Federal Reports

What We Looked AtThe Personal Identity Verification (PIV) card is the Department’s foundation for securely identifying every individual seeking access to the Department of Transportation’s (DOT) secure facilities and information systems. Once contractor employees no longer need that access, DOT officials must promptly collect and deactivate their PIV cards. In fiscal years 2020 and 2021, just over 1,000 DOT service contracts—which may have granted contractor staff access to secure DOT facilities and information systems—came to an end. Given that most of these contracts ended during the COVID-19 pandemic when DOT employees were in a state of maximum telework, there is an elevated risk that prompt and appropriate PIV card collection and deactivation may not have occurred. Accordingly, DOT-OIG initiated this audit to assess DOT’s oversight of contractor employee PIV cards issued in connection with performance of agency contracts. What We FoundDOT’s timely collection and deactivation of contractor employee PIV cards is compromised by fragmented processes and a lack of clear accountability. Counter to Federal and departmental procurement regulations and policies, DOT contracting officials do not always include required PIV card-related security clauses in contracts that grant contractor employees routine physical access to a federally controlled facility or information system. Without these required clauses in its contracts, DOT neglected to establish an important and legally enforceable accountability mechanism to help protect its secure facilities and systems. Further, DOT does not always promptly collect and deactivate contractor employee PIV cards as required, because it has not established clear accountability over this process. As a result, DOT is exposed to heightened security risks, potentially compromising the safety of its staff and achievement of its mission. Our RecommendationsWe made six recommendations to improve DOT’s collection and deactivation of contractor employee PIV cards. DOT concurred with all six recommendations and provided appropriate actions and completion dates. We consider all recommendations resolved but open pending completion of the planned actions.

We audited the Stark Metropolitan Housing Authority’s public housing program based on significant deficiencies noted during our prior audit of the Authority. Our audit objective was to determine whether the Authority complied with Federal and its own requirements for procuring goods and services.The Authority did not always comply with Federal and its own procurement requirements. Specifically, for the contracts reviewed, it did not always (1) maintain complete and consistent documentation detailing the significant history of procurements, (2) properly execute contracts for pest control services, (3) maintain sufficient documentation to support the reasonableness of contract costs, and (4) include the minimum and maximum quantity or amount in its indefinite-quantity delivery contracts. Further, the Authority paid more than the contract value for services procured with one contractor. These issues occurred because the Authority lacked adequate oversight, procedures, and controls over its procurements to ensure compliance with Federal and its own requirements. As a result, HUD and the Authority lacked assurance that the Authority used Federal funds to pay for goods and services at reasonable costs.We recommend that the Director of HUD’s Cleveland Office of Public Housing require the Authority to (1) support the reasonableness of the costs paid for its unsupported procurement and contracting activities or repay its Public Housing Operating Fund or Capital Fund program from non-Federal funds for any amount determined not to be reasonable; (2) ensure that its staff is appropriately trained on Federal procurement requirements; and (3) implement adequate procedures and controls, including but not limited to, ensuring that proper documentation is maintained, contracts are procured in accordance with Federal and the Authority’s procurement requirements, procurement staff complies with Federal procurement requirements, and payments are appropriately reconciled. We also recommend that the Director of HUD’s Cleveland Office of Public Housing determine whether the Authority qualifies for an exemption from preaward review.

National Credit Union Administration (NCUA) Office of Inspector General (OIG) Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the 6-month period ending March 31, 2023.

This Office of Inspector General Comprehensive Healthcare Inspection Program report describes the results of a focused evaluation of the inpatient and outpatient settings of the Northern Arizona VA Health Care System, which includes the Bob Stump VA Medical Center in Prescott and multiple outpatient clinics in Arizona. This evaluation focused on five key operational areas:• Leadership and organizational risks• Quality, safety, and value• Medical staff privileging• Environment of care• Mental health (emergency department and urgent care center suicide prevention initiatives)The OIG issued six recommendations for improvement in two areas:1. Medical staff privileging• Focused and Ongoing Professional Practice Evaluation processes2. Environment of care• Damaged or compromised sterile supplies• Safe and clean environment and clinical areas in good repair• Notices in areas subject to photography or video recording

We audited the U.S. Department of Housing and Urban Development’s (HUD) Real Estate Assessment Center’s inspection process. The audit objectives were to determine whether the Center (1) ensured that public housing properties were inspected within required timeframes before the coronavirus disease 2019 (COVID-19) pandemic; (2) could improve its Big Inspection Plan for inspecting high-priority non-National Standards for the Physical Inspection of Real Estate (NSPIRE) demonstration public housing properties; and (3) had experienced delays in inspecting the physical condition of public housing properties approved under the NSPIRE demonstration.Before HUD postponed physical inspections due to COVID-19, the Center did not consistently ensure that public housing properties were inspected within required timeframes. The Center developed its Big Inspection Plan to inspect all NSPIRE demonstration and non-NSPIRE public housing and multifamily properties by March 31, 2023; using for its public housing portfolio, a phased approach to inspect non-NSPIRE properties. We found that under phase I of the Plan, the Center did not inspect all of the high-priority non-NSPIRE public housing properties by December 2021. Under phase II, the inspections for these properties were generally not given priority. Further, the Center experienced delays in inspecting public housing properties approved to participate under the NSPIRE demonstration. HUD can improve its procedures and controls, including the coordination of the procurement for inspection services, to ensure that public housing properties are inspected in a timely manner. Making such improvements will better position HUD’s Office of Public and Indian Housing to know whether the physical conditions in public housing properties are decent, safe, and sanitary. These improvements could also result in Public Housing Assessment System scores better reflecting the current conditions of the properties.We recommend that the Deputy Assistant Secretary for the Center prioritize the inspection of public housing properties that were (1) not included in the NSPIRE demonstration but were identified as high priority under the Center’s Big Inspection Plan and (2) approved to participate under the NSPIRE demonstration that the Center was unable to inspect by March 31, 2023. We also recommend that the Deputy Assistant Secretary for the Center implement adequate policies, procedures, and controls to ensure that public housing properties will be inspected within required timeframes.