Federal Reports

The VA Office of Inspector General (OIG) conducted this inspection to assess the stewardship and oversight of funds by the VA Palo Alto Health Care System in California. This inspection assessed financial activities and administrative processes to determine whether appropriate controls and oversight were in place. These included open obligations, purchase card use, inventory and supply management, and pharmacy operations.Because personnel were not aware of review requirements, the team could not verify that anyone reviewed 10 obligations as required. VA’s reconciliation reports in the financial and accounting systems reflected accurate dates and order amounts for the 10 obligations; however, two had residual funds totaling approximately $3,102 that should have been deobligated.When assessing purchase card use, the team estimated that the healthcare system could have identified noncompliance errors in approximately 7,200 of 16,700 transactions, totaling about $26.9 million in costs. The team found that the effectiveness and efficiency of inventory management could improve by ensuring stock levels and inventory values are correct, establishing processes and procedures for monitoring inventory, implementing a training plan, and ensuring supply chain performance measures are maintained.The team found that pharmacy efficiency could improve by narrowing the gap between observed and expected costs, bringing turnover rates closer to the recommended level, and meeting reconciliation reporting requirements.The OIG made nine recommendations to the healthcare system director and one to the director of contracting for the Network Contracting Office 21 including making staff aware of requirements, conducting reviews on inactive open obligations, deobligating excess funds, complying with record retention requirements, and establishing controls for purchase card and contract use. The recommendations also specified providing supply chain procedures training, improving inventory system data reliability, ensuring physical inventory compliance, implementing a plan to increase inventory turnover, and consistent and timely reconciliation.

What We Looked At This report presents the results of our quality control review (QCR) of Allmond & Company, LLC’s management letter regarding the audit it conducted, under contract with us, of the National Transportation Safety Board’s (NTSB) financial statements for fiscal years 2022 and 2021. In addition to its audit report on NTSB’s financial statements, Allmond issued a management letter that discusses internal control matters that it was not required to include in its audit report. What We Found Our QCR of the management letter disclosed no instances in which Allmond did not comply, in all material respects, with generally accepted Government auditing standards. Our Recommendations Allmond made three recommendations in its management letter. NTSB concurred with all three recommendations. 

What We Looked AtThis report presents the results of our quality control review (QCR) of KPMG LLP’s management letter for its audit, conducted under contract with us, of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2022 and 2021. The management letter discusses six internal control matters that KPMG was not required to include in its audit report. What We FoundOur QCR of the management letter disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our RecommendationsKPMG made 12 recommendations in its management letter. DOT concurred with all 12 recommendations.

What We Looked AtThis report presents the results of our quality control review (QCR) of the management letter that KPMG issued on its audit, under contract with us, of the Federal Aviation Administration’s (FAA) consolidated financial statements for fiscal years 2022 and 2021. This management letter discusses internal control matters that KPMG was not required to include in its audit report. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsKPMG made 17 recommendations to FAA in its management letter. FAA concurred with all 17 recommendations.

The unclassified version of the SAR covers the period from 1 April 2021 – 30 September 2022, and reflects what the NSA OIG could release publicly about its work for that SAR Report Cover reporting period. The OIG made 327 recommendations that we believe will be impactful in improving the economy, efficiency, and effectiveness of this critical Agency's operations. The Director of the NSA and Congress previously received the classified version of the SAR in accordance with the IG Act.