Federal Reports

The OIG investigated an allegation that a U.S. Geological Survey (USGS) contract specialist misused his assigned Government charge card.We determined that Matthew Wathen embezzled over $26,000 through unauthorized personal use of his Government charge card, including weekly lodging, monthly rental cars, dining, gasoline, vacations, and other expenses.Wathen resigned from his USGS position and pleaded guilty to one count of theft of Government funds in U.S. District Court for the Southern District of Mississippi. He was sentenced to 5 years of probation and ordered to pay restitution of $26,350.

Our objective was to evaluate the Informed Visibility (IV) system’s externally-facing and supporting servers and databases to determine whether they comply with U.S. Postal Service security control requirements and industry best practices; and whether they pose a risk to the confidentiality, integrity, and availability of the system. The security-related information in this report reflects a specific point in time and may have changed since our testing.

Management and Performance Challenges report for the PAR.

As required by FISMA, OIG reviewed USDA’s ongoing efforts to improve itsinformation technology security program and practices during fiscal year 2018.

We included an audit of loan obligations and receivables relating to the Tennessee Valley Authority’s (TVA) EnergyRight® Solutions loan program in our annual audit plan after a review of TVA’s financial statements indicated a significant outstanding receivables balance. As of September 30, 2017, TVA’s loan obligations under the program were approximately $144.1 million, and the related loans receivable balance (net of discounts) was approximately $125.2 million.Our audit objectives were to (1) determine whether loans were issued in accordance with TVA policies and procedures, (2) confirm loan balances to verify the receivables, and (3) determine the extent to which loans were charged-off as bad debt and evaluate compliance with TVA’s policies and procedures. We found loans were generally issued in compliance with TVA’s policies and procedures. However, we were unable to confirm individual loan balances to verify the TVA receivable amount because neither TVA nor Regions (the bank servicing the loans) track individual loan balances. In addition, we found (1) loan write-offs were generally not made in accordance with the program guidelines, (2) summary-level, loan-program balances reported to TVA by local power companies did not agree to those provided by Regions, (3) local power company loan documentation retention needs improvement, and (4) installation inspections are not required.