Federal Reports

The Postal Service and the federal government share the CSRS pension costs for USPS employees who once worked for the former Post Office Department. However, the Postal Service is currently responsible for all increased pension costs resulting from pay raises given to those employees since its founding on July 1, 1971. Reports issued by the OIG and the Postal Regulatory Commission in 2010 explored alternative ways of splitting CSRS pension costs. The OIG now provides an update to those 2010 reports.

The purpose of the Beneficiary Travel Program is to help alleviate the costs of travel to medical appointments for eligible veterans. Under this program, VA has the authority to pay travel expenses including mileage traveled by an eligible veteran to and from a VA-approved facility for the purpose of examination, treatment, or care. The Veterans Health Administration (VHA) also uses vendors to transport eligible beneficiaries with disabilities using vehicles approved for special mode of transportation (SMT) travel. SMT-approved vehicles include ambulances, air ambulances, wheelchair vans, or other modes of transportation that are specifically designed to transport disabled individuals. The OIG found VA Medical Centers (VAMCs) authorized SMT services for some ineligible beneficiaries, and VAMCs did not adequately validate some SMT vendor invoices prior to authorizing payment. VHA also missed an opportunity to reduce program expenditures on ambulance services by paying more than rates authorized by law for SMT services. VAMCs also allowed some beneficiaries that used SMT services to improperly receive mileage reimbursements for the same appointments. The OIG estimated VAMCs improperly authorized SMT services for 11,900 ineligible beneficiaries and VHA made 59,900 improper payments nationwide valued at $23 million to SMT vendors from October 1, 2014, through December 31, 2015. The OIG also estimated VHA could have saved $11 million from October 1, 2012, through December 31, 2015, by paying Centers for Medicare and Medicaid Services rates for ambulance services. In addition, the OIG estimated VHA made approximately $229,000 in improper payments to beneficiaries for mileage reimbursements when SMT services were also used from October 1, 2014, through December 31, 2015. If oversight controls are not strengthened, improper payments for SMT services may cost taxpayers approximately $173.8 million through December 31, 2020.

National Credit Union Administration (NCUA) Office of the Inspector General (OIG) Semiannual Report to the Congress for the period of October 1, 2017 through March 31, 2018.

The Diamondhead Water and Sewer District (District), received a Federal Emergency Management Agency (FEMA) grant award of $49.3 million from the Mississippi Emergency Management Agency (Mississippi) for damage resulting from Hurricane Katrina in 2005. We had concerns because it took the District about 10 years to break ground on its new wastewater treatment plant. We also wanted to determine whether FEMA accurately applied its “50 Percent Rule.” we identified $1.5 million of improper procurement, unsupported costs, duplicate insurance benefits, and uncompleted project costs that FEMA should disallow to the District. These problems were largely the result of Mississippi not fulfilling its grantee responsibility to ensure the District properly managed FEMA funds. Mississippi is responsible for monitoring subgrant activities, and is compensated with Federal funds to support subgrant management and oversight. It is FEMA’s responsibility to hold Mississippi accountable for proper grant administration.

The Department of Health and Human Services (HHS), National Institutes of Health (NIH), Division of Financial Advisory Services (DFAS), is the cognizant Federal agency responsible for negotiating and establishing indirect cost rates for for-profit organizations that receive the majority of their Federal awards from HHS.