All Reports

The Office of Inspector General is issuing this management alert to the U.S. AbilityOne Commission (Commission) as notice that the Agency’s ability to mitigate risk in its programs and operations remains inadequate. Senior Agency staff has failed to address internal controls, and noncompliance with Office of Management and Budget (OMB) revised Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, persists.

The Office of Inspector General (OIG) is initiating an audit of the Procurement List Addition Process, Procedures, and Practices. Our overall objective is to determine whether the Procurement List addition process is transparent and performed efficiently, effectively, and in compliance with applicable laws, regulations, and policies.

The Office of Inspector General (OIG) is initiating an audit of the Central Nonprofit Agency (CNA) Selection of Nonprofit Agencies (NPAs) for Project Assignment and Allocation of Orders. Our overall objective is to assess the extent to which the implementation of the project assignment and allocation process by the CNAs is effective and follows applicable laws and regulations as well as established policies and procedures.

The theme of our Semiannual Report is “Invested in Success.” In the Semiannual Report, we address the pandemic effects; our completed work, including the Office of Inspector General (OIG) work with the Department of Defense (DOD) 898 Panel; the Top Management Challenges; our audit activities; educational visits to non-profit agencies (NPA); and reports issued. Our completed work relates to the future of the program and the focus on convergence of innovation and sustainability for the largest employment program in the country for blind and severely disabled workers.

This is the first audit of the Cooperative Agreements. The genesis of the agreements goes to the GAO report-Employing People with Blindness or Severe Disabilities, Enhanced Oversight of the AbilityOne Program Needed, GAO-13-457, dated May 2013. GAO recommended that the Commission develop written agreements with each CNA that would specify key expectations for the CNAs and oversight mechanisms. To ensure implementation of GAO’s recommendations, three years later Congress passed the Consolidated Appropriations Act of 2016, Public Law 114-113 (Act).

FY 2020 and FY 2021 Audit Plan for the U.S. AbilityOne Commission OIG.

CliftonLarsonAllen LLP (CLA) was engaged by the U.S. AbilityOne Commission Office of Inspector General (OIG) to conduct a performance audit and report on the AbilityOne Program Fee. The objective of the audit was to perform a comprehensive analysis of the history and function of the AbilityOne Program Fee, and to determine whether effective and transparent criteria exists with the AbilityOne Program Fee. CLA concluded that the Commission did not provide effective and transparent criteria related to the AbilityOne Program Fee.

The audit resulted in an adverse opinion due to significant departures from generally accounting principles and federal reporting requirements, including material misstatements and omissions in the Commission’s financial statements and footnotes. The misstatementsand omissions were material and pervasive, and included the failure to record accounts payable accrual and accurately record other accrued liabilities, which materially misstated the Commission’s beginning and ending balances, and the omission of uncorrected errors in required footnotes.

In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General (OIG) reports on the most serious management and performance challenges facing the U.S. AbilityOne Commission, for inclusion in the Commission’s Performance and Accountability Report (PAR) for fiscal year 2019.