Federal Reports

What We Looked AtIn 2012, the Department of Transportation (DOT) implemented electronic invoicing (eInvoicing) for grant invoice processing across the Department. While DOT developed standardized eInvoicing training at the department level, individual Operating Administrations developed their own eInvoicing guidance and processes for grantees submitting payment requests. We assessed the Federal Aviation Administration's (FAA) policies, procedures, and oversight for eInvoicing in the Airport Improvement Program (AIP). The AIP is one of DOT's largest grant programs, providing approximately $3 billion a year to sponsors (grantees) including commercial and general aviation airports to support projects that improve safety and efficiency. We tested AIP payments to grantees to determine if they met FAA's eInvoicing requirements. Our objectives were to (1) evaluate FAA's implementation of eInvoicing in AIP and (2) assess whether AIP grant payments were supported and valid.What We FoundThe guidance and internal control procedures FAA developed for eInvoicing were not always followed. FAA developed a risk-based approach to oversight of AIP grantees and their payments, yet FAA staff responsible for oversight did not always adhere to the control procedures. Additionally, AIP grantees requested and were paid millions of dollars without complying with FAA's eInvoicing documentation requirements to support payment requests. Using statistical sampling, we estimate that about $751 million (12.5 percent) of the $6 billion in AIP payments during fiscal years 2015 and 2016 were non-compliant with FAA eInvoicing supporting documentation requirements. Finally, we found that AIP grant payments were not always fully supported and valid. We identified questioned costs totaling about $1 million because grantees did not always maintain complete and valid support, funds were paid in excess of the allowable Federal share, and a grant agreement was not amended when applicable.Our RecommendationsOf our eight recommendations to improve implementation of eInvoicing and communicate policies to grantees and FAA Regional and Airport District Office staff, FAA concurred with seven and partially concurred with one.

What We Looked AtThis report presents the results of a quality control review (QCR) of an audit of the Department of Transportation's (DOT) Enterprise Services Center (ESC) controls. ESC provides financial management services to DOT and other agencies, and operates under the direction of DOT's Chief Financial Officer. The Office of Management and Budget (OMB) requires ESC, as a management services provider, to either provide its user organizations with independent audit reports on the design and effectiveness of its internal controls, or allow user auditors to perform tests of its controls.We contracted with KPMG LLP to conduct this audit subject to our oversight. The objectives of the review were to determine whether (1) management's descriptions of ESC's systems are fairly presented, (2) ESC's controls are suitably designed, and (3) ESC's controls are operating effectively throughout the period of October 1, 2017 through June 30, 2018. We performed a QCR on KPMG's report and related documentation.What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards.RecommendationsDOT concurs with KPMG's 11 recommendations.The quality control review and attachments have been marked as For Official Use Only to protect sensitive information exempt from public disclosure under the Freedom of Information Act, 5 U.S.C. § 552. To receive a copy of the report, please contact our Freedom of Information Act Office.

What We Looked AtWe reviewed the Navajo Nation's single audit report for the fiscal year ending September 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated June 25, 2018.What We FoundWe found that the report contained an equipment and real property finding that needs prompt action from the Federal Highway Administration's (FHWA) management.RecommendationsWe recommend that FHWA ensures that the Navajo Nation complies with the equipment and real property requirements.

What We Looked AtWe reviewed the Republic of Palau's single audit report for the fiscal year ending September 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated July 31, 2018.What We FoundWe found that the report contained an equipment and real property management finding that needs prompt action from the Federal Aviation Administration's (FAA) management.RecommendationsWe recommend that FAA ensures that the Republic complies with the equipment and real property management requirements.

What We Looked AtWe reviewed the Middletown Transit District's single audit report for the fiscal year ending June 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated July 10, 2018.What We FoundWe found that the report contained a procurement and suspension and debarment finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the District complies with the procurement and suspension and debarment requirements.

OIG reviewed APHIS’, ARS’, and FSIS’ plans and actions to prevent, detect, andrespond to agroterrorism threats or attacks.

What We Looked AtWe reviewed the Territory of American Samoa's single audit report for the fiscal year ending September 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated June 15, 2018.What We FoundWe found that the report contained equipment and real property management, and special tests and provisions (Buy American) findings that need prompt action from the Federal Aviation Administration's (FAA) management.RecommendationsWe recommend that FAA ensures that the Territory complies with the equipment and real property management, and special tests and provisions (Buy American) requirements. We also recommend that FAA recovers $264,077 from Territory, if applicable.