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H-1B AUDIT SUPPORTS CLAIM INS ISSUED TOO MANY VISA LAST YEAR
Shortly after the fiscal year 1999 H-1B cap was reached, the INS released a statement claiming it had issued visas in excess of the 115,000 statutorily imposed limit.  As a result the INS contracted with KPMG Peat Marwick, a consulting firm, to conduct an audit of the H-1B program to help determine an accurate H-1B count, as well as to identify the sources of the counting errors and suggest ways to fix the system. 
KPMG has just provided the INS with the results of the first review of the 1999 H-1B numbers.  Based on its review of INS data, procedures, and examination of a random sampling of H-1B petitions, KPMG has concluded that the INS approved between 136,888 and 138,385 H-1B petitions for fiscal year 1999.  This means between 21,888 and 23,385 too many visas were issued.  
After reviewing the KPMG results, the INS has concluded that it did in fact issue 136,888 H-1B visas during 1999, 21,888 more than allowed by law.  The INS has not yet said what will be done about this, but has said that it will work closely with Congress in developing a plan to deal with the excess. 
Lamar Smith (R-TX), the Chair of the House Immigration Subcommittee, used this news to again take aim at the INS.  He said "The taxpayers would be well-served by remedial math training for top managers at the INS.  It would cost less than hiring a big-name accounting firm every time the agency must count past 10."  However, it seems that the problem with the number of visas was not a counting error.  Rather, according to KPMG the problem was between local computers and the national database – when the numbers of approved visas were transferred to the national system, far the national computer received fewer than were sent by the local computers. 
The bipartisan H-1B bill currently pending in the House would do away with the problem because it contains a provision providing for a retroactive increase in last year’s cap to cover whatever excess number of visas is needed.