Federal Reports

The objective of this audit is to determine whether internal controls for issuing permit postage and fee refunds were in place and effective at the Palm Coast, FL, Branch.The U.S. Postal Service Office of Inspector General (OIG) Field Financial Risk Model identified that the Palm Coast Branch refund and void amounts for fiscal year 2017 Quarters 3 and 4 exceeded $105,000, an increase of 110 percent from the same period last year. Of the $105,000 in refunds and voids, $96,551, or 92 percent, were recorded as refunds of permit postage and fees. We audited 100 percent of the permit postage and fee refunds based on this refund category having the highest dollar value refund activity between April 1 and September 30, 2017.

This Newsletter provides a bimonthly summary of selected investigative accomplishments.

OIG investigated allegations that a former Bureau of Indian Affairs (BIA) contracting employee had a conflict of interest involving a government contractor. We also investigated allegations that the employee had an inappropriate relationship with a second government contractor.Our investigation confirmed the allegations. The employee signed an agreement with a contractor to assist the contractor in obtaining government contracts in exchange for the employee receiving help to develop business on an Indian reservation. The employee denied the conflict of interest, however, the contractor provided us with the contract, which bore the employee’s signature.We further determined that the employee attended social functions and accepted at least one meal from the second government contractor, a prohibited source. The employee also failed to disclose multiple outside employment interests and income as required by government regulation.The employee left the Department. Prosecution was declined by the U.S. Attorney for the District of New Mexico.

OIG investigated allegations that a Bureau of Indian Affairs (BIA) employee improperly used a BIA purchase card to purchase speakers, headphones, and electronic tablets.Prior to any significant involvement by our office, we learned that BIA had already investigated the matter and confirmed that two employees inappropriately purchased and gave to colleagues eight headphones and two wireless speakers, totaling $2,931.92. One of the employees also used his personal funds to improperly purchase five tablet computers at a discounted rate through a BIA contract. Both employees involved in the purchases left the Department.Our investigation also found two supervisors were responsible for approving the purchase card purchases. One supervisor received a letter of reprimand, and the other was removed from Federal service. The United States Attorney’s Office for the District of South Dakota declined prosecution of this matter.

The objective of our audit was to assess whether the U.S. Postal Service effectively managed its Limited Duty and Rehabilitation programs to ensure that injured employees in the Southern and Pacific areas who were deemed fit returned to work timely.The Postal Service’s Limited Duty and Rehabilitation programs help the agency meet its legal obligation to injured-on-duty employees, including the requirement to return them to work within their medically defined work restrictions. These programs accommodate employees who are temporarily unable to perform their regular job and assist employees with permanent disabilities.The Postal Service tracks employees who are deemed fit to return to work in a limited duty capacity via its No Work Available (NWA) list; however, there are no assignments available at this time. On May 17, 2017, there were 1,243 employees on the NWA list nationwide, 489 of whom were in the Southern and Pacific areas.

An audit as a result of a September 2015 allegation regarding the Network Contracting Office (NCO) 21’s award of a $3.3 million contract to the Contract Office Group, Inc. (COG) to provide interior design services and furnishings to renovate a Sacramento VA Medical Center campus building in Mather, California, determined that a former NCO 21 contracting officer did not ensure adequate competition as required by the Federal Acquisition Regulation prior to awarding the contract to COG. Additionally, the contract with COG violated the bona fide needs rule mandating that a fiscal year's appropriations only be obligated to meet a legitimate, or bona fide, need arising in (or before) the fiscal year for which the appropriation was made. This rule was violated when the former NCO 21 contracting officer awarded the contract to COG despite having information that fiscal year (FY) 2009 funds would be used to purchase goods and services for renovations in FY 2011 and later. Performance under the contract also exceeded authority limitations when it continued past the contract’s original performance end date of December 31, 2009. NCO 21 management did not exercise oversight to ensure compliance with applicable laws and regulations and relevant government guidance. The former NCO 21 Director did not implement a process to monitor contracts to ensure the former contracting officer took action to prevent extended performance. VA was exposed to the risk of making payments for services and goods using funds that could have been deobligated and reallocated. As a result, opportunities to reallocate $1.1 million of unspent funds as of September 2014 were missed. The VA Office of Inspector General made three recommendations to improve oversight and ensure compliance with federal and VA acquisition regulations—two recommendations to the Service Area Office West Executive Director and one recommendation to the Veterans Integrated Service Network 21 Director.

Provider-preventable conditions (PPCs) are certain reasonably-preventable conditions caused by medical accidents or errors in a health care setting. PPCs include two categories of conditions: health-care-acquired conditions (HCACs) and Other PPCs.