Federal Reports

This semiannual report summarizes the OIG's activities and accomplishments for April 1, 2021,through September 30, 2021.The OIG issued one memorandum, one evaluation, and one peer review report during the reportingperiod and resolved 673 investigative inquiries.

Social Security payments may increase annually based on changes to the cost of living. When this happens, the Veterans Benefits Administration (VBA) reduces pensions for veterans and other beneficiaries because they are receiving more income from another source. The OIG received two allegations in 2020 that the automated letters sent to beneficiaries failed to provide proper notification before pensions were reduced or discontinued.The review team found that pensions were not reduced in accordance with policies to include specific information in the notification letters and to consider evidence that the pension should not be reduced.The letters did not include the current and proposed pension amount, but only indicated that the pension would be reduced or terminated. They also did not provide information to help beneficiaries determine what evidence they could submit to show that the pension should not be reduced, as required by VBA procedures.In addition, pensions were reduced without accounting for evidence that the reduction should not be made. This includes evidence that the beneficiaries submitted within 60 days, as well as increases in supplementary medical insurance premiums.The team determined that the monetary impact on each beneficiary was limited. However, inadequate processing of pension reductions could result in improper benefit payments, unnecessary debts, and undue stress for beneficiaries.The OIG recommended that the under secretary for benefits update VBA’s Adjudication Procedures Manual to ensure automated notices align with VA regulations, and amend the automated notices, which require material facts and detailed reasons. The OIG also recommended a review of pension reductions with cost of living adjustments that were automatically completed in fiscal year 2020 to ensure regulations and procedures were followed. This includes consideration of supplementary medical insurance premiums and all evidence submitted by the beneficiary.

Social Security payments may increase annually based on changes to the cost of living. When this happens, the Veterans Benefits Administration (VBA) reduces pensions for veterans and other beneficiaries because they are receiving more income from another source. The OIG received two allegations in 2020 that the automated letters sent to beneficiaries failed to provide proper notification before pensions were reduced or discontinued.The review team found that pensions were not reduced in accordance with policies to include specific information in the notification letters and to consider evidence that the pension should not be reduced.The letters did not include the current and proposed pension amount, but only indicated that the pension would be reduced or terminated. They also did not provide information to help beneficiaries determine what evidence they could submit to show that the pension should not be reduced, as required by VBA procedures.In addition, pensions were reduced without accounting for evidence that the reduction should not be made. This includes evidence that the beneficiaries submitted within 60 days, as well as increases in supplementary medical insurance premiums.The team determined that the monetary impact on each beneficiary was limited. However, inadequate processing of pension reductions could result in improper benefit payments, unnecessary debts, and undue stress for beneficiaries.The OIG recommended that the under secretary for benefits update VBA’s Adjudication Procedures Manual to ensure automated notices align with VA regulations, and amend the automated notices, which require material facts and detailed reasons. The OIG also recommended a review of pension reductions with cost of living adjustments that were automatically completed in fiscal year 2020 to ensure regulations and procedures were followed. This includes consideration of supplementary medical insurance premiums and all evidence submitted by the beneficiary.

The Consolidated Appropriations Act in 2021 and 2020 granted the Small Business Administration (SBA) the authority to accept gifts of up to $4 million. Before SBA can accept a gift, the Office of General Counsel must determine there is no existing conflict of interest. In addition, SBA must put any cash gifts into a separate account. The Office of Inspector General (OIG) is responsible for semiannual audits to determine the adequacy of SBA controls over the solicitation, acceptance, holding, and use of cash contributions and gifts and ensure the agency is appropriately using and accounting for such gifts.The only activity for this review period relates to cash contributions for 2020 National Small Business Week. We found SBA complied with the Consolidated Appropriations Act and SBA regulations and policies regarding soliciting and accepting cash contributions. SBA’s Office of Communications and Public Liaison obtained proper approval from the Office of General Counsel for the 2020 National Small Business Week cosponsored activity. The 10 entities that cosponsored the business week were properly vetted through SBA program offices to ensure no business relationship existed that would cause a conflict of interest. The 10 cosponsoring entities provided cash contributions totaling $360,000.Although SBA adequately complied with applicable laws and SBA regulations and policies for cash contributions for the 2020 National Small Business Week, we noted control deficiencies in the close out of the event. We made two recommendations to ensure all cosponsored activities are closed out in a timely manner in accordance with SBA standard operating procedures.The report also includes one recommendation to ensure the accuracy and reliability of the fiscal agent’s final report.SBA management agreed with our findings and recommendations. Management’s proposed actions to address the recommendations include clarifying language in the National Small Business Week cosponsorship and joinder agreements to emphasize the 90-day close out requirement. Management also assigned staff to perform monthly reconciliations to ensure the fiscal agent reporting is accurate.

The U.S. Department of Agriculture (USDA) Coronavirus Disease 2019 (COVID-19) Funding Dashboard allows stakeholders to explore an overview of the sources and uses of USDA’s COVID-19 funding. This interactive dashboard displays the amounts of USDA COVID-19 funding enacted, budgeted, obligated, and spent, by appropriations act, agency, program area, and use of funds, as identified by USDA’s Office of Budget and Program Analysis and by the Forest Service.