Federal Reports

Illinois implemented most of the new criminal background check requirements established under the Child Care and Development Block Grant Act. However, certain criminal background check requirements for childcare providers remained unimplemented as of March 1, 2018, and significant challenges may delay full implementation until 2019 or 2020. Specifically, these challenges include unavailable finances and staff to process the background checks, data system limitations, and required changes to State laws or policies and procedures. Illinois currently has until September 30, 2018, to implement the new criminal background check requirements. The outstanding challenges may lead Illinois to request an additional 1-year waiver from the Administration for Children and Families to address the challenges and comply with the new requirements.

The OIG investigated allegations that counterfeit purchase requests for high value electronic goods, appearing to have been sent by officials in the U.S. Department of the Interior Office of Acquisition and Property Management (PAM), had been sent to small businesses throughout the United States.We substantiated the allegations. We found fraudulent emails and purchase requests linked to at least two PAM employees who had not written or authorized the documents. We found that the suspect used an online service that masked the sender’s email address and gave victims the impression the emails were sent from official “.gov” email accounts. There were no indications that any of the fraudulent purchase attempts were successful.Our findings indicated the subject was likely outside of the United States and there was no apparent loss to the Government or any of the small businesses, so we closed our investigation.

Previous OIG reviews have identified Medicaid personal care services in New York as vulnerable to waste, fraud, and abuse. Based on these results, we decided to review New York's consumer-directed personal assistance program (CDPAP) services, which include personal care, home health, and nursing services. New York's CDPAP permits chronically ill and physically disabled beneficiaries flexibility and freedom in choosing, training, and supervising their providers. New York claimed Federal Medicaid reimbursement totaling more than $579 million for CDPAP services provided from January 2012 through June 2016 (audit period).

The Prescription Drug User Fee Act (PDUFA) of 1992, P.L. No. 102-571, authorized the Food and Drug Administration (FDA) to collect prescription drug user fees from pharmaceutical and biotechnology companies seeking FDA approval of certain human drug and biological products to expedite the review of human drug applications. Congress must reauthorize the PDUFA every 5 years; it was renewed in 1997, 2002, 2007, 2012, and 2017. FDA expects to use the prescription drug user fees it collects under the PDUFA to meet its goals for the timely review of human drug applications. We performed this audit to determine whether FDA accurately computed prescription drug user fee rates.

The report represents the first product in OIG’s review of the Economic Development Administration’s (EDA) implementation of the Bipartisan Budget Act of 2018 (the Act). The purpose of this report is to highlight key EDA oversight challenges and best practices—based on prior OIG reports and other agencies’ relevant work—and identify actions EDA should take now in support of the Act’s requirements.

To see our report, click on the link below

The OIG investigated allegations that a former Bureau of Land Management (BLM) employee provided confidential procurement information to a prospective contractor to give it an unfair advantage on a contract bid. The complainant alleged the former employee provided the information while still employed by BLM and, after retiring, went to work for the contractor. We also investigated allegations the former employee influenced a change to the GSA schedule type to allow the contractor to be eligible to bid on the contract.Our investigation found no evidence that the former employee had access to or provided any confidential procurement information, and we confirmed the former employee never worked for the contractor in question. We also found no evidence the former employee was involved in the decision to change the GSA schedule type or had any other influence on the contract award.

We found that the fire alarm and suppression systems are not fully functioning despite $1.2 million in contract awards to repair the systems.

The OIG investigated allegations that approximately $30,000 in checks issued erroneously by the Office of the Special Trustee for American Indians (OST) in the name of a deceased tribal member had been fraudulently negotiated after his death.We found that the decedent’s son received the checks, endorsed them with his own signature, and cashed them. The son admitted he took the checks and acknowledged he knew it was wrong to do so.We also learned that the OST did not have a process in place to identify beneficiaries who had died. In this instance, the decedent’s sister attempted to report his death to OST, but she did not have sufficient information to complete the required report when she called the OST’s Trust Beneficiary Call Center. The center did not follow up with the sister and did not remove the decedent from its list of beneficiaries.We referred this matter to the United States Attorney’s Office for the District of New Mexico, which declined to prosecute.We will conduct an inspection of OST to determine internal control weakness that allowed the fraud to occur.