Our Objective(s)
To assess MARAD's risk management and oversight of Port Infrastructure Development Project (PIDP) grants funded through the Investment in Infrastructure and Jobs Act (IIJA). Specifically, we assessed MARAD's policies and procedures in the areas of risk management, oversight, workforce planning, and training.
Why This Audit
MARAD's PIDP Federal grant program supports the modernization and expansion of port infrastructure across the United States. IIJA greatly increased PIDP funding, adding $2.25 billion over 5 fiscal years beginning in fiscal year 2022. We initiated this audit based on the heightened risks with administering a Federal grant program that receives such a large increase in funding in a short period of time.
What We Found
MARAD did not apply comprehensive risk management tools to help identify and manage PIDP risks. MARAD began developing a PIDP Process Level Risk Assessment but had not yet used it to test the design and effectiveness of internal controls for PIDP. Additionally, MARAD lacked clear criteria and definitions to assess post award project risks. Gaps in MARAD's policies and procedures diminish their utility for overseeing IIJA-funded PIDP grants. MARAD employees conducting site visits of grantees lacked formal procedures and supervisory review of their findings was not required. The Agency's policies and procedures for reviewing grantee requests for advance and reimbursement of funds were not sufficient and MARAD lacked instructions for review of Federal Financial Reports. MARAD has not updated its Strategic Human Capital plan to address workforce challenges. MARAD has lost a significant number of staff with institutional knowledge while its funding and oversight needs have expanded. MARAD's Strategic Human Capital Plan expired in 2022 and does not account for the Grants Management Team's current workload. MARAD did not provide timely training for its staff to oversee the PIDP. The Agency planned to provide eight eLearning courses to staff and grantees; however, MARAD has not fully implemented that plan.
Recommendations
We made 8 recommendations to improve MARAD's oversight of PIPD grants.
