Federal Reports

The Inspector General’s Statement on the SEC’s Management and Performance Challenges, October 2021

The Office of Inspector General examined Emergency EIDL grants to sole proprietors and independent contractors from March 29, 2020, until the funds were exhausted just 14 weeks later on July 10. We set out to determine whether the agency complied with its internal policy that set Emergency EIDL grants at $1,000 per employee up to the Coronavirus Aid, Relief, and Economic Security (CARES) Act mandated maximum amount of $10,000.Using SBA’s data, we found SBA provided $4.5 billion more in Emergency EIDL grants to sole proprietors and independent contractors than they were entitled to receive based on established policy. We determined that 542,897 sole proprietors, who received a grant of more than a $1,000, applied for the Emergency EIDL grants without an Employer Identification Numbers (EIN) and claimed more than one employee on their applications. The absence of an EIN indicates the sole proprietor applicants should have claimed no employees and were entitled to a maximum of $543 million ($1,000 per applicant). However, SBA approved and disbursed a total of $4 billion in Emergency EIDL grant funds to these sole proprietors, an over disbursement of $3.5 billon.We also found 161,197 independent contractors, who received a grant of more than $1,000, also applied but did not provide an EIN and claimed more than 1 employee on their COVID-19 EIDL application.Consequently, the independent contractors were entitled to a maximum of $161 million ($1,000 per applicant). However, SBA disbursed $1.1 billion to the independent contractors, resulting in grant over disbursement of about $1 billion.We recommended that SBA remedy $4.5 billion in funds disbursed in excess of its policy allowance to sole proprietors and independent contractors. SBA disagreed with the prior Administration’s policy determination, which is the criteria used to premise our findings. Despite management’s disagreement, the agency is taking corrective actions to implement our recommendation.

The Office of Inspector General's annual plan outlines the work planned for the year ahead, including agency wide audits or evaluations, mandated reviews, and which posts may receive audits or evaluations.

In response to requests from stakeholders, we scheduled an evaluation to determine if the Tennessee Valley Authority (TVA) complied with the 2016 Board Practice regarding memberships in external organizations.We found no evidence TVA was out of compliance with the TVA Memberships in External Organizations Board Practice. We did not identify any evidence of direct lobbying or litigation on behalf of TVA; however, the external organizations do not administratively segregate TVA’s funds, so we were unable to determine if the funds were used for lobbying or litigation. We also found all contracts or membership agreements contained required language limiting the use of TVA funds for prohibited activities such as litigation or lobbying; however, TVA does not have a contract or membership agreement with one external organization.We also identified opportunities for improvement related to TVA’s management of memberships in external organizations. Specifically, we determined TVA could (1) provide training of employees participating in committee or leadership roles in external organizations and (2) benefit from the coordination of all memberships in external organizations with the Office of the General Counsel to confirm all legal and ethical requirements are met.

The referenced document is GPO OIG Fiscal Year (FY) 2022 Annual Work Plan (AWP). In addition to providingbackground information on the OIG such as our responsibilities and organization, it outlines theongoing and planned work for the coming year. As with any plan, it is not a contract but rather aframework for the coming year. It is subject to constant review to account for emerging issues and priorities.

We assessed the adequacy of FS’ policies and procedures to ensure duties and responsibilities of personnel are adequately segregated from initiating, approving, or executing reimbursable agreements or CSAs.

Fall 2021 GPO OIG Semiannual Report to Congress April 1, 2021 - September 30, 2021