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UNITED STATES RAILROAD RETIREMENT BOARD

OFFICE OF INSPECTOR GENERAL

844 N RUSH STREET CHICAGO IL 60611-2092 Printed on recycled paper

April 30, 2010

The Honorable Michael S. Schwartz, Chairman Railroad Retirement Board 844 North Rush Street Chicago, Illinois 60611-2092 Dear Mr. Schwartz: I am pleased to submit our Semiannual Report to the Congress. This report provides a descriptive summary of our activities and accomplishments during the period of October 1, 2009 through March 31, 2010. This report is submitted in accordance with Section 5 of the Inspector General Act of 1978, as amended. The Act requires that you transmit this report, along with any comments you may wish to make, to the appropriate Congressional committees and subcommittees within 30 days. During this reporting period, we completed our audit of the RRB’s fiscal year 2009 financial statements, issuing an unqualified opinion. In addition we:

• published our “Letter to Management” detailing matters related to internal control identified during the financial statement audit;

• prepared our statement on Management and Performance Challenges Facing the Railroad Retirement Board;

• published the results of our annual evaluation of the agency’s information security program; and

• examined the RRB’s compliance with sections 2201(a)(1)-(5) and 2006(a) of the American Recovery and Reinvestment Act of 2009.

Our criminal investigators achieved 19 criminal convictions, 25 indictments and/or informations, 10 civil judgments, and established receivables totaling over $1.6 million. The Office of Inspector General sincerely appreciates the ongoing assistance extended to our staff during the performance of their audits and investigations. We look forward to a continued cooperative relationship. Sincerely, Original Signed by Martin J. Dickman Inspector General

TABLE OF CONTENTS

INTRODUCTION ............................................................................................................. 1

Railroad Retirement Board .......................................................................................... 1

EXECUTIVE SUMMARY ................................................................................................ 2

Office of Inspector General .......................................................................................... 2

Office of Audit .............................................................................................................. 2

Office of Investigations ................................................................................................ 4

OCTOBER 1, 2009 - MARCH 31, 2010 ACCOMPLISHMENTS .................................... 5

Office of Audit .............................................................................................................. 5

Opinion on the Financial Statements ....................................................................... 5

Report on Internal Control ........................................................................................ 5

Report on Compliance with Laws and Regulations .................................................. 6

Management and Performance Challenges Facing the RRB ................................... 6

Fiscal Year 2009 Financial Statement Audit Letter to Management ........................ 9

Fiscal Year 2009 Evaluation of Information Security at the RRB ........................... 10

American Recovery and Reinvestment Act of 2009 ............................................... 11

Management Decisions and Implementation ......................................................... 12

Office of Investigations .............................................................................................. 13

Investigative Accomplishments .............................................................................. 13

Current Caseload ................................................................................................... 14

Representative Investigations .................................................................................... 15

Disability Investigations .......................................................................................... 15

Unemployment and Sickness Insurance Investigations ......................................... 17

Retirement/Survivor Benefit and Representative Payee Investigations ................. 18

Railroad Medicare Investigations ........................................................................... 20

Civil Enforcement Results ...................................................................................... 22

Hotline Contacts ........................................................................................................ 23

OTHER OVERSIGHT ACTIVITIES ............................................................................... 24

American Recovery and Reinvestment Act of 2009 ............................................... 24

Occupational Disability Program ............................................................................ 25

OUTREACH ACTIVITIES ............................................................................................. 27

OPERATIONAL ISSUES .............................................................................................. 28

National Railroad Investment Trust ........................................................................ 28

LEGISLATIVE & REGULATORY REVIEW .................................................................. 28

Semiannual Report to the Congress October 1, 2009 – March 31, 2010

TABLE OF CONTENTS

Semiannual Report to the Congress October 1, 2009 – March 31, 2010

APPENDICES ........................................................................................................... 29

Appendix A – Office of Inspector General Reports and Other Publicly Available Documents Issued ................................................................................................. 30

Appendix B – Audit Reports with Questioned Costs or with Recommendations That Funds be Put to Better Use .................................................................................... 31

Appendix C – Report on Receivables, Waivers, and Recoveries ........................... 32

Appendix D – Significant Matters ........................................................................... 34

Appendix E – Management Reports ...................................................................... 35

Appendix F – Reporting Requirements .................................................................. 41

Appendix G – Acronyms ........................................................................................ 42

Appendix H – Legal Citations ................................................................................. 43

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are

22

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H

The OIGwaste, aopen linmisman The Hosumma


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Hotline C

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23

le 0.

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24

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The RRBqualifyindifferentpermaneinvestiga The natiSeptembof the Loafter reti In Octobfor greatits five-poccupat On NoveRetiremRailroadexperienprogram In SepteFY 2007higher thclaims o

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ber 2008, thter oversigh

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m as a whole

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Rail Road (

he RRB adoht of the octhe RRB beility applica

2008, the Inence of the nt Act. Thisloyees of the.

9, the Goverkers appliers from others at the sa

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ngress 2010

or General

isability

bility prograhe qualifica

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opted Boardcupational

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ernment Acced for occuer commuteame rate – n

emic Among atability Office, ulnerabilities,

for the Ra

y Program

am is a uniqation standaent, than th

ecurity Act. oversight of

RRB’s occmes reportelies for and

d Order 08disability cl

ng secondaed from LIR

eneral issus of the Lont provided athin the con

countabilitypational dis

er railroads”near 100%.

a Railroad’s RReview of CoGAO-09-821

ilroad Reti

m

que benefit ards for this

hose needeThe OIG c

f this and o

cupational ded that neard receives d

-63 which dlaims of LIRry medical

RR applican

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y Office (GAsability ben” and that “t.”6

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irement Bo

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continues toother agenc

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disability be

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ng documenRail Road Uns of the retir

railroad ret

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w York Times,road Occupation, D.C.: Sept

oard

only to re much y for a total o devote y programs

ogram in areer emploenefits soon

a five-point ees. As paon all

nt entitled nder the rement tirement

ed that in ate 12 timespproved the

, 20 Sept. 200ional Disability. 9, 2009).

25

and

s.

oyee n

plan art of

s e

08. y

T

SemiannOctober

The implemeof OIG

recommendwould pro

disabilexaminers

additioinformat

Pursuan

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m

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nment Accounoss the Rail Ind

ngress 2010

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ngressionaonal disabiliCommittee oJohn L. Mics, and Haza

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ction with thollowing rec

disability ar to adjudic

re the appliG-251a or Gm railroad e

n a large pee requested

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d their curruire more thh the OIG t

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for the Ra

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he occupaticommendat

pplicants shcation.

cant’s immG-251b. Themployers

ercentage od informatio

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rent self-emhorough anto develop

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ilroad Reti

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at the time o

onal disabitions to the

hould be se

ediate supehese forms regarding jf cases theon.

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mployment/cnd completea more com

uld provide on process

Railroad Retireshington, D.C

irement Booard

ed “a systemebruary 4, 2d Infrastructcommittee king Membrail employof occupatr years 200

of [GAO’s] r

matic review2010 letter tture Rankinon Railroader Bill Shus

yers in [GAOtional disab04 to 2007, review.”8

w of to ng ds, ster, O’s]

bility the

lity programRRB’s Boa

m, the OIG ard membe

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ent for a secondary

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e employers

omplete anby the RRB performed bs fail to retu

nd to

by urn

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m within a ended.

e an nts.

corporate ine informatiomprehensiv

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t ard

disability e, resulting i

examiners wn better

with

ement Board OC.: Feb. 4, 201

Occupational 0).

26

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O

In additimembermission.conduct The InspmajoringCollege on govecommun OI staff several trelated cinvestigaDepartmDepartmPersonnInvestigaMedicarprogramParticipanecessabe includbecome A numbeof Goveopportunserve on


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pector Geng in Governof Criminalrnment audnity.

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ment of Justment of Heanel Manageation; variore Program

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alth and Huement, Officous State Po

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ngress 2010

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igative activs a means txamples of ong period.

a presentatrsight and InNew York.

dards and is

in a varietysk forces pfoster a teahe various tenters for Mman Servicce of Inspecolice agenc Contractorstaff attend eetings allomation to eney also prot recent frau

rs participaAGA). AGAauditing pro

mittee as Me

for the Ra

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vities, OIG to further thoutreach ac

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ssues pertin

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ted in the CA provides ofessionalsembership

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staff he office’s ctivities

ents at John Jayntation focunent to the

are related open forum h to health include rep

nd Medicaidof Inspectoal; the Fedes Medicaid

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Chicago Cha variety of

s. Two OA Director an

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OI spa

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thr

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meetings infor health ccare fraud

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or the OI Sp

hapter for thf networkinstaff memb

nd Website

staff membarticipate iedicare fratask forcesroughout t

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stricts. op the ud losses w

pecial Agen

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e

of

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27

SemiannOctober

O

The opeoversigh

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The NatRailroadinvest Rthe NRR AlthoughRRSIA rconcernRRB’s othe OIG office beensure tare fulfil

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The Insreview eoperatioregulati During RepresServiceMedicasystem identify which thTaxpayFraud Aeach coeach bi


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tional Railrod RetiremenRailroad RetRIT were va

h the Trust requires thas about the

oversight in with overs

elieves that that sufficieling their fid

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es regardingre fraud deutilizing reaand preven

he IG believyers ObligatAct of 2009 osponsor exll be amend


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ng period, tthe Attorneyg vulnerabiletection sysal-time anant fraud. Tves represetion Protect(H.R. 4222

xpressing sded to spec

ngress 2010

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L ISSU

sed, impactuld have to

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ment Investvivors’ Improssets. As ofproximately

empt entityt report to thssive relatio

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the IG sent y General, lities in the tem of “pay

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ment Trust ovement Af January 3

y $22.8 billio

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me the Railr

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31, 2010, thon.

ent of the FThis office hh the NRRITwever, the Rand investigust’s operatplace and to

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effectively cislative cha

was establis(RRSIA) to

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variety of SHealth and Specifically,ated and a ve and efficding before

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ernment, thsly expressdentified th

es not providhe NRRIT. cessary to hat the Trus

General (IGprograms any legislatio

Senators anHuman the currensoftware

cient meanse the Congre Seniors aealth Care spondencerequesting m.

28

e nd in

he sed he de This

stees

G) to nd n or

nd

nt

s to ress nd

to that

SemiannOctober

A

Appen

A

B

C D E F G H


Office o

APPEND

ndix Title OfficAvaAudRecRepSignManRepAcroLega


of Inspecto

DICES

e

ce of Inspeilable Doc

dit Reports ommendatort on Rec

nificant Management Rorting Reqonyms al Citation

ngress 2010

or General

ector Geneuments Isswith Ques

tions that ceivables, Watters Reports quirements

s

for the Ra

eral Reportsued stioned CoFunds Be Waivers, a

s

ilroad Reti

ts and Oth

osts or withPut to Bett

and Recove

irement Bo

er Publicly

h ter Use eries

oard

PN

y

29

PageNo.

30

31

32 34 35 41 42 43

Appendix A – Office of Inspector General Reports and Other Publicly Available Documents Issued

• Management and Performance Challenges Facing the Railroad Retirement Board, October 16, 20099 • Opinion on the Financial Statements of the Railroad Retirement Board for the Fiscal Year ending September 30, 2009, November 9, 200910 • Fiscal Year 2009 Evaluation of Information Security at the Railroad Retirement Board, November 12, 2009 ● Fiscal Year 2009 Financial Statement Audit Letter to Management, March 11, 2010 • Examination of Management’s Assertion of Compliance with the Economic Recovery Payment Provisions of the American Recovery and Reinvestment Act of 2009, March 18, 2010 • Examination of Management’s Assertion of Compliance with the Extended Unemployment Benefit Payment Provisions of the American Recovery and Reinvestment Act of 2009, March 24, 2010

All audits and other publicly available documents are available on our website at www.rrb.gov/oig.

9 Published as pages 111 – 115 of the Railroad Retirement Board’s Fiscal Year 2009 Performance and Accountability Report. 10 Published as pages 99 – 106 of the Railroad Retirement Board’s Fiscal Year 2009 Performance and Accountability Report.

Semiannual Report to the Congress October 1, 2009 – March 31, 2010 30


Appendix B – Audit Reports with Questioned Costs or with Recommendations That Funds be Put to Better Use

Audit Reports with

Questioned Costs

Amount of Questioned

Costs

Amount of Unsupported

Costs A. For which no management decision had been made by October 1, 2009 0 0 0 B. Which were issued from October 1, 2009 through March 31, 2010 0 0 0

Subtotal (A + B) 0 0 0 C. For which a management decision was made between October 1, 2009 through March 31, 2010

0 0 0

(i) dollar value of disallowed costs 0 0 0

(ii) dollar value of costs not disallowed 0 0 0 D. For which no management decision had been made by March 31, 2010 0 0 0 E. Report for which no management decision was made within six months of issuance

0 0 0

Audit reports with Recommendations

that Funds Be Put to Better Use

Dollar Value Value

A. For which no management decision had been made by October 1, 2009 0 0

B. Which were issued from October 1, 2009 through March 31, 2010 0 0

C. Subtotal (A + B) 0 0 (i) dollar value of disallowed costs 0 0

(ii) dollar value of costs not disallowed 0 0 D. For which no management decision had been made by

March 31, 2010 0 0 E. Report for which no management decision was made

within six months of issuance 0 0


Appendix C – Report on Receivables, Waivers, and Recoveries

The FY 1999 appropriations language for OIG requires the reporting of additional information concerning actual collections, offsets, and funds put to better use achieved as a result of OIG’s activities.

Office of Investigations Recoveries realized by the RRB resulting from court-ordered restitution and civil damages:

Fiscal Year Amount Recovered

1999 $ 855,655

2000 $1,038,134

2001 $ 990,356

2002 $ 785,843

2003 $ 947,876

2004 $ 646,273

2005 $ 844,183

2006 $1,281,680

2007 $1,347,049

2008 $1,389,489

2009 $1,097,227

10/1/09 – 3/31/10 $581,425


Appendix C – Continued

Office of Audit

Report

Funds to be put to better

use

Funds Agreed by

Management

Receivables Established

Waivers

Recoveries to Date11

99-03 $50,850 $50,850 $50,850 $50,490 $36099-14 $83,000 $83,000 $34,423 $30,58499-16 $48,000,000 $48,000,000 $14,800,00099-17 $11,000,000 $11,000,000 $1,604,54500-16 $235,000 $235,000 $253,84603-06 $306,129 N/A $0 $0 $306,12904-06 $821,000 $821,000 $604,429 $5,564 $629,688 04-10 $400,000 $400,000 $761,15105-03 $1,800,000 $1,800,000 $4,587,453 $337,700 $1,718,25205-06 $10,000 $10,000 $42,91505-07 $1,070,000 $1,070,000 $50,581 $51,22905-10 $2,600,000 $2,600,000 $311,000 06-04 $257,000 $257,00006-05 $2,100 $2,100 06-06 $200,000 $200,000 $13,712 $20,36909-02 $600,000 $600,000 $265,672

11 Both overpayments and underpayments are included in this column.


Appendix D – Significant Matters

The OIG has identified deficiencies in controls over financial reporting and information security as significant matters. A summary of the issues and related recommendations for corrective action follow.

Financial Reporting The OIG previously identified internal control over financial reporting as a material weakness. As a result, financial accounting controls cannot be relied upon to ensure that material errors will be detected to prevent misstatements in financial reporting. RRB financial managers have worked to strengthen internal control over financial reporting during FY 2009. During the third quarter of FY 2009, the agency implemented enhanced controls to address the weaknesses that, in the aggregate, were the basis for the OIG's assessment of a material weakness during the prior year.12 However, because these enhanced controls were not implemented until mid-year, they could not be relied upon to ensure the accuracy of accounting and reporting for FY 2009 and had not been in operation for a period of time sufficient to support an assessment of overall effectiveness. Compliance with requirements February 9, 2007 Report OIG: 07-01, #11 Report preparation March 6, 2008 Report OIG: 08-01, #9 Transaction documentation March 6, 2008 Report: OIG 08-01, #11 Journal voucher preparation and recording March 24, 2009 Report: OIG 09-02, #2 and 4

Information Security

The OIG previously evaluated information security pursuant to the provisions of the Federal Information Security Management Act of 2002 (FISMA) and concluded that the RRB has not yet achieved an effective FISMA-compliant security program. Although agency managers are working to strengthen controls, management action in response to the following OIG recommendations had either not been completed as of the end of the current semiannual reporting period or had not been in place long enough to permit evaluation. Access Controls February 5, 2002 Report OIG 02-04, #20 and 21 June 7, 2005 Report DSD Web, #16 September 27, 2007 Report OIG 07-08, #1 March 24, 2009 Report OIG 09-02, #7 and 8 September 30, 2009 Report OIG 09-05, #8, 11, 12,

15, 19, and 20 September 30, 2009 Report OIG 09-06, #3, 4, and 6 Internal Control Over Certification and Accreditation

July 18, 2005 Report OIG 05-08, #4

September 30, 2008 Report OIG 08-05, #2 and 7 November 12, 2009 Report OIG 10-01, #1 and 5

12 "Fiscal Year 2008 Financial Statement Audit Letter to Management," OIG Report No. 09-02, March 2009.


Appendix E13 – Management Reports

Final Action on Audits with Disallowed Costs

For the 6-Month Period Ending March 31, 2010

Number of audit reports

Disallowedcosts

A. Audit reports, with management decisions, on

which final action had not been taken at the beginning of the period.

0

$ 0

B. Audit reports on which management decisions were made during the period.

0

$ 0

C. Total audit reports pending final action during

the period. (A + B)

0

$ 0 D. Audit reports on which final action was taken

during the period.

1. Recoveries

(a) Collections and offsets 0 $ 0 (b) Property 0 $ 0 (c) Other 0 $ 0

2. Recovery Waived 0 $ 0 3. Total of 1 and 2 0 $ 0

E. Audit reports needing final action at the end of the period (C - D.3)

0

$ 0

13 Appendix E was prepared by RRB management.


Appendix E – Continued Management Report on Final Action on Audits with

Recommendations to Put Funds to Better Use for the 6-Month Period Ending March 31, 2010

Number of

audit reports Funds to be

put to better useA. Audit reports, with management decisions, on

which final action had not been taken at the beginning of the period.

4

$2,602,1001

B. Audit reports on which management decisions

were made during the period.

0

$0 C. Total audit reports pending final action during

the period. (A + B)

4

$2,602,100 D. Audit reports on which final action was taken

during the period.

1. Value of recommendations implemented (completed)

1

$1,800,0002

2. Value of recommendations that

management concluded should not or could not be implemented (completed)

0

$0 3. Total of 1 and 2 1 $1,800,000

E. Audit reports needing final action at the end of the period (C - D.3)

3

$802,100

1. Comprised of the following amounts: $1,800,000 from Audit Report 05-03, “Evaluation of the RRB’s

Processing of Disability Earnings Cases,” $2,100 from Audit Report 06-05, “Review of Compliance with Provisions of the Railroad Retirement Act Governing the Initial Award of Benefits,” $200,000 from Audit Report 06-06, “Review of the Termination and Suspension of Benefits Paid Under the Railroad Retirement Act,” and $600,000 from Audit Report 09-02, “Fiscal Year 2008 Financial Statement Audit Letter to Management.”

2. Audit Report 05-03, “Evaluation of the RRB’s Processing of Disability Earnings Cases.”


Appendix E – Continued

Management Statement on Resolved Audit Reports Over 12 Months Old with Final Action Pending as of March 31, 2010

Report Date Disallowed

costs Funds to be put

to better use Reason action not completed Fiscal Year 2000 Financial Statement Audit (01-03)

2/23/01 NONE NONE While help desk procedures have been upgraded, the Bureau of Information Services is still developing reports to close the last open recommendation.

Review of Information Security at the Railroad Retirement Board (02-04)

2/5/02 NONE NONE Information Services has closed 24 recommendations and hopes to close the remaining 4 in FY10.

Inspection of Unverified Records in the RRB’s Employment Data Maintenance System (03-06)

3/20/03 NONE NONE Programs reviewed all 20,000 records and are using a recently implemented tracking system to close the last recommendation in FY10, however due to ARRA and WHBAA work, project extended to 12/31/2011 to be completed.

Review of RRB Compliance with Federal Laws and Regulations on Competitive Sourcing (05-02)

12/6/04 NONE NONE Information Services completed an initial feasibility study of sourcing information technology activities but continues to investigate alternate approaches and use contractor support.

Review of Internal Control Over the Actuarial Projection Process (05-04)

5/5/05 NONE NONE The Chief Actuary indicated that they are reviewing their options to best implement this recommendation.

Review of Customer Service Performance Measures for Timeliness of Initial Railroad Retirement Annuity Payments (05-05)

5/17/05 NONE NONE System changes are still being made to address the remaining open recommendation in FY11.

Review of LAN, LAN Security Scan and Web-based Applications (DSD)

6/7/05 NONE NONE These contractor-prepared confidential reports contained 45 recommendations, with two-thirds closed thus far.

Review of Access Controls in the End-User Computing General Support System (05-08)

7/18/05 NONE NONE Information Services has closed 14 of 15 recommendations in this confidential report. New risk assessment must be submitted for remaining case.

Fiscal Year 2005 Evaluation of Information Security at the Railroad Retirement Board (05-11)

9/28/05 NONE NONE Information Services continues to develop policies and procedures.






to better use Reason action not completed Accuracy and Reliability of GPRA Performance Measures: Timeliness of Non-Disability Survivor Annuity Payments (06-03)

1/30/06 NONE

NONE Programs have closed three of the seven recommendations. Work is delayed due to higher priority project. In addition further info is needed from OIG.

Review of Compliance with the Provisions of the Railroad Retirement Act Governing the Initial Award of Benefits (06-05)

4/12/06 NONE $2,100 Programs staff closed four of the five recommendations. Project is awaiting completion of AARP project.

Review of the Termination and Suspension of Benefits Paid Under the Railroad Retirement Act (06-06)

5/24/06 NONE $200,000 Programming work on a referral system is pending that should close out the remaining open recommendation.

Review of Incident Handling and Reporting at the Railroad Retirement Board (06-09)

8/24/06 NONE NONE Work continues on training material and progress has been made to updating of policies.

Fiscal Year 2006 Financial Statement Audit (07-01)

2/9/07 NONE NONE The agency has closed 19 of the 20 recommendations, with action on the final one to be verified as part of the FY08 financial statement audit. Submitted documentation to OIG for review. However OIG indicate they will evaluate implementation of this recommendation during FY2010 financial statement audit.

Audit of the DAISY/CHICO Component Application of the RRA Benefit Payment Major Application System (07-02)

3/9/07 NONE NONE Documentation was submitted to OIG for implementation on one recommendation and coordination with another agency is needed and resources were unavailable on the other two recommendations.

Audit of the State Wage Match Data Transmission Controls (07-04)

3/28/07 NONE NONE Coordination required with outside agencies. Programs plans to complete action to address the two remaining open recommendations in FY10.

Evaluation of the Railroad Retirement Board’s Privacy Program (07-06)

7/30/07 NONE NONE New CPO was appointed. Additional funding and resources were needed. Of the 15 recommendation, 6 have been closed with the remainder targeted for completion during FY10.






to better use Reason action not completed Audit of Federal Income Taxes Withheld from Railroad Retirement Annuities (07-07)

7/30/07 NONE NONE Coordination required with another org. Three of the six recommendations have been closed, with the rest targeted for completion in FY10.

Fiscal Year 2007 Evaluation of Information Security at the Railroad Retirement Board (07-08)

9/27/07 NONE NONE Policy and procedures still being developed. Two of the eight recommendations have been closed with the rest targeted for completion in FY10.

Audit of Controls to Safeguard Sensitive Personally Identifiable Information (07-09)

9/27/07 NONE NONE Coordination required with outside contractor on one recommendation. Of the 22 recommendations, 6 have been implemented with work plans still being developed for other recommendations to be finished in FY10.

Fiscal Year 2007 Financial Statement Audit Letter to Management (08-01)

3/6/08 NONE NONE OIG will reassess the implementation of the last two recommendations during the FY10 financial stmt audit. Of the 25 recommendations, 23 have been implemented.

Implementation of Selected Requirements for Gov’t Charge Card Program (08-02)

05/14/08 NONE NONE Coordination required with outside contractor. Of the 5 recommendations, 4 recommendations have been implemented with work on the remaining one to be finished in FY10.

Evaluation of Information Security for the RRB’s Financial Interchange Major Application – Abstract (08-03)

09/26/08 NONE NONE Documentation submitted to OIG for review on one recommendation and work continues on others. Of the 11 recommendations, 2 have been implemented with work on the remaining ones to be finished in 2010.

Fiscal Year 2008 Evaluation of Information Security at the RRB (08-05)

09/26/08 NONE NONE Coordination required with outside contractor on 1 recommendation and with another org on another recommendation. Of the 8 recommendations, 4 have been implemented with work on the remaining ones to be finished in FY10.







to better use Reason action not completed Fiscal Year 2008 Financial Statement Audit Letter to Management (09-02)

03/24/09 NONE NONE Of the 13 recommendations, documentations for 9 were submitted to the OIG for implementation. Review and updating of documentations along with case reviews are currently being performed on remaining recommendations.

Audit of Internal Control Over Accounts Payable (09-03)

03/31/09 NONE NONE Of the 18 recommendations, 13 were implemented. Work continues on the remaining recommendations.

Appendix F – Reporting Requirements Act Reference Inspector General Reporting Requirements Page(s)Section 4(a) (2) Review of Legislation and Regulations 28Section 5(a) (1) Significant Problems, Abuses, and Deficiencies 34Section 5(a) (2) Recommendations With Respect to Significant

Problems, Abuses, and Deficiencies 34

Section 5(a) (3) Prior Significant Recommendations Not Yet Implemented

34

Section 5(a) (4) Matters Referred to Prosecutive Authorities 4, 13Section 5(a) (5) Instances Where Information Was Refused NoneSection 5(a) (6) List of Audit Reports 29Section 5(a) (7) Summary of Each Significant Report 5 – 11Section 5(a) (8) Statistical Tables on Management Decisions on

Questioned Costs 31

Section 5(a) (9) Statistical Tables on Management Decisions on Recommendations That Funds Be Put to Better Use

31

Section 5(a) (10) Summary of Each Audit Report Over 6 Months Old for Which No Management Decision Has Been Made

12

Section 5(a) (11) Description and Explanation for Any Significant Revised Management Decision

None

Section 5(a) (12) Information on Any Significant Management Decisions With Which the Inspector General Disagrees

None

Act Reference Management Reporting Requirements Page(s)Section 5(b) (1) Comments Deemed Appropriate Transmittal

LetterSection 5(b) (2) Statistical Table on Final Action on Disallowed

Costs 35

Section 5(b) (3) Statistical Table on Final Action to Put Funds to Better Use

36

Section 5(b) (4) Statement on Audit Reports With Final Action Pending

37 – 40


Appendix G – Acronyms

Acronym Explanation

ACE Affirmative Civil Enforcement AGA Association of Government Accountants ARRA American Recovery and Reinvestment Act of 2009 DME Durable Medical Equipment FISMA Federal Information Security Management Act of 2002 FY Fiscal Year GAO Government Accountability Office HEAT Health Care Fraud Prevention & Enforcement Action

Team IG Inspector General LIRR Long Island Rail Road NRRIT National Railroad Retirement Investment Trust OA Office of Inspector General for the Railroad

Retirement Board – Office of Audit OI Office of Inspector General for the Railroad

Retirement Board – Office of Investigations OIG Office of Inspector General for the Railroad

Retirement Board OMB Office of Management and Budget RRA Railroad Retirement Act RRB Railroad Retirement Board RRSIA Railroad Retirement and Survivors’ Improvement Act

of 2001 RUIA Railroad Unemployment Insurance Act SI Sickness Insurance UI Unemployment Insurance



Appendix H – Legal Citations American Recovery and Reinvestment Act of 2009 – P.L. 111-5 Conspiracy to Commit Health Care Fraud – 18 U.S.C. § 1349 Criminal Forfeiture – 18 U.S.C. § 2461 and § 981(a)(1)(C) Failure to Report Information – 45 U.S.C. § 231(a) Failure to Report to the RRB – 45 U.S.C. § 231(l) False and Fraudulent Claims – 18 U.S.C. § 287 False Claims Act – 31 U.S.C. §§ 3729 - 3733 Federal Information Security Management Act of 2002 – 44 U.S.C. § 3531, et. seq. Fictitious or Fraudulent Statement – 18 U.S.C. § 1001 Health Care Fraud – 18 U.S.C. § 1347 Inspector General Act of 1978, as amended – 5 U.S.C. App. 3 Inspector General Act Amendments of 1988 – 5 U.S.C. App. 3 Prevent Health Care Fraud Act of 2009 – H.R. 4222 and S. 2128, 111th Cong., 1st Sess. (2009) Railroad Retirement Act – 45 U.S.C. § 231, et. seq. Railroad Unemployment Insurance Act – 45 U.S.C. § 351, et. seq. Railroad Retirement and Survivors’ Improvement Act of 2001 – 45 U.S.C. § 231n(j) Reports Consolidation Act of 2000 – P.L. 106–531 Seniors and Taxpayers Obligation Protection Act of 2009 – S. 975, 111th Cong., 1st Sess. (2009) Social Security Act – 42 U.S.C. § Ch. 7 Theft of Public Money/Government Funds/Government Property – 18 U.S.C. § 641 Wire Fraud – 18 U.S.C. § 1343

REPORT

FRAUD, WASTE, AND ABUSE

Call the OIG Hotline:

1-800-772-4258

E-mail: [email protected]

The OIG cannot ensure confidentiality to persons who provide information via e-mail. Do not send information by e-mail that

you do not want a third party to read.

Write: RRB, OIG Hotline Officer 844 N. Rush Street

Chicago, Illinois 60611-2092

mailto:[email protected]