Federal Reports

We retained the services of Williams, Adley, & Co.-DC LLP (Williams Adley), an independent public accounting firm, to conduct an evaluation to assess the Consumer Product Safety Commission’s (CPSC) management of its cloud systems, shared services, and third-party systems, from a legal, internal control, and contractual perspective.

This audit report includes one finding and three recommendations. Williams Adley concluded that USAC had effective internal controls for ensuring that USF contributions are accurate, timely, and include all eligible service providers, however, identified internal control weaknesses in USAC’s process for referring service providers for possible rule violations related to their contribution requirements to the FCCEnforcement Bureau (EB) for potential enforcement action.

What We Looked AtThis report presents the results of our quality control review (QCR) of the management letter that KPMG issued on its audit, under contract with us, of the Federal Aviation Administration’s (FAA) consolidated financial statements for fiscal years 2023 and 2022. This management letter discusses internal control matters that KPMG was not required to include in its audit report. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsKPMG made eight recommendations to FAA in its management letter. FAA concurred with all eight recommendations.

What We Looked AtThis report presents the results of our quality control review of KPMG LLP’s management letter for its audit, conducted under contract with us, of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2023 and 2022. The management letter discusses four internal control matters that KPMG was not required to include in its audit report. What We FoundOur quality control review of the management letter disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our RecommendationsKPMG made seven recommendations in its management letter. DOT concurred with all seven recommendations.

Memorandum to the Chairman of the Board regarding OIG's fiscal year 2023 risk assessment for the Government Charge Card Abuse Prevention Act of 2012.

Letter to Office of Management and Budget regarding OIG's fiscal year 2023 risk assessment for the Government Charge Card Abuse Prevention Act of 2012.

During a review related to VA’s Veteran Employment Through Technology Education Courses (VET TEC) pilot program, the OIG discovered VA is paying concurrent monthly housing allowance benefits to veterans who are simultaneously enrolled in Post 9/11 GI Bill and VET TEC educational programs. There is no statutory authority prohibiting concurrent payment to a veteran for Post-9/11 GI Bill and VET TEC educational benefits. However, the legislation that established VET TEC created an inconsistency compared to other VA educational benefits programs that prohibit concurrent payments of educational benefits. Congress introduced bills to continue VET TEC as a VA educational program in 2023. This memorandum is meant to convey the information necessary for the Veterans Benefits Administration (VBA) and Congress to determine if additional actions are warranted to address this inconsistency before the continuation of the program. The OIG team selected a sample of 30 unique veterans who simultaneously attended Post 9/11 GI Bill and VET TEC courses and found that all received concurrent monthly housing allowance payments. Those veterans received a total of about $164,500 in concurrent payments. Based on this sample, the team estimated about 208 veterans received concurrent payments from April 1, 2019, to February 28, 2023, for a total of $1.1 million. With the VET TEC pilot program ending in April 2024 and legislation pending to continue it as a VA educational program, VBA and Congress have an opportunity to consider whether new iterations of the VET TEC program should continue to allow veterans to receive concurrent monthly housing allowance payments while simultaneously attending Post 9/11 GI Bill and VET TEC programs.

Ever since Congress created the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) under the Emergency Economic Stabilization Act (EESA), SIGTARP has delivered for American taxpayers by performing both law enforcement and oversight functions. As a law enforcement office, SIGTARP has a proven record of identifying and investigating fraud and other crime. SIGTARP investigations have resulted in the recovery of over $11.4 billion, criminal prosecutions by the Department of Justice and others of 476 defendants—328 of them sentenced to prison, including 75 bankers. Our investigations have also resulted in enforcement actions against 25 corporations/entities, including enforcement actions against many of the largest U.S. financial institutions. As an independent watchdog, SIGTARP’s audits and evaluations consistently identified fraud, waste, abuse, ineffectiveness, inefficiency, and risk in EESA programs, and brought transparency to EESA. The Home Affordable Modification Program (HAMP) ended on April 28, 2023. According to April 2023 data, HAMP is still providing much needed foreclosure relief to more than 550,000 participating homeowners in all 50 states. The Department of the Treasury paid $124.7 million in fiscal year 2023, including a $1.8 million true-up payment made before the program closed. SIGTARP's investigations into the HAMP program have protected consumers seeking access to HAMP and who subsequently became the victims of scams. To date, SIGTARP has brought to justice 121 convicted scammers.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Report on the U.S. Customs and Border Protection’s (CBP) Detailed Accounting Report. CBP’s management prepared the Table of FY 2023 Drug Control Obligations and related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021.

We have completed a review of DOI’s progress in implementing our past audit recommendations addressing Government charge card internal controls.

A contractor agreed to reimburse Amtrak $771,813 for overbilling base labor and overhead rates on contracts that required the use of actual labor and indirect cost rates. The contractor voluntarily self-reported the overbilling to our office on July 26, 2022, after conducting internal audits related to two prior OIG investigations. On January 30, 2024, the contractor resolved these billing issues with Amtrak, covering overbilling on 22 contracts during the period from 2016 to 2022.

Review of the FLRA's Compliance with the Payment Intregity Information Act of 2019 for Fiscal Year 2023

What We Looked At This report presents the results of our quality control review of Allmond & Company LLC’s (Allmond) management letter for its audit, conducted under contract with us, of the Great Lakes St. Lawrence Seaway Development Corporation’s (GLS) financial statements for fiscal year 2023. The management letter discusses two internal control matters that Allmond was not required to include in its audit report. What We Found Our quality control review of the management letter disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our Recommendations Allmond made two recommendations in its management letter. GLS concurred with both recommendations. 

The objective of the audit was to assess the reliability, validity, and relevance of the quality control process employed by the Central Nonprofit Agencies (CNAs) and Nonprofit Agencies (NPAs) to correct product deficiencies prior to delivery.

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the Inglewood Carrier Annex in Inglewood, CA. The Inglewood Carrier Annex is in the California 5 District of the WestPac Area and services ZIP Codes 90301, 90302, 90303, 90304, and 90305. These ZIP Codes serve about 84,940 people in an urban area.Our objective was to evaluate mail delivery operations and property conditions at the Inglewood Carrier Annex in Inglewood, CA.

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the Downtown Long Beach Station in Long Beach, CA. The Downtown Long Beach Station is in the California 5 District of the WestPac Area and services ZIP Codes 90802, 90810, 90813, and 90831. These ZIP Codes serve about 134,634 people in an urban area.Our objective was to evaluate mail delivery operations and property conditions at the Downtown Long Beach Station in Long Beach, CA.

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the Dockweiler Station (also known as the Marvin Gaye Post Office) in Los Angeles, CA. The Dockweiler Station is in the California 5 District of the Westpac Area and services ZIP Codes 90006, 90007, 90018, and 90037. These ZIP Codes serve about 210,829 people in an urban area. Specifically, all of the people in these ZIP Codes are considered to live in urban communities.Our objective was to evaluate mail delivery operations and property conditions at the Dockweiler Station in Los Angeles, CA.

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 31,000 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 world‑class 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.

I am pleased to present this annual report to Congress regarding the U.S. Consumer Product Safety Commission’s (CPSC) efforts to prevent and protect trafficking victims in 2023 in accordance with the Trafficking Victims Prevention and Protection Reauthorization Act of 2022.

OIG reviewed Rural Utilities Service's award selection process for the Distance Learning and Telemedicine program in FY 2020 and FY 2021.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Review Report on the Federal Law Enforcement Training Centers’ (FLETC) FY 2023 Drug Control Budget Formulation Compliance Report. FLETC’s management prepared the Budget Formulation Compliance Report and the related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that FLETC’s FY 2023 Budget Formulation Compliance Report and related assertions are not presented in conformity with the criteria in the ONDCP Circular. Williams Adley did not make any recommendations.

The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency information security program. FISMA, Department of Homeland Security (DHS), Office of Management and Budget (OMB) and National Institute of Standards and Technology (NIST) establish information technology (IT) security guidance and standards for Federal agencies. We conducted this evaluation to assess the overall effectiveness of the Department of Housing and Urban Development’s information security (InfoSec) program, assess their compliance with Federal guidance, and respond to OMB reporting questions for the fiscal year 2023 annual assessment. HUD’s InfoSec program averaged a score of 2.60 for the 20 core metrics and a 2.86 for the FY 2023 supplemental metrics, both of which are at the “defined” maturity level and are considered not effective. Although HUD improved overall, four of the five metrics in which HUD dropped in maturity were core metrics. HUD made commendable progress on increasing maturity on 10 metrics and should continue to focus on prioritizing maturity in the 20 core metrics and key cyber executive orders and requirements. These efforts will require a shared responsibility of proper resourcing, planning, and support from all levels of leadership across the Department. We issued 23 recommendations to improve HUD’s InfoSec program.

Opportunities Exist to Strengthen the SEC’s Office of Equal Employment Opportunity Programs and Operations, Report No. 581

OIG audited EAC’s procurements from October 1, 2019, through May 1, 2023, which were executed with internal resources and exceeded the micro-purchase threshold. This included 65 procurements totaling $14.7 million. The objectives of the audit were to determine whether EAC: (1) Complied with selected requirements of the Federal Acquisition Regulation; and (2) Complied with selected provisions of the Digital Accountability and Transparency Act of 2014.

This letter responds to the Government Charge Card Abuse Prevention Act of 2012 (Charge Card Act) reporting requirement for the Federal Trade Commission (FTC) for fiscal year 2024.

This informational report provides general program information of the IIJA EWPP funding. The scope of our work included information about EWPP from June 2021 through November 2023.

The Office of Inspector General completed a final action verification of both recommendations in our December 19, 2018, report on Food Safety and Inspection Service’s Oversight of the New Poultry Inspection System (Audit Report 24601-0006-31).

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 VA Caribbean Healthcare System, which includes the San Juan VA Medical Center and multiple outpatient clinics in Puerto Rico and the US Virgin Islands. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (focusing on suicide prevention initiatives)The OIG did not issue recommendations for improvement related to the areas reviewed for this report.

The objective of the audit was to determine whether the Puerto Rico Department of Education (Puerto Rico DOE) used Immediate Aid to Restart School Operations (Restart) program funds for allowable and intended purposes. We determined that the Puerto Rico DOE did not always use Restart program funds for allowable and intended purposes. Specifically, of the approximately $8.6 million in indirect costs that the Puerto Rico DOE charged to its Restart program grant during our audit period, $2.5 million of it was not allowable. The $2.5 million in unallowable costs that the Puerto Rico DOE charged to the Restart program could have been used for allowable activities that would have assisted the Puerto Rico DOE in restarting school operations, reenrolling students, and reopening public and nonpublic elementary and secondary schools affected by the covered disaster. We also found that the Puerto Rico DOE needs to improve its management of technology devices it purchased for students and teachers using Restart program funds, and that it made several unallowable payroll payments (using Restart funds) to 3 teachers included in our statistical random sample. We made 8 recommendations to address the issues identified, including that it reallocate unallowable indirect costs it charged to the grant and ensure capitalization policies and procedures are followed.

Our 2023 organizational assessment highlights our significant accomplishments in overseeing the DOI’s programs and operations.

The U.S. Postal Service operates more than 8,500 automated systems and equipment to move and deliver nearly half the world’s mail. It deploys computer systems and equipment that manage, monitor, and control a variety of mail functions. Without proper controls, there is an increased risk of damage to essential equipment, which could result in delays in mail delivery or injury to Postal Service personnel. Whether it’s important documents — such as passports or bank statements — packages, or vital communications, the reliable processing of USPS mail is essential to ensure timely delivery.

Objective: To determine whether the Social Security Administration’s offices were complying with the requirements established in the Agency’s Mail Handling Business Process Document.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the care provided at the Columbia VA Health Care System in South Carolina. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (focusing on suicide prevention initiatives)The OIG issued four recommendations for improvement in two areas:1. Environment of care• Responding to utility system disruptions• Safe and secure environment2. Mental health• Comprehensive Suicide Risk Evaluations• Reporting suicidal behaviors

EAC OIG issued this memorandum to alert EAC's management of EAC personnel practices that may not be in accordance with EAC policies and U.S. Office of Personnel Management guidance.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Review Report on the U.S. Immigration and Customs Enforcement’s (ICE) Detailed Accounting Report. ICE’s management prepared the Table of FY 2023 Drug Control Obligations and related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that ICE’s FY 2023 Detailed Accounting Report and related assertions are not presented in conformity with criteria in the Circular. Williams Adley did not make any recommendations.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Report on the U.S. Customs and Border Protection’s (CBP) FY 2023 Drug Control Budget Formulation Compliance Report. CBP’s management prepared the Budget Formulation Compliance Report and the related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that CBP’s FY 2023 Budget Formulation Compliance Report and related assertions are not presented in conformity with the criteria in the ONDCP Circular. Williams Adley did not make any recommendations.

In fiscal years 2019 through 2021, U.S. Immigration and Customs Enforcement’s (ICE) Health Service Corps (IHSC) did not always properly process and authorize major surgical procedures for noncitizens in ICE custody. Per IHSC’s process, only designated Regional Clinical Directors (RCD) or Clinical Directors (CD) are qualified to review authorizations for medical necessity and approve major surgical procedures performed by off-site providers.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Review Report on the U.S. Immigration and Customs Enforcement’s (ICE) FY 2023 Drug Control Budget Formulation Compliance Report. ICE’s management prepared the Budget Formulation Compliance Report and the related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that ICE’s FY 2023 Budget Formulation Compliance Report and related assertions are not presented in conformity with the criteria in the ONDCP Circular. Williams Adley did not make any recommendations.

In accordance with the Office of the Inspector General's Fiscal Year (FY) 2024 Annual Plan, we will review the Defense Intelligence Agency's (DIA's) compliance with the Payment Integrity Information Act and related implementation guidance. We plan to perform this evaluation with the National Capital Region, in accordance with the Council of the Inspectors General on Integrity and Efficiency's Quality Standards for Inspection and Evaluation.

In accordance with the Office of the Inspector General's fiscal year (FY) 2024 Annual Plan we will audit the Agency's FY 2024 financial statements. The objective of this audit is to evaluate the reliability of data supporting the financial statements, determine the reasonableness of the statements produced, and examine disclosures in accordance with applicable guidance.

In accordance with the Office of the Inspector General's fiscal year 2024 Annual Plan, we have established an agile risk-based approach to select oversight engagements. Based on this, we will audit the results of the Defense Intelligence Agency's (DIA's) budget execution and acquisition planning processes. Our objective is to determine whether DIA continuously applied strategies to optimize the use of funds and took timely monitoring actions to maximize funding of mission requirements.

Audit of the Federal Labor Relations Authority’s Charge Card Program and Risk Assessment for Fiscal Year 2023

his Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the care provided at the Veterans Integrated Service Network 22: VA Desert Pacific Healthcare Network in Long Beach, California. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff credentialing and privileging• Environment of care• Mental health (suicide prevention) The OIG issued two recommendations for improvement in the following topic areas:1. Quality, safety, and value• Peer review summary data2. Medical staff credentialing and privileging• Credentials files and appointment process for physicians with potentially disqualifying licensure actions

We reviewed the Environmental Quality Incentives Program payment schedule process, including the methodology for cost estimates, and corrective actions Natural Resources Conservation Service took in response to prior EQIP audit recommendations.

Williams, Adley & Company – DC, LLP (Williams Adley), under contract with the Department of Homeland Security Office of Inspector General, issued an Independent Accountant’s Report on the Federal Law Enforcement Training Centers’ (FLETC) FY 2023 Drug Control Detailed Accounting Report. FLETC’s management prepared the Table of FY 2023 Drug Control Obligations and related assertions to comply with the requirements of the ONDCP Circular, National Drug Control Program Agency Compliance Reviews, dated September 9, 2021. Based on its review, nothing came to Williams Adley’s attention that caused it to believe that FLETC’s FY 2023 Detailed Accounting Report and related assertions are not presented in conformity with the criteria in the Circular. Williams Adley did not make any recommendations.

While conducting our annual audit of the U.S. Department of Housing and Urban Development’s (HUD or Department) compliance with the Payment Integrity and Information Act, HUD’s Office of the Chief Financial Officer (OCFO) informed my office that the Department will once again be unable to estimate improper payments 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 for fiscal year (FY) 2023. These are the two largest program expenditures in HUD's portfolio, totaling $45.3 billion in FY 23, or 67.5 percent of HUD's total expenditures.

For our audit of the Department's multifactor authentication (MFA) for its high value assets (HVA), our objective was to determine whether the Department has implemented MFA for its HVAs in accordance with zero trust architecture (ZTA) principles. To address this objective, we determined the extent to which four selected bureaus had implemented MFA for their HVAs in accordance with Office of Management and Budget requirements. The four selected bureaus were the Bureau of Economic Analysis (BEA), the U.S. Census Bureau (Census), the National Institute of Standards and Technology (NIST), and the National Telecommunications and Information Administration (NTIA).We were able to exploit a weak MFA implementation to gain access to one NTIA system through a simulated phishing attack. We also found that none of the five selected HVAs had fully implemented all three OMB requirements: 1. phishing-resistant MFA, 2. application-layer MFA, and 3. modern password policies.Specifically, we found: I. NTIA Did Not Implement Adequate MFA to Protect an HVA Against Phishing AttacksII. Selected Bureaus Had Not Fully Implemented MFA for Their HVAs in Accordance with ZTA Principles

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the New Brighton Carrier Annex in Saint Paul, MN . The New Brighton Carrier Annex is in the Minnesota-North Dakota District of the Central Area and services ZIP Code 55112. This ZIP Code serves about 46,721 people in an urban area.Our objective was to evaluate mail delivery operations and property conditions at the New Brighton Carrier Annex in Saint Paul, MN.

This interim report presents the results of our self-initiated audit of delivery operations and property conditions at the Apple Valley Branch in Saint Paul, MN. The Apple Valley Branch is in the Minnesota-North Dakota District of the Central Area and services ZIP Code 55124. This ZIP Code serves about 56,297 people in a predominantly urban area.Our objective was to evaluate mail delivery operations and property conditions at the Apple Valley Branch in Saint Paul, MN.

This audit report shows Kearney found that the FCC made significant progress during the scope period covered by the audit. However, improvements were needed. In the attached audit report, dated January 22, 2024, Kearney noted five findings and 12 recommendations.

What We Looked AtThis report represents the results of our quality control review (QCR) of Allmond & Company, LLC’s (Allmond) management letter regarding the audit conducted, under contract with us, of the Surface Transportation Board’s (STB) financial statements as of and for the fiscal years ended September 30, 2023, and September 30, 2022. The management letter discusses internal control matters that Allmond was not required to include in its report on the audit of STB’s financial statements. What We FoundOur QCR of the management letter disclosed no instances in which Allmond did not comply, in all material respects, with generally accepted Government auditing standards.Our RecommendationsAllmond made three recommendations in its management letter. STB concurred with all three recommendations.