Federal Reports

We conducted this engagement in coordination with the Pandemic Response Accountability Committee (PRAC) to gain an understanding of the U.S. Department of Housing and Urban Development’s (HUD) fraud risk management practices and develop an inventory of fraud risks that HUD had not already identified for the funds appropriated by the Coronavirus Aid, Relief, and Economic Security (CARES) Act for the Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) programs.We identified five overall risk factors that contribute to the risk of fraud for the CDBG and ESG CARES Act funds.  We used these risk factors and the results of brainstorming sessions; interviews; and reviews of audit reports, investigations, and press releases to develop a fraud risk map containing 31 fraud schemes that can be used to misappropriate CDBG and ESG CARES Act funds.  We also identified opportunities to improve HUD’s fraud risk management practices, including clarifying roles and responsibilities, performing fraud-specific risk assessments, and raising awareness of fraud and fraud risks.We recommend that the Office of the Chief Financial Officer coordinate with Office of Community Planning and Development program staff to clarify the roles and responsibilities for fraud risk identification, assessment, and mitigation.  We recommend the Principal Deputy Assistant Secretary for Community Planning and Development 1) complete program-specific fraud risk assessments and risk profiles for the CDBG and ESG programs, 2) consider OIG’s fraud risk inventory to improve their fraud risk assessments, 3) implement efforts to increase the awareness of fraud at all levels, 4) develop and implement a fraud risk checklist or other instrument to be completed as part of each monitoring review, and 5) develop and implement a fraud analytics strategy using available data.

The OIG was interested in examining the views of career and non-career postal workers — temporary employees who do not receive the same benefits as career employees — regarding the Postal Service as an employer. The OIG analyzed ratings and reviews from current and former postal workers on popular job-related websites, as well as results from official USPS internal surveys and data.Like those of comparable organizations, USPS’s ratings have stayed the same or declined over the past six years. The OIG found that, for example, career employees on Glassdoor rated the Postal Service more favorably than non-career employees did for each of the years between FY 2016 and FY 2021. Among non-career employees, low ratings (1 or 2 stars out of a possible 5) outnumbered high ratings (4 or 5 stars) every year. In addition, non-career employees indicated they were less likely to recommend the Postal Service as an employer compared to career employees for each of the past six fiscal years.

OIG data analytics identified offices with potentially fraudulent Voyager card activity. The Raspeburg, MD, Station had 1,110 Voyager card transactions from October 1, 2020, through March 31, 2021, totaling $68,194. This includes 374 (34 percent) transactions totaling $29,958 that FAMS flagged as high risk.The objective of this audit was to determine whether Voyager card PINs were properly managed and Voyager card transactions were properly reconciled at the Raspeburg Station.

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.