Federal Reports

What We Looked AtIn a typical year, the Federal Transit Administration (FTA) awards over $20 billion in grants for transit system development and improvement, including the purchase of real property for bus facilities, bus rapid transit, light rail, heavy rail, and commuter rail projects. Through the Infrastructure Investment and Jobs Act of 2021, Congress authorized as much as $108.1 billion to FTA to improve public transportation systems throughout the country. Given FTA’s large investment in these transit projects, we initiated this audit. Our audit objectives were to assess FTA’s oversight of grant recipients’ (1) reporting and (2) disposal of real property funded with FTA grant assistance.What We FoundFTA cannot identify all reportable real property associated with its grants, and real property data depend primarily on recipients’ self-reporting. Additionally, FTA does not conduct real property oversight reviews of all grant recipients with reportable property. FTA also does not enforce its requirement for recipients to maintain real property inventories or verify that their inventories include all reportable Federal interest. Furthermore, FTA does not enforce a regulatory requirement for recipients to submit annual reports on real property. Lastly, FTA’s oversight of real property disposition is inadequate to ensure recipients comply with disposal requirements. One grantee disposed of 62 properties without informing FTA because the grantee was unaware of whether an FTA financial interest existed in any of the properties. FTA’s insufficient oversight of reportable real property creates a higher risk that property will be disposed of without consideration for FTA’s financial interest. Our RecommendationsWe have made eight recommendations to help FTA improve its oversight of real property reporting and improve accountability for both FTA and its grant recipients when disposing of real property no longer needed for its intended purpose. FTA concurred with all eight recommendations. We consider all recommendations resolved but open pending completion of planned actions. 

The National Security Agency (NSA) Office of the Inspector General (OIG) released an unclassified version of its Semiannual Report to Congress (SAR) summarizing the OIG’s oversight work from October 2023 through March 2024. The SAR describes a number of oversight products completed during the reporting period. In his SAR submission message, Deputy Inspector General Kevin B. Gerrity highlighted NSA OIG’s congressionally-requested evaluation of the relationship between NSA and U.S. Cyber Command (USCYBERCOM). NSA OIG found that adequate controls or processes were not always in place to ensure resources were appropriately delineated between NSA and USCYBERCOM. Gerrity states, “Our report will help NSA improve it’s processes in the future.”On May 17, 2024 the SAR was transmitted to Congress as required by the Inspector General Act of 1978, as amended.

Objective: The objective was to observe customer wait times in select Social Security Administration field offices and Social Security Card Centers. In addition, we determined the (1) factors that may affect customer wait times and (2) steps SSA took to reduce wait times.

Objective: To determine whether the Social Security Administration’s controls identified Disability Insurance beneficiaries and Supplemental Security Income recipients who also received Illinois or Texas workers’ compensation benefits.

HUD did not comply with PIIA because it did not report improper and unknown payment estimates for the Office of Public and Indian Housing’s Tenant-Based Rental Assistance (PIH-TBRA) program and the Office of Multifamily Housing Programs’ Project-Based Rental Assistance (PBRA) program, HUD’s largest rental assistance programs. This noncompliance is significant because this is the seventh consecutive year in which HUD has been unable to produce PIH-TBRA and PBRA improper and unknown payment estimates, and that deficiency has contributed to HUD’s noncompliance with improper payment laws for 11 consecutive years. For several years, we have reported that HUD was unable to test for improper payments in these programs because the Office of the Chief Financial Officer (OCFO) was unsuccessful in working with the Offices of Public and Indian Housing, Multifamily Housing Programs, and the Chief Information Officer to securely collect program files needed to test payments. This year, OCFO reported that HUD was again unable to complete improper payment testing because it was delayed in implementing a secure platform designed to collect supporting data and documentation and also because of limited staffing resources with technical knowledge of the payment cycles. The lack of proper planning and coordination from leadership in HUD’s program and support offices has prevented HUD from addressing the root causes behind the failure to comply with improper payment laws. The audit follows HUD OIG’s “Management Alert: Action Is Needed From HUD Leadership To Resolve Systemic Challenges With Improper Payments,” issued January 23, 2024, urging HUD leadership to take immediate action to resolve systemic challenges with improper payments.

OIG's Semiannual Report to Congress – October 1, 2023, through March 31, 2024

FEC OIG's Semiannual Report to Congress October 1, 2023 - March 31, 2024

Land use agreements are contracts that permit operators to use specific Tennessee Valley Authority (TVA) reservoir property for a specific purpose and for a limited amount of time, subject to management and control retained by TVA. Reservoir land use agreements are typically for commercial recreational operations such as campgrounds and marinas. We performed an audit of TVA’s commercial reservoir land use agreements due to reputational risks associated with the potential inconsistent treatment of operators within the program. Our audit objective was to determine if TVA is managing commercial reservoir land use agreements appropriately and in accordance with applicable regulations, policies, and procedures. Our audit scope included commercial reservoir land use agreements (1) in place as of October 1, 2023, and (2) invoiced from October 1, 2021, through September 30, 2023. During this period, TVA had 169 reservoir land use agreements with total billings of approximately $3.6 million.We determined TVA had (1) accurately invoiced most periodic and all minimum rental payments according to payment terms and (2) obtained required certificates of insurance from operators. However, TVA could improve its management of commercial land use agreements by enforcing requirements for (1) operators to submit documentation of gross revenues, which is necessary for verification of rental payments due to TVA; (2) Natural Resources personnel to confirm all security assurances; and (3) campground operators to submit updated annual operating plans.

The Office of the Inspector General evaluated whether TVA’s quality management process for the Colbert Combustion Turbine expansion project was accomplished in a manner to achieve compliance with quality objectives and acceptance criteria. We determine quality management was accomplished by the Engineering, Procurement, and Construction contractor in a manner to achieve compliance with quality objectives and acceptance criteria. However, due to previously identified Original Equipment Manufacturer related risks, we found TVA’s oversight of the Original Equipment Manufacturer’s equipment during fabrication could have been improved.

This report presents the results of our audit of the Impact of Management Operating Data System on Postal Service Costing.

Our ongoing audit objective is to determine whether First Responder Network Authority (FirstNet Authority) is ensuring that AT&T is achieving the desired results for Nationwide Public Safety Broadband Network (NPSBN) coverage for each state and territory. During our fieldwork, we observed an issue that poses a risk of overstating the coverage area and services the network provides. FirstNet Authority measures NPSBN Band 14 coverage at a signal strength over 15 times less powerful than the one AT&T (the NPSBN contractor) uses to report its commercial non-Band 14 network to FirstNet Authority. This could indicate that the total area AT&T reports as Band 14 coverage is overstated, and the services provided in the coverage area are not sufficient to allow first responders to effectively respond to emergencies. This difference can adversely impact NPSBN services and ultimately affect public safety users’ ability to communicate with each other during emergencies. We believe that management attention is warranted to ensure that the NPSBN provides consistent, reliable service to public safety users.

Semiannual Report

U.S. International Development Finance Corporation (DFC), Office of Inspector General’s (OIG) Semiannual Report to Congress for the reporting period, October 1, 2023, through March 31, 2024.

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 the NERC reliability standard for EOP-011-2. However, we identified minor discrepancies in (1) one cold weather plan, (2) certification letters, and (3) training.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the quality of care delivered in the inpatient and outpatient settings of the Roseburg VA Health Care System, which includes the Roseburg VA Medical Center and multiple outpatient clinics in Oregon. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (suicide prevention initiatives)The OIG issued 11 recommendations for improvement in four areas:1. Leadership and organizational risks• Root cause analyses for sentinel events2. Medical staff privileging• Focused and Ongoing Professional Practice Evaluation completion• Ongoing Professional Practice Evaluationso Specialty-specific datao Equivalent specialized training and similar privileges• Executive committee review of professional practice evaluation results• VISN oversight of privileging processes3. Environment of care• Panic and over-the-door alarm testing in the mental health inpatient unit4. Mental health• Comprehensive Suicide Risk Evaluation completion• Reporting of suicide behaviors to suicide prevention team• Suicide prevention outreach activities

This independent auditors’ report on the U.S. Small Business Administration’s (SBA) improper payment reporting is required by the Payment Integrity Information Act of 2019. We contracted with the independent certified public accounting firm KPMG LLP to conduct a performance audit of SBA’s fiscal year (FY) 2023 compliance with the Act. The auditor was engaged to review the payment integrity section of SBA’s Agency Financial Report Fiscal Year 2023 (AFR) and accompanying materials to determine whether the agency complied with the reporting requirements under the Act.In the report, KPMG auditors found SBA was not compliant with 8 of the 10 reporting requirements under the Act and Office of Management and Budget guidance. Specifically, SBA is not compliant with the Act because it did not:• Publish improper and unknown payment estimates in the FY 2023 agency AFR and accompanying materials for the Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and payments for covered loans in the 7(a) and 504 loan guaranty programs under the Debt Relief Program.• Use appropriate sampling and estimation methodology plans for disaster assistance loans, Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL), and EIDL Targeted Advance programs and activities.• Did not publish effective corrective action plans for the disaster assistance loans, PPP loan forgiveness, and PPP loan guaranty purchases programs and activities.• Demonstrate improvements to payment integrity for 7(a) loan guaranty approvals, 7(a) loan guaranty purchases, 504 Certified Development Company loan approvals, disaster assistance loans, and COVID-19 EIDL programs and activities as the improper payment estimates increased between FYs 2022 and 2023.SBA indicates that it is committed to reducing the dollar amount of improper payments, ensuring program integrity, and continuing to implement effective risk management procedures in accordance with improper payment legislation.

The Railroad Retirement Board Should Strengthen Controls and Contractor Oversight of the Medical Opinion and Disability Determination Process

Summary of FindingsAs we evaluated the execution of the EPA’s 7th Drinking Water Infrastructure Needs Survey and Assessment, or DWINSA, we saw indications that a lack of internal controls may have caused the EPA to base its fiscal year 2023 allotment of $3 billion in IIJA funds for lead service line replacements on inaccurate data. As such, there is a risk that the EPA did not allot the fiscal year 2023 IIJA funds, and will not allot future IIJA funds, according to states’ lead-service-line-replacement needs.

We evaluated the Defense Intelligence Agency’s (DIA’s) compliance with the Payment Integrity Information Act (PIIA) for Fiscal Year (FY) 2023. The evaluation was conducted from January 2024 to April 2024.

GAO OIG Semiannual Report to Congress - October 1, 2023, through March 31, 2024

The objective of the evaluation is to determine whether the U.S. AbilityOne Commission's 2022- 2026 Strategic Plan has the necessary framework, including specific operational initiatives/objectives and associated performance measures. The evaluation will be conducted using Quality Standards for Inspection and Evaluation, issued by the Council of the Inspectors General on Integrity and Efficiency.

The City of Jackson’s funding for its water system did not address the capacity issues at the O.B. Curtis Water Treatment Plant, leading to chronic problems with operations and maintenance. Various Jackson departments did not effectively communicate the water system’s capacity issues internally, which only served to exacerbate the problems facing O.B. Curtis and the city’s water system. In addition, while the Mississippi State Department of Health, or MSDH, took informal compliance and enforcement actions with Jackson, it did not provide additional technical assistance to Jackson through the Local Assistance and Other State Programs set-aside. We also found that the MSDH could have been more proactive in the years leading up to Jackson’s water system failure in providing flexible Drinking Water State Revolving Fund loan options for disadvantaged communities like Jackson. The MSDH did not make these flexible loan and subsidy options available to disadvantaged communities, including Jackson, until after June 2021. Also, only after Jackson requested a refinance in October 2022 did the MSDH approve refinancing the city’s DWSRF loans.

The Office of the Inspector General performed an audit of a TVA hydroelectric facility to determine if the network architecture and assets in use to support site business and operations were compliant with TVA policies, procedures, and identified best practices. We determined several areas of the network architecture and assets did not follow TVA policies, procedures, or identified best practices. Specifically, we identified the following issues:• Network redundancy was not implemented in accordance with identified best practices.• Network asset retirement was not implemented in accordance with Power Operations’ Standard Operating Procedure.• Power Operations’ location specific standard operating procedure did not require unique passwords in accordance with identified best practices.In addition, we identified the following internal control deficiencies significant to our audit objective:• Baseline configurations were not implemented in accordance with location specific Power Operations’ standard operating procedure.• Physical access permissions and controls were not implemented in accordance with identified best practices.TVA management agreed with our recommendations.

Each year agency program officials, chief information officers, and inspectors general must review their agencies’ information security programs and report to the Department of Homeland Security and Congress on the programs’ compliance with the Federal Information Security Modernization Act (FISMA). The OIG contracted with an independent public accounting firm, CliftonLarsonAllen LLP (CLA), to evaluate VA’s information security program for FY 2023. After assessing 45 major applications and general support systems hosted at 23 VA facilities and on the VA Enterprise Cloud, CLA concluded that VA continues to face significant challenges meeting FISMA requirements.The audit found continuing significant deficiencies related to access, configuration management, and change management controls, as well as service continuity practices, all of which are designed to protect mission-critical systems from unauthorized access, alteration, or destruction. These deficiencies can be remedied by improving the deployment of security patches, system upgrades, and system configurations to mitigate significant security vulnerabilities and enforce a consistent process across all field offices; improving performance monitoring to ensure controls operate as intended at all facilities; communicating identified security deficiencies to mitigate significant risks; and addressing security-related issues that contributed to the information technology material weakness reported in the FY 2023 audit of VA’s consolidated financial statements.Of CLA’s 25 recommendations, VA concurred with 15 and non-concurred with 10; some of the 25 recommendations addressed repeat deficiencies from previous FISMA reports spanning multiple years. CLA will follow up on the outstanding recommendations and evaluate the adequacy of corrective actions in the FY 2024 audit of VA’s information security program.

Audit of National Security Loan Program Recipient – MapLarge, Inc.

An Amtrak train attendant based in Miami, Florida, signed a civil settlement agreement on May 13, 2024, with the U.S. Attorney’s Office, Southern District of Florida. The employee was ordered to pay $10,000 in restitution and a $5,000 penalty. Our investigation found that the employee submitted a false claim for an Economic Injury Disaster Loan (EIDL) Advance of $10,000. We interviewed the employee and he admitted to receiving the EIDL Advance for a non-existent catering business. As a result, the employee received an EIDL loan advance in the amount of $10,000 to which he was not entitled.

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

Modified Peer Review Report for three-year period ending September 30, 2023.

The Office of Inspector General retained the services of KPMG, an independent public accounting firm, to determine whether the U.S. Consumer Product Safety Commission (CPSC) was in compliance with the Payment Integrity Information Act of 2019 (PIIA) (Public Law 116-117) for the fiscal year ended September 30, 2023. This evaluation was performed in accordance with the Council of Inspectors General on Integrity and Efficiency’s Quality Standards for Inspection and Evaluation.

Management Advisory Memorandum Regarding FLRA Nondisclosure Requirements and Whistleblowing Rights

We performed an audit of the Tennessee Valley Authority’s (TVA) invoice review and approval process to (1) assess TVA's policies and procedures related to the review and approval of invoices, (2) determine compliance with applicable policies and procedures, and (3) determine if TVA's invoice approvers have adequate information, including clear contractual compensation provisions and sufficient invoice detail, to effectively perform their role. The scope of our audit included Supply Chain nonreceiving contracts and POs with fiscal year 2021 invoiced costs totaling $3,554,951,594. In summary, we determined:• Policies and procedures were not being followed to ensure effective review and approval of supplier invoices. Our review of 127 invoices found inadequate reviews were performed on 55 invoices (43 percent). Based on our review of sampled invoices and relevant contractual documentation, as well as interviews with field invoice approvers, contracting officers (COs), and contract technical stewards, we identified several potential underlying causes for why effective invoice reviews were not performed. • TVA could clarify policies and procedures to better define roles and responsibilities related to (1) field invoice approver (FIA) approval of invoices related to POs with compensation terms different from the blanket contract and (2) required communications when there are changes in FIA assignments. In addition, we noted several opportunities to improve contract administration. Specifically, we identified opportunities related to (1) documentation inconsistencies between contracts and information in TVA’s EAM system, (2) the issuance of amendments for contract modifications, (3) work performed after the contract’s termination date, and (4) contract clauses containing inconsistent guidance.

To see our report, click on the link below

Ricarda Burrell, a former Customer Service Representative, pleaded guilty in U.S. District Court, Eastern District of Pennsylvania, to one count of mail fraud and one count of theft of public money involving CARES Act Pandemic Unemployment Assistance (PUA) fraud. Burrell received the PUA while she was employed at Amtrak. The total fraud amount was $9,739. Sentencing has been scheduled for September 3, 2024.

In September 2023, VA announced it had erroneously awarded millions of dollars in critical skill incentive (CSI) payments to senior executives at its central office. VA cancelled the payments, notified Congress, and requested the Office of Inspector General (OIG) review the matter.CSIs are a new recruitment and retention tool authorized by the PACT Act, which significantly expanded access to VA health care and benefits for veterans exposed to toxic substances. CSIs are meant for an employee who “possesses a high-demand skill or skill that is at a shortage,” to help VA meet a projected increase in staffing requirements. In total, VA awarded $10.8 million in CSIs to 182 senior executives (ranging from nearly $39,000 to over $100,000 each) in the Veterans Health Administration (VHA) and the Veterans Benefits Administration (VBA) at VA’s central office.The OIG found the award of CSIs to nearly all VHA and VBA central office executives lacked adequate justification and was inconsistent with the PACT Act and VA policy. This was due, in part, to breakdowns in leadership and controls at multiple levels of VA, including• insufficient transparency from VHA regarding the scope and costs of its CSI plans for VACO senior executives; • excessive deference by VA’s Human Resources and Administration/Operations, Security, and Preparedness leaders to under secretaries and other senior leaders, despite concerns that they or their staff had about the incentives;• missed opportunities by the Office of General Counsel to detect legal issues with the CSIs before payment; and• failure to leverage VA’s existing governance processes to ensure proper risk management of the new CSI authority.VA concurred with the OIG’s two findings and eight recommendations and provided acceptable action plans and completion timelines. The OIG will monitor VA’s progress until sufficient documentation has been received to close the recommendations as implemented.

To see our report, click on the link below

The Whistleblower Protection Enhancement Act (WPEA) requires that federal agencies that have or use nondisclosure policies, forms, or agreements ensure that said policies, forms, or agreements include an explicit statement (“anti-gag provision”) notifying the signatory employees that they retain their rights to report wrongdoing to Congress, the Inspector General (IG), or the Office of Special Counsel (OSC). Two of the Consumer Product Safety Commission’s (CPSC) recent nondisclosure agreements did not fully comply with this requirement. The CPSC must act to remedy this non-compliance going forward.

When a veteran files a claim for disability benefits, a medical exam may be necessary. If the nearest VA medical center cannot conduct the exam, a contract exam vendor is utilized. Medical Disability Exam contracts require contract exam facilities to comply with the American with Disabilities Act (ADA) and Occupational Safety and Health Administration (OSHA) standards.In response to accessibility, safety, and cleanliness concerns documented in customer satisfaction surveys, the VA Office of Inspector General (OIG) directly inspected facilities and reviewed Medical Disability Examination Office (MDEO) oversight of vendors. The OIG identified one or more ADA and OSHA deficiencies at 114 of the 135 exam facilities visited. MDEO relied on vendors to self-certify compliance with ADA and OSHA standards; however, MDEO did not provide necessary oversight.The OIG noted four specific oversight deficits. First, MDEO lacked independent access to facilities, depending on vendors for locations to assess compliance issues. Second, MDEO relied on vendors to distribute their own exam satisfaction survey cards. Third, at the time of the review, MDEO lacked formal standardized procedures and training for inspections. Fourth, MDEO required exam vendors to inspect and self-certify facilities, yet vendors stated they relied on self-reporting or photos from subcontractors. Further, MDEO did not verify ADA and OSHA compliance despite receiving complaints from veterans.While the OIG acknowledges the improvement plans MDEO leaders shared during the review, the OIG made nine recommendations to the under secretary for benefits, including that MDEO more closely monitor inspections, visit sites, use a revised inspection checklist, maintain a facilities inventory, and have independent access. MDEO and vendors should also ensure accessibility prior to scheduling. Finally, inspection processes and training should be standardized and vendor contracts enforced. Until oversight improves, veterans are at risk of harm and benefits compensation may be delayed.

The U.S. Census Bureau awarded the 2020 Census Integrated Communications Contract (ICC) in August 2016 as part of a campaign to raise awareness and encourage response during the 2020 census. Our audit objective was to determine whether the bureau effectively managed selected ICC task orders to ensure desired outcomes were achieved. We focused on four task orders, totaling $436.5 million, related to strategy, planning, and execution of the ICC’s paid advertising component. Overall, we found the bureau did not properly administer the contract or monitor the contractor’s performance in compliance with federal and departmental regulations and policies. I. Contracting officials did not ensure that the task orders included the required performance standards for the contractor or the methods for assessing the contractor’s performance against the standards. II. They also did not follow contract procedures for the plan used to evaluate the quality of the contractor’s performance. III. Finally, they did not maintain supporting documentation for paid media invoices totaling $363 million. As a result, the bureau could not ensure that the contractor complied with contractual requirements and could have accepted substandard performance, potentially wasting millions of taxpayer dollars. In particular, the $363 million in payments for media services represent unsupported costs. We issued six recommendations to the Census Bureau Director to improve the administration and execution of contracts and task orders, including specifying performance standards, preparing the required quality plans, and maintaining required documentation.

We conducted this review to determine whether the U.S. Department of Commerce complied with the Payment Integrity Information Act of 2019 (PIIA), which is intended to improve efforts to identify and reduce government-wide improper payments. Broadly defined, improper payments are those the federal government has made in an incorrect amount or to the wrong recipient. Improper payments can negatively impact the public’s trust in the federal government and distract from the benefits of federal programs.During fiscal year (FY) 2023, the Department reported approximately $22.5 million in overpayments identified for recapture and approximately $18.9 million in overpayments recovered.Our objective was to determine the Department’s compliance with PIIA for FY 2023. We also assessed the Department’s efforts related to preventing and reducing improper payments and unknown payments. We concluded that the Department complied with the PIIA criteria for FY 2023 based on our review. We did not identify any actions needed to further improve prevention and reduction measures within the Department.

Objective: To determine whether SSA could identify deceased beneficiaries aged 80 to 89 using its Medicare claims data.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by GE Hitachi Nuclear Energy Americas LLC (GEH) for nuclear steam supply system refueling and inspection outage services at TVA's Browns Ferry Nuclear Plant under Contract No. 10354. Our audit objective was to determine if costs were billed in compliance with the contract's terms. Our audit scope included about $31 million in costs billed from January 1, 2022, through May 31, 2023.In summary, we determined GEH billed TVA:- $3,536,279 in excessive noncraft subcontract labor costs because the costs were billed at GEH's time and material (T&M) rates, rather than at actual subcontractor costs, as provided for in the contract. Due to the potential significance of the excessive noncraft subcontract labor costs billed to TVA, we expanded our scope and estimated TVA has paid an additional $10.9 million in excessive noncraft subcontract labor costs billed outside our audit scope as of January 31, 2024. We also estimated TVA could pay approximately $10.3 million in excess labor costs over the course of the remaining contract spend if GEH continues to bill noncraft subcontract labor costs at GEH's T&M rates instead of actuals.- $1,080,779 in costs that did not have a corresponding rate in the contract, including (1) $1,045,574 in equipment costs and (2) $35,205 in other costs, such as supplies, cart rentals, craft incentive bonuses, and physicals.- A net $256,155 in overbilled rates, including (1) $237,474 for overbilled per diem rates, (2) $7,306 for overbilled noncraft GEH labor rates, (3) $7,089 for overbilled craft subcontract labor rates, (4) $6,179 for overbilled equipment rates, and (5) a net underbilling of $1,893 for site security access fee rates.- $59,216 in unsupported costs, including (1) $49,212 in unsupported noncraft subcontract labor costs, (2) $7,852 in unsupported noncraft GEH labor costs, and (3) $2,152 in unsupported per diem.In addition, we determined GEH did not bill airfare and mileage costs, totaling $361,718, in accordance with the contract. Specifically, GEH billed a flat fee for airfare and mileage instead of actual costs, as provided for in the contract. However, due to lack of documentation supporting the actual costs and rates, we could not quantify the cost impact, if any.GEH did not dispute the findings totaling $28,685 related to (1) overbilled rates for noncraft GEH labor, craft subcontract labor, equipment, and site security access fees, and(2) unsupported costs for noncraft GEH labor and per diem. However, GEH disagreed with our findings related to (1) excessive noncraft subcontract labor costs, (2) costs that did not have a corresponding rate in the contract, (3) overbilled per diem rates, (4) unsupported noncraft subcontractor labor costs, and (5) airfare and mileage costs not being billed in accordance with the contract.(Summary Only)

The National Work Queue (NWQ) division generally uses the NWQ tool and ranking rules to prioritize and distribute claims across VBA’s regional offices for processing. The OIG conducted this review after discovering some claims at the NWQ division had been awaiting decisions for one year or longer. The team identified 10,541 claims aged 365 days or older that, on August 1, 2022, were at the NWQ division awaiting decision and were not distributed to a regional office. Most of these claims had been at the NWQ division for at least six months, and over 99 percent required routing to specialized teams that process special mission herbicide-related claims. Office of Field Operations (OFO) leaders limited staffing for these teams to control quality for these complex claims and balance workloads, and they generally expected the delays. However, the OIG team reviewed VBA’s oldest pending claims and identified instances in which the NWQ division’s ranking rules unintentionally contributed to delays. Additionally, by comparing the ranking scores that the NWQ tool assigned with the NWQ division’s ranking rules, the OIG team found instances in which the NWQ tool incorrectly ranked some claims, which may have affected whether those claims were distributed to regional offices. Stronger monitoring could have allowed the NWQ division to identify these issues earlier and make adjustments to ensure claims were appropriately prioritized. The team also found that OFO’s FY 2022 internal controls assessment did not evaluate claims prioritization and distribution and did not mention the NWQ division or tool. To reduce delays in claims processing, the OIG recommended strengthening the NWQ division’s monitoring of claims awaiting decision to ensure its rules are operating as intended and ensuring OFO includes the NWQ division’s functioning in its annual internal controls assessment. The recommendations have been closed based on documentation provided.

What We Looked AtWe queried and downloaded 16 single audit reports prepared by non-Federal auditors and submitted to the Federal Audit Clearinghouse between October 1, 2023, and December 31, 2023, to identify significant findings related to programs directly funded by the Department of Transportation (DOT).What We FoundWe found that reports contained a range of findings that impacted DOT programs. The auditors reported seven incidents of significant noncompliance with Federal guidelines related to four grantees that require prompt action from DOT’s Operating Administrations. Of these seven significant findings, five were repeat findings related to two grantees. The auditors also identified questioned costs totaling $10,240,600 for three grantees. Of this amount, $29,997 was related to the Gary Public Transportation Corporation, Gary, IN; $8,570,742 was related to the Navajo Nation, Window Rock, AZ; and $1,639,861 was related to the Pit River Tribe, Burney, CA. Additionally, we identified a nonmonetary repeat finding that caused a qualified opinion for the Navajo Nation.RecommendationsWe recommend that DOT coordinate with the impacted Operating Administrations to develop a corrective action plan to resolve and close the findings identified in this report. Additionally, we recommend that DOT determine the allowability of the questioned transactions and recover $29,997, if applicable. Furthermore, we recommend that OST works with FHWA to determine the allowability of the questioned tribal transactions and recover $10,210,603, if applicable.  

As of December 2023, the EPA had issued 11 Build America, Buy America Act waivers. We found that the EPA did not track the use of ten of these waivers across EPA-funded infrastructure projects. Build America, Buy America Act waivers can be categorized into two types: project-specific waivers and general applicability waivers. The Agency was unable to provide the number of award recipients that fall under either type of waiver and does not have a method in place to track this information. With approximately $60.3 billion in Infrastructure Investment and Jobs Act projects potentially subject to Build America, Buy America Act requirements, the EPA needs to develop and implement a method to track all waiver use. Without tracking the use of such waivers, the EPA may not be able to maximize use of U.S. goods, products, and materials in EPA-funded infrastructure projects.

Three Department of Homeland Security components—U.S. Customs and Border Protection (CBP), U.S. Citizenship and Immigration Services (USCIS), and U.S. Immigration and Customs Enforcement (ICE)—have separate but interconnected processes for identifying and resolving derogatory information for individuals evacuated from Afghanistan and paroled into the United States under Operation Allies Welcome (OAW).

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An Amtrak Foreman based in Providence, Rhode Island, was terminated on May 7, 2024, after an administrative hearing for repeatedly going to his residence during his shift without permission to do so and without taking the appropriate leave. Instead, the foreman did so without swiping out on a time keeping machine, which resulted in his receipt of over $2,300 in pay for hours he did not work. The former employee is ineligible for rehire.

We initiated a proactive review to determine whether the Departmental Ethics Office was identifying prohibited investments held by DOI employees.

Improper Payment Determination USITC

We reviewed whether the Risk Management Agency’s and selected approved insurance providers’ oversight of the Whole-Farm Revenue Protection Pilot Program was sufficient to ensure that approved revenues, liabilities, and indemnity payments were accurate.