Federal Reports

The performance audit of AmeriCorps grants awarded to Serve DC, the Mayor’s Office on Volunteerism and Partnership, and three of its 16 subgrantees (including the Jumpstart for Young Children, Center for Inspired Teaching, and Inspired Teaching Demonstration Public Charter School) identified approximately $1.7 million of questioned Federal and match costs covering three calendar years from 2017 through 2019. The Inspired Teaching Demonstration Public Charter School became the Center for Inspired Teaching and had no claimed costs. In particular, the audit identified concerns regarding Serve DC and subgrantee’s inadequate documentation for personnel expenses, inadequate support for Serve DC’s in-kind match, Serve DC’s inadequate accounting records, subgrantee’s inadequate criminal history checks, and Serve DC and subgrantees’ insufficient internal controls that resulted in under or excess reporting of costs. Serve DC and Jumpstart for Young Children responded separately to address the report findings and recommendations; the Center for Inspired Teaching did not respond to the draft report. Serve DC did not concur with eight of the 16 recommendations, involving the questioning or disallowing of costs. Jumpstart also did not concur with its only recommendation which was related to the disallowance of match costs. AmeriCorps concurred with all our recommendations and promised to work with Serve DC to strengthen its internal controls surrounding the audit findings and will ensure Serve DC’s financial reporting aligns with financial management system standards.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by USA DeBusk, LLC (DeBusk) for industrial cleaning services provided under Contract Nos. 12042 and 17143. Our audit objective was to determine if the costs were billed in compliance with the terms of the contracts. Our audit scope included approximately $16 million in costs billed between January 1, 2021, and November 30, 2022, including $13.3 million in costs billed under Contract No. 12042 and $2.7 million billed under Contract No. 17143. In summary, we determined DeBusk overbilled TVA $21,157 in travel costs, including (1) $14,033 for ineligible daily commuting costs and (2) $7,124 in unsupported per diem costs. In addition, we identified opportunities to improve contract administration by TVA. Specifically,Pricing schedules for Contract No. 12042 were missing and could not be provided by TVA. As a result, we were unable to determine whether $12.97 million in labor, equipment, and travel costs billed to TVA were in compliance with the contract's pricing schedules or TVA's Project Maintenance and Modification Agreement. TVA could have saved an estimated $12,082 in fuel surcharges by stipulating the use of a fuel adjustment index more closely aligned with TVA's service region. Both contracts contained contradictory compensation terms and may not have conveyed the parties' intent regarding travel and temporary living allowance reimbursements.Invoice packages submitted to TVA for approval did not contain all of the required supporting documentation or match the costs billed through TVA's Maximo system.(Summary Only)

The PACT Act authorizes VA to deliver veterans’ health care and benefits associated with exposure to environmental hazards during military service. VA may use the Cost of War Toxic Exposures Fund (TEF) to ensure proper claims processing by the Veterans Benefits Administration (VBA) and the administration of health care for eligible veterans. Congress authorized an initial appropriation of $500 million to set up the TEF for fiscal years 2023 and 2024 and required that VA produce a spending plan detailing funding allocation; it later appropriated an additional $5 billion in TEF support through fiscal year 2027, which was not part of this examination.As requested by the VA Secretary, the VA Office of Inspector General (OIG) examined the initial TEF appropriation. This memorandum focused on funds allocated to VBA, the Office of Information and Technology (OIT), and the Veterans Health Administration (VHA). Among its allowable uses, VBA, OIT, and VHA planned for 2,400 full-time employees. VA submitted a required spend plan to Congress. Estimation methodologies explaining specifically how funds will be used had been completed only for VHA, with the remaining methodologies anticipated in December 2023 and February 2024. This memorandum was issued to draw VA leaders’ attention to identified weaknesses. These included that VBA and OIT had not yet provided methodologies to explain their plan estimates; some spending plans had to be amended to avoid violations of the Purpose Statute; and monthly spending reports contained minor calculation inaccuracies.The OIG commends the Office of Management for proactively seeking legal guidance from the Office of General Counsel to ensure TEF allocations are used in accordance with their authorized purposes. No specific recommendations were made, but the OIG requested being informed of any additional actions taken to ensure proper use of the TEF once VBA and OIT finalize their estimation methodologies.