Federal Reports

We audited purchase card transactions and governing internal controls at the U.S. Department of the Interior (DOI).Our objectives were to determine whether (1) the bureaus implemented enhanced internal controls for the increase in the micropurchase limit from $3,500 to $10,000, (2) any cardholders in the audit sample of purchase card transactions misused their purchase cards, and (3) any cardholders used their purchase cards for purchases above $3,500 and $10,000.We found that bureaus did develop enhanced internal controls for the increase in the micropurchase threshold, but we found issues with the purchase card transactions because the bureaus did not ensure that internal controls were implemented and did not fully comply with departmental and bureau policies. We question $393,095 in transactions that had no receipt or insufficient documentation.In addition, we found that 2,757 cardholders (approximately 15 percent) used their cards for purchases above $3,500 and 16 cardholders (less than 1 percent) used their cards for purchases above the $10,000 micropurchase threshold.We made five recommendations to improve internal controls over purchase cards and compliance with DOI policy.

We audited costs claimed by the Vermont Fish and Wildlife Department (VFWD) under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling approximately $25.4 million on 42 grants that were open during the State fiscal years that ended June 30, 2016, and June 30, 2017. The audit also covered the VFWD’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenues and the reporting of program income.We found that the VFWD complied, in general, with applicable grant accounting and regulatory requirements, but it did not have policies or procedures in place for allocating the compensatory time its employees earned when their working hours were split among projects that included Federal grant funds. Because of this, the VFWD may have incurred payroll costs that did not represent the actual number of hours employees worked on program grants.We made one recommendation to address the lack of policy. The FWS concurred with our recommendation and stated that it would work with the VFWD to develop a corrective action plan. We consider the recommendation resolved but not yet implemented.0

In 2016, the Centers for Medicare & Medicaid Services (CMS) updated its life safety and emergency preparedness regulations to improve protections for all Medicare and Medicaid beneficiaries, including those residing in long-term-care facilities (commonly known as nursing homes). The updates included requirements that nursing homes have expanded sprinkler systems and smoke detector coverage; an emergency plan that is reviewed, trained on, tested, and updated at least annually; and provisions for sheltering in place and for evacuation.

What We Looked AtIn accordance with the Government Corporation Control Act of 1945, we audited the financial statements of the Saint Lawrence Seaway Development Corporation (SLSDC), a U.S. Government Corporation, as of and for the fiscal years ended September 30, 2019, and September 30, 2018. What We FoundIn our opinion, SLSDC’s financial statements present fairly, in all material respects, SLSDC’s financial position as of September 30, 2019, and September 30, 2018, and its statements of operations and changes in cumulative results of operations, cash flows, budgetary resources and actual expenses, and changes in equity of the U.S. Government for the years then ended, in accordance with U.S. generally accepted accounting principles. We found no material weaknesses in internal control over financial reporting based on the limited procedures we performed. We also found no reportable noncompliance for fiscal year 2019, with provisions of applicable laws, regulations, and contracts we tested. RecommendationsWe made no recommendations.

The Office of Inspector General released its annual report identifying what it views as the top management and performance challenges facing NASA.

Based on our recent and prior audits, inspections, special reviews, and investigations, we consider the most serious management and performance challenges currently facing DHS to be: (1) Managing Programs and Operations Effectively and Efficiently during times of Changes in Leadership, Vacancies, Hiring Difficulties; (2) Coordinating Efforts to Address the Sharp Increase in Migrants Seeking to Enter the United States through our Southern Border; (3) Ensuring Cybersecurity in an Age When Confidentiality, Integrity, and the Availability of Information Technology Are Essential to Mission Operations; (4) Ensuring Proper Financial Planning, Payments, and Internal Controls; and (5) Improving FEMA’s Disaster Response and Recovery Efforts. Addressing and overcoming these challenges requires firm leadership; targeted resources; and a commitment to mastering management fundamentals, data collection and dissemination, cost-benefit/risk analysis, and performance measurement.