Federal Reports

As part of our annual audit plan, we audited costs billed to the Tennessee Valley Authority (TVA) by Restoration Services, Inc. (RSI) for project control services for TVA's Generation Construction under Contract No. 6122. Our audit included approximately $12.5 million in costs billed to TVA from January 1, 2015, to June 30, 2017. Our audit objective was to determine if RSI billed TVA in accordance with the contract's terms.In summary, we determined RSI overbilled TVA $109,504, including (1) $85,565 for ineligible and unsupported temporary living allowance costs and (2) $23,939 for unapproved and ineligible travel costs. In addition, RSI billed TVA $104,308 in fringe benefit costs it had not incurred because the contract did not provide a reduced fringe benefit markup rate for RSI employees who did not receive medical benefits.(Summary Only)

We found that FSA did not effectively implement Department requirements for the contractor personnel security screening process. We specifically noted weaknesses in FSA’s development of internal policies and procedures; designation of contract positions and risk levels; maintenance of contract position, risk, and employee information, notification and maintenance of security screening decisions, and contractor employee departure procedures. We found that FSA staff and officials involved in the process were generally unaware of Department requirements and their related responsibilities for processing contractor employees’ security screenings.

We conducted a verification review to determine the adequacy, effectiveness, and timeliness of USCIS' corrective actions to address the seven report recommendations in Better Safeguards Are Needed in USCIS Green Card Issuance, OIG-17-11, November 16, 2016. At the time of our audit fieldwork in spring 2016, USCIS’ efforts to address the errors were inadequate. USCIS conducted a number of efforts to recover the inappropriately issued cards; however, these efforts also were not fully successful. At the time of our audit fieldwork in spring 2016, USCIS’ efforts to address the errors were inadequate. USCIS conducted a number of efforts to recover the inappropriately issued cards; however, these efforts also were not fully successful.

OIG data analytics identified the Atlanta (GA) Main Post Office refund and void amounts for fiscal year 2017 Quarters 3 and 4 exceeded $21,000, an increase of 21 percent from the same period last year. Refunds for Express Mail were $3,838, or 18 percent of the $21,000, and were based on services not rendered or a service failure. Unit personnel made 129 refunds to customers due to Express Mail failures during this time period. The objective of this audit was to determine if Express Mail refunds were valid, properly supported, and processed timely.

Financial controls at postal retail units (retail units) are established and monitored by the Office of the Controller (Controller). We identified control issues during our past audits at selected retail units related to stamp stock shipments, single drawer accountability, and segmented inventory accountability. As a result of that work, the Controller advised they were strengthening controls over stamp stock accountabilities and upgrading financial controls to resolve the issues. The objective of our audit was to review the design and effectiveness of internal controls over stamp stock accountabilities used by the Controller to reduce financial control risks at U.S. Postal Service locations. Based on our review, we expanded our objective to include related controls used by other headquarters organizations.