U.S. Department of Labor 
Office of Inspector General

This report reflects the findings of the Office of Inspector General at the time that the audit was issued. More current information may be available as a result of the resolution of this audit by the Department of Labor program agency and the auditee. For further information concerning the resolution of this report's findings, please contact the program agency.

Report No.:      12-99-004-04-431

Issue Date:       December 16, 1998

FECA provides wage replacement (compensation) benefits and payment for medical services to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and the beneficiaries of employees whose death is attributable to a job-related injury or occupational disease.

This special report includes benefit payment data and related actuarial liabilities by Federal agency for informational purposes and to assist the 24 CFOs and other specified agencies in the preparation of their respective financial statements. The following summarizes what we did, what the report contains and the report results.

Our procedures were performed in accordance with standards established by the American Institute of Certified Public Accountants and Government Auditing Standards, issued by the Comptroller General of the United States. In accordance with these standards, we rendered the following:
 

• An independent auditors' report on the Governmentwide estimated actuarial liability for future benefit payments of $17,488,851,000 and benefit payment expenses of $1,940,195,000 as of and for the fiscal year ended September 30, 1998.

 
• An independent accountants' report on applying the agreed-upon procedures on the estimated actuarial liability and benefit payments by agency for the 24 CFO Act and other specified agencies.

• An independent service auditors' report on policies and procedures placed in operation and tests of the operating effectiveness of the Division of Federal Employees' Compensation (DFEC).

The report includes the agreed-upon procedures performed and the detailed results of those procedures in regard to the actuarial liability and the analytical review of benefit payments. The service auditors' report covers the control objectives, related policies and procedures and tests of operating effectiveness of the following aspects of OWCP:

        Electronic Data Processing General Controls
        Compensation and Medical Benefit Payments:

                Case Creation
                Initial Eligibility
                File Maintenance
                Continuing Eligibility (Medical Evidence and Earnings Information)
                Payment Processing
                Schedule Awards
                Death Benefits
                Medical Bill Payment Processing
                Third Party Settlements

Report Results

As a result of our audit we:

• rendered an unqualified opinion on the Schedule of Actuarial Liability and Benefit Payments

 
• found no signigicant AUP results

 
• found that the control objectives were met.

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