Federal Reports

In FY 2016, CIGIE continued to meet its mandated missions, and through this report, we present CIGIE’s accomplishments in FY 2016 reflecting our efforts in meeting our mandate. Together, the work of the OIG community resulted in significant improvements to the economy and efficiency of programs Governmentwide, with potential savings totaling approximately $45.1 billion. With the OIG community’s aggregate FY 2016 budget of approximately $2.7 billion, these potential savings represent about a $17 return on every dollar invested in the OIGs. In Background, we summarize the Council’s history and the Inspector General Empowerment Act of 2016, the most recent enhancement to the Inspector General Act of 1978. We also discuss some of the accomplishments of CIGIE’s standing committees in FY 2016. Then, in Strategic Plan Business Goal Accomplishments, we describe CIGIE’s accomplishments under FY 2016’s three major strategic business goals. Next, we summarize current issues of concern to CIGIE members in Key Legislation Affecting the IG Community and Shared Management and Performance Challenges. We then offer perspective on IG Community Accomplishments and provide Contact Information for CIGIE Members. Finally, we recognize the recipients of the most noteworthy 2016 CIGIE Awards.

On January 1, 2018, an Amtrak executive retired following the release of our investigative report, which concluded that he violated company policy by accepting gifts from the owner of a company doing business with Amtrak as both a customer and vendor.

The Texas Health and Human Services Commission (State agency) did not always calculate supplemental payments made to the Texas Tech University (TTU) health institutions in accordance with Federal and State requirements. Specifically, the supplemental payment calculations included overstated Medicare equivalent fees for claims that included payment modifiers and diagnostic test modifiers, Medicaid services that were performed by ineligible providers, and Medicaid services that did not have Medicare equivalent fees. As a result, the TTU health institutions received $9.9 million (Federal share) in unallowable supplemental payments for the period May 1, 2004, through September 30, 2007.

The OIG Field Financial Risk Model identified that the Hartford Main Office, for quarter (Q) 3 fiscal year (FY) 2017, made 92 percent of all local purchases within the Connecticut Valley District. This unit had a 367 percent increase in local purchases recorded to miscellaneous supplies, materials, and services during Q3 compared to Q2 of FY 2017. The audit team reviewed all 110 miscellaneous supplies, materials, and services transactions identified between April 1 and June 30, 2017. The objective of this audit was to determine whether internal controls were in place and effective for making local purchases and payments at the Hartford, CT, Main Office.

Our audit objectives were to determine whether the U.S. Postal Service 1) fairly stated selected accounting transactions in the general ledger and whether selected key controls surrounding those transactions were operating effectively, and 2) properly tested, documented, and reported its examination of selected key controls related to Headquarters and Accounting Services. The U.S. Postal Service Board of Governors contracted with an independent public accounting (IPA) firm to express opinions on the Postal Service’s financial statements and internal controls over financial reporting. The IPA firm maintains overall responsibility for testing and reviewing significant Postal Service accounts, processes, and internal controls. The OIG coordinates audit work with the IPA firm to ensure adequate coverage.