments from prior audit recommendations. Summary of FindingsThe EPA complied with the requirements of the Payment Integrity Information Act of 2019, or PIIA, and the applicable Office of Management and Budget guidance for its fiscal year 2023 reporting. The EPA has made progress in resolving corrective action plans and efforts to prevent and reduce improper payments from prior audit recommendations, but Agency corrective actions are still in process. The Agency satisfied these requirements for PIIA compliance for FY 2023 but has an opportunity to improve internal controls to provide better oversight of its payment integrity activities.

What We Looked At    The Payment Integrity Information Act of 2019 (PIIA) requires agencies to identify, report, and reduce improper payments in programs susceptible to significant improper payments. The act also requires agencies to publish applicable payment integrity information in the materials accompanying their annual financial statements. Moreover, PIIA requires inspectors general to report annually on their agencies’ compliance. Accordingly, our audit objective was to determine whether the Department of Transportation (DOT) complied in fiscal year 2023 with PIIA’s requirements as prescribed by the Office of Management and Budget (OMB).    What We FoundDOT was in compliance with PIIA requirements for fiscal year 2023. DOT reported improper payment estimates for two programs identified as susceptible to significant improper payments. The payment integrity information in DOT’s fiscal year 2023 Agency Financial Report and data posted to the Payment Accuracy website were accurate and complete. DOT’s corrective action plans were adequately designed, focused on root causes, and effectively implemented. DOT also published improper and unknown payment amounts and estimated future improper and unknown payment rates on the Payment Accuracy website in the financial statement materials. The Federal Transit Administration’s (FTA) Transit Infrastructure Grant COVID Relief Funds Program did not meet its reduction target of 1 percent and reported estimated improper payments of 2.07 percent ($506.40 million). While FTA did not establish a tolerable rate for the program, the Operating Administration demonstrated improvements to payment integrity per OMB guidance by expanding its sampling and estimation methodology for fiscal year 2023 reporting and its corrective action plan. Additionally, DOT developed a plan to meet the reduction target and reported an improper and unknown payment estimate of less than 10 percent for all programs reporting improper payments in fiscal year 2023. The Department has also taken steps to recapture overpayments.    Our RecommendationsWe are making no recommendations at this time. 

The Office of Inspector General is tasked with ensuring efficiency, accountability, and integrity in the U.S. Postal Service. We also have the distinct mission of helping to maintain confidence in the mail and postal system, as well as to improve the Postal Service's bottom line. We use audits and investigations to help protect the integrity of the Postal Service. Our Semiannual Report to Congress presents a snapshot of the work we did to fulfill our mission for the six-month period ending March 31, 2024. Our dynamic report format provides readers with easy access to facts and information, as well as succinct summaries of the work by area. Links are provided to the full reports featured in this report, as well as to the appendices.

The U.S. Postal Service announced that it will convert select facilities around the country into sorting and delivery centers (S&DCs) as part of the 10-year strategic Delivering for America plan. S&DCs will consolidate carrier operations from multiple delivery units into one facility. The Postal Service converted two facilities in Gainesville and Panama City, FL, into S&DCs in February 2023. According to the Postal Service, S&DCs are a vital part of its network modernization and will reduce transportation and mail handling costs.

National Credit Union Administration (NCUA) Office of Inspector General (OIG) Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the 6-month period ending March 31, 2024.

The Semiannual Report to Congress summarizes the results of VA OIG oversight, provides statistical information, and lists all 136 work products issued from October 1, 2023, to March 31, 2024. During this reporting period, VA OIG audits, evaluations, investigations, inspections, and other reviews identified more than $1.45 billion in monetary impact for a return on investment of $12 for every dollar spent. The OIG hotline received and triaged over 15,500 contacts in the past six months—to help identify wrongdoing and address concerns with VA activities. Also, during the past six months, special agents opened 178 investigations and closed 183, with efforts leading to 112 arrests. Collectively, the OIG’s work also resulted in 459 administrative sanctions and corrective actions during the six-month reporting period.

Objective: To determine whether the Social Security Administration met all requirements of the Payment Integrity Information Act of 2019 in the Fiscal Year 2023 Agency Financial Report and accompanying materials.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Modis, Inc. (Modis) for contract-to-hire services within TVA's Technology and Innovation organization under Contract No. 16781. Modis was to provide recruiting, staff augmentation, and hiring services to supplement TVA's standard hiring processes in preparation for increased hiring. The contract provided for TVA to compensate Modis for its labor and related indirect costs by (1) reimbursing straight time and overtime wages paid in accordance with a schedule of defined job classifications and corresponding wage ranges and (2) payment of fixed salary burden rates (markups) for the recovery of payroll taxes, payroll-related insurance, fringe benefits, overhead, general and administrative costs, and profit. In addition, the contract provided TVA would pay a conversion fee if TVA converted a Modis recruited employee to full-time TVA employment within the first six months of their assignment.Our audit objective was to determine if costs were billed in accordance with the terms of the contract. Our audit scope included about $11.56 million in costs billed to TVA from January 31, 2022, through November 6, 2023.In summary, we determined:- Modis overbilled TVA $18,000 for an ineligible conversion fee.- Although the contract provided for TVA to reimburse Modis' actual labor costs plus a fixed markup, wage ranges and fixed labor markup rates were never established in the contract. Instead, Modis billed hourly labor rates that were not based on the contract's compensation provisions. As a result, TVA personnel approving invoices from Modis had no basis for validating the appropriateness of the rates that were billed.Based on limited pay rate information we reviewed, we determined the markups Modis included in its billing rates were substantially higher than markups TVA is paying under similar staff augmentation labor contracts. Based on this comparison, we estimated TVA paid between $1.6 million and $3.1 million more to Modis than it would have if actual wages and fixed markups similar to other staff augmentation contracts had been used for this contract.(Summary Only)

We audited costs billed to the Tennessee Valley Authority (TVA) by Universal Protection Service, LP dba Allied Universal Security Services (Allied) under Contract No. 16681 for nonnuclear security guard services. Our audit objective was to determine if costs billed were in compliance with the contract's terms. Our audit scope included about $8.76 million in costs billed to TVA from January 7, 2022, through October 31, 2023. In summary, we determined costs billed by Allied complied with the contract's terms.(Summary Only)

Servicers followed the COVID-19 pandemic foreclosure moratorium requirements. However, they could have better communicated the moratorium requirements to delinquent borrowers who were subject to foreclosure proceedings. This situation occurred because HUD did not require servicers to notify borrowers directly about the foreclosure moratorium and that occupancy would pause the foreclosure process. Borrowers who were not informed about the moratorium or impacts of vacancy could have abandoned their homes, not realizing that remaining in the home would have afforded them additional time to explore retention options or sell the home to recoup equity. Borrowers who were not informed about the moratorium or impacts of vacancy could have abandoned their homes, not realizing that remaining in the home would have afforded them additional time to explore retention options or sell the home to recoup equity. Servicers missed an opportunity to inform as many as 25 of 88 sampled borrowers who vacated their homes during the moratorium that remaining in their homes protected them from foreclosure.We recommend that HUD (1) update Handbook 4000.1 to require servicers to share information regarding foreclosure moratoriums with borrowers; (2) simplify the process for accessing its FAQs on its website, including adding a clickable link on its Single Family website home page that will take borrowers directly to the FAQs; and (3) review the two loans in our sample that did not receive appropriate servicing and take administrative actions if appropriate. Prior to issuing the final report, HUD took steps to address the second recommendation. We verified that a link is now available that will take users directly to the FHA Resource Center’s FAQ site. Therefore, we consider this recommendation resolved, and we will close it once the final report is issued.

I am pleased to submit the Amtrak Office of Inspector General (OIG) Semiannual Report to the United States Congress for the six months ending March 31, 2024, which summarizes our independent and objective reviews and investigations related to Amtrak’s programs and operations.With historic levels of investment from the Infrastructure Investment and Jobs Act (IIJA), Amtrak remains at an important juncture in its 53-year history. Not only is it responsible for safely delivering thousands of passengers each day to more than 500 locations across the country and Canada, it is also charged with implementing or partnering on generational infrastructure and acquisition programs that will impact passenger train travel far into the future. With several multi-billion dollar infrastructure projects already underway, Amtrak is both a passenger railroad and now, a major construction company.The opportunities afforded by the IIJA will rightly draw upon Amtrak’s attention and resources, but it must also stay focused on upholding its non-negotiable pact with the American public to ensure its passengers, employees, and train operations are safe. That said, Amtrak appears to fully recognize the complex portfolio of challenges it faces at this historic moment, which includes an unprecedented influx of funds, the addition of thousands of new workers, the speed at which it plans to execute these programs and acquisitions, and the inherent risks. Consequently, management attention and collective oversight of Amtrak’s programs and operations has never been more important.Effective oversight not only includes the important work of our auditors and investigators, the Department of Transportation, and that of Congress, but it also requires the attention of Amtrak’s Board of Directors to scrutinize and approve the planning and expenditures of the company’s capital programs. The recent confirmation of three Directors for Amtrak’s Board has helped to ensure continued Board oversight, but the Board is operating with only six of eight seats filled, and three directors are selflessly serving well beyond their five-year terms. In addition, the IIJA requires that one director is an individual with a disability who is experienced with accessibility, mobility, and inclusive transportation in passenger or commuter rail—a requirement that is currently unfilled. A director with this experience would be invaluable as Amtrak brings it stations into compliance with the Americans with Disabilities Act and updates its fleet. Understanding that there are multiple competing national priorities, the continued nomination and confirmation of new Board members will help give Amtrak, the Administration, Congress, and the American taxpayers additional assurance that Amtrak has the necessary oversight as it implements historic levels of federal investments.In the following report, we provide a complete review of Amtrak OIG’s oversight work during the reporting period. For example, our investigative work helped achieve more than $545 million in recoveries, restitution, and forfeitures, while our auditors identified $14.4 million in funds that could have been put to better use. Some highlights of our work include an investigation that resulted in a guilty plea by a New York acupuncturist who participated in a health care fraud scheme to bill Amtrak’s health care plan for services that weren’t provided and were medically unnecessary. Notably, the acupuncturist conspired with dozens of Amtrak employees, providing them with cash in return for allowing her to use their personal and insurance information to submit false and fraudulent insurance claims. This case is ongoing but has so far resulted in more than $9 million in forfeitures, five guilty pleas, and five pending sentencings.

This report details the Office of Inspector General's Spring 2024 Semiannual Report to Congress. The following topics are included: • Overview of the SBA and the OIG • Pandemic Response Oversight • Small Business Access to Capital • Disaster Loan Program • Procurement Assistance • Agency Management • Other Significant OIG Activities • Statistical Highlights • Appendices

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

The VA OIG conducted this review to determine whether VA complied with the requirements of the Payment Integrity Information Act of 2019 (PIIA) for FY 2023. PIIA requires federal agencies to identify and review all programs and activities they administer that may be susceptible to significant improper payments based on OMB guidance. PIIA also requires each OIG to review its agency’s improper payment reports and issue an annual report. In FY 2023, VA reported improper and unknown payment estimates totaling $3.2 billion for seven programs. Of that amount, about $1.8 billion (about 57 percent) represented a monetary loss, and about $1.4 billion (about 43 percent) was considered either a nonmonetary loss that cannot be recovered or an unknown payment. These results represent a reduction of $334 million (10 percent) from FY 2022 results. VA satisfied nine of the 10 requirements under PIIA. VA did not meet requirement 6 because VA failed to report an improper and unknown payment rate of less than 10 percent for two VA programs that had estimates in the materials accompanying their financial statements. VA satisfied the additional reporting requirements for two high priority programs with prior-year monetary losses from improper payments of more than $100 million reported in FY 2023. The OIG recommended the under secretary for benefits reduce improper and unknown payments to below 10 percent for the Pension Program and the under secretary for health reduce improper and unknown payments to below 10 percent for the Purchased Long-Term Services and Supports Program. Both are repeat recommendations that have not been implemented from the FY 2022 report.

The objective of our audit was to determine whether the Department complied with the Payment Integrity Information Act of 2019 (PIIA) for FY 2023. We found that the Department complied with the PIIA for the FY 2023 reporting period because it met all six compliance requirements; however, it could improve its processes for implementing its methodologies for computing improper payments and unknown payments. Specifically, the Department’s improper payment and unknown payment estimates for the Improving Basic Programs Operated by Local Educational Agencies and Education Stabilization Fund programs were produced from incomplete Stage 1 sampling populations. An incomplete Stage 1 sampling population of drawdowns could affect the accuracy of the confidence intervals for the improper payment and unknown payment estimate. Further, although we found the point estimates reflect the annual improper payment and unknown payments, the Department’s improper payment and unknown payment estimates for five programs were not reliable because of issues in the calculation of the confidence intervals. We made five recommendations to address the issues identified, including that the Department develop and implement procedures to ensure the sampling populations of drawdowns are complete, and ensure changes made for the query design are implemented in subsequent years for programs that are required to produce an improper payment estimate.

During the COVID-19 pandemic, ecommerce grew from 9.7 percent of total retail sales in 2018 to about 14.5 percent from 2020 to 2022. Returns grew during and after the pandemic as well: by 2023, the National Retail Federation estimated 17.6 percent of online purchases in the U.S. by revenue were returned to retailers.Reverse logistics refers to the movement of goods from the consumer to their place of manufacture, sale, or disposal. Returned items may be resold as new, refurbished to be sold on the secondary market, recycled, or disposed of in a landfill.

To see our report, click on the link below

Final Close-Out, Second Follow-Up Review of the FLRA’s Credit Hours and Premium Pay

The objective of our inspection was to determine if the Department established and implemented controls throughout all phases of its incident response lifecycle to ensure compliance with Federal guidance and regulations. We found that although the Department established policies, procedures, and guidance governing its incident response program, we noted areas where it can improve its current process. We made 12 recommendations to improve the Department’s incident response program.

This report presents the results of our audit on the changing role of postmasters in offices impacted by the creation of Sorting and Delivery Centers.

Summary of FindingsWe found that the EPA lacked robust oversight mechanisms—such as compliance monitoring of EPA-approved labs, of third-party certifiers, and of wood heater manufacturers—to ensure that the Wood Heater Program facilitates compliance with the Clean Air Act. As a result, wood heaters that do not meet Clean Air Act standards may end up in the marketplace, increasing risks to public health and the environment. We also identified concerns regarding impartiality, conflicts of interest, and enforcement of program violations, especially in cases where the EPA is allowing known noncompliance to go unaddressed.

OIG reviewed the Office of Contracting and Procurement’s procurement authority to prevent and respond to reported child labor violations in fiscal year 2023.

The U.S. Postal Service’s mission is to provide timely, reliable, secure, and affordable mail and package delivery to more than 160 million residential and business addresses across the country. The U.S. Postal Service Office of Inspector General reviews delivery operations at facilities across the country and provides management with timely feedback in furtherance of this mission.

The U.S. Postal Service’s mission is to provide timely, reliable, secure, and affordable mail and package delivery to more than 160 million residential and business addresses across the country. The U.S. Postal Service Office of Inspector General (OIG) reviews delivery operations at facilities across the country and provides management with timely feedback in furtherance of this mission.

The U.S. Postal Service’s mission is to provide timely, reliable, secure, and affordable mail and package delivery to more than 160 million residential and business addresses across the country. The U.S. Postal Service Office of Inspector General reviews delivery operations at facilities across the country and provides management with timely feedback in furtherance of this mission.

The U.S. Postal Service needs effective and productive operations to fulfill its mission of providing prompt, reliable, and affordable mail service to the American public. It has a vast transportation network that moves mail and equipment among about 330 processing facilities and 31,100 post offices, stations, and branches. The Postal Service is transforming its processing and logistics networks to become scalable, reliable, visible, efficient, automated, and digitally integrated. This includes modernizing operating plans and aligning the workforce; leveraging emerging technologies to provide worldclass visibility and tracking of mail packages in near real-time; and optimizing the surface and air transportation network. The U.S. Postal Service Office of Inspector General (OIG) reviews the efficiency of mail processing operations at facilities across the country and provides management with timely feedback to further the Postal Service’s mission.

An Amtrak lead service attendant based in Miami, Florida, entered into a forbearance and workout agreement on May 22, 2024, with the Small Business Administration (SBA) and agreed to a payment schedule to satisfy his settlement and restitution amounts. The employee agreed to pay a total of $124,631 including fines, fees, and interest. The employee applied for and received an SBA‐backed Economic Injury Disaster Loan (EIDL) for economic losses resulting from the pandemic related to self‐employment or businesses he allegedly owned. Our investigation found that the employee submitted an application to the SBA that included false statements and information to qualify for the EIDL loan. As a result, the employee received an EIDL loan in the amount of $120,000 to which he was not entitled.

We are pleased to present our report for the period October 1, 2023, to March 31, 2024. Serving in our oversight role, the Office of the Inspector General continues to identify risks to operations, ways to save or recover money, make recommendations to improve operations, and prevent and detect fraud, waste, and abuse. In this semiannual period, our audit, evaluation, and investigative activities identified more than $13 million in questioned costs; recoveries, fees, and fines; waste/other monetary loss; and opportunities for Tennessee Valley Authority (TVA) to improve its programs and operations.TVA has a deep and rich history of building power generating assets to electrify the Tennessee Valley. At its inception, river systems were harnessed and electricity was provided by TVA built dams. As industry and populations grew, TVA kept pace with the increasing power demands with massive construction programs, including the building of 11 coal-fired power plants during the 1950s and 1960s and six nuclear power units in the 1970s and 1980s. TVA’s ability to provide low-cost electricity while facing changing circumstances and expectations with and increasingly diverse portfolio has served the people of the Valley well for the past 90 years.

The Office of Inspector General (OIG) is issuing this Inspection Report to assess the Small Business Administration’s (SBA) process for approving 7(a) loans for borrowers with unresolved pandemic loan compliance issues.From October 1, 2019 through May 8, 2023, SBA approved and disbursed 172,598 7(a) loans, totaling $83.4 billion. The 7(a) lenders who have delegated approval authority approved 92 percent of these loans and SBA approved the remaining 8 percent. SBA implemented a process to screen 7(a) loan applications for eligibility, which included screening for Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) hold codes prior to loan approval. However, SBA did not implement the process until August 2023, after we initiated this review. Prior to August 2023, neither SBA nor lenders reviewed approved 7(a) loans to ensure borrowers did not have unresolved compliance issues that could negatively impact their eligibility for the 7(a) loan. As a result, there were 5,044 approved and disbursed 7(a) loans, totaling $4.5 billion, where the borrower had a PPP loan or COVID-19 EIDL with an unresolved eligibility or potential fraud issue.SBA stated it resolved hold codes for 3,015 of 5,044 loans and we did not assess the agency’s methodology or whether it appropriately removed hold codes. We will assess the appropriateness of SBA’s removal of hold codes for the 3,015 loans prior to closing our recommendation.We recommended SBA review and appropriately resolve hold codes related to the 5,044 7(a) loans to determine impact on 7(a) eligibility and seek remedy or repayment of all 7(a) loans deemed ineligible.

The Payment Integrity Information Act of 2019 (Public Law 116-117) (PIIA) requires the Office of Inspector General (OIG) to annually review its agency’s improper payment and payment reporting made in the annual Performance and Accountability Report (PAR) or Agency Financial Report (AFR) to determine compliance.

The VA Office of Inspector General (OIG) reviewed system leaders’ actions taken in response to allegations related to access to behavioral health care and patient privacy at the El Paso VA Health Care System (system) in Texas and evaluated whether the system sustained the actions.In August 2022, the OIG received allegations that patients who presented at the system for behavioral health services were denied care, patients who declined virtual care did not receive appointments, and behavioral health clinic staff violated patient privacy. The OIG requested a written response to the allegations in November 2022. The OIG initiated an inspection after reviewing subsequent system responses in February and July 2023.The OIG determined the actions taken by system leaders, including those initiated before the OIG inspection and those implemented after OIG inquiries, ensured that the system’s behavioral health clinic staff did not deny patients access to care, and that patients were seen in the time frame and at the location that met their preferences and needs. The OIG also determined that actions taken by system leaders ensured patient privacy was maintained during behavioral health services for which patients used tablets.While conducting the inspection, the OIG identified a potential vulnerability resulting from the varied locations of providers and the settings in which patients receive care. While no cases of concern were identified, due to some system providers residing in Texas and New Mexico, and virtual providers residing in different states altogether, the OIG noted potential issues arising from advice given by providers in emergent and urgent patient situations who may not be versed in state-specific emergency detention order laws.The OIG made one recommendation to the System Director related to system policies and guidance aligning with federal and state laws.

The U.S. International Development Finance Corporation Office of Inspector General (DFC OIG) contracted with RMA Associates, LLC (RMA) to conduct a review of DFC’s compliance with Payment Integrity Information Act of 2019 (PIIA) for fiscal year (FY) ending September 30,2023. The review was conducted in accordance with 1) the Office of Management and Budget (OMB) Memorandum M-21-19, Transmittal of Appendix C to OMB Circular A-123, Requirements for Payment Integrity Improvement and 2) OMB Circular A-136, Financial Reporting Requirements, May 19, 2023. Our review period was from February through May 2024.

This report presents the results of our audit of Mail Theft Mitigation and Response at the Jamaica Main, South Richmond Hill, and Woodside stations in Queens, NY (Project Number 24-037). The stations are in New York 2 District of the Retail and Delivery Operations, Atlantic Area. Our objective was to assess the U.S. Postal Service’s actions taken to mitigate and respond to mail theft in Queens, NY. The Postal Service’s mission is to provide the nation with trusted, safe, and secure mail services, including the more than 107 million pieces of mail volume collected and delivered in Queens, NY, in fiscal year (FY) 2023. Unfortunately, mail theft occurs in various ways. Criminals use stolen universal keys—called arrow keys—to access collection boxes, outdoor parcel lockers, cluster box units, and apartment panels. Mail theft can also occur by individuals fishing or breaking into collection boxes with force, residential mailbox break-ins, package theft, and carrier robberies. It is imperative for the Postal Service to address mail theft issues to protect the Postal Service and retain the public’s trust.

What We Looked At Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Federal Transit Administration (FTA) received $25 billion to help the Nation’s public transit agencies mitigate the impacts of COVID-19. FTA obligated over $4.4 billion of this funding to recipients within FTA’s Region 9, which contains the 4th, 10th, and 11th highest FTA CARES Act fund recipients nationwide. Although the Agency expanded its oversight of COVID-19 relief funding recipients, we previously found risks associated with these activities and FTA’s oversight of contract and grant expenditures. Given our previous findings and the magnitude of taxpayer funds involved, we initiated this audit to assess FTA’s oversight of its Region 9 recipients’ compliance with CARES Act funding requirements. Specifically, we evaluated (1) FTA’s oversight processes relevant to Region 9 CARES Act payments, and (2) the eligibility of CARES Act payments for a statistical sample of eight Region 9 recipients.What We Found FTA conducts limited oversight of its Region 9 recipients' CARES Act payments. Specifically, the Agency did not amend its standard automated grant payment process to account for elevated CARES Act fund risks and relies on contractor-conducted oversight reviews that are insufficiently scoped to identify CARES Act funding noncompliance. Further, despite FTA encouraging recipients to use these funds expeditiously, FTA Region 9 funds remain unexpended. These limited oversight activities put the Agency at greater risk its CARES Act funds will be subject to fraud and misuse. For instance, we identified a total of $192.8 million in unsupported costs and $4.2 million in ineligible expenses associated with CARES Act payments for six of the eight sample Region 9 recipients tested. These issues were due in part to FTA’s limited oversight and broad eligibility guidance. Overall, we estimate FTA paid up to $340 million in unsupported costs and $106.9 million in ineligible expenses across Region 9 CARES Act recipients—totaling $446.9 million in Federal funds at risk.Our Recommendations We made four recommendations to strengthen FTA’s oversight of its recipients’ compliance with CARES Act funding requirements. The Agency concurred with recommendations 1 through 3, which we consider resolved but open pending completion of planned actions. FTA did not concur with recommendation 4, which we consider open and unresolved. 

North American Electric Reliability Corporation (NERC) Emergency Preparedness and Operations (EOP) standard 011-2, was approved by the Federal Energy Regulatory Commission on August 24, 2021, with an effective date of April 1, 2023. EOP-011-2 includes a requirement to implement and maintain a cold weather preparedness plan for generating units with 7 required elements. EOP-011-2 also includes a requirement for evidence documenting the plan was implemented and maintained as well as evidence that applicable personnel completed training on the cold weather preparedness plan. Due to the risk of weather-related generation asset outages, we performed an evaluation to determine if TVA completed cold-weather plans in accordance with NERC reliability standard for Emergency Preparedness and Operations. We determined TVA generally completed cold-weather plans in accordance with NERC reliability standard for EOP-011-2. However, we identified minor discrepancies in certification letters and training.

The Payment Integrity Information Act (PIIA) requires agencies to annually review and identify programs and activities that may be susceptible to significant improper payments, estimate the improper payment rates in agency programs, and report on their actions to reduce and recover those payments. We found that AmeriCorps implemented corrective actions that improved its compliance with PIIA reporting requirements relative to past years. For FY 2023, AmeriCorps met eight of ten PIIA compliance requirements. We made three findings relating to the two remaining requirements. We found that: (1) AmeriCorps reported an improper payment rate above the ten percent compliance threshold for one program, the Senior Companion Program (SCP); (2) AmeriCorps reported improper payment rates that were not accurate, reliable, or consistent with Office of Management and Budget guidance for AmeriCorps State and National (ASN), Foster Grandparent Program (FGP), and SCP; and (3) AmeriCorps did not publish Improper Payment and Unknown Payment Estimates for the National Service Trust (NST), which they assessed as a susceptible program. AmeriCorps concurred with the first finding and agreed to develop and implement actions to reduce improper payment rates below ten percent. AmeriCorps did not concur with our second and third findings and will not implement the related recommendations on unmatched reporting errors, payments to ineligible recipients, and publishing improper and unknown payment estimates for the NST. We will keep open the recommendations related to the three findings until AmeriCorps submits documentation to demonstrate the completion and sufficiency of the corrective actions.

The Railroad Retirement Board Complied with the Payment Integrity Information Act of 2019 for Fiscal Year 2023

Over the past several decades, the United States has lost ground as a leader in semiconductor chip manufacturing and research. Congress passed the CHIPS Act of 2022 to help rebuild the domestic semiconductor industry and strengthen semiconductor research and development.The CHIPS Act provides $50 billion to the Department of Commerce to support research and development, innovation, and manufacturing related to semiconductors. In addition, the CHIPS Act authorizes the Secretary of Commerce to issue up to $75 billion in direct loans and loan guarantees.The National Institute of Standards and Technology (NIST) is overseeing the Department’s CHIPS program. NIST established two offices to implement the CHIPS program: the CHIPS Program Office (CPO), responsible for implementing the semiconductor incentives program, and the CHIPS Research and Development Office (CRDO), responsible for programs undertaking research and development activities. The initial CHIPS leadership team was announced in September 2022 and undertook hiring for the two offices.The objective of our evaluation was to assess NIST’s progress in meeting workforce hiring milestones for CPO and CRDO. We found that NIST surpassed its hiring goals for CPO and CRDO but did not develop a comprehensive workforce plan to meet its human capital needs. Without a comprehensive workforce plan, CPO and CRDO lack assurance that they have adequately aligned their resources to fulfill their mission or identified current and future staffing opportunities and constraints. Workforce planning ensures that agencies have the right people with the right skills to accomplish the mission and enables agencies to meet current and future organizational goals and objectives.We made two recommendations to help NIST meet workforce needs for both the CHIPS program and future hiring efforts. NIST concurred with both recommendations.