Federal Reports

The objective of this audit was to assess the effectiveness of communications with stakeholders and identify successes, opportunities, and lessons learned during the launch of the new S&DCs. Specifically, we focused on the first six S&DCs opened in November 2022 and February 2023. We also reviewed the first Parcel Distribution Center opened in November 2022.

Our objective was to evaluate the U.S. Postal Service’s strategic plan for and performance of the SIPS machine. To complete our evaluation, we reviewed the business case justification for the machines and analyzed package sorter usage data. We also conducted observations at judgmentally selected mail processing facilities, interviewed management, and determined reasons for high or low performance.

What We Looked AtThe Federal Information Security Modernization Act of 2014 (FISMA) requires agencies to implement information security programs. FISMA also requires agencies to have annual independent evaluations performed to determine the effectiveness of their programs and report the results of these reviews to the Office of Management and Budget (OMB). To meet this requirement, the Surface Transportation Board (STB) requested that we perform its fiscal year 2023 FISMA review. We contracted with Williams Adley & Company-DC LLP (Williams Adley), an independent public accounting firm, to conduct this audit subject to our oversight. The audit objective was to determine the effectiveness of STB’s information security program and practices in five function areas—Identify, Protect, Detect, Respond, and Recover. What We FoundWe performed a quality control review (QCR) of Williams Adley’s report and related documentation. Our QCR disclosed no instances in which Williams Adley did not comply, in all material respects, with generally accepted Government auditing standards. Our RecommendationsWhile there are no new recommendations issued for fiscal year 2023, STB concurs with the audit’s findings with respect to the five open recommendations remaining from the fiscal year 2021 FISMA audit.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Robert E. Lamb, Inc., (Lamb) to provide architectural engineering services to assist with site selection, final programming, and schematic design for a new control center under Contract No. 13659 (formerly Contract No. 11638). Our audit objective was to determine if costs were billed in accordance with the terms of the contract. Our audit scope included about $20.7 million in costs billed to TVA from July 15, 2018, through September 15, 2022.In summary, we determined Lamb billed TVA:$873,147 in costs not provided for in the contract, including (1) $449,311 in equipment costs, (2) $345,503 in insurance costs, and (3) $78,333 in other direct costs. $67,691 in other ineligible costs and incorrect billing rates, including (1) $47,674 in ineligible markups on subcontract costs, (2) $15,784 in ineligible travel costs, and (3) a net $4,233 in labor billing rate errors.We also noted opportunities to improve contract administration by TVA. Specifically, we determined (1) TVA paid Lamb $3,239,091 in construction management fees, although fee was already being paid to Lamb through the contract's time and material labor billing rates; (2) Lamb started and completed work on one purchase order, totaling $484,710, prior to approval by TVA; and (3) TVA could have saved between $40,741 and $113,416 if the contract had included temporary living allowance provisions.(Summary Only)

The Office of the Inspector General conducted a review of the Magnolia Combined Cycle Plant (MCC) to identify factors that could impact MCC’s organizational effectiveness. During interviews, MCC personnel revealed positive interactions with team members and most management. However, we identified issues that could negatively impact MCC’s effectiveness, if not addressed. These issues include (1) improvements needed with work packages and (2) staffing concerns.

Our objective was to perform procedures agreed to by the OPM’s Chief Financial Officer to assist the OPM in assessing the reasonableness of retirement, health benefits, and life insurance withholdings and contributions as well as enrollment information submitted via the Supplemental Semiannual Headcount Report (Headcount Report). We applied the agreed-upon procedures to the payroll periods ended August 26, 2022, October 7, 2022, and February 24, 2023; and the enrollment information reported in the Headcount Report for September 2022 and March 2023.

Peer review for the year ended March 31, 2023.

We identified 1,111 spouses who were receiving Old-Age, Survivors and Disability Insurance benefits but did not appear to have a child in their care. These spouses may not have been entitled to the benefits they were receiving.

The Department of Homeland Security has limited ability to track migrants’ post-release addresses accurately and effectively. U.S. Border Patrol (USBP) cannot always obtain and does not always record migrant addresses, and U.S. Immigration and Customs Enforcement (ICE) does not always validate migrant addresses prior to migrant release into the United States.

The Appeals Modernization Act (AMA) of 2017 charged VA with establishing a new process for more quickly and transparently reviewing benefit claims decisions with which veterans disagree.VA implemented the AMA in 2019, and though it largely focuses on Veterans Benefits Administration benefits decisions, it also applies to those made by the Veterans Health Administration (VHA), such as clothing allowances related to prosthetics use and reimbursement of non-VA emergency care. The VA Office of Inspector General (OIG) previously reported on difficulties with the appeals modernization rollout. Additional concerns prompted this review to determine whether VHA processed and tracked appeals of benefits decisions in accordance with the AMA’s requirements and two VHA interim policy notices.Based on a nonstatistical sample of 180 decision reviews initiated between February 19, 2019, and June 27, 2022, the OIG found• VHA program offices did not give claimants the information needed to initiate higher-level reviews and supplemental claims regarding benefits decisions. Before VHA can process decision reviews, both the AMA and VHA’s interim policy notices require that claimants receive an explanation as to why a claim was denied, steps for seeking further review of a denied benefit, and other information.• VHA did not accurately track reviews because it did not implement effective systems, sufficient policies, or adequate training. VHA’s many programs were operating independently, and most did not have effective tracking systems. VHA’s two interim policy notices required tracking but lacked specificity and were in effect for only one year each. By not effectively tracking reviews, VHA risks not processing reviews or not granting veterans the benefits to which they are entitled.The OIG made 14 recommendations to the under secretary for health to improve information given to claimants, centralize intake, and better track and standardize retention of decision reviews.

A large population of veterans could be eligible for compensation for Gulf War illness, which refers to a group of unexplained or ill defined chronic symptoms found in veterans deployed to the Persian Gulf during Operations Desert Storm and Desert Shield. The VA Office of Inspector General (OIG) conducted this review to determine whether the Veterans Benefits Administration (VBA) processes disability claims related to this illness in accordance with applicable VA regulatory requirements.The OIG found that VBA’s Gulf War illness claims process did not ensure that all requirements were met before claims processors decided disability compensation claims. As a result, VBA prematurely decided an estimated 3,200 of the 13,800 Gulf War illness claims (23 percent) completed from October 1, 2021, through March 31, 2022, leading to at least $5.1 million in improper overpayments for those six months. Moreover, the team found that premature decisions are apt to continue due to shortcomings in exam requests and exam findings. About 5,500 of the 13,800 claims reviewed (40 percent) had medical examinations that did not contain the necessary information or related documentation.Among the shortcomings were that examination requests do not provide a full definition of some key terms. For example, while undiagnosed illnesses are defined, the instructions do not indicate what is needed to determine whether a veteran has a medically unexplained illness. Disability benefits questionnaires used for evaluating claims for Gulf War illnesses also do not ask specific questions that would show how a condition meets requirements to be an undiagnosed illness.The OIG made five recommendations to update instructions, definitions, and diagnostic criteria provided to examiners and clarify for claims processors that all regulatory requirements must be met to award benefits.

The U.S. Environmental Protection Agency Office of Inspector General initiated this audit to determine the extent to which the EPA followed its 2016 Policy on Elevation of Critical Public Health Issues when responding to evidence of drinking water lead contamination in the community water system for Benton Harbor, Michigan.

Following up on our previous work which highlights the decentralized nature of identity fraud redress across the federal government, the Pandemic Response Accountability Committee commissioned the MITRE Corporation to conduct an independent study and define the elements needs for a whole-of-government approach to identity fraud victim redress. The report proposes a federal redress process that places the victim at the center and requires agencies to assist in a comprehensive manner. Framed as a single enterprise or “one-stop shop,” this process would provide an equitable experience for all victims to submit claims and follow them to completion.

determine whether the Office of Hearing Operations’ Compassionate And REsponsive Service Plan initiatives have reduced the hearings backlog and average processing times.

OIG reviewed Rural Development’s assertions related to the Budget Formulation Compliance and Detailed Accounting reports for the fiscal year ended September 30, 2022.

Saint George Consulting, Inc. determined that the FWS supported costs but noted instances of noncompliance and an internal control weakness.

The Office of Inspector General (OIG) is issuing this management advisory memorandum to VA in response to an allegation that VA was not adequately overseeing contractors’ progress reports before payment for work on modernizing the electronic health record system for patients. Specifically, the OIG received an allegation that Cerner Government Services, Inc. (Cerner), had submitted invoices for progress reports that were not adequately completed. The complainant reported being told the progress report was just “a cover page, there’s an agenda, there’s six empty pages, there’s an ending. That’s what they turned in to get paid for this deliverable.” Because the complainant referenced the time frame from October 2019 through March 2020 for the deliverables and indicated Cerner was behind in billing VA in January 2020, the OIG reviewed just the progress reports associated with that timeframe for the first task order under the governing contract to assess the allegation. The OIG did not substantiate the allegation as there was detailed information in progress reports, but did note VA lacked timelines for when contractors needed to provide corrections to insufficient progress reports. The delays observed for contractors’ corrections to progress reports could limit VA’s ability to promptly and accurately monitor contractors’ progress on particular tasks. This management advisory conveys the information necessary for the Electronic Health Record Modernization Integration Office to determine if remedial actions are warranted.

VHA’s Supportive Services for Veteran Families (SSVF) program helps veterans and their families who are experiencing homelessness and those at imminent risk of homelessness by providing outreach, case management services, assistance obtaining other public benefits, and temporary financial assistance.The SSVF program works through grantees, typically nonprofit organizations and consumer cooperatives. SSVF grantees spent about $67.1 million to place 12,490 veterans in emergency housing during the OIG review period from July 1, 2021, through June 30, 2022. The OIG initiated a project to assess the SSVF program’s oversight of grantees’ use of emergency housing assistance to place veterans in permanent housing, as well as the program’s efforts to place veterans in permanent housing in a timely manner.SSVF grantees are required to report information to the SSVF program office on veterans who are at risk of or experiencing homelessness. All grantees are required to track information related to payments made on behalf of veterans, including emergency housing assistance payments for hotels or motels, and the dates the veterans moved into permanent housing. Grantees enter this information into their version of a Homeless Management Information System (HMIS). However, not all HMIS applications have an option for entering information about veterans’ lengths of stay in emergency housing. The OIG also found that, due to grantee errors or omissions, data did not always accurately reflect the dates veterans started receiving emergency housing assistance or moved into permanent housing.The OIG encouraged VHA leaders to consider strengthening the data validation process to ensure responsible personnel have the necessary information to assist grantees and ensure compliance with the 60 day limit on emergency housing assistance for veterans.

As governments and consumers worldwide are increasingly committed to sustainability in supply chains, postal operators have started investing in greener infrastructure to reduce emissions across their processing operations. In this Research Insights report, the OIG examined postal and logistics industry trends in promoting sustainability when investing in processing operations.

The U.S. Environmental Protection Agency Office of Inspector General conducted this audit to determine to what extent oversight of the benzene fenceline monitoring requirements by the EPA and delegated authorities ensures that refineries take corrective action and lower benzene concentrations when they exceed the action level.

An Amtrak Foreman based in Springfield, Massachusetts, violated company policies by leaving company property on five occasions without authorization during paid shifts in June through July 2023. On these occasions, he left his subordinates without supervision, and he did so even after receiving specific directives to the contrary from his supervisor and another foreman. During his interview with OIG agents, the employee admitted to his activities. We also found that he did not safeguard his SmartID card and, instead, stored it in an unlocked locker at work after being reminded of the Smart ID policy requirements in an email from his supervisor. On September 5, 2023, the foreman resigned in lieu of his disciplinary hearing and is ineligible for rehire.

Our objective was to evaluate the Postal Service’s process for estimating and monitoring the return on investment for capital projects. To accomplish our objective, we reviewed the lifecycle—including evaluation, approval, management, and post-deployment monitoring—for selected capital projects.

For our audit of the National Oceanic and Atmospheric Administration's (NOAA's) Polar Weather Satellite program, our objective was to assess the program's execution of selected development activities. To satisfy our objective, we reviewed aspects of the program's environmental testing and pre-launch readiness efforts for JPSS-2, the second satellite in the Joint Polar Satellite Series. Generally, the program was successful in the testing and readiness efforts we reviewed for JPSS-2. However, we found the program should should I. take additional steps to ensure instruments on the next JPSS satellites, JPSS-3 and JPSS-4, are protected from contamination and tested as they will fly; II. improve its lessons-learned process so it and other programs can learn from its experiences; and III. improve its requirements verification process before JPSS-3 and JPSS-4 verification.efforts begin.

NASA established this program nearly 30 years ago to spur new science and solutions for meeting the challenges of climate change. While the program provides opportunities to advance Earth science research, a sharper focus on solutions that benefit society would serve an even greater good.

Objective: To determine the accuracy of the Social Security Administration’s eligibility and payment determinations for Supplemental Security Income applicants and/or recipients who own real property.

Our objective was to assess the company’s early efforts to comply with all Infrastructure Investment and Jobs Act requirements, with a focus on its ability to use, account for, and report on the $22 billion in direct IIJA funding it will receive.As of July 2023, the company has received about $731 million in direct IIJA funding and has spent about $638 million. We found that the company is actively positioning itself to comply with IIJA’s operations, policy, and funding requirements, including its use, accounting, and reporting of the $22 billion in direct funding. For example, it established an IIJA implementation committee, developed an IIJA compliance tracker, provided training on IIJA grant compliance and reporting requirements, and began periodically communicating management’s expectations for the responsible use of IIJA funds. The company also developed a spending plan for IIJA funds and a plan for meeting accounting and reporting requirements. These are positive early steps, but because the company is still implementing them it is too soon to assess their effectiveness. Accordingly, we are not making recommendations in this report but will continue to monitor the company’s progress.

This required external peer review was conducted in accordance with the Council of the Inspectors General on Integrity and Efficiency (CIGIE) Inspection and Evaluation Committee guidance as contained in the CIGIE Guide for Conducting External Peer Reviews of Inspection and Evaluation Organizations of Federal Offices of Inspector General (December 2020 and December 2021). The peer review was conducted from May 16, 2023 through July 28, 2023.

This report contains information about recommendations from the OIG's audits, evaluations, reviews, and other reports that the OIG had not closed as of the specified date because it had not determined that the Department of Justice (DOJ) or a non-DOJ federal agency had fully implemented them. The list omits information that DOJ determined to be limited official use or classified, and therefore unsuitable for public release.The status of each recommendation was accurate as of the specified date and is subject to change. Specifically, a recommendation identified as not closed as of the specified date may subsequently have been closed.

Our objective was to determine the Department’s processes for (1) overseeing proprietary institutions’ compliance with 90/10 revenue requirements and (2) reporting of 90/10 revenue information to Congress and the public. We found that the Federal Student Aid office (FSA) had several processes for overseeing proprietary institutions’ compliance with 90/10 revenue requirements. Specifically, the FSA system used by institutions to submit their financial statements (eZ-Audit system) calculated 90/10 revenue percentages for proprietary institutions based on the audited financial statements submitted, acceptability reviews of financial statements, quality control reviews of financial statements, possible sanctions against proprietary institutions that do not meet 90/10 revenue requirements, and guidance issued on 90/10 revenue requirements. We also found that the Department was late to report proprietary institutions’ 90/10 revenue information to Congress for all 5 award years we reviewed (2016–2017 to 2020–2021). In addition, the Department’s 90/10 revenue report to Congress for award year 2019–2020 was incomplete. Finally, the Department did not publicly disclose the proprietary institutions that did not meet 90/10 revenue requirements on the College Navigator website as required by the Higher Education Act of 1965, as amended. Instead, the Department identified the proprietary institutions that did not meet 90/10 revenue requirements on the Department’s College Affordability and Transparency Center website.