Federal Reports

We found significant weaknesses in the processes for performing program reviews. We also found a weakness in selecting schools for program reviews. Program review specialists did not always conduct program reviews in accordance with FSA’s program review procedures. Specifically, required forms and documents were missing from the program review files, and staff did not always complete forms, adequately document fiscal testing for timely disbursement of funds and excess cash, determine whether schools had implemented Direct Loan quality assurance systems, and conduct distance education program reviews. We also found limited evidence of supervisory review of the program review files to ensure program review procedures are adequately completed. Further, the time allotted to perform program reviews may not have been adequate. Program Compliance division managers did not consider high annual dropout rates when prioritizing schools for program reviews as required by the HEA. As a result of the significant internal weaknesses we found, FSA has limited assurance that program reviews are appropriately identifying and reporting all instances of noncompliance.

The OIG audited TVA's Contractor Workforce Management (CWM) process for acquiring craft and noncraft staff augmentation contractors to determine whether the process was operating as intended and risks were being adequately mitigated. The purpose of the process was to "maintain the highest performing contractor workforce at the lowest total cost of ownership."We determined there was no assurance the process was operating as intended, and some risks were not being adequately mitigated. Specifically, we determined (1) the process was primarily designed to acquire and process staff augmentation contractors, but the process could only provide limited assurance of assembling the least-cost contractor workforce; (2) controls around contractor employment tenure could be improved; (3) numerous exceptions to a control capping noncraft staff augmentation contractor salaries were being granted; (4) hiring managers could choose job positions in the contractor selection system with higher pay rates than intended for the position being filled; (5) CWM performance metrics were not being calculated; and (6) contractor data inaccuracies existed within TVA systems. We also identified three CWM process risks that may not be adequately mitigated, including compliance with TVA's Citizenship Requirements policy, conflicting employer-employee relationships, and compliance with United States Citizenship and Immigration Services guidance. TVA management agreed with our recommendations to address the findings and risks noted above. Summary Only