Federal Reports

This report presents the results of our performance of the procedures agreed upon by the Office of the Chief Financial Officer of the U.S. Office of Personnel Management (OPM). The report responds to the U.S. Office of Management and Budget’s (OMB) requirement to assist the OPM in assessing the reasonableness of employee withholdings and U.S. Postal Service contributions reported in the Report of Withholdings and Contributions for Health Benefits, Life Insurance and Retirement. Postal Service management is responsible for withholdings and contributions reported in the Report of Withholdings and Contributions for Health Benefits, Life Insurance and Retirement; and the enrollment information reported in the Supplemental Semiannual Headcount Report (Headcount Report). The sufficiency of the agreed-upon procedures is solely the responsibility of OPM’s Office of the Chief Financial Officer. Consequently, we make no representation regarding the sufficiency of the agreed-upon procedures either for the purpose for which this report has been requested or any other purpose.

The National Credit Union Administration (NCUA) Office of Inspector General (OIG) conducted this self-initiated audit to assess the NCUA’s Minority Depository Institutions Preservation Program (MDIPP). The objective of our audit was to determine whether the NCUA’s MDIPP achieved its goals. The scope of our audit covered the NCUA’s actions to execute the MDIPP from January 1, 2019, through December 31, 2021

At the request of the Tennessee Valley Authority's (TVA) Supply Chain, we examined the cost proposal submitted by a company for coal combustion residual program management services. Our examination objective was to determine if the company's cost proposal was fairly stated for a planned 20-year contract.In our opinion, the company's cost proposal was unsupported and overstated. The company informed us that it did not have financial statements or other actual historical cost documentation to support its proposed costs. Therefore, we could not completely verify (1) certain aspects of the company's proposal for a Gallatin Fossil Plant (GAF) ash pond closure and restoration project or (2) if the labor and labor markup rates included in the company's proposed rate attachments were fairly stated. However, based on our review of the company's estimation methodology and the limited supporting documentation provided by the company, we found: The company's proposal for an $892.8 million GAF project was overstated because the company's proposal included (1) inflated subcontract costs, (2) overstated noncraft labor cost, (3) overstated markup rates for the recovery of the company's indirect costs, and (4) a fee rate that exceeded the maximum allowable fee rate in TVA's request for proposal. We estimated TVA could avoid $117.6 million on the proposed $892.8 million GAF project by negotiating appropriate reductions to the proposal.The company's proposed contract rate attachments included (1) craft labor rates that were overstated and did not conform to TVA's project labor agreement, (2) noncraft cost-reimbursable labor rates that included excessive burden, and (3) noncraft time and material rates that included excessive burden. We suggested TVA negotiate to revise the company's rate attachments to (1) comply with the project labor agreement and (2) eliminate excessive burden on noncraft cost-reimbursable and time and material labor rates.(Summary Only)

OIG issues this advisory letter to alert consumers and providers to an improper and fraudulent enrollment practice by some providers of Affordable Connectivity Program (ACP) services. Providers and their agents have enrolled many households into the ACP based on the eligibility of a single Benefit Qualifying Person (BQP) child or dependent. A single BQP cannot be used to qualify multiple households for ACP support simultaneously.