Federal Reports

Indiana did not always comply with Federal Medicaid requirements for invoicing manufacturers for rebates for physician-administered drugs. Indiana did not invoice manufacturers for rebates associated with $710,420 (Federal share) in physician-administered drugs. Of this amount, $695,070 was for single-source drugs, and $15,350 was for top-20 multiple-source drugs. Because Indiana's internal controls did not always ensure that it invoiced manufacturers to secure rebates, Indiana improperly claimed Federal reimbursement for these single-source drugs and top-20 multiple-source drugs.

What We Looked AtHurricane Sandy caused widespread damage to the transportation infrastructure in the mid-Atlantic and northeastern United States in October 2012. This included damage to transit vehicles--buses, vans, cars, railcars, and locomotives, referred to as rolling stock--in the New York City metropolitan area. To support communities with damaged public transit systems, Congress appropriated $10.9 billion to the Federal Transit Administration (FTA), which provided funds to the transit agencies in the affected areas. Accordingly, our objectives were to assess (1) FTA's implementation of relevant guidance and oversight of emergency planning as it relates to the rolling stock of recipients impacted by Hurricane Sandy and other natural disasters and (2) the extent to which lessons learned from experiences with protecting rolling stock during Hurricane Sandy have been incorporated into emergency relief plans and procedures at FTA and the Office of the Secretary of Transportation.What We FoundConsistent with the Agency's interpretation of its authority under current Federal law, FTA does not require recipients to develop plans to protect rolling stock before an emergency and assumes a limited role in discussing such activities. Although they lacked a Federal requirement to do so, the five transit agencies we reviewed put emergency procedures in place before the hurricane struck. Still, they experienced over $171 million in damage to rolling stock vehicles, which suggests there are benefits to improving the protection of rolling stock. Furthermore, FTA could do more to promote the lessons learned by its recipients, which might help transit agencies elsewhere protect their own rolling stock during future disasters. However, FTA doesn't provide a consistent or centralized means for sharing lessons learned to help other transit agencies protect their assets--actions that could result in disaster-related cost savings.Our RecommendationsWe made two recommendations to improve the protection of public transit agency assets from future disasters. FTA partially concurred with the first recommendation and fully concurred with the second.

The National Security Agency Office of the Inspector General (OIG) released an unclassified version of its Audit of Award Fee Contracts. The OIG questioned all $636 million in award fees associated with 54 contracts examined during the audit. The OIG found that the Agency did not support either the use of award fee contracts, which are only to be used when contract performance cannot be measured objectively, or that the award fee percentages established under the contracts were properly justified, documented, and in the best interest of the Government. In addition, the Agency did not evaluate the effectiveness of its use of award fees. The OIG also found that the Agency's obligations for award fee contracts increased, while DoD is moving toward objective incentive arrangements.The OIG made three recommendations to assist the Agency in addressing these findings. The Agency agreed with all the recommendations and the OIG concluded that the actions planned by Agency management met the intent of the recommendations.

The Management Operating Data System (MODS) is a web-enabled application that provides a systematic approach to gathering, storing, and reporting data on workload, workhours, and machine utilization by operation number and facility type. The Postal Service uses MODS data to plan workload, project workhours and mail volume, track mail processing activities, evaluate the efficiency of facilities, and estimate staffing requirements. The objective of our audit was to assess the accuracy and reliability of MODS data for Postal Service costing.