Federal Reports

This interim report presents the results of our self-initiated audit of mail delivery, customer service, and property conditions at the Edgemoor Branch, in Wilmington, DE. The Edgemoor Branch is in the Delaware-Pennsylvania 2 District of the Atlantic Area and services ZIP Codes 19703, 19802, 19809 and 19810. These ZIP Codes serve about 78,919 people in an urban area. This delivery unit has 63 city routes. We selected the Wilmington, DE area based on Congressional interest in Delaware and concerns raised during a recent House Oversight and Reform Committee hearing. We judgmentally selected the Edgemoor Branch based on the number of Stop-the-Clock scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail.

This interim report presents the results of our self-initiated audit of mail delivery, customer service, and property conditions at the Lancaster Avenue Station in Wilmington, DE. The Lancaster Avenue Station is in the Delaware-Pennsylvania 2 District of the Atlantic Area and services ZIP Codes 19805, 19806, and 19807. These ZIP Codes serve about 57,298 people in a predominantly urban area. This delivery unit has 46 city routes. We selected the Wilmington, DE area based on Congressional interest in Delaware and concerns raised during a recent House Oversight and Reform Committee hearing. We judgmentally selected the Lancaster Avenue Station based on the number of Stop-the-Clock scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail.

The mission of the U.S. Postal Service is to provide the American public with trusted, affordable, and universal mail service. The Postal Service employs 653,167 career and noncareer employees to carry out its mission. To ensure its employees are working in safe conditions and are compliant with applicable laws and regulations, the Postal Service has policies in place to promote safety and a workplace free of all harassment, including sexual harassment

This alert informs you of an urgent issue we discovered during an ongoing audit and the actions CBP has taken to address the issues. Specifically, we found inadequate emergency back-up power for operating the Blaine Command Center’s centralized video surveillance system equipment and video surveillance camera equipment at Pacific Highway and Peace Arch land ports of entry during power outages.

The Department of Homeland Security did not always terminate personal identity verification (PIV) card access or withdraw security clearances for separated employees and contractors in accordance with Federal regulations and Department policies.

This report presents a summary of the results of our self-initiated audits assessing mail delivery, customer service, and property conditions at three select delivery units in the Atlanta, GA, region. The three delivery units we audited were the McDonough Main Post Office (MPO), Old National Station, and Stockbridge MPO. We judgmentally selected these delivery units based on the number of Stop-the-Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail. We previously issued interim reports to district management for each of these units regarding the conditions we identified. In addition, we issued a report on the efficiency of operations at the Atlanta, GA, Processing and Distribution Center (P&DC), which services these three delivery units. The delivery units serve about 249,704 people in several ZIP Codes, which are considered predominantly urban communities.

The objectives of our evaluation were to determine (1) the mission, legal basis, and authority for such functions and whether relevant statutes and guidelines are satisfied, (2) whether the Bureau of Industry and Security (BIS) law enforcement function developed plans and policies for oversight of their jurisdictions and offices and the extent to which oversight was provided within BIS, (3) whether training for the BIS’ law enforcement officers is adequate and up-to-date, and (4) the extent to which the U.S. Department of Commerce (Department) provides oversight to ensure that BIS' law enforcement powers are properly exercised within jurisdictional limits. We found that I. BIS Has the Legal Basis and Authority for Its Law Enforcement Functions, II. Oversight Policies and Procedures Need Improvement III. Office of Export Enforcement Has Procedures to Provide Adequate Training, but Oversight of Firearms Qualifications and Training Needs Improvement IV.The Department Provides Oversight of BIS Law Enforcement Functions.

As part of the Office of Inspector General’s (OIG) oversight responsibility, we reviewed the results of prior OIG and Government Accountability Office engagements that were relevant to the funding provided by the Inflation Reduction Act (IRA). Identifying areas in which OIG reported past weaknesses and recommendations may provide the Natural Resource Conservation Service insight to maintain or further strengthen existing controls for programs receiving IRA funding.

As part of the Office of Inspector General’s (OIG) oversight responsibility, we reviewed the results of prior OIG and Government Accountability Office (GAO) engagements that were relevant to the funding provided by the Inflation Reduction Act (IRA). Identifying areas in which OIG reported past weaknesses and recommendations may provide Forest Service insight to maintain or further strengthen existing controls for programs receiving IRA funding.

As part of the Office of Inspector General’s (OIG) oversight responsibility, we reviewed the results of prior OIG and Government Accountability Office (GAO) engagements that were relevant to the funding provided by the Inflation Reduction Act (IRA). Identifying areas in which OIG reported past weaknesses and recommendations may provide Farm Service Agency insight to maintain or further strengthen existing controls for programs receiving IRA funding.

As part of the Office of Inspector General’s (OIG) oversight responsibility, we reviewed the results of prior OIG and Government Accountability Office (GAO) engagements that were relevant to the funding provided by the Inflation Reduction Act (IRA). Identifying areas in which OIG reported past weaknesses and recommendations may provide Rural Development insight to maintain or further strengthen existing controls for programs receiving IRA funding.

James Porter, Jr., pleaded guilty to conspiracy to commit health care fraud, and Sean Porter, pleaded guilty to conspiracy to commit money laundering, both on January 5, 2023, in U.S. District Court, Middle District of Florida. Our investigation found that the Florida residents conspired with others to unlawfully bill for approximately $1.4 billion of laboratory testing services which were medically unnecessary, and they fraudulently used rural hospitals as billing shells to submit claims for services that were mostly performed at outside laboratories. As a result of this scheme, Amtrak’s health care plans paid out more than $610,000 to three rural hospitals and associated laboratories. Both defendants will be sentenced at a future date. Criminal judicial proceedings for additional co-conspirators are pending.

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.

We reviewed the process FSA used to calculate CRP payments, incentives, andadjustments for FY 2021 through March 31, 2022.

This memorandum advises you of our decision to terminate the audit of DIA’s Privileged User Account Management, which was announced in Announcement of the Audit of DIA’s Privileged User Account Management, Project No. 2022-1002.

The DOI’s management practices and password complexity requirements were not sufficient to prevent potential unauthorized access to systems and data.

We evaluated FNS’ policies and procedures for administration of SNAP waivers todetermine whether FNS has adequate controls to ensure the SNAP waiver processcomplies with requirements.

OIG reviewed the Animal Plant Health Inspection Service's management of the Plant Pest and Disease Management Disaster Prevention Program funds and projects.

Each year, the Office of Inspector General prepares a summary of the most significant management challenges facing the United States Capitol Police (USCP or the department). These challenges reflect continuing vulnerabilities OIG identified over the last several years as well as new and emerging issues the Department will face in the coming year.

Semiannual Report to Congress - April 1, 2022 - September 30, 2022

The National Credit Union Administration (NCUA) Office of Inspector General (OIG)conducted this self-initiated audit to assess the NCUA’s Continuity of Operations (COOP)program. Our objectives were to determine whether the NCUA’s COOP program was: (1) inaccordance with applicable laws, regulations, policies, and procedures and (2) ready and able to execute should the need arise.

We rendered a qualified opinion on the EPA’s fiscal years 2020 and 2019 Toxic Substances Control Act, or TSCA, Service Fee Fund financial statements, meaning that, except for material errors in expenses and income from other appropriations, the fiscal years 2020 and 2019 financial statements were fairly presented.

We determined that the Omaha Tribe did not follow applicable requirements in an agreement with the BIA.

The U.S. Postal Service has 50 authorized officer positions, including the postmaster general, deputy postmaster general, and all vice presidents. During FY 2022, the Postal Service had forty-seven active officers and one employee that participated in an accredited degree program. Officers filed 694 expense reimbursement requests totaling $769,789.

Independent Auditors' Report on the Government Publishing Office (GPO) fiscal year (FY) 2022 Financial Statements.

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

Our objective for this report was to assess the company’s oversight of the Intercity Trainset program.We found that the company experienced early challenges with stakeholder engagement on the ICT program, leading to scope changes, cost increases, and schedule delays in its trainset acquisition and maintenance facility modification workstreams. For example, the company did not consult with its food and beverage personnel, along with officials from product development, on the design of a food service car before it signed the contract with Siemens. This resulted in a company-initiated change order that increased program costs by $42.5 million and will delay the delivery of the first trainsets by up to five-and-a-half months.The company has since taken steps to address these issues, including establishing an ICT program management framework that closely aligns with company and industry standards such as additional cost and change management controls. The Capital Delivery department is in the process of identifying any controls needed to manage its major capital programs, but it has not yet established and implemented a control to require stakeholder input on all major programs going forward.We recommended the company establish and implement controls to require program personnel to identify and engage all relevant stakeholders to specify requirements early and modify those requirements as program needs and assumptions evolve. The company agreed with the recommendation and is taking corrective action.

The Department of Homeland Security did not consistently comply with NICS requirements from July 2019 to June 2021. FBI NICS examiners rely on NICS data to determine whether a person is eligible to purchase a firearm. However, DHS components did not submit the data to DOJ, as the United States Code and Code of Federal Regulations require. In particular, the components did not consistently update missing information on dispositions, that is, information on the nature and outcome of criminal proceedings. The components also did not always respond promptly or sufficiently to FBI NICS inquiries. Specifically, DHS components took more than 3 days to respond or were unresponsive to 126 (59 percent) of 214 NICS inquiries. We attribute these issues to DHS not having a unified policy or plan to ensure the timely updating of dispositions or a mechanism to ensure prompt, sufficient responses to inquiries. If NICS examiners do not receive disposition data to deny or approve a firearm sale within 3 business days, licensed sellers may transfer firearms at their discretion. Therefore, DHS not sending disposition data to NICS and its delayed and insufficient responses to FBI inquiries create a risk of wrongful firearms transfers.Additionally, as the Fix NICS Act of 2018 requires, DHS submitted semiannual certifications to DOJ consistent with NICS, but at least two submitted certifications were inaccurate. This occurred because DHS has no oversight or policy to ensure compliance with NICS reporting requirements. As a result of DHS’ inaccurate certifications, DOJ’s semiannual report to Congress on Fix NICS Act of 2018 compliance was also inaccurate.

EAC OIG issued this advisory to alert EAC’s Interim Executive Director and Acting General Counsel to current EAC procurement and contracting practices, which OIG identified as high risk.

The Postal Service Reform Act of 2022 (PSRA) was signed into law on April 6, 2022. While some form of postal reform had been proposed in every Congress since the 112th (2011-2013), none has made it to the President’s desk until this year.

An Amtrak Service/Train Attendant based in Miami, Florida, resigned from his position on December 20, 2022, prior to his administrative hearing. Our investigation found that the former employee violated company policies by engaging in outside employment, including self-employment, while on medical, personal, and collective bargaining agreement leaves of absence.

A special OIG report which shares the view of the OIG’s jurisdiction and role in conducting oversight in the area of post-employment ethics.

In March 2022, we conducted unannounced inspections of four U.S. Customs and Border Protection (CBP) facilities in the El Centro and San Diego areas of California, specifically two U.S. Border Patrol stations and two Office of Field Operations (OFO) ports of entry. Our inspections and subsequent analysis showed instances of prolonged detention for migrants and overcrowding in some holding facilities. In one Border Patrol station, the prolonged custody times contributed to overcrowding in half of its holding rooms. Of the 447 detainees in custody during our site visits, CBP held 187 (or 42 percent) longer than prescribed by the National Standards on Transport, Escort, Detention, and Search (TEDS), which generally limit detention in these facilities to 72 hours. This prolonged detention and overcrowding put a strain on CBP’s resources, resulting in inconsistent compliance with TEDS standards in the El Centro and San Diego areas. The facilities we inspected generally met standards related to providing drinking water, snacks, meals, and supplies, but Border Patrol’s compliance with standards for access to showers, handling of personal property, and access to interpretation services was inconsistent. Finally, Border Patrol’s and OFO’s electronic systems of record had data integrity issues related to tracking of medical services, showers, welfare checks, and meals.

Amtrak (the company) contracted with the independent certified public accounting firm of Ernst & Young LLP to audit its consolidated financial statements as of September 30, 2022, and for the year then ended, and to provide a report on internal control over financial reporting and on compliance and other matters. Because the company receives federal assistance, it must obtain an audit performed in accordance with generally accepted government auditing standards.As required by the Inspector General Act of 1978, as amended, we monitored the audit activities of Ernst & Young to help ensure audit quality and compliance with auditing standards. Our monitoring focused on two Ernst & Young reports and disclosed no instances in which Ernst & Young did not comply, in all material respects, with generally accepted government auditing standards. We reached this conclusion by monitoring Ernst & Young’s audit activities, which included reviewing its reports, auditor independence and qualifications, audit plans, detailed testing results, summary work papers, and quality controls. We also attended key meetings.

What We Looked AtThe Coronavirus Disease 2019 (COVID-19) pandemic has highlighted the importance of developing and maintaining resilient supply chains in essential industries. Citing the significance of the aviation industry to the Nation's economy, the Ranking Members of the House Committee on Transportation and Infrastructure and its Subcommittee on Aviation asked us to assess how the Department of Transportation (DOT) tracks the amount of critical aircraft and unmanned aircraft systems (UAS) imports. They also asked for the amount of critical aviation parts that are manufactured in and imported exclusively or near-exclusively from one or two countries. Accordingly, our audit objectives were to (1) determine how DOT is tracking imported aviation products and (2) identify potential impacts on the U.S. aviation industry's supply chains if imported aviation products are unavailable in the future.What We FoundDOT and the Federal Aviation Administration (FAA) do not track aviation imports or their associated supply chains because there is no requirement to do so. FAA does have access to country of origin information for aviation imports but relies on aviation manufacturers to oversee their suppliers to ensure products are in a condition for safe operation. Other Government agencies collect data on imported aviation parts; however, no agency currently maintains visibility into aviation supply chains, including for UAS. The National Aeronautics and Space Administration is in the early stages of working with FAA and other Federal agencies to identify data needed to track aviation supply chains. We identified several vulnerabilities that increase the risk of aviation supply chain disruptions, including the lack of visibility into supply chains, dependence on sole-source or limited suppliers, and lack of access to rare earth metals and elements. Furthermore, COVID-19 led to a significant decrease in the demand for air travel and a corresponding decrease in the need for aviation products, causing additional supply chain disruptions. Disruptions included loss of suppliers, labor shortages, and congestion at shipping ports. Federal legislation has mitigated some of the impact of supply chain challenges on the aviation industry.Our RecommendationsThis report is informational and meant to be responsive to the congressional request. We are not making recommendations.

The Federal Information Security Modernization Act of 2014 requires the OIG to conduct an annual evaluation of NASA’s information security program. In this year’s review, we examined a sample of NASA- and contractor-owned information systems and assessed the effectiveness of information security policies, procedures, standards, and guidelines against the required metrics.

With an annual budget of $1.1 billion, NASA’s Space Technology Mission Directorate (STMD) oversees approximately 2,500 projects. In this audit, we examined the extent to which NASA’s management of its STMD portfolio aligns to space technology needs and whether performance measures and outcomes reflect the directorate’s goals.

Our investigation uncovered billing irregularities related to contracts on New York’s Gateway Program rail infrastructure projects in the Northeast Corridor. Amtrak recovered approximately $3 million from a contractor who charged overhead rates that exceeded maximum pay rates as proscribed by the Gateway project contracts, including approximately $1.5 million pursuant to a civil settlement agreement filed in the U.S. District Court for the Eastern District of Pennsylvania and an additional approximately $1.5 million directly from the contractor. The Gateway contracts required that the contractor bill actual overhead rates up to a not-to-exceed maximum allowed rate. From 2013 through 2020, however, the contractor billed overhead rates that exceeded the allowed rate.