Federal Reports

A Mechanical Inspector based in Beech Grove, Indiana, violated Amtrak policies by posting images and material characterized as disturbing, offensive, and inappropriate on a publicly available social media site. The former employee admitted to posting images which promoted Nazi ideologies on a social media website which identified him as a company employee. We also found that he was arrested in November 2016 for Driving Under the Influence and did not report his arrest to the company as required by company policy. The employee resigned on September 9, 2020, in lieu of a disciplinary hearing and is not eligible for rehire.

The Office of the Inspector General conducted a review of the Treasury organization to identify factors that could impact Treasury’s organizational effectiveness. Our report identified behaviors that had a positive impact on Treasury. These included interactions with team members and leadership. We also identified risks to operations that, although minimal, could impede Treasury’s effectiveness if unaddressed. While interviews with Treasury personnel indicated effective performance of job responsibilities, we identified risks, including (1) uncertainty in business model changes for one Treasury department and (2) risks related to effective service to business partners.

We audited the Tennessee Valley Authority’s (TVA) Economic Development (ED) loan program to determine if TVA ED loans were executed and administered in accordance with TVA policies and procedures. Our audit scope included 59 loans with outstanding balances of approximately $47.5 million as of December 31, 2019.We found that TVA ED loans were generally executed and administered in accordance with TVA policies and procedures. However, we found instances where loans were originated subsequent to the expiration date of (1) credit analyses, and/or (2) loan commitment periods. We also found that loan program guidance could be improved by incorporating the ED loan program guidelines into TVA Standard Programs and Processes 24.015, Economic Development Loan Programs. We made two recommendations to TVA management to (1) ensure credit analyses and/or loan commitments are current when new loans are issued and (2) update TVA Standard Programs and Processes 24.015, Economic Development Loan Programs to include ED loan program guidelines.

We audited selected controls of U.S. Department of Housing and Urban Development’s New Core Interface Solution application as part of the internal control assessments for the fiscal year 2019 financial statement audit. Our objective was to review the controls for compliance with Federal information system security and financial management requirements.The OIG has determined that the contents of this audit report would not be appropriate for public disclosure and has therefore limited its distribution to those officials listed on the report distribution list.

As part of the Office of Inspector General’s (OIG) effort to provide oversight of the U.S. Department of Housing and Urban Development’s (HUD) relief efforts provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), we reviewed HUD’s responses to inquiries regarding forbearance and foreclosure relief. The objective of our review was to evaluate the accuracy of HUD’s responses to inquiries from borrowers, industry partners, and the general public regarding forbearance and foreclosure relief provided by the CARES Act. We found that HUD could improve its customer service to borrowers, industry partners, and the general public by providing more direct, accurate, and complete responses to their inquiries.

OIG performed agreed-upon procedures for assessing information reported by USDA’s NFC.

What We Looked AtThis report presents the results of our quality control review (QCR) of an audit of the Department of Transportation’s (DOT) Enterprise Services Center (ESC) controls. ESC provides financial management services to DOT and other agencies, and operates under the direction of DOT’s Chief Financial Officer. The Office of Management and Budget (OMB) requires ESC, as a management services provider, to either provide its user organizations with independent audit reports on the design and effectiveness of its internal controls, or allow user auditors to perform tests of its controls. We contracted with KPMG LLP to conduct this audit subject to our oversight. The objectives of the review were to determine whether (1) management’s descriptions of ESC’s systems are fairly presented, (2) ESC’s controls are suitably designed, and (3) ESC’s controls are operating effectively throughout the period of October 1, 2019 through June 30, 2020. KPMG will do additional testing and issue a follow-up letter to our office for the period July 1, 2020, through September 30, 2020. We performed a QCR on KPMG’s report and related documentation. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards. RecommendationsDOT concurs with KPMG’s three recommendations. The quality control review and attachments have been marked as For Official Use Only to protect sensitive information exempt from public disclosure under the Freedom of Information Act, 5 U.S.C. § 552. To receive a copy of the report, please contact our Freedom of Information Act Office.