Federal Reports

We audited 3 months of interim costs claimed on Contract No. R17PC00051, as well as contract compliance on Contract Nos. R12PC20015 and R17PC00051 between the Sacramento County Sheriff’s Department (SCSD) and the Bureau of Reclamation (BOR). These contracts were awarded to provide year-round armed and uniformed security services at Folsom Dam in Folsom, CA.We identified questioned costs totaling $314,565 on Contract No. R17PC00051 and found deficiencies in the SCSD’s management of Contract No. R12PC20015.Specific to contract management, we found that the SCSD:• Incorrectly charged indirect labor hours to the contract, resulting in questioned costs of $214,296 on Contract No. R17PC00051• Charged hourly rates different from those that were ratified, resulting in questioned costs of $100,269 on Contract No. R17PC00051• Did not correctly account for labor hours worked on the billed invoices for 5 of the 50 timesheets reviewed for Contract No. R17PC00051• Did not conduct the required annual IT training for Contract No. R12PC20015• Did not conduct the required ethics training for Contract No. R12PC20015• Did not maintain internal controls for ethics procedures for Contract No. R12PC20015We made seven recommendations to improve the SCSD’s compliance with applicable Federal regulations, BOR policies and procedures, and contract terms and conditions.

We audited U.S. Department of the Interior (DOI) convenience check transaction data to determine whether (1) the DOI or its bureaus made transactions that were illegal, improper, or erroneous and (2) the existing internal controls detected and prevented illegal, improper, or erroneous transactions. Our audit timeframe was the first 6 months of fiscal year 2017.Under the DOI’s charge card program, use of convenience checks may be authorized when a vendor does not accept the charge card. During the audit timeframe, 658 employees had authority to write convenience checks, and 5,255 checks were written, totaling approximately $3 million plus an additional $56,447 in transaction fees.We focused our audit on convenience checks written for more than $2,500 during that timeframe—a quantity of 90 transactions totaling $286,318—and found weak internal controls that created an environment vulnerable to financial mismanagement.Through our data analysis we found the following internal control problems:• Missing documentation and reviews/approvals• Limit exceeded for service-related purchases• Declined convenience checks• Split purchaseWhile our review involved a small sample of the total universe of purchase transactions at the DOI, our findings highlight issues that may be applicable across the DOI charge card program.We made five recommendations to help the DOI and its bureaus improve the management and oversight of convenience checks. Based on the Office of Acquisition and Property Management’s response to our draft report, we consider all five recommendations to be resolved but not implemented.

We reviewed the Bureau of Safety and Environmental Enforcement (BSEE) to determine if it was overseeing and enforcing offshore oil and gas decommissioning requirements for idle infrastructure on the Outer Continental Shelf. Overall, we learned that BSEE has not yet implemented decommissioning policies and procedures at the national level.BSEE senior management told us the policies have not been implemented because there are concerns that requiring operators to decommission infrastructure will force many into bankruptcy. This happened, in part, because of (1) insufficient headquarters and regional management oversight; (2) BSEE staff’s need for training on enforcement procedures; and (3) regional management’s concern that enforcing the Federal regulations, by forcing operators to decommission, will push additional operators into bankruptcy.We plan to initiate a review within the next 2 years, which will allow BSEE the opportunity to develop and implement a bureauwide decommissioning policy.

What We Looked AtWe reviewed the City of Phoenix's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated December 14, 2018.What We FoundWe found that the report contained a subrecipient monitoring finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the City complies with the subrecipient monitoring requirements.

What We Looked AtWe reviewed the Greater New Haven Transit District's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated December 7, 2018.What We FoundWe found that the report contained an activities allowed or unallowed finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the District complies with the activities allowed or unallowed requirements. We also recommend that FTA recovers $221,551 from the District, if applicable.

What We Looked AtWe reviewed Macon-Bibb County's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated December 31, 2018.What We FoundWe found that the report contained a reporting finding that needs prompt action from the Office of the Secretary's (OST) management.RecommendationsWe recommend that OST ensures that the County complies with the reporting requirements.

What We Looked AtWe reviewed the State of West Virginia's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated February 8, 2018.What We FoundWe found that the report contained a period of performance and a special tests and provisions finding that need prompt action from the Federal Highway Administration's (FHWA) management.RecommendationsWe recommend that FHWA ensures that the State complies with the period of performance and the special tests and provisions requirements. We also recommend that FHWA recovers $6,521,679 from the State, if applicable.