Federal Reports

Our inspection identified $155,575 in CARES Act and pandemic-related purchase card transactions with insufficient documentation.

During COVID-19, VHA’s Office of Community Care (OCC) took steps to ensure veterans continued to have expanded access to health care in the community, as required by the VA MISSION Act of 2018. OCC issued policies to VA facilities to postpone nonurgent appointments and offer alternatives to in-person care, such as telehealth. The VA Office of Inspector General (OIG) conducted this audit to determine whether VHA effectively managed community care consults for routine appointments during the pandemic.The OIG found that routine community care consults were unscheduled for an average of 42 days, not meeting VHA’s timeliness goal of 30 days. Community care staff faced significant challenges beyond their control that contributed to the scheduling delays, such as the lack of availability of appointments in the community. The OIG also found some patients were hesitant to schedule appointments during the pandemic, failed to return phone calls, or declined care once it was offered.While these challenges prevented the OIG from evaluating whether timeliness could be improved, they underscore the need to strengthen VHA’s governance over community care. The OIG found community care providers and staff did not consistently comply with requirements to manage routine consults, and leaders lacked tools to sufficiently monitor program operations that could have identified the problems. Deficiencies emerged in documenting when patients were contacted about scheduling appointments, designating patients eligible for alternative care, and ensuring staff were trained in ways that would address those weaknesses.The OIG recommended that the under secretary for health develop guidelines requiring supervisors to monitor documentation of communication between staff and patients, establish a tool to monitor whether community care staff both document the suitability of alternatives to face-to-face care and offer them to eligible patients, and reassess the frequency and approach to its training for scheduling community care consults.

The Postal Reorganization Act of 1970 requires annual audits of the U.S. Postal Service’s financial statements. In addition, the Postal Accountability and Enhancement Act of 2006 requires the Postal Service to comply with Section 404 of the Sarbanes-Oxley Act. This section requires the Postal Service to report the scope and adequacy of its internal control structure and procedures and assess their effectiveness.The U.S. Postal Service Board of Governors contracted with an independent public accounting (IPA) firm to express audit opinions on the Postal Service’s fiscal year 2021 financial statements and internal controls over financial reporting (an integrated audit). The IPA firm maintained overall responsibility for testing and reviewing significant Postal Service accounts, processes, and internal controls. We coordinated audit efforts with the IPA firm to ensure adequate coverage.

Following is a summary of internal control deficiencies for your attention that we determined did not constitute a significant deficiency or material weakness, see Appendix A for the full descriptions:Undelivered OrdersIt was determined that EEOC's balance in undelivered orders (UDOs) as of September 30, 2021, as calculated by EEOC personnel, included amounts that should have been de-obligated and not included in the year-end amount. This misstatement was caused by EEOC not consistently applying review procedures to the UDO balance. EEOC should ensure the existing UDO policy is followed and documentation of the process is reviewed by the CFO or their designee on a quarterly basis.The purpose of this communication, which is an integral part of our audit, is to describe, for management and those charged with governance, the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose.

We evaluated the SBA’s handling of the grant to train small businesses on federal resources available in the wake of the Coronavirus Disease 2019 (COVID-19) pandemic. The Coronavirus Aid Relief and Economic Security (CARES) Act authorized funds up to $25 million for SBA to administer a grant to an association or associations representing resource partner centers to establish a single centralized hub for COVID-19 information.We found SBA did not ensure the grant recipient developed and implemented an effective marketing and outreach strategy to ensure the hub successfully achieved the legislative purpose of the CARES Act. In addition, neither SBA nor the grant recipient set targets for any of the performance goals.SBA awarded $18.6 million for the informational and training hub. In the critical first year of the disaster response and launching the hub, less than 1 percent of the 30 million small businesses it was intended to help used it and only 62 of about 14,000 resource partner counselors and mentors completed any of the training modules. We found the grant recipient awarded contracts without assessing the reasonableness of contract costs in accordance with federal procurement requirements. We also questioned $14.8 million in costs that either did not adhere to procurement requirements or were not properly supported. We made five recommendations to improve the SBA’s oversight.SBA agreed or partially agreed with three of the five recommendations. The agency plans to implement corrective actions that will align performance goals with agency goals. It will also enhance oversight of the grant recipient’s compliance with award terms and federal requirements. Management disagreed with recommendations 4 and 5.