Federal Reports

What We Looked AtWe queried and downloaded 60 single audit reports prepared by non-Federal auditors and submitted to the Federal Audit Clearinghouse between January 1, 2022, and March 31, 2022, to identify significant findings related to programs directly funded by the Department of Transportation (DOT).What We FoundWe found that reports contained a range of findings that impacted DOT programs. The auditors reported significant noncompliance with Federal guidelines related to eight grantees that require prompt action from DOT's Operating Administrations (OA). The auditors also identified questioned costs totaling $3,534,794 for three grantees. Of this amount, $3,459,757 was related to the Sangamon Mass Transit District and $24,763 related to the COVID-19 Airport Improvement Program for the Commonwealth Ports Authority of the Northern Mariana Islands.RecommendationsWe recommend that DOT coordinate with the impacted OAs to develop a corrective action plan to resolve and close the findings identified in this report. We also recommend that DOT determine the allowability of the questioned transactions and recover $3,534,794, if applicable.

Without complete oversight of the drinking water program, the public’s health is still at risk from lead in drinking water.

The Payment Integrity Information Act of 2019 requires an annual audit of the Small Business Administration’s (SBA) improper payment reporting. We contracted with the independent certified public accounting firm KPMG LLP to audit SBA’s Fiscal Year 2021 compliance with the Act.In the report, KPMG auditors found the agency was compliant with 5 of the 10 reporting requirements under the Act and Office of Management and Budget (OMB) guidance.However, SBA is not in compliance with the Act because• the agency did not conduct or update the improper payment risk assessment for each program with annual outlays greater than $10 million;• three of four reported areas did not publish an improper payment and unknown payment reduction target; • the Disaster Direct Loan Program did not publish corrective action plans, demonstrate improvement to payment integrity or develop a plan to meet the improper payment and unknown payment reduction target, and • the Disaster Direct Loan Program reported a gross improper payments and unknown payments rate exceeding 10 percent, which is the higher than the amount allowed by lawIn addition, KPMG found the agency needs to improve the accuracy and appropriateness of improper payment reporting. The agency also needs to improve controls to prevent and reduce improper payments.

MEMORANDUM FOR DEPARTMENT OF DEFENSE LEAD INSPECTOR GENERAL