Open Recommendations

Direct the selected State agency to review the four sponsoring organizations that provided documentation and had meal count discrepancies, expand the review as appropriate, and determine whether the results warrant review of other sponsoring organizations as well.

Direct the selected State agency to provide further training to CACFP sponsoring organizations on point of service meal counts.

Direct the selected State agency to review the sponsoring organization identified in this finding that declined to provide acceptable State-required documentation to determine whether meal claims of more than $6.6 million are unsupported, recover any costs determined to be unallowable, and determine whether further action is appropriate.

Review and revise guidance such as Existing Flexibilities in the Child and Adult Care Food Program, dated July 26, 2013, as necessary, to provide clarity that States should enforce any additional operating requirements they prescribe.

We determined that the State of North Carolina paid out ERA1 funds in the amount of $803,160 in violation of the ERA1 statute because the funds were disbursed loan ineligible household. On August 12, 2025, Treasury's Bureau of the Fiscal Service issued an invoice for $803,160 to the State of North Carolina, establishing a debt to the Federal Government.

Develop and provide to State Safety Oversight (SSO) program audit participants a methodology-the steps the FTA Audit Team will take and the indicators the audit team will look at to determine whether or not the SSOA is in compliance with the regulation.

Develop and implement quality control procedures to address identified oversight gaps. The procedures should include a process to ensure findings specify suitable criteria, minimum documentation requirements, examples of model evidentiary documentation, and a requirement that the rationale for compliance and audit methodology decisions be included in the audit documentation.

Develop and implement a plan for how OTrak will accommodate future changes to the SSO audit structure, such as those anticipated as a result of the implementation of risk-based inspections.

Establish and implement supervisory review of OTrak data entries to identify un- or mis-recorded entries and improve the reliability of OTrak data.

Update OTrak to enable the complete text of findings and recommendations to be captured in database fields.

We recommend SSA include terms or conditions in all contracts that require that contractors identified as having significant security responsibilities complete role based security training before they perform their assigned duties and, at least, each fiscal year thereafter.

We recommend SSA implement data validation controls before it processes the role based privacy training assignments to prevent errors and avoid confusion between different components.

We recommend SSA develop and implement a process to send stakeholders routine reminders to update personnel information and periodically validate that all stakeholder information is accurate.

The Chief, Taxpayer Services, should educate IRS representatives about the fraud scheme and require them to properly authenticate callers before providing tax account information, including tax deposit and tax transcript information.

Conduct a study to establish minimum loan thresholds for performing site visits, implement policies and procedures based the results of that study, and perform site visits to help facilitate appropriate liquidation of collateral on defaulted COVID-19 EIDLs in an effort to maximize collections.

Verify all delinquent COVID-19 EIDL obligors are reported to credit bureaus in a timely manner.

Confer with the DOJ to establish a reasonable standard for referral of delinquent COVID-19 EIDLs to the DOJ for litigation.

Complete efforts to develop and implement program-level goals and metrics for both the Regional and Significant Service Provider Examination Programs. This should include finalizing and implementing the Inherent Risk Methodology Analysis.

Develop and implement a plan to hire and retain enough employees to consistently reach and maintain authorized complement at the St. Louis Processing and Distribution Center.

Coordinate with the Midwest Division Director, Logistics, to develop a plan to verify supervisors are monitoring scanning to improve compliance with load and unload scan goals at the St. Louis Processing and Distribution Center.

Develop and implement a plan to verify extra trips are properly recorded in the Surface Visibility Web system at the St. Louis Processing and Distribution Center.

Verify correct chain of custody procedures are followed for registry items at the St. Louis Processing and Distribution Center.

Implement a plan to hold managers and supervisors accountable for addressing employees who do not follow workplace rules at the St. Louis Processing and Distribution Center.

Analyze and realign processing operations at all four St. Louis processing facilities to improve efficiency.

Verify mail condition issues are communicated through the Mail Arrival Quality/Plant Arrival Quality tool at the St. Louis Processing and Distribution Center.