Federal Reports

We audited costs claimed by the State of Michigan, Department of Natural Resources (Department), under grants awarded by the U.S. Fish and Wildlife Service (FWS) Wildlife and Sport Fish Restoration Program. Our audit included claims totaling $91 million on 25 grants that were open during the State fiscal years that ended September 30, 2014, and September 30, 2015. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to collecting and using hunting and fishing license revenues, and reporting program income. We questioned costs totaling $60,306,048 related to unsupported payroll and in-kind match and unallowable in-kind contributions and other costs. In addition, we found that the Department: 1) potentially diverted real property acquired with license revenue, 2) had not adequately managed equipment, and 3) had not provided sufficient oversight of subawards.The Department and the FWS provided responses to our draft report. Based on these responses, we consider 1 recommendation resolved and implemented, 10 recommendations resolved but not implemented, and 3 recommendations unresolved.

We focused our audit on the drawdowns made by the National Academy of Sciences (NAS) on Cooperative Agreement No. S16AC20034 with the Office of Surface Mining Reclamation and Enforcement (OSMRE) between September 26, 2016, and December 6, 2017.Our audit focused on whether the costs claimed by the National Academy of Sciences were allowable, allocable, and reasonable according to applicable Federal laws and regulations and OSMRE guidelines. We did not identify any issues with the costs claimed.

This audit examined the training, medical and physical, and equipment standards for the Smithsonian’s armed security guard force and compared those standards with best practices in minimum standards established by the federal government’s ISC, of which the Smithsonian is an associate member.The audit also examined how OPS ensures that unarmed contract guards at museums in Washington, D.C. meet qualification and trainingrequirements specified in the Smithsonian’s contract.