Federal Reports

We audited selected controls of U.S. Department of Housing and Urban Development’s New Core Interface Solution application as part of the internal control assessments for the fiscal year 2019 financial statement audit. Our objective was to review the controls for compliance with Federal information system security and financial management requirements.The OIG has determined that the contents of this audit report would not be appropriate for public disclosure and has therefore limited its distribution to those officials listed on the report distribution list.

As part of the Office of Inspector General’s (OIG) effort to provide oversight of the U.S. Department of Housing and Urban Development’s (HUD) relief efforts provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we reviewed HUD’s responses to inquiries regarding forbearance and foreclosure relief. The objective of our review was to evaluate the accuracy of HUD’s responses to inquiries from borrowers, industry partners, and the general public regarding forbearance and foreclosure relief provided by the CARES Act. We found that HUD could improve its customer service to borrowers, industry partners, and the general public by providing more direct, accurate, and complete responses to their inquiries.

OIG performed agreed-upon procedures for assessing information reported by USDA’s NFC.

What We Looked AtThis report presents the results of our quality control review (QCR) of an audit of the Department of Transportation’s (DOT) Enterprise Services Center (ESC) controls. ESC provides financial management services to DOT and other agencies, and operates under the direction of DOT’s Chief Financial Officer. The Office of Management and Budget (OMB) requires ESC, as a management services provider, to either provide its user organizations with independent audit reports on the design and effectiveness of its internal controls, or allow user auditors to perform tests of its controls. We contracted with KPMG LLP to conduct this audit subject to our oversight. The objectives of the review were to determine whether (1) management’s descriptions of ESC’s systems are fairly presented, (2) ESC’s controls are suitably designed, and (3) ESC’s controls are operating effectively throughout the period of October 1, 2019 through June 30, 2020. KPMG will do additional testing and issue a follow-up letter to our office for the period July 1, 2020, through September 30, 2020. We performed a QCR on KPMG’s report and related documentation. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards. RecommendationsDOT concurs with KPMG’s three recommendations. The quality control review and attachments have been marked as For Official Use Only to protect sensitive information exempt from public disclosure under the Freedom of Information Act, 5 U.S.C. § 552. To receive a copy of the report, please contact our Freedom of Information Act Office.

What We Looked AtWe performed a quality control review (QCR) on the single audit that RSM US LLP performed for the City of Fayetteville’s (City) fiscal year that ended June 30, 2018. During this period, the City expended approximately $6.8 million from the U.S. Department of Transportation’s (DOT) grant programs. RSM determined that DOT’s major programs were the Airport Improvement Program and the Federal Transit Cluster. Our QCR objectives were to determine (1) whether the audit work complied with the Single Audit Act of 1984, as amended, and the Office of Management and Budget’s Uniform Guidance, and the extent to which we could rely on the auditors’ work on DOT’s major programs, and (2) whether the City’s reporting package complied with the reporting requirements of the Uniform Guidance. What We FoundRSM’s audit work complied with the requirements of the Single Audit Act, the Uniform Guidance, and DOT’s major programs. We found nothing to indicate that RSM’s opinion on each of DOT’s major programs was inappropriate or unreliable. However, we identified deficiencies in the City’s reporting package that required correction and resubmission.

The Medicaid Program and the State Agency’s Waiver The Medicaid program provides medical assistance to low-income individuals and individuals with disabilities.  The Federal and State Governments jointly fund and administer the Medicaid program.  At the Federal level, CMS administers the program.  Generally, States administer their Medicaid programs in accordance with a CMS-approved State plan.  However, section 1115 of the Social Security Act authorizes the Secretary of Health and Human Services to approve demonstration projects, under a waiver to the State plan, to assist in promoting the objectives of the Medicaid program.  These waivers give States flexibility to design and improve their programs to better serve Medicaid populations. The State agency administers Oregon’s Medicaid program through a waiver initially approved by CMS in 1994.  The goal of the waiver was to expand eligibility and contain costs through managed care.  Initially, various types of managed-care organizations, such as those providing physical, mental, and dental health care, contracted directly with the State agency.  However, in a 2012 waiver amendment, with the establishment of CCOs, the State agency integrated those lines of care under the CCO umbrella. Coordinated Care Organizations A CCO is a network of different types of participating providers (e.g., physical, mental, and dental health-care providers and those that provide addiction treatment) that have agreed to work together in their local communities to serve low-income beneficiaries who receive health care coverage through Medicaid.  CCOs are similar to traditional managed-care organizations but have some key differences, such as more active roles by providers and community members in governance.  CCOs are also accountable for health care access and quality.  In addition to the goal of improving access to care and quality of care, CCOs focus on prevention and helping people manage chronic conditions, such as diabetes, to help reduce unnecessary emergency-room visits and give people support to be healthy.  In 2016 and 2017, 16 CCOs operated in Oregon.