Federal Reports

Effective June 1, 2006, Georgia implemented Georgia Families, a managed care program between Georgia and private health plans to provide benefits and health care services to Medicaid, PeachCare for Kids members, Planning for Healthy Babies enrollees, and Georgia Families 360° members. As of July 2016, managed care covered approximately 69 percent of Georgia Medicaid beneficiaries. In State fiscal year 2018, the Georgia Medicaid expenditures for approximately 2 million beneficiaries were $9.9 billion, including $4 billion to managed care. Previous Office of Inspector General reviews identified internal control weaknesses and lack of documented policies and procedures that contributed to States improperly paying for capitation payments on behalf of deceased beneficiaries. We conducted a similar review in Georgia.

We audited the Municipality of Yauco’s Community Development Block Grant (CDBG) program as part of our strategic plan. We selected this auditee because the U.S. Department of Housing and Urban Development (HUD) classified the Municipality as a high-risk grantee in its 2017 risk assessment review. Our objective was to determine whether the Municipality complied with HUD regulations, procedures, and instructions related to the administration of the CDBG program.The Municipality did not properly identify the source and application of CDBG funds. In addition, it inappropriately transferred CDBG proceeds to its general fund account, did not disburse program funds in a timely manner, and paid ineligible bank penalties. As a result, HUD lacked assurance that more than $1 million in CDBG drawdowns was adequately accounted for, safeguarded, and used for eligible purposes.The Municipality did not properly support the scope of its street resurfacing efforts, paid for work done before a contract was awarded, and improperly completed street resurfacing work on private properties. As a result, HUD lacked assurance that more than $469,000 in CDBG funds was used for eligible purposes and in accordance with the program requirements.We recommend that HUD require the Municipality to (1) develop and implement a financial management system in accordance with HUD requirements, (2) submit all supporting documentation showing the eligibility and propriety of more than $1.5 million in CDBG funds, (3) return to its line of credit and put to better use $1,641 associated with unspent program funds, (4) reimburse the CDBG program $106 paid for ineligible penalties, and (5) develop and implement adequate controls and procedures to permit proper accountability for all program funds.

To see our report, please click on the link below.

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Sargent & Lundy, L.L.C. (S&L) for engineering services under Contract Nos. 8444 and 12285. The contracts provided for TVA to compensate S&L for work on either a cost reimbursable or fixed price basis. Our audit objectives were to determine if (1) costs were billed in accordance with the terms and conditions of the contracts and (2) tasks were issued using the most cost efficient pricing methodology. Our audit scope included about $119.3 million in costs billed to TVA from July 19, 2014, through December 30, 2017. This included $21.0 million for cost reimbursable projects and $98.3 for fixed price projects. In summary, we determined:S&L overbilled TVA $46,828 on cost reimbursable projects including (1) $43,080 in labor burden and other direct costs and (2) $3,748 in volume rebates (of which a credit of $2,236 was subsequently provided to TVA).The use of fixed price payment terms on projects caused TVA to pay at least $11.5 million more than it would have if cost reimbursable payment terms had been used for those projects.We also noted issues with TVA's contract administration including inadequate oversight of the (1) fee evaluation process and (2) process for evaluating fixed price proposals. Additionally, TVA may have missed the opportunity to receive $121,083 in volume rebates due to certain contractual language that benefited S&L.(Summary Only)

We audited costs claimed by the State of Illinois Department of Natural Resources (Department) under Wildlife and Sport Fish Restoration grants awarded by the U.S. Fish and Wildlife Service (FWS). The audit included claims totaling approximately $50 million on 90 grants that were associated with 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 could not determine with any certainty whether the State ensured the grant funding and State hunting and fishing license revenue was used solely for allowable fish and wildlife activities. The scope of our review coincided with the State of Illinois budget impasse, which removed the Department’s budget authority, preventing the reimbursement of Program funds to the Department and to its subgrantees.We identified unsupported costs of $36,346 related to grant expenditures ($27,260 Federal share) and $131,294 related to license revenue funded expenditures. In addition, we found that the Department: 1) potentially diverted its license revenues, 2) had not reported its barter agreements, and 3) had not adequately documented its in-kind hours. We also determined that the Department’s World Shooting and Recreation Complex did not have standard operating procedures for identifying eligible license revenue fund expenditures.The FWS concurred with our seven recommendations, and it will work with the Department to implement corrective actions.

The VA Office of Inspector General (OIG) conducted a healthcare inspection to assess the validity of allegations regarding a delay in performing an appendectomy, that the delay was caused by inadequate resident oversight, and surgeons paid by the VA were unavailable because they were working for other institutions. The OIG substantiated a delay of approximately three hours occurred in performing an appendectomy. The OIG team determined the delay was due to another patient requiring surgery more urgently and poor communication. No adverse event occurred due to the delay. The facility’s practice for scheduling surgeries did not address communication among key staff during the multiple steps between identifying the need for surgery and the time of surgery. Opportunities existed for facility leaders to evaluate communication between residents and surgeons. The OIG did not substantiate that the appendectomy was delayed because of inadequate resident oversight. Staff interviews and electronic health records confirmed that general surgery attendings were available at all hours to provide resident supervision and discuss patients, and were present in the operating room during surgeries. The OIG team was unable to determine the availability of surgeons or if they were working at other institutions while paid by the VA. Discrepancies existed with general surgeons’ reported hours and timecards for May 2018. The facility indicated that they did not maintain documents detailing part-time physicians’ tours of duty. The Veterans Integrated Service Network Fiscal Quality Assurance Manager also conducted a review of part-time physician hours and determined the facility did not maintain appropriate documentation. The OIG made two recommendations related to evaluating the surgery scheduling processes, and ensuring the adequacy of documentation for part-time physicians’ tours of duty and responsibilities for time and attendance.

The objective was to determine whether local purchases and payments made at the Denver, CO, General Mail Facility Station for miscellaneous services were valid and properly supported and processed.

1n February 2016, the Inspector General for the Intelligence Community (ICIG), I. Charles McCullough, asked the DHS OlG to review a Presidential Policy Directive 19 ("PPD-19") complaint filed by [REDACTED], a former CIA employee. The OHS OIG accepted the request, and in August 2016, the DHS OIG determined that it would conduct a full Wbistleblower Retaliation Investigation.