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Date Issued
Submitting OIG
Department of Transportation OIG
Agencies Reviewed/Investigated
Department of Transportation
Components
Federal Railroad Administration
Report Number
FI2026024
Report Description

Our Objective(s)

To assess the Federal Railroad Administration's (FRA) (1) internal controls related to recording and monitoring of its accountable personal property (APP) records and (2) the accuracy and completeness of FRA's APP records. 

Why This Audit?

We have previously identified issues in the Department of Transportation's (DOT) Operating Administration property management, including incomplete or inaccurate inventory information. Specifically, our prior work found that FRA had not capitalized any of its eligible equipment worth up to $53 million. Effective APP management is crucial to facilitating accurate and complete Federal financial reports. 

What We Found

FRA's policies and procedures for recording and monitoring accountable personal property are outdated and ineffective. 

  • FRA Order 4601.1E, Personal Property Management, which established policies and procedures for APP management, had not been updated since it was published in 1993 as of the end of fiscal year 2023. 
  • The Order does not comply with the Federal Personal Property Management Act of 2018 because it does not meet its requirements for APP inventories. It also does not provide clear and complete guidance for accurate property management using the FRA Asset and Space Management (FASM) system. 

FRA's records for APP are incomplete and inaccurate.

  • FRA does not record all APP timely and accurately. Of the 1,002 assets associated with FRA's Automated Track Inspection Program, FRA did not record 250 of these assets in FASM within a year of the system's inception and did not always correctly record asset location. 
  • FRA's FASM contains inaccurate records for 21.82 percent of the 13,190 items in our APP universe, and 2.68 percent of the assets in the universe did not have a recorded acquisition date. FASM also does not contain acquisition documentation for 99.6 percent of the 13,190 APP items in our universe with a total value of over $50 million. 
  • FRA's FASM does not meet Federal Financial Management System Requirements for a property management system. Specifically, the system cannot generate an audit trail, and it does not allow the calculation of the data necessary to support FRA's financial accounts. 
  • FRA does not always remove its disposed-of APP assets from active asset tracking. Of 681 assets for which FRA provided disposal documentation, 69 percent were not marked as disposed in FASM. 

Recommendations

We made 8 recommendations to improve FRA's management of APP.

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
8
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No
External Link
https://www.oig.dot.gov/library-item/47248

Open Recommendations

This report has 8 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
2 Yes $0 $0

Develop and implement policies and procedures that promote enhanced communication for property acquisitions, transfers, and disposals between the Office of Facilities and Asset Management, contracting officers, contractors, and program offices.

3 Yes $0 $0

Develop and implement procedures that ensure the timely recording of FRA-owned APP in the asset management system.

5 Yes $0 $0

Develop and implement a procedure to ensure acquisition documentation is centrally stored in the asset management system or other readily available system to enhance support for FRA's financial accounts.

1 Yes $0 $0

Coordinate with FRA's program offices to develop and implement policies and procedures for the management of APP, including, but not limited to: a) a process to assign and delegate responsibilities for APP; b) clearly defined roles and responsibilities for positions related to property management oversight; and c) a review and approval mechanism to ensure that procedures are comprehensive, aligned with regulatory requirements and regularly updated.

4 Yes $0 $0

Develop and implement procedures to record all acquisition data in the asset management system.

6 Yes $0 $0

Design and implement a solution to accurately record data necessary to track the net-book value of capitalized assets in FRA's asset management system.

7 Yes $0 $0

Design and implement a solution to accurately track historical activity for all APP transactions in FRA's asset management system.

8 Yes $0 $0

Develop and implement a procedure to ensure that disposals of future APP are accurately reflected in FRA's records and ensure current APP records are accurately recorded.

Department of Transportation OIG

United States