OV-AR-00-002 Audit of the Inspection Service Reporting of Cost -Avoidance Savings Under the Fraudulent

September 29, 2000 KENNETH C. WEAVER CHIEF POSTAL INSPECTOR SUBJECT: Audit of the Inspection Service Reporting of Cost-Avoidance Savings Under the Fraudulent Workers’ Compensation Program (Report Number OV-AR-00-002) This report presents the results of our audit of the Inspection Service’s reporting of costavoidance savings under the Fraudulent Workers’ Compensation Program (Project Number 99CR002OV000). Our objective was to assess the effectiveness and accuracy of information reported to agencies external to the Inspection Service. We concluded that cost avoidance savings were generally accurate and supportable. We identified discrepancies, but the errors did not have a material affect on savings figures reported under the Inspection Service Fraudulent Workers’ Compensation Program. Management provided comments on the report and agreed with our recommendation to require the use of birth month and year to calculate cost-avoidance savings for long-term periodic roll cases. Management’s comments were responsive to the recommendation. Management's comments and our evaluation of these comments are included in the report. We appreciate the cooperation and courtesies provided by your staff during the audit. If you have any questions, please contact Cathleen Berrick, director, Oversight, or me at (703) 248-2300. Debra D. Pettitt Acting Assistant Inspector General for Oversight and Business Evaluations Attachment cc: James K. Belz John R. ...