The OIG investigated audit findings that Utah Correctional Industries (UCI) double-billed the Bureau of Land Management (BLM), submitted unallowable reimbursement requests, and did not reimburse the BLM for fees pursuant to cooperative agreements in which the UCI agreed to provide care and gentling services for wild horses in the BLM’s custody.
We confirmed UCI double-billed the BLM, including a charge of $836,955 for hay previously supplied and paid for by the BLM. We also confirmed UCI requested reimbursement from the BLM for unsupported expenses or costs that were not allowed by the agreement. Finally, we confirmed that the UCI withheld funds owed to the BLM for the successful adoptions of wild horses. We did not find that UCI or its employees personally benefitted from these actions.
We presented our findings to the U.S. Attorney’s office for the District of Utah, which declined prosecution. The cooperative agreements are no longer in place and negotiations for a civil settlement are ongoing.