Federal Reports

This report presents the results of our self-initiated audit of Meter Revenue Refunds – Fredericksburg, VA, Post Office. The Fredericksburg Post Office is located in the Richmond District of the Capital Metro Area. This audit was designed to provide Postal Service management with timely information on potential financial control risks at Postal Service locations. The objective of this audit was to determine whether meter refunds were valid, timely, and properly supported at the Fredericksburg Post Office.

The EPA OIG has identified a control issue concerning the EPA's annual process of confirming that its attorneys maintain an active bar membership.This report resulted from an investigation, rather than an audit or evaluation project.

The objective of the review was to determine whether the Small Business Administration (SBA) had adequate controls over soliciting, accepting, holding, and utilizing cash contributions and gifts. To accomplish our objective, we interviewed key SBA employees and reviewed various management and financial records available for FYs 2018 and 2019. We also reviewed applicable laws, regulations, policies, procedures, and SBA documents such as internal and external correspondence, financial management system reports, accounting records, and various other documents. We found that SBA complied with the Acts regarding soliciting and accepting cash contributions and gifts. SBA’s Office of Communications and Public Liaison obtained proper approval from the Office of General Counsel for the 2018 National Small Business Week cosponsored activity. The 21 entities that cosponsored 2018 National Small Business Week, with cash contributions, were properly vetted through SBA program offices to ensure no business relationships existed that would cause a conflict of interest. Also, the Agency accepted a $100,000 unsolicited gift and determined the donor had no conflict of interest with the Agency. The funds were deposited and held in the Business Assistance Trust Fund. Further, the Agency utilized gift funds in accordance with SBA regulations and policy. However, we determined that the Office of Strategic Alliances did not implement adequate controls to oversee and monitor cash held on account by its National Small Business Week fiscal agent on behalf of the Agency. As a result, cash held by the fiscal agent may be vulnerable to the risk of mismanagement, loss, or unauthorized use. This report contains three recommendations that SBA management agreed to implement.

The VA Office of Inspector General (OIG) conducted this review in response to a November 2017 anonymous complaint that the W.G. Hefner VA Medical Center located in Salisbury, North Carolina, purchased a robotic surgical system for about $2.3 million without adequate planning and approval. The complainant alleged that the purchase was made using “leftover” funds without approval, and that the purchase was unnecessary because the building was unsuitable to house robotic surgical systems and the medical center already had an unused system purchased in 2012. The Veterans Health Administration’s (VHA) use of robotic surgery—a computer-assisted, minimally invasive surgery technique—has increased as more VHA medical facilities obtain robotic surgical systems and apply the technique to different procedure types. The OIG substantiated that staff were permitted to order the new robotic surgical equipment during year-end spending without proper review and approval. This occurred due to an ineffective capital investment review process and weak internal controls over the ordering process at the Veterans Integrated Service Network 6. Purchasing robotic surgical systems without the required planning, review, and approval increases the risk that programs will acquire expensive equipment without alignment of VA’s resources, such as site preparation and recurring maintenance on systems purchased. The OIG did not substantiate the second allegation. In response to OIG report recommendations, the Deputy Under Secretary for Health for operations and management and the Veterans Integrated Service Network 6 network director agreed to clarify approval requirements and ensure the capital investment board meets annually to review requests in a timely manner.

Census Cloud-Based Security

This report presents the results of our self-initiated audit of Delivery Scanning Issues – Hayward Main Post Office, Hayward, CA. The Hayward Main Post Office is in the Bay Valley District of the Pacific Area. This audit was designed to provide Postal Service management with timely information on potential delivery scanning risks at the Hayward Main Post Office.