Federal Reports

Due to concerns identified in a prior review related to the length of time Transmission and Power Supply (TPS) direct charge materials had been stored at the Muscle Shoals Distribution Center (MSDC), we initiated an evaluation to determine if TPS direct charge materials were being managed appropriately. In summary, we determined TPS direct charge materials were not being managed appropriately because: (1) direct charge materials were not purchased in accordance with TVA policy, (2) TPS does not keep track of direct charge materials stored at MSDC, and (3) direct charge materials are being stored at MSDC even though the work orders for which they were purchased have closed. Inappropriately managing TPS direct charge materials could increase the risk of loss, theft, or the over purchase of materials. In addition, project costs could be overstated and funds spent on items that go unused.

The Office of the Inspector General conducted an evaluation of Safety and Performance Improvement (SPI) to identify strengths and risks that could impact SPI's organizational effectiveness. Our evaluation identified strengths within SPI related to (1) organizational alignment, (2) customer focus, (3) management support of employees, (4) employee teamwork and collaboration, and (5) proactive identification of safety risk behaviors. However, we identified issues that, if left unresolved, could increase the risk that SPI will be unable to effectively meet its objective in the future. These issues include (1) mixed messaging on the importance of safety, including the use of Recordable Injury Rate in TVA's Winning Performance Program, placement of the Designated Agency Safety and Health Official within TVA's organizational structure, and frequent movement and reorganization of the safety function and (2) nuclear Safety Consultants reporting structure. However, none of these risks are within the control of SPI, but are dependent on other TVA organizations for resolution.

We evaluated the merits of two confidential Hotline allegations received after we published the Review of Alleged Misuse of VA Funds To Develop the Health Care Claims Processing System in March 2015. The complainants alleged that the Chief Business Office (CBO) continued to spend about $11 million of medical support and compliance (MS&C) appropriations on Health Care Claims Processing System (HCPS) development from August through September 2014, despite being told by OIG during an April 2014 meeting of OIG, CBO, and Financial Services Center that they should have used the Information Technology (IT) Systems appropriation. We confirmed that CBO spent MS&C funds to support HCPS during the OIG’s previous review, conducted from March through December 2014. This was prior to OIG’s official notification to VA in December 2014 that a potential Antideficiency Act violation had occurred. We confirmed that OIG personnel informed the former Deputy Chief Business Officer of the potential violation of appropriations law at an April 2014 meeting. However, CBO staff did not alter their spending patterns after learning of the potential violation. In addition, OIG did not formally notify the former Interim Under Secretary for Health of the potential violation until the draft report was issued in December 2014. The VA Secretary reported the violation of the Antideficiency Act as required by section 1351 of Title 31, United States Code. Therefore, we made no recommendations in the report.

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In February 2017, we evaluated the Wilmington VA Regional Office (VARO) to see how well staff processed disability claims, proposed rating reductions, and input claims information in the electronic system of record. Wilmington Veterans Service Center (VSC) staff did not consistently process one of the two types of disability claims we reviewed. We reviewed all 16 veterans’ claims available involving entitlement to Special Monthly Compensation (SMC) and related ancillary benefits completed by VSC staff in calendar year 2016. We found VSC staff inaccurately processed eight claims. Of the eight claims with errors, three affected veterans’ benefits—resulting in improper payments totaling approximately $25,500. Generally, the errors occurred because second signature reviews were ineffective, and staff were unaware of policy involving eligibility for certain ancillary benefits. VSC staff generally processed rating reductions accurately but needed to complete this workload to ensure timely action. We reviewed all seven cases within scope and found VSC staff delayed or incorrectly processed four of the reductions. Delays occurred because the VSC managers prioritized other workloads higher in order to meet established performance goals related to processing disability claims. These delays and processing inaccuracies resulted in approximately $25,300 in overpayments. VSC staff needs to improve the accuracy of information input into the electronic systems at the time of claims establishment. We randomly sampled 30 of 196 newly established claims and found VSC staff did not correctly input information into the electronic system for 16 claims due to the lack of a quality review process for staff establishing claims. We recommended the VARO Director assess the effectiveness of secondary reviews associated with SMC claims, provide training for SMC, and monitor the effectiveness of this training. We also recommended the VARO Director implement a quality review process for claims establishment. The VARO Director concurred with our recommendations.

Internal Controls Over Post Office Postage Meter Use―Canton Center, CT, Post Office