Federal Reports

This management alert presents Access Issues Identified in the Mail Processing Environment. These issues came to our attention during our ongoing Review of Information Technology Network Performance audit. The issues require immediate attention and remediation.

In FY 2017, we issued 37 reports concerning Federal Emergency Management Agency (FEMA) grants, programs, and operations. The reports included 16 grant audits, 13 proactive audits, and 8 program audits. Our balanced review approach continues to produce a significant number of recommendations that could put funds to better use before problems occur. We made 79 recommendations to FEMA that identified potential monetary benefits of nearly $2.2 billion. Two recommendations from our report, “FEMA Should Disallow $2.04 Billion Approved for New Orleans Infrastructure Repairs,” OIG-17-97-D, July 24, 2017, accounted for a significant amount of the potential monetary benefits identified. FEMA disagreed with the recommendations, and the OIG appealed to the DHS Audit Follow-up and Resolution Official for resolution. On July 12, 2018, the DHS Resolution Official concluded that FEMA acted appropriately and within its authority when awarding the funds. Collectively, our FY 2017 work shows that FEMA continues to face systemic problems and operational challenges, and fails to manage disaster relief grants and funds adequately. Furthermore, FEMA remains ineffective at holding grant recipients accountable for properly managing disaster relief funds and providing adequate monitoring or technical assistance to subgrantees. We continue to identify problems such as improper contracting activities, and ineligible and unsupported expenditures. This report contains no recommendations, but provides an opportunity for FEMA to assess the need for change based on the recurring nature of our findings.

OIG reviewed RHS’ controls over liquidation value appraisals to determine if SFHguaranteed loans are safeguarded and loss claims are not overstated.

An Amtrak Reservation Sales Agent resigned from employment on September 4, 2018, after the employee was prosecuted for theft of customer credit card numbers. The employee used the stolen credit card numbers to purchase items for personal use valued at over $2,100. On August 22, 2018, in the Court of Common Pleas of Philadelphia County, Pennsylvania, the employee entered into an Accelerated Rehabilitative Disposition (intervention program) agreement for 12 months. The investigation was conducted jointly with the Amtrak Police Department.