Federal Reports

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Geosyntec Consultants, Inc. (Geosyntec) to provide coal combustion residual and dam safety engineering services under Contract No. 13125. Our audit objectives were to determine if (1) costs were billed in accordance with the terms of the contract and (2) tasks were issued using the most cost-efficient pricing methodology. Our audit scope included about $11.3 million in costs billed to TVA from February 6, 2018, through June 27, 2022, of which over 97 percent was billed using T&M compensation terms. In summary, we determined:Geosyntec overbilled TVA $317,583, including (1) $304,690 for an ineligible fee applied to T&M labor rates, (2) $10,576 for labor billing rate errors, and (3) a net $2,317 for overbilled other direct costs. We also found the contract's compensation terms did not reference the contract's rate attachment for equipment and specialized computer applications or specify when the rate attachment was to be used.The use of T&M pricing terms on projects caused TVA to pay about $822,869 more than it would have if cost-reimbursable payment terms had been used for those projects. Additionally, if TVA utilized cost-reimbursable pricing for the remaining contract spend, they could potentially avoid $192,362 in future costs.(Summary Only)

The Office of the Inspector General included an audit of the Tennessee Valley Authority’s (TVA) consulting contracts in our annual audit plan due to significant spend* in this area as well as the conflict of interest risks associated with this type of contract. Our audit objective was to determine if proper controls are in place to identify consulting contracts at TVA and limit the risks of conflicts of interest. We found TVA’s controls for identifying consulting contracts and limiting the risks of conflicts of interest were not operating effectively. In addition, we found the organizational conflict of interest (OCI) and Business Ethics and Compliance Requirements clauses that should be included in all TVA contracts are not consistently incorporated into consulting contracts. We also found no guidance for TVA Supply Chain personnel and suppliers that addressed (1) how to identify actual or potential OCIs or (2) how these OCIs are to be mitigated, resolved, or avoided during contract performance.*Our audit identified 129 consultants that were paid approximately $193.4 million for their services between October 1, 2017, and February 28, 2022.

This report presents a summary of the results of our self-initiated audit assessing mail delivery, customer service, and property conditions at three select delivery units in the New Jersey Region of the Atlantic Area. These delivery units included the Belleville Annex in Belleville, the Kearny Main Post Office (MPO) in Kearny, and the Union Post Office in Union. 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

To see our report, click on the link below

Independent Review of 4003(b) Loan Recipient’s Validation Memo – Ovation Travel Group, Inc.

This report summarizes the oversight work performed by EAC OIG during the 6-month period ended September 30, 2022.

Recognizing how critical telehealth has been to the federal COVID-19 response, the PRAC Health Care Subgroup—which includes six Federal Offices of Inspectors General—worked together to provide insights on the use of telehealth and its associated program integrity risks.

The Pandemic Response Accountability Committee’s (PRAC) Health Care Subgroup developed this report to share insights about the expansion—and the emerging risks—of telehealth in selected programs across six federal agencies during the first year of the COVID-19 pandemic. The selected programs, which provided telehealth services to about 37 million people in 2020 (up from just three million in 2019), included the Veterans Health Administration, Medicare, TRICARE, Federal Employees Health Benefits Program, Office of Workers’ Compensation Programs, and Department of Justice prisoner healthcare services. While the programs’ expansion and variety of telehealth services clearly helped individuals access health care during the crisis, the study also identified several integrity risks associated with billing that were similar across the multiple programs. These included high-volume billing, duplicate claims, and inappropriate charges for the most expensive level of telehealth services. The study found that data necessary for the oversight of telehealth services, as well as for the protection against integrity risks, was limited, affecting the ability of specific programs to calculate the total cost of telehealth services, determine total number of telehealth services delivered, identify which providers rendered telehealth services to beneficiaries, and distinguish between telehealth and in-person services provided. While the programs have some safeguards in place to oversee telehealth services, program integrity can be strengthened by implementing additional and ongoing monitoring of telehealth services, developing more billing controls to prevent inappropriate payments, conducting efforts to educate providers and individuals about telehealth, collecting additional data to support oversight, as well as collecting and reviewing data about the impact of telehealth on quality of care—another area in which data was found to be lacking. The PRAC encourages agencies, policymakers, and stakeholders to rely on the insights of this report to inform future decisions on telehealth and to protect against fraud, waste, and abuse.

This data story is the second in the series from the U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) and focuses on the USDA Coronavirus Food Assistance Program (CFAP). This product utilized data analytics, visualizations, and data storytelling methods to enhance transparency of how the CFAP 1 and CFAP 2 programs evolved over time.

NGA OIG Fall Semiannual Report to Congress, 1 April - 30 September 2022

I am pleased to submit the Amtrak Office of Inspector General (OIG) Semiannual Report to the United States Congress for the six months ending September 30, 2022, which is our independent and objective assessment of Amtrak’s programs and operations.Amtrak continues its post pandemic rebound with increased ridership and a historic national investment through the Infrastructure Investment and Jobs Act (IIJA). Consequently, Amtrak is now poised to access up to $66 billion to advance major capital improvement projects like replacing its aging trainsets, rebuilding deteriorating infrastructure, and potentially expanding its service throughout the country. Amtrak anticipates spending billions over the next two decades. In addition to the sprawling Gateway program on the Northeast corridor, plans are underway for replacing the Baltimore and Potomac Tunnel, purchasing new locomotives and Intercity Trainsets, and enhancing accessibility in its stations.

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month period. The semiannual reports are intended to keep the Secretary and Congress fully informed of significant findings, progress the Agency has made, and recommendations for improvement.

FEC OIG's Semiannual Report to Congress April 1, 2022 – September 30, 2022

This report highlights and summarizes significant audit, inspection, and investigative results during this period that have strengthened Department of Energy programs and operations for the period ending September 30, 2022.

A former Amtrak conductor based in New York City violated company policies when he failed to report his conviction for Medicaid fraud, which occurred on April 30, 2015, in the Circuit Court for Montgomery County, Maryland. We found that the company’s Human Resources department had no record of his arrest or conviction. We interviewed the conductor, who admitted that he had been convicted of a felony, paid restitution, and regularly reported to a probation officer while working for the company. The conductor resigned on November 30, 2022, and is not eligible for rehire.

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.

Audit of DNFSB Financial Statements for FY22

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

This report highlights the work of the Office of the Inspector General for the Nuclear Regulatory Commission (NRC) and the Defense Nuclear Facilities Safety Board (DNFSB) from April 1, 2022, to September 30, 2022. During this reporting period, we issued 10 audit and evaluation reports, and recommended several ways to improve NRC and DNFSB safety, security, and corporate management programs. We also opened 14 investigative cases and completed 8, 1 of which was referred to the Department of Justice, and 6 of which were referred to NRC or DNFSB management for action.

The Semiannual Report to Congress summarizes the results of VA OIG oversight, provides statistical information, and lists all reports issued from April 1 to September 30, 2022. During this reporting period, VA OIG audits, evaluations, investigations, inspections, and other reviews identified more than $1.4 billion in monetary impact, bringing the fiscal year’s total to nearly $4.6 billion in monetary impact with a return on investment of $24 for every dollar spent. The OIG published 309 products for the full year, with 166 products released during this reporting period alone. The OIG hotline received and triaged nearly 18,400 contacts in the past six months—more than 36,000 for the year—to help identify wrongdoing and address concerns with VA activities. Also during the past six months, special agents opened 178 investigations and closed 213, with efforts leading to 135 arrests. Collectively, the OIG’s work also resulted in nearly 600 administrative sanctions and corrective actions during the six-month reporting period.

This report details the Office of Inspector General's Fall 2022 Semiannual Report to Congress. The following topics are included:• Overview of the SBA and the OIG• Pandemic Response Oversight• Small Business Access to Capital• Disaster Loan Program• Procurement Assistance• Agency Management• Other Significant OIG Activities• Statistical Highlights• Appendices

We recommended the BIA and the BIE implement controls designed to prevent or detect instances of multi-dipping of pandemic response funds.

For our final report on our audit of First Responder Network Authority’s (FirstNet Authority’s) process for identifying, developing, and selecting reinvestment opportunities to construct, maintain, operate, and improve the Nationwide Public Safety Broadband Network, our audit objective was to determine whether FirstNet Authority's process for reinvesting fee payments is effective and consistent with established practices, procedures, and regulations. We found that FirstNet Authority: I. did not conduct a needs analysis; II. did not conduct an analysis of alternatives or sufficiently justify the need in the business case analysis; and III. relied on information from AT&T that appeared to influence the process of identifying and selecting reinvestment opportunities.

The Department of Energy spends about 90 percent of its annual budget on site facility management contracts, which includes the management and operation of its scientific laboratories using a performance-based contracting approach which focuses on the evaluation of actual performance goals and progress toward those goals as measured through a set of objectives. Each objective’s success is measured based on demonstrated performance. Given challenges identified in prior reporting on contract and project oversight, we initiated this audit to determine if the performance management process at the Idaho National Laboratory provides assurance that award fees correlated with contractor performance.We found that the Idaho Operations Office’s performance management process was unclear in how it awarded fees that correlated with contractor performance at the Idaho National Laboratory. Specifically, documentation of the Federal oversight activities was not always recorded in the official oversight repository or maintained outside the system. Additionally, the Idaho Operations Office lacked a document that included the elements of a quality assurance surveillance plan that would facilitate the assessment of contractor performance and ensure the appropriateness of award fees. We attributed these issues to several factors, including a lack of a standardized approach as to how oversight was conducted, the level of documentation to substantiate oversight activities that took place throughout the course of the year to support the final grades and associated award fee, and a high turnover of Federal oversight personnel conducting and documenting oversight to support the final evaluation and fee determination.The performance management process at the Idaho National Laboratory did not provide assurance that the award fees correlated with the contractor performance. Without adequate documentation and the absence of elements of a quality assurance surveillance plan, the Idaho Operations Office was unable to adequately support the contractor’s performance and associated award fee of approximately $15 million. Supporting effective performance management requires a culture of commitment to strong oversight. In support of that culture, future Office of Inspector General audits of performance awards will analyze supporting documentation and evaluations to determine if the award fees are reasonable, while questioning any costs that are determined to be unreasonable or not fully supported.To address the issues identified in this report, we have made four recommendations that, if fully implemented, should help improve the performance management process.

The Federal Energy Regulatory Commission (FERC) regulates the wholesale and interstate transmission of the Nation’s electricity and natural gas and the pipeline transportation of oil. Further, FERC establishes standards to protect the reliability and cybersecurity of the bulk-power system. Given its mission and responsibilities, FERC’s information technology environment must be reliable and protected against attacks from malicious sources. The Federal Information Security Modernization Act of 2014 establishes requirements for Federal agencies to develop, implement, and manage agency-wide information security programs to ensure that information technology resources are adequately protected. In response to the Federal Information Security Modernization Act of 2014 mandate, the Office of Inspector General contracted with KPMG LLP to assist in the assessment of FERC’s unclassified cybersecurity program. The objective of the evaluation was to determine whether FERC’s unclassified cybersecurity program adequately protected its data and information systems. This report presents the results of that evaluation for fiscal year 2022. FERC’s unclassified cybersecurity program was effective overall. In addition, based on the results of the test work, we determined that FERC had achieved a calculated maturity level of “managed and measurable” for its overall unclassified cybersecurity program. Based on fiscal year 2022 test work performed by KPMG LLP, nothing came to our attention to indicate that attributes required by the Office of Management and Budget and the National Institute of Standards and Technology were not incorporated into FERC’s unclassified cybersecurity program for each of the major topic areas tested. Because nothing came to our attention that would indicate significant control weaknesses in the areas tested by KPMG LLP, we are not making any recommendations or suggested actions related to this evaluation.

OIG evaluated Animal and Plant Health Inspection Service’s oversight of response activities related to cattle diseaseincidents for the tuberculosis, brucellosis, and bovine spongiform encephalopathy programs.

This semiannual report summarizes the work we completed from April 1, 2022, through September 30, 2022, to deter fraud, waste, and abuse.

See the additional details link below for the full report, report summary, multimedia or any agency follow-up.

This interim report presents the results of our self-initiated audit of the efficiency of selected processes at the Fort Point Station in Boston, MA. The Fort Point Station is in the Massachusetts-Rhode Island District of the Atlantic Area. We judgmentally selected the Fort Point Station for our audit.

This interim report presents the results of our self-initiated audit of the efficiency of selected processes at the Norwood Post Office in Norwood, MA. The Norwood Post Office is in the Massachusetts-Rhode Island District of the Atlantic Area. We judgmentally selected the Norwood Post Office for our audit.

This interim report presents the results of our self-initiated audit of the efficiency of selected processes at the Woburn Main Post Office in Woburn, MA. The Woburn MPO is in the Massachusetts-Rhode Island District of the Atlantic Area. We judgmentally selected the Woburn MPO for our audit.

For our evaluation of the U.S. Census Bureau's (the Bureau's) cybersecurity posture, our objective was to determine the effectiveness of the Bureau’scybersecurity posture against a simulated real-world attack. To do this, we conducted a covertcyber red team with six goals tailored to relevant risks. We found that the red team was able to gain unauthorized and undetected access to a Bureaudomain administrator account as well as personally identifiable information of Bureauemployees; reduce the Bureau’s defensive options; use insecure programs to send fake emails; and carry out severalmalicious actions that identified 11 security weaknesses.

Semiannual Report to Congress: April 1, 2022, through September 30, 2022

To see our report, click on the link below

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 Mountain Home VA Healthcare System, which includes the James H. Quillen VA Medical Center and multiple outpatient clinics in Tennessee and Virginia.This evaluation focused on five key 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)At the time of the inspection, the system’s executive leaders had worked together for over three years. The healthcare system’s fiscal year 2021 annual medical care budget increased over 9 percent compared to the previous year’s budget. The System Director reported using the additional funds to support staffing increases and to expand inpatient capacity and outpatient services.The OIG reviewed employee satisfaction survey results and concluded that the System Director had an opportunity to improve staff’s perceived ability to disclose suspected violations without fear of reprisal. Inpatient and outpatient experience survey scores reflected higher care ratings than the VHA averages, but trended downward in primary care from fiscal years 2019 through 2021. The OIG reviewed accreditation findings and did not identify any substantial organizational risk factors. However, the OIG noted concerns with system leaders identifying sentinel events and issued one related recommendation for improvement.

VA OIG attorney-advisors conducted two related internal investigations following allegations that a then special agent in charge in the Office of Investigations engaged in inappropriate conduct or sexual harassment that his superiors ignored and that contributed to a hostile work environment. OIG disciplinary officials determined the special agent in charge engaged in “conduct unbecoming” and should be removed from federal service. The special agent in charge retired during the 30-day advance notice period that is required before completing a removal action. The evidence did not support a charge of sexual harassment, failure to act by senior leaders, or a hostile work environment. To enhance future reporting and a safe workplace, the OIG implemented and updated directives on romantic relationships involving coworkers and sexual misconduct in addition to other responsive actions.The OIG publishes summaries of internal investigations of alleged senior personnel misconduct to promote transparency and accountability. Summary information released is consistent with applicable privacy laws and regulations.

If water systems do not complete risk and resilience assessments or emergency response plans, they are more vulnerable to cyberattacks and other malevolent acts. The 19 percent of water systems that did not certify completion of these assessments and plans serve 40 million people.

AmeriCorps has been unable to produce auditable financial statements for the last six years. This year, independent auditors again issued a disclaimer of opinion, reporting 12 material weaknesses and two significant deficiencies. Ten of the material weaknesses are recurring, four of them since FY 2017, five since FY 2018, and one since FY 2021. The auditors reported two new material weaknesses: (1) Knowledge Gap throughout Financial Management Operations and (2) Advances from Others. Further, the financial statements and accompanying notes were not in accordance with U.S. Generally Accepted Accounting Principles and Office of Management and Budget Circular A-136 and contained mathematical errors and inconsistencies. The repeated audit opinion disclaimers reflect AmeriCorps’ lack of leadership with relevant Federal financial management knowledge and skills. In recognition of the pervasive weaknesses, AmeriCorps included in its Annual Management Report (AMR) a Statement of No Assurance, acknowledging that the agency could not provide reasonable assurance as to the effectiveness of internal control over financial reporting, operations, including programmatic operations, and compliance with laws. This is the third year that AmeriCorps has issued a No Assurance statement. Remedial actions by AmeriCorps have closed 12 of the 73 recommendations from prior financial statement audits. The remaining recommendations continue to be valid, three in modified form. The auditors also made 18 new recommendations, for a total of 76 outstanding. AmeriCorps’ response to the audit report did not address the findings and recommendations in detail but reiterated the agency’s commitment to strengthening financial management. The independent accounting firm RMA Associates LLC performed the audit of the AmeriCorps FY 2022 consolidated financial statements, under contract with AmeriCorps-OIG.

The National Service Trust holds the funds set aside to pay the education awards of national service members who successfully complete their service terms. Responsibility for the education awards that have been earned or will be earned in the near future is the largest liability on AmeriCorps’ financial statements at $340 million. AmeriCorps has been unable to produce auditable financial statements for the last six years. This year, independent auditors again issued a disclaimer of opinion, reporting six material weaknesses and one significant deficiency. Five of the material weaknesses are recurring, three of them since FY 2017, one since FY 2018, and one since FY 2021. The auditors reported a new material weakness, Knowledge Gap throughout Financial Management Operations. Further, the financial statements and accompanying notes were not in accordance with U.S. Generally Accepted Accounting Principles and Office of Management and Budget Circular A-136 and contained mathematical errors and inconsistencies. The repeated audit opinion disclaimers reflect AmeriCorps’ lack of leadership with relevant Federal financial management knowledge and skills. In recognition of the pervasive weaknesses, AmeriCorps included in its Annual Management Report (AMR) a Statement of No Assurance, acknowledging that the agency could not provide reasonable assurance as to the effectiveness of internal control over financial reporting, operations, including programmatic operations, and compliance with laws. This is the third year that AmeriCorps has issued a No Assurance statement. Remedial actions by AmeriCorps have closed six of the 37 prior year recommendations. The remaining 31 recommendations continue to be valid, one of them in modified form. The auditors also made 11 new recommendations, for a total of 42.AmeriCorps’ response to the audit report did not address the findings and recommendations in detail but reiterated the agency’s commitment to strengthening financial management. The independent accounting firm RMA Associates LLC performed the audit of the AmeriCorps FY 2022 National Service Trust Fund financial statements, under contract with AmeriCorps-OIG.

National Credit Union Administration (NCUA) Office of Inspector General (OIG) Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the 6-month period ending September 30, 2022.