Railroad Retirement Board Audit Compliance Section Did Not Provide Adequate Audit Coverage of Railroad Employers

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Date Issued

Tuesday, February 15, 2022

Submitting OIG

Railroad Retirement Board OIG

Other Participating OIGs

Railroad Retirement Board OIG

Agencies Reviewed/Investigated

Railroad Retirement Board

Report Number

22-05

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

$1,376,513

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use	Additional Details
1	No	$0	$1,376,513	Management does not concur with this recommendation. This recommendation remains open because the Office of Inspector General for the Railroad Retirement Board continues to see the need for the recommended corrective action.
The Bureau of Fiscal Operations funding for conducting employer audits should be put to better use by redirecting the focus of the Audit and Compliance Section's FTEs to accomplish their mission and provide adequate Class I and non-Class I railroad audit coverage. Additionally, the Bureau of Fiscal Operations should establish a group solely responsible for completing railroad employer audits.
2	No	$0	$0	Management concurred with this recommendation.
The Bureau of Fiscal Operations should acquire a team outside of and independent of the Audit Compliance Section (ACS) to conduct an external peer review as soon as possible, and at least every three years thereafter. The Bureau of Fiscal Operations should disclose ACS' lack of peer reviews to auditee organizations whose engagements were initiated after the three-year timeframe following ACS' last external peer review.
3	No	$0	$0	Management concurred with this recommendation.
The Bureau of Fiscal Operations should update the Audit Compliance Section's Audit Guide and Audit Procedures Manual to reflect the most recent guidance.
4	No	$0	$0	Management concurred with this recommendation.
The Bureau of Fiscal Operations should provide at least 80 hours of CPE accredited training for Audit Compliance Section employees in each 2-year cycle.