Federal Reports

TSA's Office of Inspection Accountability Act of 2015 (Public Law 114-53), required us to review the Federal Air Marshal Service’s (FAMS’) policies and procedures for identifying misuse of Government resources, as well as the administration of FAMS’ code of conduct or integrity policies with respect to instances of misconduct. We incorporated this requirement into our ongoing department-wide audit of conduct and discipline, which seeks to determine whether DHS and its components have sufficient processes and procedures to address conduct issues. We determined that FAMS has sufficient policies and procedures to establish expectations for appropriate conduct, identify misuse of government resources, and address misconduct allegations. The report contains no recommendations.

This report contains classified information that is exempt from disclosure under the Freedom of Information Act. To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.

Sierra Nevada Memorial Hospital (the Hospital), located in Grass Valley, California, generally complied with Medicare requirements for reporting wage data in its fiscal year 2014 Medicare cost report. However, errors in reporting wage data did occur. We estimated that, as a result, Medicare overpaid 173 other hospitals in California a total of $216,594 for inpatient services in the first 6 months of Federal fiscal year 2017.

When Nevada billed manufacturers for rebates for physician-administered and pharmacy drugs, it did so correctly. However, Nevada estimated that it did not bill for rebates of $520,137 ($327,624 Federal share) for physician-administered and pharmacy drugs that were eligible for rebates. In addition, Nevada did not bill for rebates for 19,650 claim lines for other physician-administered and pharmacy drugs that may have been eligible for rebates. Because there was insufficient information to determine the amount of any rebates that may have been due, we set aside these claim lines for resolution by the Centers for Medicare & Medicaid Services (CMS). Nevada's internal controls did not ensure that it billed for and collected rebates for all drugs dispensed to enrollees of Medicaid managed-care organizations (MCOs).