COVID-19 Loans: SBA Has Begun to Take Steps to Improve Oversight and Fraud Risk Management

What GAO Found

In April 2020, the Small Business Administration (SBA) quickly implemented the Paycheck Protection Program (PPP) and expedited the processing of Economic Injury Disaster Loans (EIDL) and a new EIDL advance program. These important programs have helped businesses survive during the COVID-19 pandemic. In an effort to move quickly on these programs, SBA initially put limited internal controls in place, leaving both susceptible to program integrity issues, improper payments, and fraud. Because of concerns about program integrity, GAO added PPP and the EIDL program onto its High-Risk List in March 2021.

SBA has begun to take steps to address these initial deficiencies:

  • PPP oversight. Because ongoing oversight is crucial, GAO recommended in June 2020 that SBA develop plans to respond to PPP risks to ensure program integrity, achieve program effectiveness, and address potential fraud. Since then, SBA has developed a loan review process and added up-front verifications before it approves new loans.
  • Improper payments for PPP. GAO recommended in November 2020 that SBA expeditiously estimate improper payments for PPP and report estimates and error rates. SBA has now developed a plan for the testing needed to estimate improper payments.
  • Analyzing EIDL data. Based on evidence of widespread potential fraud for EIDL, GAO recommended in January 2021 that SBA conduct portfolio-level analysis to detect potentially ineligible applications. SBA has not announced plans to implement this recommendation.
  • EIDL oversight. GAO recommended in March 2021 that SBA implement a comprehensive oversight plan for EIDL to ensure program integrity. SBA agreed to implement such a plan.
  • Assessment of fraud risks. SBA has not conducted a formal fraud risk assessment for PPP or the EIDL program. GAO made four recommendations in March 2021, including that SBA conduct a formal assessment and develop a strategy to manage fraud risks for each program. SBA said it would work to complete fraud risk assessments for PPP and EIDL and continually monitor fraud risks.
  • Financial statement audit. In December 2020, SBA’s independent financial statement auditor issued a disclaimer of opinion on SBA’s fiscal year 2020 consolidated financial statements because SBA could not provide adequate documentation to support a significant number of transactions and account balances related to PPP and EIDL.

GAO continues to review information SBA recently provided, including data on PPP loan forgiveness and details on the PPP and EIDL loan review processes. In addition, GAO has obtained additional information from a survey of PPP participating lenders, interviews with SBA’s PPP contractors, and written responses to questions provided by SBA’s EIDL contractor and subcontractors.

Why GAO Did This Study

SBA has made or guaranteed about 18.7 million loans and grants through PPP and the EIDL program, providing about $968 billion to help small businesses adversely affected by COVID-19. PPP provides potentially forgivable loans to small businesses, and EIDL provides low-interest loans of up to $2 million for operating and other expenses, as well as advances (grants).

This testimony discusses the lack of controls in PPP and the EIDL program and SBA’s efforts to improve its oversight of these programs. It is based largely on GAO’s June 2020–March 2021 reports on the federal response, including by SBA, to the economic downturn caused by COVID-19 (GAO-20-625, GAO-20-701, GAO-21-191, GAO-21-265, GAO -21-387). For those reports, GAO reviewed SBA documentation and SBA Office of Inspector General (OIG) reports; analyzed SBA data; and interviewed officials from SBA, the SBA OIG, and the Department of the Treasury.

More from:

Hits: 0

News Network

  • Deputy Secretary Sherman’s Visit to the People’s Republic of China
    In Crime Control and Security News
    Office of the [Read More…]
  • United States Charges Russian Military Intelligence Officers for Cyber Crimes
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Sierra Leone National Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Department of Justice Announces Charges of North Korean and Malaysia Nationals for Bank Fraud, Money Laundering and North Korea Sanctions Violations
    In Crime News
    The Department of Justice announced a criminal complaint charging Ri Jong Chol, Ri Yu Gyong, North Korean nationals, and Gan Chee Lim, a Malaysia national. The three were charged with conspiracy to violate North Korean Sanctions Regulations and bank fraud, and conspiracy to launder funds. The defendants allegedly established and utilized front companies that transmitted U.S. dollar wires through the United States to purchase commodities on behalf of North Korean customers.
    [Read More…]
  • Businessman Indicted for Not Reporting Foreign Bank Accounts and Filing False Documents with the IRS
    In Crime News
    A federal grand jury in Alexandria, Virginia, returned an indictment on March 3, 2021, charging a Virginia man with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the IRS. According to the indictment, Azizur Rahman of Herndon, had a financial interest in and signature authority over more than 20 foreign financial accounts, including accounts held in Switzerland, the United Kingdom, the Republic of Singapore, and Bangladesh. From 2010 through 2016, Rahman allegedly did not disclose his interest in all of his financial accounts on annual FBARs, as required by law. Rahman also allegedly filed false individual tax returns for the tax years 2010 through 2016 that did not report to the IRS all of his foreign bank accounts and income.
    [Read More…]
  • Department of Justice Files Complaint Against California Company To Stop Distribution of Adulterated Animal Drugs
    In Crime News
    The United States filed a civil complaint to stop a California company from manufacturing and distributing adulterated animal drugs, the Department of Justice announced today.
    [Read More…]
  • Latvia Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • DRL Supporting Sudan’s Democratic Transition
    In Human Health, Resources and Services
    Bureau of Democracy, [Read More…]
  • Survivors of Childhood Cancer: Factors Affecting Access to Follow-up Care
    In U.S GAO News
    Stakeholders GAO interviewed and studies GAO reviewed identified three factors that affect access to follow-up care for childhood cancer survivors—individuals of any age who were diagnosed with cancer from ages 0 through 19. These factors are care affordability, survivors' and health care providers' knowledge of appropriate care, and proximity to care. Childhood cancer survivors need access to follow-up care over time for serious health effects known as late effects—such as developmental problems, heart conditions, and subsequent cancers—which result from their original cancer and its treatment. Affordability: Survivors of childhood cancer may have difficulty paying for follow-up care, which can affect their access to this care. For example, one study found that survivors were significantly more likely to have difficulty paying medical bills and delay medical care due to affordability concerns when compared to individuals with no history of cancer. Knowledge: Survivors' access to appropriate follow-up care for late effects of childhood cancer can depend on both survivors' and providers' knowledge about such care, which can affect access in various ways, according to stakeholders GAO interviewed and studies GAO reviewed: Some survivors may have been treated for cancer at an early age and may have limited awareness of the need for follow- up care. Some primary or specialty care providers may not be knowledgeable about guidelines for appropriate follow-up care, which can affect whether a survivor receives recommended treatment. Follow-up care may include psychosocial care (e.g., counseling), and palliative care (e.g., pain management). Proximity: Survivors may have difficulty reaching appropriate care settings. Stakeholders GAO interviewed and studies GAO reviewed noted that childhood cancer survivors may have to travel long distances to receive follow-up care from multidisciplinary outpatient clinics—referred to as childhood cancer survivorship clinics. The lack of proximity may make it particularly difficult for survivors with limited financial resources to adhere to recommended follow-up care. The National Cancer Institute (NCI) and the Centers for Disease Control and Prevention (CDC)—agencies within the Department of Health and Human Services (HHS) that conduct activities specific to childhood cancer survivors, including research about access to care—have taken steps to implement three provisions in the Childhood Cancer Survivorship, Treatment, Access, and Research Act of 2018 (Childhood Cancer STAR Act) relevant to access to care for survivors. For example, CDC has awarded a contract to develop software to improve the collection of information on individuals with childhood cancer, and NCI has funded three research projects focused on interventions aimed at addressing adverse outcomes among childhood cancer survivors. NCI has also funded research to study the health status and use of follow-up services of 2,000 young adult survivors. Stakeholders have raised questions about the ability of childhood cancer survivors to access needed follow-up care. According to the most recent data available, approximately 465,000 childhood cancer survivors—children, adolescents, and adults—were alive in the United States as of January 1, 2017. Although the 5-year survival rate for childhood cancer has increased from about 62 percent in the mid-1970s to about 86 percent in the mid-2010s, childhood cancer survivors may face late effects, which could require follow-up care across multiple stages of their lives. The conference report accompanying Public Law 115-245 included a provision for GAO to report on barriers to obtaining medical care for childhood cancer survivors, including psychosocial services and palliative care. This report identifies factors reported to affect access to follow-up care for this population. GAO spoke with officials from NCI and CDC and interviewed stakeholders such as providers who care for childhood cancer survivors, professional associations, and advocacy groups. Additionally, GAO reviewed peer-reviewed studies related to access to care for survivors, outcomes of treatment they may receive, and factors that may affect their access to follow-up care. To supplement this work, GAO reviewed the status of selected HHS activities to support access to care for childhood cancer survivors, including steps taken to implement selected provisions in the Childhood Cancer STAR Act. GAO provided a draft of this report to HHS for review and comment. HHS provided technical comments, which GAO incorporated as appropriate. For more information, contact Jessica Farb at (202) 512-7114 or FarbJ@gao.gov.
    [Read More…]
  • Employee Benefits Security Administration: Enforcement Efforts to Protect Participants’ Rights in Employer-Sponsored Retirement and Health Benefit Plans
    In U.S GAO News
    What GAO Found The Department of Labor's (DOL) Employee Benefits Security Administration's (EBSA) enforcement focuses on encouraging retirement and health plans to comply with the Employee Retirement Income Security Act of 1974, as amended, and restoring benefits that were improperly withheld from plan participants. To identify violations, EBSA investigates benefit plans and their service providers. Over two-thirds of investigation leads are identified by EBSA staff. EBSA prioritizes investigating cases that may result in large recoveries or affect many participants, such as restored retirement plan contributions or payment for incorrectly denied medical claims. When agreement cannot be reached, investigators can refer civil cases to DOL's Office of the Solicitor for civil litigation. Criminal cases are referred to Department of Justice. In fiscal year 2020, almost 84 percent of investigations were civil and more than 16 percent were criminal, resulting in over $3 billion in payments to participants and plans. EBSA uses a range of strategies to improve its investigative processes and seeks to ensure enforcement quality through training and oversight. For example, EBSA makes efforts to target investigations for greater impact, such as a 2013 change to prioritize cases with the potential to affect many participants and recover significant assets. As EBSA pursued more complex and technical investigations, the number of closed cases decreased, while monetary recoveries increased (see figure). To ensure investigation quality, EBSA provides training, documents procedures, and reviews open and closed cases to evaluate whether investigation procedures have been followed. Number of EBSA Investigations Closed and Monetary Recoveries, Fiscal Years 2011-2020 The COVID-19 pandemic created a number of immediate and long-term challenges for EBSA and benefit plans. For example, according to stakeholders, plans were initially concerned about how to implement provisions in the Families First Coronavirus Response Act and the CARES Act, but those concerns were addressed as the agency issued FAQs and notices. Similarly, EBSA officials reported that court closures temporarily slowed criminal cases, but as virtual hearings increased, litigation resumed. Stakeholders and EBSA officials also described potential long-term challenges, including difficulties locating the many participants who may have left a job due to the pandemic and may be unaware they left behind retirement funds. Why GAO Did This Study Millions of Americans rely on employer benefits for their health care and future financial security. Private sector retirement plans are a key source of income for many retirees and employer-sponsored group health plans cover over one-half of all Americans. Consequently, effective oversight and enforcement are critically important to ensure the integrity of the private employee benefit system, especially in light of the economic and health effects of COVID-19 on American workers and their families. EBSA is charged with protecting the rights of participants in employer-sponsored benefit plans. As of fiscal year 2020, this included about 154 million participants in 722,000 retirement plans and 2.5 million health plans with combined assets of over $10.7 trillion. This report examines (1) how EBSA manages its enforcement process, (2) EBSA's strategies to improve investigative processes and ensure enforcement quality, and (3) the immediate and long-term challenges of COVID-19 for EBSA and private sector retirement and health plans. GAO analyzed EBSA data and documents; and federal laws, regulations, and guidance, including the CARES Act and the Families First Coronavirus Response Act. GAO interviewed officials from EBSA's national office and three regional offices, selected for variation in investigations, and locations as well as stakeholders from nine organizations knowledgeable about benefits compliance requirements, the employer-sponsored benefit industry, and participants' benefit plan experiences. For more information, contact Tranchau (Kris) T. Nguyen at (202) 512-7215 or nguyentt@gao.gov.
    [Read More…]
  • Genetic Services: Information on Genetic Counselor and Medical Geneticist Workforces
    In U.S GAO News
    Genetic counselors and medical geneticists are two groups who typically work together to provide genetic services, such as genetic testing and counseling. Genetic counselors have at least a master's degree in genetic counseling and assess individuals or families with or at risk for genetic conditions, and provide counseling and education on test results. Medical geneticists are typically physicians who specialize in medical genetics and genomics, and provide comprehensive genetic services, ranging from diagnosis and interpretation of test results to the management and treatment of genetic conditions. GAO's analysis of data from the professional organizations representing this workforce shows the number of genetic counselors certified to provide genetic counseling services has nearly doubled since 2009, and is projected to continue growing. The data show there were approximately 4,700 certified genetics counselors in the United States in 2019. The data also show the number of new medical geneticists has increased modestly since 2009, and the total number certified in the United States was approximately 1,240 as of April 2020. There is no widely accepted measure for how many genetic counselors and medical geneticists should be available; however, representatives from professional organizations GAO interviewed stated that demand for genetic services is rising. Data from the professional organizations representing the genetic counselor and medical geneticist workforces, as well as data from the Census Bureau, also show the number of genetic counselors and medical geneticists varied across states. States averaged seven genetic counselors per 500,000 people in 2019 and two medical geneticists per 500,000 people in 2020. Genetic counselors and medical geneticists primarily practice in hospital settings. Distribution of Genetic Counselors by State, 2019 Advances in genetic technology and research have increased the amount of information available to individuals and providers, and may have increased the demand for genetic services. The medical genetics workforce—which includes genetic counselors and medical geneticists—plays an essential role in providing access to genetic services. Some studies have identified concerns with the size of the medical genetics workforce and its ability to meet the current and future demand for genetic services. A House Committee on Appropriations report included a provision for GAO to conduct an analysis of the medical genetics workforce. This report describes, among other objectives, what is known about changes in the size of the genetic counselor and medical geneticist workforces; and what is known about the geographic distribution of these workforces. GAO reviewed relevant studies of the genetic counselor and medical geneticist workforces; interviewed agency officials and professional organizations representing each workforce; and analyzed the most recent available data on the size and distribution of each workforce in the United States, as well as population data from the Census Bureau. GAO provided a draft of this report to the Department of Health and Human Services and the Department of Labor. The Department of Health and Human Services provided technical comments, which GAO incorporated as appropriate. For more information, contact James Cosgrove at (202) 512-7114 or CosgroveJ@gao.gov.
    [Read More…]
  • Compounding Pharmacy Mogul Sentenced for Multimillion-Dollar Health Care Fraud Scheme
    In Crime News
    A Mississippi businessman was sentenced today for his role in a multimillion-dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs.
    [Read More…]
  • Justice Department Seeks to Shut Down Louisiana Tax Return Preparers
    In Crime News
    The United States has filed a complaint seeking to bar Louisiana tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The civil complaint against Leroi Gorman Jackson and Mario Alexander, both individually and doing business as The Taxman Financial Services LLC, was filed in the U.S. District Court for the Eastern District of Louisiana.
    [Read More…]
  • The Department of Justice Files Brief Defending the Constitutionality of Idaho’s Fairness in Women’s Sports Act
    In Crime News
    The Justice Department [Read More…]
  • Secretary Antony J. Blinken and Canadian Foreign Minister Marc Garneau Before Their Meeting
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Owner and CEO of Government Contracting Firm Pleads Guilty to Bribery Scheme
    In Crime News
    A North Carolina woman pleaded guilty today in the Eastern District of Virginia to engaging in a bribery scheme with a former contracting officer for the Broadcasting Board of Governors (BBG), now known as the U.S. Agency for Global Media.
    [Read More…]
  • Statement of Assistant Attorney General for National Security John C. Demers on the Public Release of the Department’s Findings with Respect to the 29 FISA Applications that Were the Subject of the March 2020 OIG Preliminary Report
    In Crime News
    “The Department of Justice has completed its review of the 29 FISA applications that were the subject of preliminary findings by the DOJ Inspector General (OIG) in March 2020.  We are pleased that our review of these applications concluded that all contained sufficient basis for probable cause and uncovered only two material errors, neither of which invalidated the authorizations granted by the FISA Court.   These findings, together with the more than 40 corrective actions undertaken by the Federal Bureau of Investigation and the National Security Division, should instill confidence in the FBI’s use of FISA authorities.  We would like to express our appreciation to the OIG for their focus on the Department’s use of its national security authority.  We remain committed to improving the FISA process to ensure that we use these tools consistent with the law and our obligations to the FISA Court.  The ability to surveil and to investigate using FISA authorities remains critical to confronting current national security threats, including election interference, Chinese espionage and terrorism.”      
    [Read More…]
  • Saint Vincent and The Grenadines Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • NASA Develops COVID-19 Prototype Ventilator in 37 Days
    In Space
    A high-pressure [Read More…]
  • Higher Education: Department of Education Should Further Assess College Access Grant Programs
    In U.S GAO News
    Why This Matters The Department of Education gives grants to schools and organizations that provide disadvantaged students with services to help them attend college. These eight grant programs are collectively known as “TRIO”, named for the original three programs. Congress provides over $1 billion each year to these programs, but Education could do more to understand how well these grants work to help students. Key Takeaways Education could improve the information it has about TRIO programs in two areas: (1) grantee performance data, and (2) program assessments. Schools and organizations report data to Education to show how the TRIO grants they receive have been working. For example, organizations that receive grants to encourage students to complete college report on the numbers and percentages of students who received services and earned degrees.  Education evaluates grantees’ performance using the self-reported data, but has done little to verify the data. Accurate performance data are important because returning grantees can earn points for past performance in the next grant competition—increasing the likelihood that they will receive new grants. Almost 80 percent of recent TRIO grants went to returning grantees.  Therefore, grantees may have an incentive to report a more positive picture than warranted. Officials from an organization representing TRIO grantees told us there is a risk that some grantees may report inaccurate information.  As for assessing the individual TRIO programs, studies of some programs are outdated. In addition, Education has never assessed the effectiveness of three of the seven TRIO programs that serve students, and did not have any new assessments planned as of August 2020. How GAO Did This Study We analyzed data from Education about TRIO grantees and applicants. We also reviewed relevant federal laws and regulations and agency documents, and interviewed Education officials and other TRIO stakeholders. Education should take additional steps to ensure the reliability of grantees' performance data and develop a plan for assessing the effectiveness of the TRIO programs that serve students. Education generally agreed with our recommendations. For more information, contact Melissa Emrey-Arras at (617) 788-0534 or emreyarrasm@gao.gov.
    [Read More…]
  • Assistant Attorney General Makan Delrahim Delivers Remarks at the LeadershIP Virtual Series
    In Crime News
    Broke. . . but Not No More: Opening Remarks--Innovation Policy and the Role of Standards, IP, and Antitrust
    [Read More…]
  • Justice Department Recognizes the 10th Annual Human Trafficking Prevention Month
    In Crime News
    The Department of Justice today commemorates the 10th annual National Slavery and Human Trafficking Prevention Month and declares a continued commitment to combatting human trafficking in all its forms. The fight against human trafficking remains one of the department’s highest priorities, and the department will remain relentless in its efforts to bring traffickers to justice and seek justice for survivors.
    [Read More…]
  • Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud Schemes
    In Crime News
    Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
    [Read More…]
  • U.S. Policy Toward China: Deputy Secretary Biegun’s Remarks to the Senate Foreign Relations Committee
    In Human Health, Resources and Services
    Stephen Biegun, Deputy [Read More…]
  • Michigan Man Charged with Hate Crimes for Attacking African-American Teenager
    In Crime News
    The Justice Department announced today that Lee Mouat, 42, has been charged by criminal complaint in federal district court with violating 18 U.S.C. § 249 by willfully causing bodily injury to an African-American teenager because of the teenager’s race.
    [Read More…]
  • Cybersecurity and Informtion Technology: Federal Agencies Need to Strengthen Efforts to Address High-Risk Areas
    In U.S GAO News
    What GAO Found In March 2021, GAO issued its high-risk series update and emphasized that federal agencies' needed to implement numerous critical actions to strengthen the nation's cybersecurity and information technology (IT) management efforts. In the update, GAO reiterated the importance of agencies addressing four major cybersecurity challenges facing the nation: (1) establishing a comprehensive cybersecurity strategy and performing effective oversight, (2) securing federal systems and information, (3) protecting cyber critical infrastructure, and (4) protecting privacy and sensitive data. Overall, the federal government has to move with a greater sense of urgency to fully address key cybersecurity challenges. In particular: Develop and execute a more comprehensive federal strategy for national cybersecurity and global cyberspace . In September 2020, GAO reported that the White House's national cyber strategy and associated implementation plan addressed some, but not all, of the desirable characteristics of national strategies, such as goals and resources needed. Mitigate global supply chain risks . GAO reported in December 2020 that few of the 23 civilian federal agencies it reviewed implemented foundational practices for managing information and communication technology supply chain risks. Address weaknesses in federal agencies information security programs. GAO reported in July 2019 that 23 agencies almost always designated a risk executive, but had not fully incorporated other key risk management practices, such as establishing a process for assessing agency-wide cybersecurity risks. In its March update, GAO also stressed the importance of the Office of Management and Budget (OMB) and federal agencies fully implementing critical actions recommended to improve the management of IT to better manage tens of billions of dollars in IT investments. GAO emphasized, for example, that OMB had demonstrated its leadership commitment to improving IT management, but sustaining this commitment was critically important; twenty-one of 24 federal agencies had not yet implemented recommendations to fully address the role of Chief Information Officers, including enhancing their authorities; OMB and agencies needed to address modernization challenges and workforce planning weaknesses; and agencies could take further action to reduce duplicative IT contracts and reduce the risk of wasteful spending. Until OMB and federal agencies take critical actions to strengthen efforts to address these important high-risk areas, longstanding and pervasive weaknesses will likely continue to jeopardize the nation's cybersecurity and management of IT. Why GAO Did This Study The nation's critical infrastructures and federal agencies are dependent on IT systems and electronic data to carry out operations and to process, maintain, and report essential information. Each year, the federal government spends more than $100 billion on cybersecurity and IT investments. GAO has long stressed the continuing and urgent need for effective cybersecurity, as underscored by recent events that have illustrated persistent and evermore sophisticated cyber threats and incidents. Moreover, many IT investments have failed, performed poorly, or suffered from ineffective management. Accordingly, GAO has included information security on its high-risk list since 1997 and added improving the management of IT acquisitions and operations in 2015. In its March 2021 high-risk series update, GAO reported that significant attention was needed in both of these important areas. GAO was asked to testify on federal agencies' efforts to address cybersecurity and the management of IT. For this testimony, GAO relied on selected products it previously issued.
    [Read More…]
  • Indian Independence Day
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Wrongful Detention by the Houthis of Levi Salem Musa Marhabi    
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Ensuring a Transparent, Thorough Investigation of COVID-19’s Origin
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Disabilities Reported by Prisoners: Survey of Prison Inmates, 2016
    In Justice News
    (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…]
  • Departments of Justice and Homeland Security Release Data on Incarcerated Aliens
    In Crime News
    Today, the Department of Justice and the Department of Homeland Security released the Alien Incarceration Report for Fiscal Year 2019.  The data shows that 94 percent of confirmed aliens incarcerated in Federal Bureau of Prisons (BOP) and United States Marshals Service (USMS) facilities were unlawfully present in the United States.  Additionally, the report found that nearly 70 percent of known or suspected aliens in BOP custody had been convicted of a non-immigration-related offense, and 39 percent of known or suspected aliens in USMS custody had committed a non-immigration-related offense.
    [Read More…]
  • Justice Department Obtains Settlement from San Diego Landlord to Resolve Claims Of Sexual Harassment Against Female Tenants
    In Crime News
    The Justice Department today announced it has reached an agreement with defendant Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.  
    [Read More…]
  • 3 Things We’ve Learned From NASA’s Mars InSight
    In Space
    Scientists are finding [Read More…]
  • G7 Foreign and Development Ministers’ Meeting
    In Crime Control and Security News
    Office of the [Read More…]
  • USDA Market Facilitation Program: Information on Payments for 2019
    In U.S GAO News
    The U.S. Department of Agriculture's (USDA) Farm Service Agency (FSA) distributed about $14.4 billion in 2019 Market Facilitation Program (MFP) payments to farming operations in all 50 states and Puerto Rico. According to USDA, these payments were intended to offset the effects of trade disruptions and tariffs targeting a variety of U.S. agricultural products. FSA distributed these payments to 643,965 farming operations. The average MFP payment per farming operation for 2019 was $22,312 but varied by county, ranging from $44 to $295,299. MFP payments for 2019 also varied by type of commodity. Three types of commodities were eligible for 2019 MFP payments: (1) nonspecialty crops (including grains and oilseeds, such as corn and soybeans); (2) specialty crops (including nuts and fruits, such as pecans and cranberries); and (3) dairy and hogs. Most of the 2019 MFP payments went to farming operations that produced nonspecialty crops. Less than 10 percent went to farming operations that produced specialty crops or dairy and hogs. USDA made approximately $519 million in additional MFP payments for 2019 compared with 2018 because of increases in payment limits—the cap on payments that members of farming operations can receive. FSA distributed these additional MFP payments to about 10,000 farming operations across 39 states. The amount of additional MFP payments that FSA distributed for 2019 varied by location. Farming operations in five states—Texas, Illinois, Iowa, Missouri, and Minnesota—received almost half of all additional payments. In May 2019, USDA announced it would distribute up to $14.5 billion in direct payments to farming operations that were affected by trade disruptions, following the approximately $8.6 billion USDA announced it had distributed for 2018. USDA referred to these 2018 and 2019 payments as the MFP. In comparison with 2018, USDA changed the 2019 payment structure for the three types of commodities that were eligible for payments. For example, USDA increased the payment limit for each of these three types. GAO was asked to review the distribution of MFP payments for 2019. This report examines, among other things, MFP payments for 2019 and how they varied by location, farming operation, and type of commodity, as well as additional MFP payments for 2019 compared with 2018 that resulted from increased payment limits. To accomplish these objectives, GAO analyzed data from USDA and interviewed agency officials knowledgeable about the data. For more information, contact Steve Morris at (202) 512-3841 or morriss@gao.gov.
    [Read More…]
  • Remarks by Principal Deputy Assistant Attorney General Jonathan D. Brightbill at the American Bar Association’s Environmental & Energy Litigation Federal Updates Virtual Regional CLE Program
    In Crime News
    Remarks as Prepared for [Read More…]
  • Appointment of Ambassador Richard Norland as U.S. Special Envoy for Libya
    In Crime Control and Security News
    Ned Price, Department [Read More…]
  • Automated Technologies: DOT Should Take Steps to Ensure Its Workforce Has Skills Needed to Oversee Safety
    In U.S GAO News
    Stakeholders GAO interviewed said that federal oversight of automated technologies—such as those that control a function or task of a plane, train, or vehicle without human intervention—requires regulatory expertise as well as engineering, data analysis, and cybersecurity skills. Stakeholders also stated that as automated systems become more common across transportation modes, overseeing them will require understanding vehicle operating systems, software code, and the vast amounts of data produced by these systems to ensure their safety. Skills Needed to Oversee the Safety of Automated Technologies, according to Stakeholders The U.S. Department of Transportation's (DOT) Departmental Office of Human Resources Management has identified most skills DOT needs to oversee automated technologies, but it has not fully assessed whether its workforce has these skills. Through its workforce planning efforts, DOT identified many of the skills cited by stakeholders as important for overseeing automated technologies—regulatory expertise, engineering, and data analysis. In 2016 and 2020, DOT surveyed staff in related positions and identified gaps in some of these skills, including regulatory expertise. However, DOT did not survey staff or assess skill gaps in data analysis or cybersecurity positions important to automated technology oversight. As a result, DOT lacks critical information needed to identify skill gaps and ensure key relevant staff are equipped to oversee the safety of these technologies now and in the future. DOT developed strategies to address some but not all gaps in skills needed to oversee automated technologies. For example, DOT implemented some recruiting strategies and established hiring goals as a means of closing gaps identified in the 2016 survey and plans to continue these efforts in light of the 2020 survey. However, DOT has not tracked the progress of strategies implemented to close skill gaps since the 2016 survey, nor has it implemented training strategies. Accordingly, some skill gaps related to overseeing the safety of automated technologies will likely persist in DOT's workforce. Automated technologies in planes, trains, and passenger vehicles are in use today and likely to become increasingly widespread. While these technologies hold promise, accidents involving them demonstrate potential safety challenges. DOT is responsible for overseeing the safety of all modes of transportation. This report addresses: (1) stakeholders' perspectives on the skills required to oversee automated technologies; (2) the extent to which DOT has identified and assessed the skills it needs to oversee these technologies; and (3) the extent to which DOT has developed strategies to address any gaps in skills. GAO reviewed relevant literature and DOT workforce planning documents, and interviewed DOT human capital officials, selected modal administrations, and stakeholders, including transportation associations and technology developers. GAO selected modal administrations based in part on the prevalence of automated technologies. GAO is making four recommendations, including that DOT: (1) assess skill gaps in key occupations involved in overseeing automated technologies and (2) regularly measure the progress of strategies implemented to close skill gaps. DOT concurred with three recommendations and partially concurred with one on measuring progress. GAO clarified this recommendation and believes its implementation is warranted. For more information, contact Heather Krause at (202) 512-2834 or krauseh@gao.gov.
    [Read More…]
  • Defendant Pleads Guilty In Multi-Million Dollar Prize Notification Scam Affecting Elderly Victims
    In Crime News
    A Las Vegas area resident charged with perpetrating a prize-notification scheme that bilked victims out of more than $10 million pleaded guilty today, the Department of Justice announced.
    [Read More…]
  • Belgium National Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Navy Readiness: Actions Needed to Evaluate and Improve Surface Warfare Officer Career Path
    In U.S GAO News
    What GAO Found U.S. Navy Surface Warfare Officers (SWOs) separate from the SWO community earlier and at higher rates compared with officers in similar U.S. Navy communities, and female SWOs separate at higher rates than male SWOs. Retention Rates for U.S. Navy Officers and Surface Warfare Officers by Gender Note: GAO compared the U.S. Navy Surface Warfare Officer community separation rates with those of the other unrestricted line officer communities in the U.S. Navy: Naval Aviation, Submarine, and Explosive Ordinance Disposal and Special Warfare. GAO found that after 10 years of service, around the first major career milestone: 33 percent of SWOs remain in their community, compared with 45 percent of officers from similar U.S. Navy officer communities, and 12 percent of female SWOs remain in their community, compared with 39 percent of male SWOs. By using existing information to develop a plan to improve SWO retention, the Navy will be better positioned to retain a diverse and combat-ready community. The career path for U.S. Navy SWOs differs from those in similar positions in selected foreign navies and other U.S. Navy and U.S. maritime communities. Career Path for U.S. Navy Surface Warfare Officers Compared with Others The U.S. Navy made incremental career path changes for SWOs following the 2017 collisions, but has not regularly evaluated or fundamentally changed its SWO career path for over a century. GAO found that by a factor of four to one, SWOs believe specialized career paths would better prepare them for their duties than the current generalist career path. Without periodic evaluations of current approaches, including alternative career paths, and the use of those evaluations, the U.S. Navy may miss an opportunity to develop and retain proficient SWOs. Why GAO Did This Study SWOs are U.S. Navy officers whose primary duties focus on the safe operation of surface ships at sea. In 2017, the Navy had two collisions at sea that resulted in the death of 17 sailors and hundreds of millions of dollars in damage to Navy ships. Following the collisions, the Navy identified deficiencies in the SWO career path and staffing policies, and took action to improve these areas. The John S. McCain National Defense Authorization Act for Fiscal Year 2019 contained a provision that GAO assess issues related to the U.S. Navy SWO career path. Among other things, this report (1) assesses trends in separation rates of SWOs with those of similar U.S. Navy officer communities, and trends in SWO separation rates by gender; (2) describes how the career path of U.S. Navy SWOs compares to those of selected foreign navies and other U.S. Navy and U.S. maritime communities; and (3) assesses the extent to which the U.S. Navy has used or evaluated alternative career paths. GAO analyzed U.S. Navy officer personnel data; selected foreign navies and U.S. maritime officer communities for comparison; and surveyed a generalizable sample of Navy SWOs.
    [Read More…]
  • Jury convicts Cuban national for assaulting federal officers
    In Justice News
    A federal jury has [Read More…]
  • Vessel Operator and Engineers Sentenced for Oil Waste Discharge Offenses
    In Crime News
    A vessel operating company was sentenced today in Hagatna, Guam, for illegally discharging oil into Apra Harbor, Guam, and for maintaining false and incomplete records relating to the discharges of oily bilge water from the vessel Kota Harum.
    [Read More…]
  • Secretary Blinken’s Call with Special Envoy for the UN Secretary-General on Yemen Griffiths
    In Crime Control and Security News
    Office of the [Read More…]
  • Attorney General William P. Barr Announces Publication of Cryptocurrency Enforcement Framework
    In Crime News
    Attorney General William P. Barr announced today the release of “Cryptocurrency: An Enforcement Framework,” a publication produced by the Attorney General’s Cyber-Digital Task Force.  The Framework provides a comprehensive overview of the emerging threats and enforcement challenges associated with the increasing prevalence and use of cryptocurrency; details the important relationships that the Department of Justice has built with regulatory and enforcement partners both within the United States government and around the world; and outlines the Department’s response strategies. 
    [Read More…]
  • Federal Real Property: Additional Documentation of Decision Making Could Improve Transparency of New Disposal Process
    In U.S GAO News
    In 2016, the Federal Assets Sale and Transfer Act (FASTA) created the independent Public Buildings Reform Board (the Board) to support a new, three-round process for disposing of unneeded federal real property. The first of these rounds required the Board to identify and recommend at least five high-value disposal candidates with a total market value between $500 and $750 million. To identify these properties, the General Services Administration (GSA) collected and evaluated agency recommendations; a GSA-hired contractor analyzed real property data; and the Board held public hearings, visited properties, and met with federal officials. This process resulted in identifying 44 properties. The Board then took various steps to evaluate the 44 properties and recommended 12 final disposal candidates that the Office of Management and Budget (OMB) approved in January 2020. (See figure.) However, the Board did not fully document the process used to evaluate these candidates. For example, the Board's rationales for why individual candidates were or were not recommended were vague or incomplete. Full documentation on the decision-making process would better position stakeholders, including members of Congress, to understand the Board's rationales, especially for decisions with financial implications. Process Used by Stakeholders for Identifying and Recommending High-Value Federal Real Property for Potential Disposal Candidates According to Board and selected federal agency officials, FASTA made it easier for agencies to pursue high-value property disposals due, in part, to exemptions from some requirements, such as having to first offer properties to federal, state, or local agencies. However, FASTA's effect on other long-standing challenges, including funding to prepare properties for disposal, is unclear. For example, FASTA created a dedicated funding source to implement Board recommendations including those related to covering disposal costs, such as relocating agency staff. However, officials expressed concern that access to these funds is not automatic and must go through the annual appropriations process, which rarely coincides with the timing of these projects. The administration proposed legislative language to make proceeds from the sale of assets in fiscal year 2021 available without additional actions by Congress. However, as of January 2021, legislation containing the proposed language had not been enacted. This report discusses elements Congress may wish to evaluate when determining whether to grant such budget-related flexibility. GAO designated federal real property management, including the disposal of properties, as a high-risk area in 2003. FASTA included a provision for GAO to review the recommendations and selection processes such as those used in the first round of identifying and recommending high-value properties as candidates for disposal. This report examines: (1) how stakeholders implemented FASTA to identify and evaluate high-value properties as potential disposal candidates and (2) stakeholder views on the extent to which FASTA helped agencies with the disposal of unneeded high-value properties and addressed long-standing challenges in disposing of federal properties. GAO reviewed FASTA and analyzed documents from the Board, OMB, GSA, and selected 14 federal agencies to examine the processes they used and the challenges they encountered under the FASTA process. Agencies were selected based on their recommendations of high-value properties and inclusion on the Board's final list, among other things. GAO also interviewed officials from the Board, OMB, GSA, and selected federal agencies. GAO is recommending that the Board fully document its process for recommending FASTA disposal candidates, including the rationales behind disposal decisions. The Board noted plans to develop more documentation of its future disposal decisions. For more information, contact David Trimble at (202) 512-2834 or trimbled@gao.gov.
    [Read More…]
  • Opioid Use Disorder: Treatment with Injectable and Implantable Buprenorphine
    In U.S GAO News
    Of the medications used to treat opioid use disorder (OUD), only buprenorphine is both a controlled substance and available as an injection or implant. Buprenorphine is used to treat patients with OUD because it reduces or eliminates opioid withdrawal symptoms and blunts the euphoria or dangerous side effects of other opioids, such as heroin. When used to treat OUD, buprenorphine, in any form, is subject to additional laws and regulations that are overseen by the Drug Enforcement Administration (DEA), within the Department of Justice (DOJ) and the Substance Abuse and Mental Health Services Administration (SAMHSA), within the Department of Health and Human Services (HHS). To ensure patient safety when injectable and implantable buprenorphine is used, the Food and Drug Administration (FDA), within HHS has also required drug companies to establish risk evaluation and mitigation strategies to help ensure the benefits of these medications outweigh their risks. Providers and pharmacies must follow a number of specific steps based on federal requirements when providing treatment with injectable and implantable buprenorphine. Providers are responsible for prescribing, storing, and administering injectable and implantable buprenorphine, while pharmacies are responsible for dispensing these medications (see figure). Representatives GAO interviewed from provider groups and pharmacies said they did not find the steps involved in treating patients to be difficult overall. However, they stated that careful and timely coordination with each other and patients is needed at key steps of the process to ensure that the patient receives treatment. Representatives from provider groups and pharmacies reported that the risk of diversion of injectable and implantable buprenorphine is low. For example, all of the provider groups GAO spoke with said that diversion of injectable or implantable buprenorphine is unlikely, and representatives from three of the six provider groups said that the design of these formulations reduces opportunities for diversion due to how they are administered. Process for Treating Opioid Use Disorder with Injectable and Implantable Buprenorphine The use of injectable and implantable buprenorphine to treat OUD is relatively low compared to oral forms of buprenorphine. HHS has reported that about 7,250 prescriptions were issued for injectable and implantable buprenorphine in fiscal year 2019, compared to over 700,000 patients who received buprenorphine prescriptions for oral formulations to treat OUD or pain in that year. In 2018, SAMHSA estimated that about one-quarter of the estimated 2 million people with OUD had received some form of substance use treatment in the prior year. One form of treatment—medication-assisted treatment (MAT)— combines behavioral therapy with the use of certain medications. HHS has identified expanding access to treatment for OUD as an important strategy for reducing opioid morbidity and mortality, which includes increasing the number of injectable and implantable buprenorphine prescriptions. Congress included a provision in the SUPPORT Act for GAO to review access to and the potential for the diversion of controlled substances administered by injection or implantation. This report focuses on injectable and implantable controlled substances that can be used to treat OUD and specifically, describes the process for treating OUD with injectable and implantable buprenorphine and what is known about their use. GAO reviewed laws, regulations, and documentation from DEA, FDA, and SAMHSA governing the process of providing treatment with buprenorphine and interviewed officials from those agencies. GAO also interviewed representatives from stakeholder groups representing MAT providers; drug companies that manufacture injectable or implantable buprenorphine; and pharmacies that dispense these medications. HHS and DOJ reviewed a draft of this report, and GAO incorporated their technical comments, as appropriate. For more information, contact James Cosgrove at (202) 512-7114 or cosgrovej@gao.gov.
    [Read More…]
  • Montserrat Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Incyte Corporation to Pay $12.6 Million to Resolve False Claims Act Allegations for Paying Kickbacks
    In Crime News
    A pharmaceutical company headquartered in Delaware has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by paying kickbacks.
    [Read More…]
  • Secretary Blinken’s Call with Bruneian Foreign Minister II Erywan
    In Crime Control and Security News
    Office of the [Read More…]
  • United Arab Emirates Travel Advisory
    In Travel
    Reconsider travel to the [Read More…]
  • Removing the Cuban Military’s Grip from Cuba’s Banking Sector
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Secretary Blinken to Deliver Remarks to the Media in the Press Briefing Room
    In Crime Control and Security News
    Office of the [Read More…]
  • Broiler Chicken Producer Indicted for Price Fixing and Bid Rigging
    In Crime News
    A federal grand jury in Denver, Colorado, returned an indictment charging Norman W. Fries Inc., dba Claxton Poultry Farms (Claxton), headquartered in Claxton, Georgia, with participating in a nationwide conspiracy to fix prices and rig bids for broiler chicken products.
    [Read More…]
  • Justice Department Charges 500+ Domestic Violence-Related Firearm Cases in Fiscal Year 2020
    In Crime News
    Today, the Department of Justice announced it has charged more than 500 domestic violence cases involving firearms during Fiscal Year (FY) 2020. A department priority since 2019 when Attorney General William P. Barr created the Department of Justice’s first ever-Domestic Violence Working Group, these charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made domestic violence firearms-related investigations a priority.
    [Read More…]
  • Special Briefing with Deputy Secretary of State for Management and Resources Brian P. McKeon, U.S. Agency for International Development (USAID) Principal Advisor to the Administrator Mark Feierstein, and Experts On the Administration’s Budget Proposal for the Department of State and USAID for Fiscal Year 2022
    In Crime Control and Security News
    Brian P. McKeon, Deputy [Read More…]
  • Priority Open Recommendations: Department of Veterans Affairs
    In U.S GAO News
    What GAO Found In April 2020, GAO identified 33 priority recommendations for the Department of Veterans Affairs (VA). Since then, VA has implemented 13 of those recommendations by, among other things, taking actions to ensure that veterans receive evidence-based mental health treatment. In May 2021, GAO identified 8 additional priority recommendations for VA, bringing the total number to 28. These recommendations involve the following areas: response to the COVID-19 pandemic; veterans’ access to timely health care; the veterans community care program; human capital management; information technology; appeals reform for disability benefits; quality of care and patient safety; veteran suicide prevention; efficiency within the VA health care system; national policy documents; procurement policies and practices; and capital planning. Addressing the high priority recommendations identified above has the potential to significantly improve VA's operations, including those related to COVID-19. Why GAO Did This Study Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional and/or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits. Since 2015 GAO has sent letters to selected agencies to highlight the importance of implementing such recommendations. For more information, contact A. Nicole Clowers at (202) 512-7114 or clowersa@gao.gov.
    [Read More…]
  • NASA Scientist Over the Moon With Homegrown Radish Research
    In Space
    How two video meetings, [Read More…]
  • Belize Travel Advisory
    In Travel
    Do not travel to Belize [Read More…]
  • Seattle Software Developer Pleads Guilty to Wire Fraud for COVID-Relief Fraud Scheme
    In Crime News
    A Seattle man pleaded guilty today to one count of wire fraud for carrying out a scheme to defraud several COVID-19 relief programs.
    [Read More…]