Federal Reports

We audited the costs claimed by the State of Alabama, Department of Conservation and Natural Resources, Division of Wildlife and Freshwater Fisheries (Division), 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 $89.3 million on 70 grants that were open during the State fiscal years that ended September 30, 2017, and September 30, 2018. The audit also covered the Division’s compliance with applicable laws, regulations, and FWS guidelines, including those related to the collection and use of hunting and fishing license revenue and the reporting of program income.We found that the Division generally ensured that grant funds and hunting and fishing license revenue were used for allowable fish and wildlife activities and complied with applicable laws and regulations, FWS guidelines, and grant agreements. We noted, however, issues with an ineligible subaward payment in the amount of $5,000 (Federal share $3,750). In addition, we noted multiple control deficiencies, including opportunities to improve controls in subaward oversight, tracking of volunteer hours for hunter education, program income reporting, barter disclosure, timeliness of Federal financial reports, and reconciliation of real property.The FWS concurred with our 15 recommendations and will work with the Division to implement corrective actions.

What We Looked AtUnder the Office of National Drug Control Policy (ONDCP) Circular, National Drug Control Program Agency Compliance Reviews, when drug-related obligations total less than $50 million and a full compliance with the Circular would constitute an unreasonable reporting burden, agencies may submit alternative reports. The Federal Aviation Administration (FAA) submitted alternative Budget Formulation Compliance, Detailed Accounting, and Performance Summary reports. We reviewed the reports and related management assertions to determine the reliability of those assertions in compliance with the Circular. We conducted our review in accordance with generally accepted Government auditing standards for attestation engagements. We limited our review to inquiries and analytical procedures appropriate for an attestation review according to the Circular’s criteria. What We FoundWe were not able to validate the budget amounts in FAA’s Budget Formulation Compliance Report because FAA did not provide sufficient supporting documentation to allow a review. As a result, we were not able to conclude that the funding levels in the budget submission provided by the budget decision units to FAA were without alteration or adjustment. We were not able to verify the reasonableness of FAA’s reported Air Traffic Organization (ATO) obligations because FAA did not provide documentation to support the obligations. We also noted that the estimation method FAA used to determine its ATO obligations included a baseline full-time equivalent level last updated in 2003. Because FAA did not provide a signed assertions letter with its Performance Summary Report, as required, we were unable to perform procedures related to performance assertions. Based on our review of FAA’s fiscal year 2020 Budget Formulation Compliance, Detailed Accounting, and Performance Summary reports, we were not able to conclude on the reliability of FAA’s management assertions.

Under a contract monitored by the National Credit Union Administration OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s financial statements, which includes the Share Insurance Fund, the Operating Fund, the Central Liquidity Facility, and the Community Development Revolving Loan Fund, as of and for the years ending December 31, 2020 and 2019.