Federal Reports

The National Credit Union Administration (NCUA) Office of Inspector General's (OIG) Semiannual Report to the NCUA Board and the Congress highlights accomplishments and ongoing work for the 6-month period ending September 30, 2023. The OIG's work reflects the legislative mandate of the Inspector General Act of 1978, as amended, to promote the economy, efficiency, and effectiveness of NCUA programs and operations, and protect against fraud, waste, and abuse. The audits and investigations highlighted in this report demonstrate our commitment to that cause as well as our goal of enhancing public confidence in the NCUA’s regulatory process.

We are pleased to present our report for the period April 1, 2023, to September 30, 2023. In this semiannual period, our audit, evaluation, and investigative activities identified more than $67.7 million in questioned costs; funds to be put to better use; recoveries, fees, and fines; waste/other monetary loss; and opportunities for TVA to improve its programs and operations.TVA relies on contractors and vendors to access materials, build and maintain assets, and innovate new technology to support and advance operations. Just as the world has experienced supply chain issues and workforce shortages, TVA must compete for resources required to expand generation, meet carbon reduction goals, and maintain aging generation assets. Our office supports TVA’s efforts by focusing resources to (1) find ways to save and recover costs, (2) identify operational risks that could impact TVA’s ability to execute its mission, and (3) detect and prevent fraud, waste, and abuse. TVA has served the people of the Tennessee Valley for 90 years. Our imperative to help make TVA better is how we serve the 10 million people of the Tennessee Valley.

The Semiannual Report to Congress summarizes the results of VA OIG oversight, provides statistical information, and lists all 169 work products issued from April 1 to September 30, 2023. During this reporting period, VA OIG audits, evaluations, investigations, inspections, and other reviews identified more than $1.14 billion in monetary impact for a return on investment of $11 for every dollar spent. The OIG hotline received and triaged over 18,000 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 230 investigations and closed 190, with efforts leading to 95 arrests. Collectively, the OIG’s work also resulted in 581 administrative sanctions and corrective actions during the six-month reporting period.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2023 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

This Office of Inspector General Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the inpatient and outpatient care provided at the Veterans Health Care System of the Ozarks, which includes the Fayetteville VA Medical Center and multiple outpatient clinics in Arkansas, Missouri, and Oklahoma. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (emergency department and urgent care center suicide prevention initiatives)The OIG issued five recommendations for improvement in four areas:1. Leadership and Organizational Risks• Institutional disclosures for sentinel events2. Medical Staff Privileging• Service-specific criteria in Ongoing Professional Practice Evaluations3. Environment of Care• Contaminated, damaged, expired, or recalled medical supplies• Notices in treatment areas subject to photography or video recording4. Mental Health• Safety plans for patients discharged from the Emergency Department with a positive suicide risk screen

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

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

The VA Office of Inspector General (OIG) conducted this review to assess whether the Veterans Health Administration (VHA) maintains price consistency across vendors and contracts when purchasing prescription eyeglasses for veterans.In fiscal year 2022, VHA spent about $127.9 million to provide eyeglasses to nearly 1.4 million veterans. Contract vendors provided 85 percent of these eyeglasses, with two vendors supplying approximately 82 percent through multiple regional contracts. The review team determined that contract prices and pricing structures for the same or similar eyeglasses differed by contract for these two vendors, sometimes more than $10 per item from the same vendor. In most instances, contract files did not include evidence to suggest that contracting officers discussed and compared pricing prior to awarding contracts, nor was there information on why prices might differ for the same or similar eyeglasses.VHA has opportunities to use strategic sourcing strategies for eyeglasses to improve consistent pricing, particularly on multiple contracts from the same vendor. Such strategies could include developing a pricing catalog or national contracts. The executive director of VHA’s prosthetic services office told the OIG review team of plans to establish such a national contract for VHA’s community care program to prescribe and provide about 459,000 eyeglasses annually over five years. Even if that contract is executed, VHA could still save $2.9 million annually by improving price consistency on VA-prescribed eyeglasses from these two vendors.The OIG made two recommendations to the under secretary for health: coordinate program offices to develop and implement a sourcing strategy for VA-prescribed eyeglasses from contract vendors, and implement a process to assist contracting officers in collaborating to ensure the best pricing for similar products.

The Chief Financial Officers Act of 1990 requires the Inspector General to audit the agency’s financial statements each year, which is intended to help improve an agency’s financial management and controls over financial reporting. For FY 2023, the independent auditor issued a disclaimer of opinion as it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because of unresolved errors identified in the underlying data used to calculate the subsidy re-estimates for the Department’s direct loan and loan guaranty programs. The auditors identified one material weakness related to the Department’s Direct and FFEL student loan portfolios, and two significant deficiencies related to information technology controls and entity-level controls. The auditors also noted the Department did not substantially meet requirements of the Federal Managers Financial Integrity Act. See page 100 for the audit.

The Chief Financial Officers Act of 1990 requires the Inspector General to audit the agency’s financial statements each year, which is intended to help improve an agency’s financial management and controls over financial reporting. The Inspector General is also required to audit the Federal Student Aid (FSA) office’s financial statements, as it is a Performance-Based Organization. For FY 2023, the independent auditor issued a disclaimer of opinion as it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because of unresolved errors identified in the underlying data used to calculate the subsidy re-estimates for the FSA’s direct loan and loan guaranty programs. The auditors identified one material weakness related to the Direct and FFEL student loan portfolios, and two significant deficiencies related to information technology controls and entity-level controls. See page 168 for the audit.

U.S. International Development Finance Corporation (DFC), Office of Inspector General’s (OIG) Semiannual Report to Congress for the reporting period of April 1, 2023, through September 30, 2023, in accordance with the Inspector General Act of 1978, as amended (IG Act).

Audit of the Federal Labor Relations Authority’s Financial Statements for FiscalYear 2023

AU-C 265 Management Letter

Statement on Auditing Standards AU-C 260 Letter

This Office of Inspector General Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the inpatient and outpatient care provided at the Overton Brooks VA Medical Center and multiple outpatient clinics in Arkansas, Louisiana, and Texas. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (emergency department and urgent care center suicide prevention initiatives)The OIG issued 15 recommendations for improvement in three areas:1. Medical Staff Privileging• Focused Professional Practice Evaluation completion• Equivalent specialized training and similar privileges• Service-specific criteria• Privileging and reprivileging recommendations2. Environment of Care• Inspection frequency• Naloxone in Automated External Defibrillator cabinets• Expired supplies• Clean floors• Safe and functional environment• Furnishings safe and in good repair• Damaged walls• Stained ceiling tiles• Signage in areas with recording equipment3. Mental Health• Assessment of lethality of most recent suicide attempt

The U.S. Small Business Administration (SBA) Office of Inspector General (OIG) contracted with the independent certified public accounting firm KPMG LLP to conduct an audit of SBA’s consolidated balance sheets as of September 30, 2023 and 2022 and the related notes to these statements. Our contract with KPMG required that the audit be performed in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirements for Federal Financial Statements.In the audit, KPMG reported significant matters for which they were unable to obtain sufficient and appropriate audit evidence to provide a basis for an audit opinion on SBA’s balance sheet as of September 30, 2023. Accordingly, KPMG issued a disclaimer of opinion on the consolidated balance sheets as of September 30, 2023 and 2022.The basis for the disclaimer was that due to inadequate processes and controls, SBA was unable to provide adequate evidential matter in support of a significant number of transactions and account balances related to the Paycheck Protection Program, Economic Injury Disaster Loan program, the Restaurant Revitalization Fund, and Shuttered Venue Operators Grant program.As a result, KPMG was unable to determine whether any adjustments might have been necessary with respect to the following line items and the related notes:- Credit Program Receivables and Related Foreclosed Property, Net- Other than Intragovernmental Accounts Receivable, Net- Downward Reestimate Payable to Treasury- Loan Guarantee LiabilitiesFor the period ended September 30, 2023, KPMG identified six material weaknesses and three significant deficiencies in internal control over financial reporting. Appendices I and II of this report describe details of KPMG’s conclusions about the material weaknesses and significant deficiencies. Appendix III describes instances of noncompliance with applicable laws or other matters required to be reported under Government Auditing Standards or OMB Bulletin No. 24-01.

Results of the audit of the Commission’s financial statements for the fiscal year ended September 30, 2023 and 2022

This report summarizes what the inspector general considers to be “the most serious management and performance challenges facing the agency” and briefly assesses the Agency’s progress in addressing those challenges.

The objective of this independent evaluation was to assess the compliance of the Commission’s information security policies, procedures, and standards and guidelines with the Federal Information Security Modernization Act (FISMA).

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm Harper, Rains, Knight, & Company, P.A. (HRK) to audit the Commission’s financial statements and related footnotes as of September 30, 2023, and for the year then ended.

The report presents information on independent audits with findings pertaining to the Higher Education Emergency Relief Fund (HEERF) and audit resolution activities conducted by the U.S. Department of Education. Our review focused on independent audits of HEERF recipients from April 2020 through June 2023. We found that the number of independent audits with findings pertaining to HEERF and requiring resolution by the Office of Finance and Operations (OFO) increased significantly over the past few years, as did the number of audits with complex findings as determined by OFO staff. However, the number of staff assigned to audit resolution activities remained relatively constant during this same period—resulting in a more than fourfold increase in the number of audits assigned for resolution per person. OFO is now facing a significant backlog of outstanding HEERF audits requiring resolution and without immediate action, the timeliness and effectiveness of the resolution of HEERF audit findings could be reduced. We recommended that OFO assess its workload demands and evaluate the sufficiency of the staffing level assigned to HEERF audit resolution activities.

The attached report presents the results of an integrated audit of the Department of Homeland Security’s consolidated financial statements for fiscal years 2023 and 2022 and internal control over financial reporting as of September 30, 2023. This audit is required by the Chief Financial Officers Act of 1990, as amended by the Department of Homeland Security Financial Accountability Act (October 16, 2004).

We have audited the accompanying Reclassified Financial Statements of the U.S. Postal Service, which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report - Reclassified Balance Sheet as of September 30, 2023, and the related GTAS Reconciliation Reports - Reclassified Statement of Net Cost and Reclassified Statement of Operations and Changes in Net Position, for the year then ended (hereinafter referred to as the reclassified financial statements) and accompanying Note 37. In our opinion, the reclassified financial statements referred to above present fairly, in all material respects, the financial position of the Postal Service as of September 30, 2023, and its net costs and changes in net position for the year then ended in accordance with U.S. generally accepted accounting principles.

Independent Auditor's Report and Financial Statements for the Fiscal Year 2023

Recent DFC OIG audits and investigations have revealed four Top Management Challenges (TMCs) facing DFC in FY 2024. These challenges are similar to the TMCs identified in FY 2023, which is not surprising because DFC is a relatively new and evolving organization. Indeed, we expect these challenges to continue over the next several years. The challenges include (1) Improve Monitoring and Evaluating Actual Development Impact; (2) Improve Performance Management, Traceability, Accuracy, and Availability of Project Data as DFC’s Commitments Grow; (3) Balance Heightened Expectations of Congress and Stakeholders While Managing Reputational Risks; and (4) Maintain Efficient Growth and Development.

DFC OIG contracted with the independent public accounting firm RMA Associates, LLC (RMA) to audit the consolidated financial statements of the United States International Development Finance Corporation (DFC) for the fiscal years ended September 30, 2023 and 2022, report oninternal control over financial reporting, and report on compliance with laws and other matters. The contract required the audit to be performed in accordance with U.S. generally accepted auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual.

Each year, in compliance with Public Law 106-531, the Reports Consolidation Act of 2000, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), issues a report summarizing what we consider the most serious management challenges facing the Department.

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of HUD as of and for the fiscal years ended September 30, 2023 and 2022, and to provide reports on HUD’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA). Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of HUD, CLA reportedThat HUD’s financial statements as of and for the fiscal years ended September 30, 2023 and 2022, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.No material weaknesses for fiscal year 2023 in internal control over financial reporting, based on limited procedures performed.One significant deficiency for fiscal year 2023 in internal control over financial reporting, based on the limited procedures performed. The significant deficiency was related to HUD’s financial reporting controls over grant accruals and the Office of Public and Indian Housing’s cash management process.One reportable matter for fiscal year 2023 of noncompliance with provisions of applicable laws, regulations, contracts, and grant agreements and other matters. The reportable matter related to HUD’s noncompliance with the Single Audit Act.In connection with the contract, we reviewed CLA’s reports and related documentation and questioned its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express and we do not express opinions on HUD’s financial statements or conclusions about (1) the effectiveness of HUD’s internal control over financial reporting; (2) HUD’s compliance with laws, regulations, contracts, and grant agreements or other matters; or (3) whether HUD’s financial management systems complied substantially with the three FFMIA requirements. CLA is responsible for the attached Independent Auditors’ Report, dated November 15, 2023, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.HUD’s financial statements are included in HUD’s Agency Financial Report which can be found at afr2023 (hud.gov).

Financial Statement Opinion 2023

Each year, increased package volume and operational changes during the peak mailing season (peak season) — Thanksgiving through New Year’s Eve — significantly strain the Postal Service’s processing and distribution networks. To help handle this increase, the Postal Service creates peak season initiatives. These preparedness initiatives are meant to help the Postal Service have the right amount of personnel, resources, and package capacity throughout its processing, transportation, and delivery networks.We evaluated the Postal Service’s preparedness for the FY 2024 peak season. We also conducted fieldwork at high performing processing and distribution centers and associated offices to assess best practices and lessons learned.

This audit report shows Kearney’s reports include an opinion report on the Federal Communications Commission’s(FCC) financial statements, a report on internal control over financial reporting, and a report oncompliance and other matters. Kearney found that the financial statements were fairly presentedin all material respects, in conformity with U.S. generally accepted accounting principles. Inaddition, Kearney did not find any reportable instances of noncompliance with laws, regulations,and contracts applicable to FCC.

In accordance with the Accountability of Tax Dollars Act, we have audited the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC). EEOC's financial statements comprise the consolidated balance sheets as of September 30, 2023, and 2022, and the related consolidated statements of net cost and changes in net position, and combined statements of budgetary resources for the fiscal years then ended, and the related notes to the financial statements.

We contracted with the independent public accounting firm Ernst & Young LLP to audit NASA’s fiscal year 2023 financial statements. For the 13th year in a row, this audit resulted in a “clean” or unmodified opinion.

What We Looked AtWe contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation’s (DOT) consolidated financial statements as of and for the fiscal years ended September 30, 2023, and September 30, 2022. KPMG was required to provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract also required KPMG to perform the audit in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Governmental Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review of KPMG’s report dated November 13, 2023, and related documentation, and inquired of its representatives. What We FoundOur quality control review disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our RecommendationsDOT concurred with KPMG’s nine recommendations. We agree with KPMG’s recommendations and are not making any additional recommendations.

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of HUD as of and for the fiscal years ending September 30, 2024 and 2023, and to provide reports on HUD’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA).  Our contract with Sikich required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.

In its audit of HUD, Sikich reported

That HUD’s financial statements as of and for the fiscal year ending September 30, 2024, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.

No material weaknesses for fiscal year 2024 in internal control over financial reporting, based on limited procedures performed.

One significant deficiency for fiscal year 2024 in internal control over financial reporting, based on the limited procedures performed.  The significant deficiency was related to HUD’s financial reporting controls over grant accruals. 

No reportable noncompliance issues for fiscal year 2024 with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.

In connection with the contract, we reviewed Sikich’s reports and related documentation and questioned its representatives.  Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express and we do not express opinions on HUD’s financial statements or conclusions about (1) the effectiveness of HUD’s internal control over financial reporting; (2) HUD’s compliance with laws, regulations, contracts,  and grant agreements or other matters; or (3) whether HUD’s financial management systems complied substantially with the three FFMIA requirements.  Sikich is responsible for the attached Independent Auditors’ Report, dated November 15, 2024, and the conclusions expressed therein.  Our review disclosed no instances in which Sikich did not comply, in all material respects, with U.S. generally accepted government auditing standards.

HUD’s financial statements are included in HUD’s Agency Financial Report which can be found at  afr2024.pdf.

We found the EPA’s financial statements to be fairly presented and free of material misstatement.

As required by the Accountability of Tax Dollars Act of 2002, the Peace Corps prepared its financial statements and subjected them to audit in accordance with the Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting Requirements. Peace Corps OIG contracted with Williams, Adley & Company-DC LLP, an independent certified public accounting firm, to audit the Peace Corps’ financial statements as of September 30, 2023. The audit was conducted in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Generally Accepted Accounting Principles, issued by the Comptroller General of the United States; and OMB Bulletin No. 24-01, Audit Requirements for Federal Financial Statements.

In accordance with the Reports Consolidation Act of 2000, the OIG reports annually on the most serious management and performance challenges the Department faces. For FY 2024, we identified seven management challenges for the Department: (1) Implementing pandemic relief laws for elementary and secondary education; (2) Implementing pandemic relief laws for higher education; (3) Oversight and monitoring of student financial assistance programs; (4) Oversight and monitoring of grantees; (5) Data quality and reporting; (6) Improper payments, and (7) Information technology security. The report includes a summary of each challenge, a brief assessment of the Department’s progress in addressing each challenge, and shares information on further actions that, if properly implemented, could enhance the effectiveness of the Department’s programs and operations.

Section 26a of the Tennessee Valley Authority (TVA) Act requires TVA's approval prior to construction, operation, or maintenance of any dam, appurtenant works, or other obstruction affecting navigation, flood control, or public lands or reservations across, along, or in the Tennessee River and its tributaries. Title 18, Code of Federal Regulations (CFR), Part 1304.1 1304.412, Approval of Construction in the Tennessee River System and Regulation of Structures and Other Alterations (18 CFR §§ 1304.1 1304.412) contains regulations related to the application process and information on what is allowable under a Section 26a permit. Additionally, 18 CFR §§ 1310.1–1310.3, Administrative Cost Recovery requires applicants pay TVA fees for its review of Section 26a permit applications. TVA’s Natural Resources group has also established a series of stewardship guidelines to provide guidance for effective, consistent management of TVA reservoir land and natural resources that includes the Section 26a permit process. Due to a concern identified in public comments prior to a TVA Board of Directors meeting, as well as concerns reported to the Office of the Inspector General EmPowerline®, we performed an evaluation to determine if Section 26a permits were being effectively managed. We determined Section 26a permits were not being managed effectively by TVA. Specifically, we found: • TVA is not complying with requirements to recover all the associated cost of permits in accordance with 18 CFR § 1310.3. When costs associated with processing Section 26a permits are not recovered from applicants, TVA’s ratepayers are effectively subsidizing the Section 26a permitting process.• TVA’s oversight of the Section 26a permit process is inadequate. The oversight concerns are related to TVA: (1) performing minimal compliance oversight, (2) not providing oversight to ensure violations and encroachments are addressed in a timely or consistent manner, and (3) inconsistently documenting permit noncompliances as violations and encroachments. • Instances of noncompliance with 18 CFR §§ 1304.1–1304.412 related to permit application requirements and multiple instances of poor recordkeeping. TVA is responsible for managing the Tennessee River system. An important part of that responsibility is to ensure obstructions affecting navigation, flood control, or public lands across, along, or in the Tennessee River and its tributaries are built and maintained to protect the safety of all river users and the environment. TVA manages these responsibilities through the Section 26a permit process. However, based on the issues identified during our review, TVA’s oversight is not adequate to ensure the Section 26a permit process is effective.

The VA Office of Inspector General (OIG) conducts financial efficiency inspections to assess the VA healthcare systems’ oversight and stewardship of funds and to identify opportunities for achieving cost efficiencies. The OIG identified several opportunities for improvement in four areas: accrued expense oversight, purchase card use, inventory and supply chain management, and pharmacy operations.The team reviewed a sample of outstanding accrued expenses for goods or services ordered, obligated, and received but not paid for and due in the current accounting period. Following the review, the team projected that 57 percent of outstanding accruals amounting to an estimated $4.6 million were not supported by documentation such as an invoice and should have been used for other purposes to benefit veterans.Regarding purchase card use, the inspection team projected the healthcare system had noncompliance errors in at least 6,800 purchase card transactions, totaling at least $6.7 million. These errors frequently lead to improper payments.The team identified discrepancies in three inventory storage areas between what was reported in the inventory system and what was physically present. For items reviewed by the team, the system records were overstated by almost 38,800 items (about 99 percent) totaling over $2.1 million. Errors could diminish the healthcare system’s ability to effectively budget for the purchase of supplies to meet patient care needs.Finally, the team observed a growing gap between observed and expected drug costs. In FY 2020 observed drug costs were almost $2.8 million more than expected; in FY 2021, about $3.8 million; and in FY 2022, over $5 million. Anticipating drug costs and knowing when to restock helps a healthcare system maintain needed supplies and make the best use of appropriated funds.The team made nine recommendations to improve oversight.

The VA Office of Inspector General (OIG) conducted a healthcare inspection to assess allegations of delays in the receipt of patients’ colorectal cancer screening tests at the Phoenix VA Health Care System (facility) in Arizona. The OIG substantiated that 406 patient fecal immunochemical tests (FITs) were held in a non-VA warehouse due to an unpaid postage bill by the facility. The delay resulted in laboratory staff’s inability to process 403 (99 percent) FITs because they were outside the specimens’ 15-day stability period.The OIG did not substantiate a delay in further evaluation and care for the patients whose FITs were outside of the stability period and could not be tested or that patients’ personally identifiable information was not protected. The OIG found that facility staff’s plan for follow-up and efforts to ensure the patients received further evaluation and care were timely and thorough. The OIG did not identify adverse clinical outcomes for the 31 patients reviewed.After finding that patients had not recorded the specimen collection date (required to determine stability) on 86 percent of the delayed FITs, the OIG reviewed and identified concerns with the facility’s FIT processes. The OIG found the facility’s pre-printed FIT label did not include a space for the patient to record the date of collection, the laboratory manager and staff lacked knowledge and clarity about FIT stability, and primary care staff were unaware of the importance of the collection date.The OIG determined that facility and service line leaders missed opportunities to evaluate and resolve identified FIT labeling issues that were indicative of broader laboratory FIT processing failures. The OIG made two recommendations to the VISN Director related to oversight of laboratory FIT processing and three recommendations to the Facility Director related to ensuring compliance with FIT processes and ensuring specimen stability.

Audit Report for the FEC's FY 23 Annual FS Audit

The Office of the Inspector General contracted with the independent certified public accounting firm Ernst & Young LLP to audit: (1) the Social Security Administration’s (SSA) consolidated financial statements as of September 30, 2023 and the related notes to the consolidated financial statements; (2) the sustainability financial statements, including the statements of social insurance as of January 1, 2023 and the related notes to the sustainability financial statements; and (3) the statements of changes in social insurance amounts for the periods January 1, 2022 to January 1, 2023. The OIG also contracted with Ernst & Young to provide an opinion on internal control over financial reporting and report on compliance with laws, regulations, contracts, grant agreements, and other matters and to report on whether SSA’s financial management systems did not comply substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA). The contract requires that the audit be conducted in accordance with auditing standards generally accepted in the United States; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirements for Federal Financial Statements. Those Standards and Bulletin require that Ernst & Young plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement and whether effective internal control over financial reporting was maintained in all material respects.

This report identifies three management challenges confronting AmeriCorps in fiscal year (FY) 2024 and beyond:· Improving financial management;· Prioritizing grant fraud prevention and detection in its programs; and· Modernizing and securing information technology.While it does not rise to the significance of a management challenge, we believe that AmeriCorps will be challenged in the future if American Rescue Plan (ARP) funding is not effectively used during FY 2024. We identified Effective Use of American Rescue Plan Funding as an emerging challenge, which is discussed later in this report.

In the audit of the Commission's financial statements for 2023 and 2022, we reported the following: - The Commission’s financial statements for fiscal years ending September 30, 2023 and 2022, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; - Identified no material weaknesses in internal control over financial reporting and grant origination; and - Identified no instances of reportable noncompliance for fiscal year 2023 with provisions of applicable law, regulations, contracts, and grant agreements tested.