What GAO Found
The Department of Veterans Affairs (VA) pays over $1 billion a year to state veterans homes (SVH)—homes owned and operated by the states—to provide nursing home care to approximately 20,000 veterans. In fiscal year 2019, VA paid SVHs $1.17 billion for an average daily census of 20,072 veterans (51 percent of the total veterans receiving nursing home care through VA). Further, VA projects its payments to SVHs will continue to increase; VA projects it will pay $1.7 billion to SVHs to provide care to veterans in fiscal year 2022.
VA oversees the quality of care veterans receive at SVHs mainly through annual inspections that VA hires a contractor to perform. In its July 2019 report, GAO found that VA’s SVH contractor performed the required annual inspections for all SVHs in 2018, but VA needed to take action to enhance its oversight of SVHs and to ensure that information on quality of care provided in this setting is publicly available to veterans. Specifically, GAO found the following:
- VA does not require its SVH contractor to identify all failures to meet quality standards during its inspections as deficiencies . For example, GAO found that VA allows its SVH contractor to cite some failures to meet quality standards as “recommendations,” rather than as deficiencies. VA officials said they do not track or monitor the nature of the recommendations or whether they have been addressed. As a result, VA does not have complete information on all failures to meet quality standards at SVHs and cannot track this information to identify trends in quality across these homes.
- VA is not conducting all monitoring of its SVH contractor. GAO found that, at the time of its review, VA had not monitored the SVH contractor’s performance of inspections through regular observational assessments to ensure that contractor staff effectively determine whether SVHs are meeting required standards. Specifically, VA officials said they intended to observe the SVH contractor’s inspections on a quarterly basis; however, at the time of GAO’s review, VA officials could not recall when VA last observed the SVH contractor’s inspections. In July 2020, VA provided information indicating that they will regularly monitor the SVH contractor’s performance in conducting inspections through observational assessments.
- VA does not share information on the quality of SVHs on its website. GAO found that, while VA provides information on the quality of other nursing home care settings on its website, it does not do so for SVHs. According to VA officials, there is no requirement to provide information on SVH quality on its website, as SVHs are owned and operated by the states. VA is the only federal agency that conducts regular oversight inspection on the quality of care of all SVHs and, as a result, is the only agency that could share such quality information on its website.
Why GAO Did This Study
Veterans—like over a million other Americans—rely on nursing home care to help meet their health needs. For eligible veterans whose health needs require skilled nursing and personal care, VA provides or pays for nursing home care in three nursing home settings: the VA-owned and -operated community living centers, public- or privately owned community nursing homes, and state-owned and -operated SVHs. In fiscal year 2019, VA provided or paid for nursing home care for over 39,000 veterans. The majority of these veterans received care at SVHs.
This statement summarizes the GAO’s July 2019 report, GAO-19-428 , with a focus on issues related to SVHs. Specifically, it describes the: (1) use of and expenditures for SVHs, (2) inspections used by VA to assess the quality of SVH care and VA’s oversight of the inspection process, and (3) information VA provides publicly on the quality of SVH care. As part of that work GAO analyzed VA data on expenditures for SVHs and interviewed VA officials. For this statement GAO reviewed expenditure and utilization data for fiscal year 2019.
What GAO Recommends
In its July 2019 report, GAO made three recommendations related to SVHs, including that VA require that all failures to meet quality standards are cited as deficiencies on SVH inspections. VA concurred with two recommendations and concurred in principle with the third. VA has addressed one recommendation and continued attention is needed to address the two remaining recommendations.
For more information, contact Sharon M. Silas at (202) 512-7114 or firstname.lastname@example.org.
Greetings I’m Sam.
I edit, report and maintain this site. If you have any questions You can mail below me but it could be a while before I get back to you.
- Announcing Sanctions on the Ortega Regime in Response to Arbitrary Detentions and Other Undemocratic MovesBy Sam NewsJune 11, 2021Antony J. Blinken, [Read More…]
- Libya Travel AdvisoryBy Sam NewsSeptember 26, 2020Do not travel to Libya [Read More…]
- Framework Agreement for Israel-Lebanon Maritime DiscussionsBy Sam NewsOctober 1, 2020
- Concrete Contractor Agrees to Settle False Claims Act Allegations for $3.9 MillionBy Sam NewsFebruary 17, 2021COLAS Djibouti SARL (Colas Djibouti) ¬has agreed to resolve for $3.9 million civil allegations that it violated the False Claims Act by selling substandard concrete used to construct U.S. Navy airfields in the Republic of Djibouti, the Department of Justice announced today. Colas Djibouti, a French limited liability company, is a wholly owned subsidiary of Colas SA, a French civil engineering company.[Read More…]
- Introductory Remarks of Deputy Attorney General at Announcement of Civil Antitrust Lawsuit Filed Against GoogleBy Sam NewsOctober 20, 2020This morning, the Department of Justice and eleven states filed an antitrust civil lawsuit against Google, for unlawfully maintaining a monopoly in general search services and search advertising in violation of section two of the Sherman Act.[Read More…]
- COVID-19: HHS Should Clarify Agency Roles for Emergency Return of U.S. Citizens during a PandemicBy Sam NewsApril 19, 2021What GAO Found At the beginning of the COVID-19 pandemic, the U.S. returned, or repatriated, about 1,100 U.S. citizens from abroad and quarantined them domestically to prevent the spread of COVID-19. The Department of Health and Human Services (HHS) experienced coordination and safety issues that put repatriates, HHS personnel, and nearby communities at risk. This occurred because HHS component agencies—the Administration for Children and Families, the Office of the Assistant Secretary for Preparedness and Response, and the Centers for Disease Control and Prevention—did not follow plans or guidance delineating their roles and responsibilities for repatriating individuals during a pandemic—an event these agencies had never experienced. While they had general repatriation plans, there was disagreement as to whether the effort was in fact a repatriation. This led to fundamental problems for HHS agencies and their federal partners, including at the March Air Reserve Base quarantine facility in California where the first repatriated individuals were quarantined prior to widespread transmission of COVID-19 in the U.S. These problems included the following: Lack of clarity as to which agency was in charge when the first repatriation flight from Wuhan, China, arrived at the quarantine facility, which caused confusion among the HHS component agencies. Coordination issues among HHS component agencies resulted in component agencies operating independently of each other, and led to frustration and complications. HHS's delay in issuing its federal quarantine order, during which time a repatriate tried to leave the quarantine facility. HHS personnel's inconsistent use of personal protective equipment (PPE), and HHS officials' disagreement on which agency was responsible for managing infection prevention and control. An HHS official also directed personnel to remove their PPE as it created “bad optics,” according to an HHS report that examined the repatriation effort. The National Response Framework, a guide to how the U.S. responds to disasters and emergencies, instructs agencies to understand their respective roles and responsibilities, know what plans apply, and develop appropriate guidance for emergency responses. Until HHS revises or develops new plans that clarify agency roles and responsibilities during a repatriation in response to a pandemic, it will be unable to prevent the coordination and health and safety issues it experienced during the COVID-19 repatriation response in future pandemic emergencies. HHS also did not include repatriation in its pandemic planning exercises. As a result, agencies lacked experience deploying together to test repatriation plans during a pandemic, which contributed to serious coordination issues. GAO has previously reported that exercises play an important role in preparing for an incident by providing opportunities to test response plans and assess the clarity of roles and responsibilities. Until HHS conducts such exercises, it will be unable to test its repatriation plans during a pandemic and identify areas for improvement. Why GAO Did This Study HHS provides temporary assistance to U.S. citizens repatriated by the Department of State (State) from a foreign country because of destitution, illness, threat of war, or similar crises through the U.S. Repatriation Program. In January and February 2020, HHS assisted State in repatriating individuals from Wuhan, China, and the Diamond Princess cruise ship in Yokohama, Japan, to the U.S. HHS quarantined repatriates at five Department of Defense (DOD) installations to ensure they did not infect others with COVID-19. GAO was asked to examine HHS's COVID-19 repatriation efforts to ensure the health and safety of those involved in the response. This report examines HHS's coordination and management of its COVID-19 repatriation response. GAO reviewed relevant documentation from HHS, State, and DOD related to repatriation planning, including documentation on pandemic planning exercises. GAO also interviewed officials from HHS, State, and DOD.[Read More…]
- NASA’s ECOSTRESS Monitors California’s Record-Breaking Heat WaveBy Sam NewsSeptember 26, 2020From cities to deserts, [Read More…]
- Attacks on Civilians in SyriaBy Sam NewsFebruary 2, 2021Ned Price, Department [Read More…]
- Secretary Blinken’s Participation in the Virtual NATO Foreign MinisterialBy Sam NewsJune 1, 2021
- Medicare and Medicaid: COVID-19 Program Flexibilities and Considerations for Their ContinuationBy Sam NewsMay 19, 2021What GAO Found In response to the COVID-19 pandemic, the Centers for Medicare & Medicaid Services (CMS), the federal agency responsible for overseeing Medicare and Medicaid, made widespread use of program waivers and other flexibilities to expand beneficiary access to care. Some preliminary information is available on the effects of these waivers. Specifically: Medicare. CMS issued over 200 waivers and cited some of their benefits in a January 2021 report. For example, CMS reported that: Expansion of hospital capacity. More than 100 new facilities were added through the waivers that permitted hospitals to provide care in non-hospital settings, including beneficiaries' homes. Workforce expansion. Waivers and other flexibilities that relaxed certain provider enrollment requirements and allowed certain nonphysicians, such as nurse practitioners, to provide additional services expanded the provider workforce. Telehealth waivers. Utilization of telehealth services—certain services that are normally provided in-person but can also be provided using audio and audio-video technology—increased sharply. For example, utilization increased from a weekly average of about 325,000 services in mid-March to peak at about 1.9 million in mid-April 2020. Medicaid. CMS approved more than 600 waivers or other flexibilities aimed at addressing obstacles to beneficiary care, provider availability, and program enrollment. GAO has reported certain flexibilities such as telehealth as critical in reducing obstacles to care. Examples of other flexibilities included: Forty-three states suspended fee-for-service prior authorizations, which help ensure compliance with coverage and payment rules before beneficiaries can obtain certain services. Fifty states and the District of Columbia waived certain provider screening and enrollment requirements, such as criminal background checks. While likely benefitting beneficiaries and providers, these program flexibilities also increase certain risks to the Medicare and Medicaid programs and raise considerations for their continuation beyond the pandemic. For example: Increased spending. Telehealth waivers can increase spending in both programs, if telehealth services are furnished in addition to in-person services. Program integrity. The suspension of some program safeguards has increased the risks of fraud, waste, and abuse that GAO previously noted in its High-Risk report series. Beneficiary health and safety. Although telehealth has enabled the safe provision of services, the quality of telehealth services has not been fully analyzed. Why GAO Did This Study Medicare and Medicaid—two federally financed health insurance programs—spent over $1.5 trillion on health care services provided to about 140 million beneficiaries in 2020. Recognizing the critical role of these programs in providing health care services to millions of Americans, the federal government has provided for increased funding and program flexibilities, including waivers of certain federal requirements, in response to the COVID-19 pandemic. The CARES Act includes a provision for GAO to conduct monitoring and oversight of the federal government's response to the COVID-19 pandemic. In response, GAO has issued a series of government-wide reports from June 2020 through March 2021. GAO is continuing to monitor and report on these services. This testimony summarizes GAO's findings from these reports related to Medicare and Medicaid flexibilities during the COVID-19 pandemic, as well as preliminary observations from ongoing work related to telehealth waivers in both programs. Specifically, the statement focuses on what is known about the effects of these waivers and flexibilities on Medicare and Medicaid, and considerations regarding their ongoing use. To conduct this work, GAO reviewed federal laws, CMS documents and guidance, and interviewed federal and state officials. GAO also interviewed six provider and beneficiary groups, selected based on their experience with telehealth services. GAO obtained technical comments from CMS and incorporated them as appropriate. For more information, contact Jessica Farb at (202) 512-7114 or email@example.com or Carolyn L. Yocom at (202) 512-7114 or firstname.lastname@example.org.[Read More…]
- Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 BillionBy Sam NewsJanuary 7, 2021The Boeing Company (Boeing) has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.[Read More…]
- Texas Man Pleads Guilty to Conspiracy to Provide Material Support to ISISBy Sam NewsJanuary 25, 2021In San Antonio today, 22-year-old Cost resident Jaylyn Christopher Molina, aka Abdur Rahim, admitted to conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (ISIS), announced Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Western District of Texas Gregg N. Sofer and FBI Special Agent in Charge of the San Antonio Division Christopher Combs.[Read More…]
- Joint Statement of the U.S.-Ecuador Bilateral Expanded Political DialogueBy Sam NewsNovember 13, 2020
- Fixed-Price-Incentive Contracts: DOD Has Increased Their Use but Should Assess Contributions to OutcomesBy Sam NewsFebruary 3, 2021The Department of Defense (DOD) has encouraged the use of fixed-price-incentive (FPI) contracts where appropriate. These contracts can provide defense contractors with a profit incentive for effective cost control and performance depending on how they are structured. Over the 10-year period from fiscal years 2010 through 2019, obligations on FPI contracts for major defense acquisition programs (MDAPs) grew to account for almost half of the $65 billion in obligations for fiscal year 2019. Percentage of Obligations by Contract Type for Major Defense Acquisition Programs from Fiscal Years 2010 through 2019 DOD guidance, including Better Buying Power initiatives, influenced DOD's use of FPI contracts over the last decade for the selected contracts GAO reviewed. In addition, when selecting a contract type, contracting officers also considered factors including the availability of cost or pricing data, previous experience with the contractor, and the previously used contract type. DOD has not assessed the extent to which use of FPI contracts has contributed to achieving desired cost and schedule performance outcomes. DOD spends billions of dollars annually using fixed-price type contracts to acquire its MDAPs, among other things. In 2010, DOD's Better Buying Power guidance encouraged the use of FPI contracts as a way to obtain greater efficiency and productivity in defense spending. Congress included a provision in statute for GAO to report on DOD's use of fixed-price type contracts, including FPI. This report examines (1) the extent to which DOD has awarded FPI contracts associated with MDAPs from fiscal years 2010 through 2019, and (2) the factors that influenced DOD's decision to use FPI contracts and the extent to which DOD assesses their use, among other objectives. GAO analyzed government contracting data by contract type for fiscal years 2010 through 2019 on contracts for 101 MDAPs. GAO further analyzed a non-generalizable sample of 12 contracts including six FPI and six firm-fixed-price (two of each type from each of the three military departments); conducted file reviews; reviewed policy documentation; and interviewed DOD officials. GAO recommends that DOD conduct an assessment of its use of FPI contracts for major defense acquisition programs, including the extent to which share lines and other contract elements contributed to achieving desired cost and schedule performance outcomes. DOD agreed with GAO's recommendation. For more information, contact W. William Russell at (202) 512-4841 or email@example.com.[Read More…]
- Businessman Charged in Scheme to Hoard Personal Protective Equipment and Price Gouge Health Care ProvidersBy Sam NewsJanuary 27, 2021A Mississippi businessman was charged with defrauding the United States and other health care providers in a $1.8 million scheme related to acquiring and hoarding personal protective equipment (PPE) and price gouging health care providers, including numerous U.S. Department of Veterans Affairs (VA) hospitals in critical need of PPE.[Read More…]
- Judges Focus on Diversity in Clerkship, Internship HiringBy Sam NewsApril 29, 2021Federal judges are working to make highly sought-after law clerkships and judicial internships more accessible to a diverse pool of law students.[Read More…]
- DRL Supporting Sudan’s Democratic TransitionBy Sam NewsSeptember 27, 2020Bureau of Democracy, [Read More…]
- A New Video Captures the Science of NASA’s Perseverance Mars RoverBy Sam NewsSeptember 26, 2020With a targeted launch [Read More…]
- Joint Statement on the Signing of the U.S.-Taliban AgreementBy Sam NewsMarch 9, 2020
- Department Press Briefing – February 5, 2021By Sam NewsFebruary 5, 2021Ned Price, Department [Read More…]
- Robert Katzmann, Judge and Civics Advocate, Dies at 68By Sam NewsJune 10, 2021Robert A. Katzmann, a former chief judge of the Second Circuit U.S. Court of Appeals and a tireless, impassioned advocate of civics education, died June 9. He was 68.[Read More…]
- After 40 Years of Progress, It Is Time to End the HIV EpidemicBy Sam NewsJune 7, 2021As we mark the 40th [Read More…]
- Arrest of Eight Pan-Democratic Politicians in Hong KongBy Sam NewsNovember 2, 2020
- New Jersey Man Sentenced to Prison for Tax Fraud ConspiracyBy Sam NewsNovember 2, 2020A New Jersey man was sentenced to 78 months in prison today for conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.[Read More…]
- Secretary Antony J. Blinken to Embassy Iceland Staff and FamiliesBy Sam NewsMay 18, 2021Antony J. Blinken, [Read More…]
- Three Additional States Ask Court To Join Justice Department Antitrust Suit Against GoogleBy Sam NewsDecember 17, 2020Today, the Attorneys General of Michigan and Wisconsin filed for permission to join the antitrust lawsuit filed by the United States and eleven other state Attorneys General against monopolist Google. This follows a similar recent motion by the California Attorney General to join the lawsuit on December 11, 2020.[Read More…]
- U.S. Special Presidential Envoy for Climate John Kerry to Mark Official U.S. Reentry into Paris AgreementBy Sam NewsFebruary 17, 2021
- Secretary Blinken’s Call with Armenian Prime Minister PashinyanBy Sam NewsMarch 6, 2021
- Tax Administration: Opportunities Exist to Improve Oversight of Hospitals’ Tax-Exempt StatusBy Sam NewsOctober 19, 2020Nonprofit hospitals must satisfy three sets of requirements to obtain and maintain a nonprofit tax exemption (see figure). Requirements for Nonprofit Hospitals to Obtain and Maintain a Tax-Exemption While PPACA established requirements to better ensure hospitals are serving their communities, the law is unclear about what community benefit activities hospitals should be engaged in to justify their tax exemption. The Internal Revenue Service (IRS) identified factors that can demonstrate community benefits, but they are not requirements. IRS does not have authority to specify activities hospitals must undertake and makes determinations based on facts and circumstances. This lack of clarity makes IRS's oversight challenging. Congress could help by adding specificity to the Internal Revenue Code (IRC). While IRS is required to review hospitals' community benefit activities at least once every 3 years, it does not have a well-documented process to ensure that those activities are being reviewed. IRS referred almost 1,000 hospitals to its audit division for potential PPACA violations from 2015 through 2019. However, IRS could not identify if any of these referrals related to community benefits. GAO's analysis of IRS data identified 30 hospitals that reported no spending on community benefits in 2016, indicating potential noncompliance with providing community benefits. A well-documented process, such as clear instructions for addressing community benefits in the PPACA reviews or risk-based methods for selecting cases, would help IRS ensure it is effectively reviewing hospitals' community benefit activities. Further, according to IRS officials, hospitals with little to no community benefit expenses would indicate potential noncompliance. However, IRS was unable to provide evidence that it conducts reviews related to hospitals' community benefits because it does not have codes to track such audits. Slightly more than half of community hospitals in the United States are private, nonprofit organizations. IRS and the Department of the Treasury have recognized the promotion of health as a charitable purpose and have specified that nonprofit hospitals are eligible for a tax exemption. IRS has further stated that these hospitals can demonstrate their charitable purpose by providing services that benefit their communities as a whole. In 2010, Congress and the President enacted PPACA, which established additional requirements for tax-exempt hospitals to meet to maintain their tax exemption. GAO was asked to review IRS's implementation of requirements for tax-exempt hospitals. This report assesses IRS's (1) oversight of how tax-exempt hospitals provide community benefits, and (2) enforcement of PPACA requirements related to tax-exempt hospitals. GAO is making one matter for congressional consideration to specify in the IRC what services and activities Congress considers sufficient community benefit. GAO is also making four recommendations to IRS, including to establish a well-documented process to ensure hospitals' community benefit activities are being reviewed, and to create codes to track audit activity related to hospitals' community benefit activities. IRS agreed with GAO's recommendations. For more information, contact Jessica Lucas-Judy at (202) 512-9110 or firstname.lastname@example.org.[Read More…]
- NASA to Broadcast Mars 2020 Perseverance Launch, Prelaunch ActivitiesBy Sam NewsSeptember 26, 2020Starting July 27, news [Read More…]
- U.S. Rescues American Held Hostage in Nigeria By Sam NewsOctober 31, 2020
- Yemen Travel AdvisoryBy Sam NewsSeptember 26, 2020Do not travel to Yemen [Read More…]
- Former Owners of Telemarketing Company Agree to Pay At Least $4 Million to Resolve False Claims Act AllegationsBy Sam NewsMarch 16, 2021Two Florida men have agreed collectively to pay at least $4 million to resolve allegations that they violated the False Claims Act by engaging in schemes to generate prescriptions for compounded drugs and refer those prescriptions to pharmacies in exchange for illegal kickbacks. Many of those prescriptions were billed to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees, and military dependents.[Read More…]
- U.S. Asia-Pacific Economic Cooperation (APEC) Travel Card Program FAQsBy Sam NewsSeptember 27, 2020Content currently [Read More…]
- Former Supplement Company Owner Pleads Guilty to Unlawful Distribution of Anabolic Steroids and Steroid-like DrugsBy Sam NewsJune 21, 2021A Georgia resident and his company pleaded guilty today to a felony charge relating to the distribution of anabolic steroids and steroid-like drugs in purported dietary supplements.[Read More…]
- Small Business Loans: SBA Generally Incorporated Key Elements for Estimating Subsidy Cost of 7(a) ProgramBy Sam NewsOctober 30, 2020The Small Business Administration (SBA) develops its subsidy cost estimates for the 7(a) loan guarantee program—that is, estimates of the program's net long-term cost to the government—using a cash flow model. The model uses historical data, econometric equations, and macroeconomic projections to estimate cash flows—such as guarantee fees, SBA purchases of defaulted loans, and recoveries on those loans—for the loans SBA expects to guarantee in the next fiscal year. The net present value of the cash flows (value in current dollars) is the subsidy cost estimate. SBA generally incorporated key elements of subsidy cost estimation into its estimates for the 7(a) program for the fiscal year 2020 budget. Specifically, GAO found that SBA's estimation process was largely consistent with eight key elements GAO previously identified that help ensure subsidy estimates are supported, reliable, and reasonable. For example, SBA generally validated historical data, documented the cash flow model and key assumptions, analyzed the sensitivity of estimates to alternative assumptions, and had documented policies and procedures. SBA made changes in its estimation process that collectively increased the 7(a) program's subsidy cost to $99 million for fiscal year 2020 (a 0.33 percent subsidy rate when expressed as the cost per dollar of credit assistance) from $0 for fiscal year 2019 (0 percent subsidy rate). Some of these changes were routine updates to data and economic assumptions used in the cash flow model, while others were revisions to the estimation process. Additionally, some individual changes increased the subsidy costs, while others decreased it. Some of the changes that had the largest impact on the subsidy rate included the following: Incorporating the President's economic assumptions for fiscal year 2020 decreased the rate by 0.27 percentage points. Updating the basis for the size and composition of the loan cohort SBA expected to guarantee in fiscal year 2020 increased the rate by 0.21 percentage points. Revising the methodology for estimating purchase amounts for defaulted loans to better reflect the outstanding loan balance at the time of purchase increased the rate by 0.21 percentage points. The 7(a) program is SBA's largest loan guarantee program for small businesses, with about $95 billion in outstanding loan principal as of the end of fiscal year 2019. Federal agencies that provide credit assistance are generally required to estimate the net long-term cost to the government—known as the subsidy cost—for each annual cohort of loans. SBA initially estimated a zero subsidy cost for each cohort from fiscal years 2014 through 2019, but estimated that the fiscal year 2020 cohort would have a positive subsidy cost and require appropriations. GAO was asked to evaluate SBA's subsidy estimation process for the 7(a) program. This report examines (1) how SBA estimates 7(a) subsidy costs, (2) the extent to which SBA incorporated key elements of subsidy cost estimation into its estimation process for the fiscal year 2020 budget, and (3) the changes SBA made in its estimation process for the fiscal year 2020 budget. GAO reviewed SBA documentation on its estimation process, including information on SBA's cash flow model, and compared SBA's process to key elements that GAO previously identified ( GAO-16-269 ). GAO also interviewed officials from SBA, the Office of Management and Budget, and outside auditors and contractors that annually review SBA's process and model. For more information, contact William B. Shear at (202) 512-8678 or email@example.com.[Read More…]
- Abusive Tax Schemes: Offshore Insurance Products and Associated Compliance RisksBy Sam NewsAugust 31, 2020Federal law provides certain tax benefits for transactions involving genuine insurance products, including insurance products held offshore. While taxpayers may lawfully hold offshore insurance products, they contain features that make them vulnerable for use in abusive tax schemes. For example, offshore insurance products can be highly technical and individualized, making enforcement challenging, according to Internal Revenue Service (IRS) officials. Furthermore, insurance is not defined by federal statute, potentially making a determination of what constitutes genuine insurance for federal tax purposes unclear. Offshore micro-captive insurance products, which are made by small insurance companies owned by the businesses they insure, may be abused if the corporate taxpayer improperly claims deductions for payments made to a micro-captive for federal tax purposes. Courts have applied certain considerations to determine whether these deductions can be claimed. For example, one consideration is whether the insurance legitimately distributes risk across participating entities. IRS officials said they expend significant resources reviewing these schemes because of the varied ways insurance companies may work. Offshore variable life insurance products, which are insurance policies with investment components over which the insured has certain control, may be abused if the individual taxpayer fails to meet IRS reporting requirements or pay appropriate federal income taxes. Federal regulations require that taxpayers with certain foreign life insurance accounts report this information to IRS and the Financial Crimes Enforcement Network. The structure of life insurance products may vary and taxpayers are required to pay taxes based on the underlying type of financial product the policy represents. The figure below shows how noncompliance may occur when taxpayers use life insurance and micro-captive insurance in abusive tax schemes. Abusive Use of Micro-captive and Life Insurance When structured in abusive ways, insurance products held offshore can be designed to aid in unlawful tax evasion by U.S. taxpayers. Two products that IRS has recently warned have the potential for such abuse include micro-captive insurance and variable life insurance policies. GAO was asked to review how taxpayers may abuse offshore insurance products. This report describes (1) how offshore insurance tax shelters provide opportunities for income tax abuse; (2) how offshore micro-captive insurance is used and how it is used in abusive tax schemes; and (3) how offshore variable life insurance is used and how it is used in abusive tax schemes. GAO reviewed IRS tax and information return forms, relevant U.S. case law and IRS guidance, academic and trade publications, and applicable statutes and regulations. GAO also interviewed IRS officials and professionals in the tax preparation and insurance industries. For more information, contact Jessica Lucas-Judy at (202) 512-9110 or LucasJudyJ@gao.gov.[Read More…]
- United States Reaches Proposed Settlement with Ranch Owner to Restore Creek and Wetlands and Pay Damages for TrespassBy Sam NewsMarch 18, 2021The U.S. Department of Justice, U.S. Environmental Protection Agency (EPA) and Bureau of Land Management (BLM) announced that they have reached a proposed settlement with John Raftopoulos, Diamond Peak Cattle Company LLC and Rancho Greco Limited LLC (collectively, the defendants) to resolve violations of the Clean Water Act (CWA) and the Federal Land Policy and Management Act (FLPMA) involving unauthorized discharges of dredged or fill material into waters of the United States and trespass on federal public lands in northwest Moffat County, Colorado.[Read More…]
- Disabilities Reported by Prisoners: Survey of Prison Inmates, 2016By Sam NewsIn Justice NewsMay 2, 2021(Publication)
This brief presents findings based on data collected in the 2016 Survey of Prison Inmates, a survey conducted through face-to-face interviews with a national sample of state and federal prisoners across a variety of topics, such as their demographic characteristics, socio-economic background, health, and involvement with the criminal justice system.
3/30/2021, NCJ 252642, Mariel Alper, Jennifer Bronson, Laura M. Maruschak [Read More…]
- Keynote Remarks at the 5th Annual Papua New Guinea Women’s ForumBy Sam NewsIn Women’s NewsSeptember 26, 2020Joel Maybury, Acting [Read More…]
- Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Healthcare Fraud AllegationsBy Sam NewsMay 3, 2021Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.[Read More…]
- Secretary Michael R. Pompeo Remarks at the Florida Family Policy Council Dinner Gala: Respecting Life in America’s Foreign PolicyBy Sam NewsOctober 4, 2020
- Judges Learn Students’ Perspectives in Law Day EventsBy Sam NewsMay 6, 2021Federal judges are creating opportunities throughout May for critical thinking and candid conversations with students about the rule of law, as part of the Judiciary’s annual observance of Law Day.[Read More…]
- Judges Share 50 Years as Colleagues and FriendsBy Sam NewsOctober 23, 2020On the same afternoon in October 1970, the Senate confirmed four new federal judges from Florida. This month, three are celebrating a half-century on the bench, as well as a strong, continuing friendship.[Read More…]
- Florida Escort Pleads Guilty to Underreporting IncomeBy Sam NewsDecember 16, 2020A Fort Lauderdale, Florida, escort pleaded guilty today to filing a false corporate tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Southern District of Florida, Ariana Fajardo Orshan.[Read More…]
- Appointment of Ambassador Daniel Smith as Chargé d’Affaires at Embassy New Delhi By Sam NewsMay 2, 2021
- Former Raytheon Engineer Sentenced for Exporting Sensitive Military Related Technology to ChinaBy Sam NewsNovember 18, 2020Today, Wei Sun, 49, a Chinese national and naturalized citizen of the United States, was sentenced to 38 months in prison by District Court Judge Rosemary Marquez. Sun previously pleaded guilty to one felony count of violating the Arms Export Control Act (AECA).[Read More…]
- Virginia Return Preparer Indicted for Evading her Own Taxes and Not Filing Her ReturnsBy Sam NewsNovember 12, 2020A federal grand jury in Richmond, Virginia, returned an indictment charging a return preparer with tax evasion and failure to file individual income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.[Read More…]
- Next Generation Combat Vehicles: As Army Prioritizes Rapid Development, More Attention Needed to Provide Insight on Cost Estimates and Systems Engineering RisksBy Sam NewsAugust 6, 2020The four efforts within the Next Generation Combat Vehicles (NGCV) portfolio all prioritize rapid development, while using different acquisition approaches and contracting strategies. Some of the efforts use the new middle-tier acquisition approach, which enables rapid development by exempting programs from many existing DOD acquisition processes and policies. Similarly, the efforts use contracting strategies that include both traditional contract types as well as more flexible approaches to enable rapid development of technology and designs. Vehicles of the Next Generation Combat Vehicles Portfolio The two programs within the portfolio that recently initiated acquisitions—Mobile Protected Firepower and Optionally Manned Fighting Vehicle—have taken some steps to mitigate risks in cost and technology consistent with GAO's leading practices. The Army's use of the middle-tier approach for these efforts may facilitate rapid development, but the programs could benefit from additional application of GAO's leading practices. For example, the programs identified some risks in their cost estimates, but because each presented a single estimate of the total cost—referred to as a point estimate—these estimates do not fully reflect how uncertainty could affect costs. Similarly, the programs took some steps to mitigate technical risk by limiting development to 6 years or less and incrementally introducing new technologies, steps consistent with GAO's leading practices. However, by delaying key systems engineering reviews, the programs took some steps not consistent with leading practices, which could increase technical risk. While trade-offs may be necessary to facilitate rapid development, more consistent application of GAO's leading practices for providing cost estimates that reflect uncertainty and conducting timely systems engineering reviews could improve Army's ability to provide insight to decision makers and deliver capability to the warfighter on time and at or near expected costs. The Army has taken actions to enhance communication, both within the Army and with Department of Defense stakeholders, to mitigate risks. Within the Army, these actions included implementing a cross-functional team structure to collaboratively develop program requirements with input from acquisition, contracting, and technology development staff. Program officials also coordinated with other Army and Department of Defense stakeholders responsible for cost and test assessment, even where not required by policy, to mitigate risk. The Army views the NGCV portfolio as one of its most critical and urgent modernization priorities, as many current Army ground combat vehicles were developed in the 1980s or earlier. Past efforts to replace some of these systems failed at a cost of roughly $23 billion. In November 2017, the Army began new efforts to modernize this portfolio. GAO was asked to review the Army's plans for modernizing its fleet of ground combat vehicles. This report examines (1) the acquisition approaches and contracting strategies the Army is considering for the NGCV portfolio, (2) the extent to which the Army's efforts to balance schedule, cost, and technology are reducing acquisition risks for that portfolio, and (3) how the Army is communicating internally and externally to reduce acquisition risks. GAO reviewed the acquisition and contracting plans for each of the vehicles in the portfolio to determine their approaches; assessed schedule, cost, and technology information—where available—against GAO's leading practice guides on these issues as well as other leading practices for acquisition; and interviewed Army and DOD officials. GAO is making three recommendations, including that the Army follow leading practices on cost estimation and systems engineering to mitigate program risk. In its response, the Army concurred with these recommendations and plans to take action to address them. For more information, contact Jon Ludwigson at (202) 512-4841 or firstname.lastname@example.org.[Read More…]
- Saint Vincent and the Grenadines’ Independence DayBy Sam NewsOctober 27, 2020
- Montana Man Indicted on Federal Hate Crime and Firearm ChargesBy Sam NewsJune 2, 2021A federal grand jury in Billings, Montana, returned an indictment on May 20 charging a Montana man with hate crime and firearm violations for allegedly firing a gun into an individual’s house and threatening the individual with violent, homophobic slurs.[Read More…]
- Burkina Faso Travel AdvisoryBy Sam NewsSeptember 26, 2020Do not travel to Burkina [Read More…]
- Justice Department Reaches Agreement with Two Community Colleges to Improve Access for Students with DisabilitiesBy Sam NewsMay 6, 2021The Justice Department announced today the signing of two agreements with community colleges to remove barriers experienced by students with disabilities, including veterans.[Read More…]
- Owner of Montana Construction Company Pleads Guilty to Employment Tax FraudBy Sam NewsOctober 5, 2020A Great Falls, Montana, businessman pleaded guilty today to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.[Read More…]
- DHS Annual Assessment: Most Acquisition Programs Are Meeting Goals but Data Provided to Congress Lacks Context Needed For Effective OversightBy Sam NewsJanuary 19, 2021As of September 2020, 19 of the 24 Department of Homeland Security (DHS) programs GAO assessed that had DHS approved acquisition program baselines were meeting their currently established goals. However, of the 24 programs, ten had been in breach of their cost or schedule goals, or both, at some point during fiscal year 2020. A few programs experienced breaches related to external factors, such as the COVID-19 pandemic, while others breached their baseline goals because of acquisition management issues. Five of these programs rebaselined to increase costs or delay schedules, but the remaining five were still in breach status as of September 2020 (see table). Further, GAO found that some of the 19 programs that were meeting their currently established goals—including the U.S. Coast Guard's Offshore Patrol Cutter program—are at risk of future cost growth or schedule slips. DHS Major Acquisition Programs In Breach of Approved Cost or Schedule Goals (or Both) As of September 2020. Program (estimated life-cycle cost) Breach Type National Cybersecurity Protection System ($5,908 million) Schedule Homeland Advanced Recognition Technology ($3,923 million) Cost and Schedule Grants Management Modernization ($289 million) Cost and Schedule National Bio Agro-Defense Facility ($1,298 million) Schedule Medium Range Surveillance Aircraft ($15,187 million) Schedule Source: GAO analysis of Department of Homeland Security (DHS) data. | GAO-21-175 Note: The life-cycle cost information is the current acquisition program baseline cost goal as of September 2020. Programs may revise cost goals, if necessary, when the new baseline is approved. GAO found that supplemental guidance for the development of acquisition documents generally aligned with requirements in DHS's acquisition management policy. However, guidance for developing acquisition documentation in DHS's Systems Engineering Life Cycle Instruction and accompanying Guidebook does not reflect current requirements in DHS's acquisition management policy. DHS officials stated that the information related to development of acquisition documents—including the systems engineering life cycle tailoring plan—should be consistent across all of DHS's policies, instructions, and guidebooks. Inconsistent agency-wide guidance can lead to a lack of clarity on when programs should submit their program documentation. The Joint Explanatory Statement accompanying a bill to the DHS Appropriations Act, 2019, directed DHS to provide quarterly briefings on summary ratings for all major acquisition programs. While DHS is meeting this direction with summary ratings, the ratings do not include contextual information, such as programs' cost, schedule, or performance risks. This type of information would help Congress understand how the ratings relate to potential program outcomes. Determining what additional risk information is needed for DHS's major acquisition programs along with the reporting timeframes and the appropriate mechanism to provide the information, would help ensure that decision makers have needed context. DHS plans to spend more than $7 billion on its portfolio of major acquisition programs—with life-cycle costs over $300 million— in fiscal year 2021 to help execute its many critical missions. The Explanatory Statement accompanying the DHS Appropriations Act, 2015, included a provision for GAO to review DHS's major acquisitions on an ongoing basis. This report, GAO's sixth review, assesses the extent to which (1) DHS's major acquisition programs are meeting baseline goals, (2) DHS's guidance for developing acquisition documentation is consistent with DHS acquisition policy, and (3) DHS is reporting relevant information to Congress on its portfolio of major acquisition programs. GAO assessed 24 acquisition programs, including DHS's largest programs that were in the process of obtaining new capabilities as of April 2018, and programs GAO or DHS identified as at risk of poor outcomes. GAO assessed cost and schedule progress against baselines; assessed DHS's congressional reporting requirements; and interviewed DHS officials and congressional appropriations committee staff. GAO is making one recommendation for DHS to align acquisition guidance with policy, and one matter for Congress to consider determining what additional information it needs to perform oversight. DHS concurred with our recommendation. For more information, contact Marie A. Mak at (202) 512-4841 or email@example.com.[Read More…]
- Briefing with Special Presidential Envoy for Climate John KerryBy Sam NewsApril 23, 2021John Kerry, Special [Read More…]
- Vitol Inc. Agrees to Pay over $135 Million to Resolve Foreign Bribery CaseBy Sam NewsDecember 3, 2020Vitol Inc. (Vitol), the U.S. affiliate of the Vitol group of companies, which together form one of the largest energy trading firms in the world, has agreed to pay a combined $135 million to resolve the Justice Department’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) and to resolve a parallel investigation in Brazil.[Read More…]
- DRL Promoting Transparent and Accountable Governance in the Indo-Pacific RegionBy Sam NewsSeptember 27, 2020Bureau of Democracy, [Read More…]
- Statement by Acting Attorney General Monty Wilkinson on the Pakistani Supreme Court’s Ruling Relating to the Abduction and Murder of Daniel PearlBy Sam NewsJanuary 28, 2021Acting Attorney General Monty Wilkinson has released the following statement:[Read More…]
- Bermuda Travel AdvisoryBy Sam NewsSeptember 26, 2020Reconsider travel to [Read More…]