Federal Reports

Due to the importance of an effective response in the event of an emergency, we conducted an evaluation to determine if (1) emergency response plans at gas plants were up to date and (2) required systems were available and functional.We found 10 of 17 emergency response plans for gas plants were not reviewed on a timely basis based on TVA’s requirement for an annual review, and all contained inaccurate contact information. We also found some systems required in emergency response plans were not available or functional. Specifically, we observed availability or functionality issues with at least two of four emergency alerting and notification systems tested at all six gas plants visited.

We audited the Housing Authority of the County of Stanislaus’ Shelter Plus Care program based on a hotline complaint and concerns expressed by the San Francisco Office of Community Planning and Development regarding the Authority’s lack of documentation to support participant eligibility. Our objective was to determine whether the Authority documented participant eligibility related to homelessness and disability in accordance with Shelter Plus Care program requirements. While participants’ disabilities were supported, the complaint had some merit as the Authority did not always adequately document participants’ eligibility related to homelessness in accordance with HUD requirements. In 1 of the 15 participant files reviewed, the Authority’s documents lacked detail to show that the applicant, who was in transitional housing, originally came from the streets or emergency shelters, an additional requirement stated in the notice of funding availability. This condition occurred because Authority staff did not fully understand the requirement and thought the service agency referral was sufficient to verify eligibility. As a result, the Authority could not support that $13,885 in housing assistance payments and any subsequent payments made were for an eligible participant.We recommend that the Director of HUD’s San Francisco Office of Community Planning and Development require the Authority to provide supporting documentation for $13,885 in housing assistance payments and subsequent payments made for the participant for whom eligibility could not be supported or repay its program from non-Federal funds.

We audited the Housing Authority of the County of San Bernardino’s Continuum of Care grant funds received from the U.S. Department of Housing and Urban Development (HUD). We audited the Authority because it is among the top 15 percent of competitive grantees in HUD’s Office of Community Planning and Development’s risk analysis. Our audit objective was to determine whether the Authority administered its Continuum of Care grants in accordance with HUD requirements.The Authority did not have adequate support for the administrative fees charged to its Continuum of Care grants. This condition occurred because the Authority lacked a detailed written administrative fee cost allocation methodology in its policies and procedures. As a result, HUD had no assurance that administrative fees of $663,070 charged to the Continuum of Care grants were appropriate. We recommend that the Director of HUD’s Los Angeles Office of Community Planning and Development require the Authority to (1) adequately support the administrative fees or repay its Continuum of Care grants $663,070 from non-Federal funds, (2) submit an indirect cost rate schedule for its Continuum of Care grants to HUD for approval, and (3) develop and implement written policies and procedures for its administrative fee charges.

What Office of Inspector General Evaluated

We conducted an audit of the Library of Congress gift shop. Our objectives were to determine whether the design and documentation of the systems of internal control were adequate to ensure the accuracy and reliability of accounting data and to protect Gift Shop assets, and assessing whether compliance with the systems of internal control was adequate to rely on those controls Office of Inspector General conducted the Audit  from February 2018 through December 2018.

What Office of Inspector General Found

The Audit report highlights key considerations for the Library’s Gift Shop as it prepares for increased customer traffic and sales following the introduction of the new Visitor Experience. To meet these demands, management must address higher inventory levels, increased point-of-sale activity, and improve merchandising data for informed investment decisions. As a revolving fund, the Gift Shop relies entirely on its  ability to operate profit ably, without appropriations, necessitating strong business expertise from its  management team. 

We found:

• The gift shop must implement an improved accounting system for its financial management and reporting.
• Annual merchandise plans and inventory planning require enhanced documentation.
• Integrating online sales into DAX will reduce exposure to error.
• Management should address other internal control issues found including point-of-sale transactions and segregation of duties.

What Office of Inspector General Recommends

We made 22 recommendations related to improving gift shop operations in the area of financial management and accounting.

The Office of the Inspector General audited TVA’s information systems categorization process to determine if TVA’s information systems categorization process was effective and in compliance with Federal Information Processing Standards Publication 199 and National Institute of Standards and Technology Special Publication (NIST SP) 800-60. We determined that portions of TVA’s process were effective. However, we found gaps with implementing NIST SP 800-60 guidance. TVA management agreed with our findings and recommendations.