Federal Reports

OIG reviewed AMS’ oversight of the storage and handling of U.S.-produced commodities for international food aid programs.

This is the first in a series of reports we intend to issue to help decisionmakers make plans for the future of the Office of Navajo and Hopi Indian Relocation (ONHIR).Our overall objective is to identify and report on ONHIR’s responsibilities, functions, and current operations that could impact the closure and transfer of ONHIR responsibilities to the U.S. Department of the Interior or other successor agency (or agencies).ONHIR is an independent Federal agency responsible for assisting with the relocation of Navajo people and Hopi people living within each other’s boundaries as a result in part of a longstanding land dispute between the tribes. ONHIR has been actively providing relocation benefits for 38 years at a cumulative cost of more than $598 million.This initial report describes ONHIR’s functions and provides information on funding and expenditures, current operations, and factors to be considered if ONHIR is closed.In subsequent reports, we may evaluate other activities such as applicant appeals, use of land and property, building leases and permits, and operation of the Padres Mesa Demonstration Ranch (a cattle ranch for Navajo ranchers).

We audited the National Park Service’s (NPS’) Residential Environmental Learning Centers (RELCs) to determine to what extent the NPS ensures the RELCs comply with agreements, statutes, and regulations.We found that the NPS did not ensure that all activities and services provided by the RELCs complied with agreements, statutes, and regulations. Specifically, we found that the NPS did not consistently use the correct type of agreement or legal vehicle to authorize the RELCs. In addition, we found that the NPS allowed the RELCs to provide services and activities outside the scope of their agreements. We also found that the NPS did not monitor the RELCs to ensure they complied with financial assistance rules and regulations. We questioned costs of more than $3.7 million in funding received from financial assistance that was not reduced for program income the RELCs received.We make 12 recommendations that, if implemented, will help the NPS improve oversight of its RELC partnerships. The NPS concurred with all 12 recommendations. We consider one recommendation resolved and implemented, nine recommendations resolved but not implemented, and two recommendations unresolved. We will refer the recommendations to the Assistant Secretary for Policy, Management and Budget for resolution and to track implementation.This report was updated with a technical correction on December 30, 2019. The original version was issued on December 17, 2019.

We inspected the Office of the Special Trustee for American Indians’ (OST’s) process for collecting death data to determine whether beneficiary deaths are accurately recorded to ensure that payments made after the death of a beneficiary are distributed correctly. The DOI has responsibility for more than $5 billion held in trust by the Federal Government on behalf of American Indians and Indian Tribes. The OST manages the Indian fiduciary trust for the DOI, which includes approximately 3,500 trust accounts for 250 Indian Tribes and nearly 404,000 Individual Indian Money (IIM) accounts.We found weaknesses in the OST’s process for collecting death data. Specifically, we found the OST does not have a system that interfaces with the Bureau of Indian Affairs’ (BIA’s) probate tracking system, which may lead to inconsistent death data between DOI’s agencies; does not reconcile or confirm the status of beneficiaries with the BIA or other sources to monitor accuracy of its death data; and does not educate Indian communities about providing death notifications to ensure timely and complete death data.Without consistent, accurate, timely, and complete death data, the OST risks distributing payments to deceased beneficiary accounts and delaying the initiation of the probate process, which threatens the proper distribution of trust payments. We made three recommendations that, if implemented, will improve the consistency, accuracy, and completeness of the OST’s beneficiary data.

We audited the costs claimed by the Oregon State Department of Fish and Wildlife under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling approximately $77 million on 137 grants that were open during the State fiscal years that ended June 30, 2016, and June 30, 2017. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and the reporting of program income.We found that the Department complied, in general, with applicable grant accounting and regulatory requirements. We did, however, question the Federal share of costs totaling $3,762,152, including $2,894,838 in unsupported in-kind contributions, $708,650 in unreported program income, and $158,664 in unsupported payroll expenses. We also found that the Department did not (1) adequately manage its equipment, (2) accurately report license certification data, (3) develop effective land management policies, or (4) adequately monitor subawards.The FWS concurred with all 17 of our recommendations and will work with the Department to implement corrective actions.

The VA Office of Inspector General (OIG) conducted this audit to determine if VA effectively monitored Medical/Surgical Prime Vendor-Next Generation Program (MSPV-NG) order fulfillment and vendor performance. This audit focused on VA medical centers serviced by American Medical Depot (AMD). MSPV-NG is VA’s national program for obtaining medical or surgical supplies across the Veterans Health Administration (VHA). The audit team reviewed a sample of AMD’s delivery orders and estimated that medical centers received incorrect orders about 60 percent of the time. Incorrect orders occurred when delivery orders and invoice pricing did not match approved costs, products were obtained from unapproved suppliers, or staff obligated funds without proper authority. When necessary supplies are unavailable or incorrect because of vendors’ errors, veterans’ quality of care could be at risk. Orders were incorrect because VHA’s Healthcare Commodities Program Office and VA’s Strategic Acquisition Center did not develop a formal process to validate prime vendor performance reporting and the algorithm used by AMD. In addition, contracting officer representative (COR) positions at four of eight VA medical centers were vacant. CORs are responsible for monitoring vendor accuracy and performance. As a result, VA did not verify AMD’s self reported compliance with performance measures. The audit team found that AMD did not use the calculations and methodologies required by its contract, which led to inaccurate reporting. AMD also used unapproved suppliers. In addition, deliveries and invoice pricing did not match approved product costs, causing improper payments. The audit team estimated that, without correction, VA would improperly pay AMD about $84 million over the next five years. The OIG made 11 recommendations to VA including establishing measures to ensure vendor compliance with contract requirements and developing and implementing processes to validate vendor performance and reporting.