Federal Reports

Our objective was to assess Postal Service compliance with manual PVDS controls in the Atlantic Area and identify opportunities for improvement. We randomly selected 183 PS Forms 8125 to analyze for compliance. We reviewed documentation from the origin and destination offices to ensure forms were complete, had not been altered in transit, and were retained, as required. Also, during observations at 12 facilities, we verified whether PS Forms 8125 were retained for one year.

Florida residents Jean Barbier and Bryan DeCastro were sentenced on April 5, 2023, in U.S. District Court, Southern District of Florida, for Conspiracy to Commit Wire Fraud. DeCastro was sentenced to 11 months in prison, 3 years’ probation, and was ordered to pay $155,929 in restitution to Amtrak. Barbier was sentenced to 7 months in prison, 3 years’ probation, and was ordered to pay $74,818 in restitution to Amtrak. Both defendants were employed by a company contracted by Amtrak to provide food services. Our investigation found that DeCastro fraudulently altered the timecards of Barbier and another individual to make it appear they worked more hours than they did, resulting in payment for hours they did not work. Barbier then paid DeCastro kickbacks for falsely inflating the timecards. Judicial action is pending for another defendant in this case.

The U.S. International Development Finance Corporation Office of Inspector General (OIG) contracted with the independent public accounting firm RMA Associates, LLC (RMA) to audit DFC’s charge card program in accordance with Government Charge Card Abuse Prevention Actof 2012 (Charge Card Act). The audit determined DFC effectively developed and implemented policies and procedures for its charge card program.

KPMG made 24 recommendations intended to strengthen the DOI’s information security program as well as those of the DOI’s bureaus and offices.

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for performance of nonnuclear modification and supplemental maintenance services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 5-year, $386 million contract.In our opinion, the company's cost proposal was overstated. Specifically, we found (1) the application base for the company's proposed markup rate for the recovery of general and administrative (G&A) costs did not reflect TVA's intent, (2) the company's proposed markup rate for the recovery of workers' compensation and general liability costs exceeded the markup rate provided for in TVA's request for proposal (RFP), and (3) the company's proposed markup rate for the recovery of noncraft payroll tax costs was overstated compared to recent actual costs. We estimated TVA could avoid about $54.29 million over the planned $386 million contract by (1) requiring the company's G&A markup rate to be applied to unburdened noncraft wages to more accurately reflect TVA's intent for reimbursing G&A costs, (2) negotiating revised workers' compensation and general liability insurance markup rates to comply with the RFP requirements, and (3) revising the contract to provide for reimbursement of actual noncraft payroll tax costs. (Summary Only)

This report contains information about recommendations from the OIG's audits, evaluations, reviews, and other reports that the OIG had not closed as of the specified date because it had not determined that the Department of Justice (DOJ) or a non-DOJ federal agency had fully implemented them. The list omits information that DOJ determined to be limited official use or classified, and therefore unsuitable for public release.The status of each recommendation was accurate as of the specified date and is subject to change. Specifically, a recommendation identified as not closed as of the specified date may subsequently have been closed.