Federal Reports

The Office of Inspector General is issuing this report to present the results of our evaluation of the U.S. Small Business Administration’s (SBA) processes to forecast and request appropriation dollars for its disaster loans program account.

We found that SBA did not 1) adequately forecast funding needs for the disaster loan program in the annual budget request; 2) ensure that monthly reports submitted to Congress were clearly interpreted, always submitted timely, and in compliance with all the requirements of 15 U.S.C. § 636k(a); or 3) notify Congress, in writing, regarding the need for supplemental funding as soon as a shortfall was anticipated.

We recommended SBA ensure 1) historical factors are considered when developing the budget request, 2) monthly reports comply with 15 U.S.C. § 636k(a), 3) monthly reports are enhanced to clearly explain the information, and 4) Congress is notified, in writing, of the need for supplemental disaster loan program funds as soon as the agency anticipates a shortfall.

SBA management agreed with all four recommendations. Management’s planned action for Recommendations 1 through 4 satisfy the intent of the recommendations and are resolved.

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

To view this interactive report, visit: https://oig.justice.gov/reports/audit-federal-bureau-prisons-efforts-place-inmates-close-home

In 2019, the Office of Inspector General initiated an investigation related to Pantex Plant’s (Pantex) management and operating contractor, Consolidated Nuclear Security, LLC (CNS), after CNS disclosed to the Government credible evidence that production technicians fraudulently recorded timesheet hours that they did not work. The investigation found that CNS submitted payment claims for production technicians’ hours worked and recorded on timesheets; however, the hours had not been worked. In 2024, the case was settled and CNS paid the Department $18,400,000 to capture the loss of claimed labor hours.
We initiated this audit to determine whether the CNS timekeeping irregularities that occurred at Pantex had adverse impacts to operations.

CNS timekeeping irregularities at Pantex resulted in adverse impacts to operations. Specifically, CNS experienced:

• Production delays; 
• Negative impacts to conduct of operations, which was a program put in place to ensure worker, public, and environmental protection;
• Additional costs for training and security clearances of $8.4 million to replace the production technicians who were terminated or placed on administrative leave; and 
• Increases in weapons quality incident reports following the termination of production technicians.

We attributed the adverse impacts to operations to a lack of CNS oversight over timekeeping. CNS responded by implementing an attendance verification process and requiring production technicians to badge in and out upon arrival to and departure from the plant; CNS was actively monitoring the implementation of its attendance verification process. The current contractor, PanTeXas Deterrence, LLC., will take over the attendance verification process.

We did not have any recommendations. Pantex’s contractors, CNS and PanTeXas Deterrence, LLC., took action to address the primary causes of the timekeeping internal control failures.