Federal Reports

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements

This report assesses the effectiveness of company efforts to detect drug and alcohol issues among employees in safety-sensitive positions. We identified weaknesses in the company’s controls for detecting drug- and alcohol-related issues among its employees in safety-sensitive positions. We found that 1) drug and alcohol use was more prevalent than identified by company testing and employee assistance programs, 2) testing requirements for employees were not consistently followed, 3) collection of drug and alcohol testing data was inefficient, 4) databases of employees who required random drug and alcohol testing were missing records, 5) not all supervisors were trained to detect potential impairment of employees, and 6) oversight of prescription drug use was limited. We recommended the company establish a reliable procedure to track and monitor required drug and alcohol testing of employees in safety-sensitive positions, implement use of digital technology to improve data collection, ensure the database it uses to select employees for random testing includes all employees in safety-sensitive positions, and establish a process to ensure that supervisors have the requisite training on how to identify employees who are potentially impaired. Additionally, we recommended implementation of new measures to encourage employees in safety-sensitive positions to self-report their prescription drug use, as required by company policy.

The National Science Foundation Office of Inspector General engaged Moss Adams, LLP (Moss Adams) to conduct a performance audit of incurred costs at the University of Tennessee Knoxville (UTK) for the period July 1, 2013, to June 30, 2016. The auditors tested more than $2.9 million of the $102 million of costs claimed to NSF. The objective of the audit was to determine if costs claimed by UTK on NSF awards were allowable, allocable, reasonable, and in compliance with NSF award terms and conditions and Federal financial assistance requirements.

Williams, Adley & Company–DC, LLP completed an audit of Oregon’s management of State Homeland Security Program (SHSP) and Urban Areas Security Initiative (UASI) grants awarded during fiscal years 2013 through 2015. Williams Adley concluded that Oregon’s State Administrative Agency generally complied with applicable Federal laws and regulations. Although Williams Adley did not identify any duplicate benefits received by the state, it did identify instances in which the state did not fully comply with the FEMA FYs 2013–2015 Notice of Funding Opportunity guidance. Specifically, the state did not pass through 80 percent of funds, obligate grants within 45 days, properly charge indirect costs to SHSP grants, sufficiently monitor its subrecipients, and properly monitor equipment purchased. These issues occurred because the State Administrative Agency did not obtain written consent when withholding more than 20 percent of funds, coordinate with subrecipients after award receipt, have approved indirect cost rate agreements, adhere to its subrecipient monitoring procedures, have a tracking system, or provide guidance to subrecipients. As a result, Williams Adley could not fully assess whether the State Administrative Agency enhanced its ability to prepare for and respond to disasters and acts of terrorism. FEMA concurred with all 10 of our recommendations to strengthen program management, performance, and oversight.