Federal Reports

The OIG audited TVA's Ethics Program to determine (1) compliance with applicable statutes and regulations and (2) if management has identified and incorporated best practices. In summary, we did not identify any areas where TVA's Ethics Program did not comply with requirements for federal agencies' ethics programs in Title 5, Code of Federal Regulations, § 2638.203. Additionally, TVA's Ethics Program has incorporated many of the best practices identified, with the exception of having embedded ethics champions throughout the organization. We also found references to an Ethics Council in TVA's Code of Conduct, but we found the Council has been inactive since at least 2011. We recommended TVA's Executive Vice President and General Counsel and Designated Agency Ethics Official consider (1) having ethics champions embedded throughout the organization who could emphasize the importance of ethical conduct at an individual and organizational level and (2) reinstating the Ethics Council or removing references to it from the TVA Code of Conduct. TVA management agreed with our findings and recommendations and plans to take corrective actions.

Limited scope audits involve a limited review of financial and non-financial information of grant recipients to ensure validity and accuracy of reported information, and compliance with state and Federal requirements. Our audit was conducted in accordance with the Government Auditing Standards (2011), issued by the Comptroller General of the United States, and concluded that NASAA generally complied with financial management system and record keeping requirements. However, we identified some areas requiring improvement to ensure that NASAA complies with grant requirements and improve its management of NEA awards. We determined that NASAA did not have written policies and procedures on suspension and debarment, and did not have updated policies and procedures for the management of Federal awards. Additionally, NASAA did not properly document in-kind transactions. Finally, NASAA included unallowable costs in its total outlays reported on its Federal Financial Report.

The Texas Department of Aging and Disability Services incorrectly claimed approximately $3 million in costs as Medicaid medical assistance expenditures and inappropriately received approximately $570,000 in Federal share.

I am pleased to be here today to discuss our recent work on issues relating to Amtrak’s vehicle fleet management.

In the past year, we issued three reports identifying recurring problems with the management and oversight of the vehicle fleet.1 Although the focus of these reports was vehicle fleet management, the root cause of the specific issues we identified were weaknesses in Amtrak’s management controls, issues we have repeatedly identified as the cause of operational and programmatic deficiencies throughout the company. The management control weaknesses affecting the vehicle management program are similar to those we have noted elsewhere in the company—ineffective internal control processes, inadequate policies and procedures, and fragmented oversight responsibilities.

My testimony today focuses on three areas where we believe that Amtrak has opportunities to improve its vehicle fleet management: fleet growth and utilization, costly leasing practices, and fuel card oversight.