Federal Reports

Objective: To determine whether the Social Security Administration had and used management controls over the service its 800 number employees provided callers during the COVID-19 pandemic.

In March 2022, the Office of Inspector General received four allegations pertaining to oversight concerns at the National Nuclear Security Administration’s (NNSA) W88 Alteration (Alt) 370 Federal Program Office. Specifically, the complainants alleged that Federal Program Office officials: (1) exhibited abusive behavior towards employees at NNSA management and operating (M&O) sites; (2) hired an excessive number of contractors who did not add value; (3) engaged in the extensive use of unclassified communication channels that created security risks; and (4) interfered with the oversight of the weapons anomaly reporting and investigation process to prioritize schedule over quality. We conducted this inspection to determine the facts and circumstances regarding the alleged oversight concerns at NNSA’s W88 Alt 370 Federal Program Office.We did not substantiate the four allegations pertaining to oversight concerns at NNSA’s W88 Alt 370 Federal Program Office. Specifically, we did not substantiate that W88 Alt 370 Federal Program Office officials: (1) exhibited abusive behavior towards employees at NNSA M&O sites; (2) hired an excessive number of contractors who did not add value; (3) engaged in the extensive use of unclassified communication channels that created security risks; and (4) interfered with the oversight of the weapons anomaly reporting and investigation process to prioritize schedule over quality. However, interviews with M&O contractors conveyed that there was pressure from NNSA’s W88 Alt 370 Federal Program Office to resolve issues expeditiously.Although we did not substantiate the allegations, NNSA is in the process of assessing the state of relationships between the Federal and M&O contractor workforce. NNSA’s September 2022 report, Evolving the Nuclear Security Enterprise: A Report of the Enhanced Mission Delivery Initiative, builds upon prior reviews and governance reform efforts to provide substantive actionable recommendations by senior leadership and subject matter experts from across the Nuclear Security Enterprise. Also, the Government Accountability Office initiated a review of the implementation of NNSA’s Enhanced Mission Delivery Initiative; therefore, we are not making any recommendations. Therefore, no management response is required.

The VA Office of Inspector General (OIG) conducted this inspection to assess the VA Milwaukee Healthcare System’s oversight and stewardship of funds and to identify potential cost efficiencies. The review assessed the following financial activities and administrative processes to determine whether the healthcare system had appropriate oversight and controls in place: use of managerial cost accounting information, accrued expense oversight, purchase card use, and inventory and supply management.The OIG found that the healthcare system could improve the following:• Use of management cost accounting information. The healthcare system did not always use that information to enhance efficiency, help reduce costs, or inform business decisions.• Accrued expense oversight. The number of invalid open obligations grew from 23 in fiscal year 2021 to 43 in fiscal year 2022. Because Veterans Integrated Service Network (VISN) 12 and the local contracting office have not worked together, the list of invalid obligations remaining open has continued to grow, leaving about $1.9 million in funds attached to orders that could be used for other purposes.• Purchase card use. Cardholders and approving officials did not always work together to ensure compliance with VA policy. The team also determined that contracts could have been considered for an estimated 6,300 transactions totaling at least $6.7 million.• Inventory and supply management. Information in the Supply Chain Common Operating Picture were not being used to monitor stock levels or meet the required accuracy rate for inventory as required by VHA policy. The healthcare system could improve effectiveness and efficiency by ensuring inventory values are correctly recorded in the Generic Inventory Package.OIG made eight recommendations to the healthcare system director and one to the VISN 12 director. The recommendations address issues that, if left unattended, may eventually interfere with effective financial efficiency practices and the strong stewardship of VA resources.

The Transportation Security Administration (TSA) did not implement effective technical controls to protect the sensitive information processed by the selected High Value Asset (HVA) system. In our review and testing of this HVA, we identified security deficiencies in 8 of 10 security and privacy controls from National Institute of Standards and Technology Special Publication 800-53.