Federal Reports

A limited scope performance audit (LSPA) of the Texas Commission on the Arts (TCA) was conducted for the period of April 1, 2015 through March 31, 2018. LSPAs involve a limited review of financial and non-financial information of award recipients to ensure validity and accuracy of reported information, and compliance with federal requirements. Our limited scope audit concluded that the TCA generally complied with the financial management system and recordkeeping requirements established by the OMB and NEA. However, we determined that the TCA included costs incurred outside the period of performance on the Federal Financial Report (FFR) for award No. 15-6100-2046. Additionally, the financial management system does not reconcile to the FFRs for award Nos. 15- 6100-2046 and 16-6100-2024; notice of federal award participation was not provided to subaward recipients used to meet the federal cost share/match; reviews were not conducted to ensure that subaward recipients were not suspended or debarred from receiving federal funds; and Section 504 Self-Evaluation was not maintained on file during the audit period.

This grant provided ARC funds and a required matched funds in non-ARC funds to provide support for the Master's Degree/Certification Project which is designed to improve the quality of education in the Eastern Kentucky region

The OIG investigated allegations that a senior official from the Bureau of Land Management (BLM) encouraged natural resource specialists to overlook regulations so they could process Applications for Permit to Drill more quickly, and to protect any staff members who overlooked the regulations Our investigation did not substantiate the allegations and found no evidence to indicate the senior official encouraged staff to overlook the regulations as alleged. We found the senior official did meet with a group of natural resource specialists and encouraged them to streamline processes, but he did not direct staff to overlook regulations.

The OIG investigated allegations that Great Western Drilling Corporation (GWD) misreported mineral royalty data to the Office of Natural Resources Revenue (ONRR) and underpaid Federal mineral royalties.We substantiated the allegations and found that for more than 6 years, the GWD violated Federal regulations and ONRR rules when they deducted their costs incurred transporting and processing natural gas and associated natural gas liquids into marketable condition from its royalty obligations to the ONRR. Because of these violations, the GWD underpaid Federal royalties to the ONRR.The United States Attorney’s Office for the District of Colorado entered into a civil settlement agreement with the GWD for $600,000 to resolve this case.

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