Federal Reports

The Consolidated Reports Act of 2000 and OMB Circular A-136, Financial Reporting Requirements, require that the Office of Inspector General provide the agency head with a summary of the top management and performance challenges facing the agency. It is our assessment that the areas of financial management, human capital, information technology, and grantee accountability represent the top management and performance challenges for NEA.

The Office of Inspector General reports annually on the Department of Transportation’s (DOT) top management challenges, as required by law. For fiscal year 2017, DOT faces eight major challenges: (1) maintaining transportation safety while keeping pace with rapidly evolving technologies; (2) bolstering vehicle and surface transportation safety; (3) strengthening cybersecurity strategies to address increasing threats; (4) strengthening controls to detect and prevent fraud, waste, and abuse; (5) enhancing the capacity, efficiency, and resiliency of the national airspace system; (6) increasing oversight of critical transportation infrastructure; (7) enhancing oversight of acquisition and financial management; and (8) managing existing and new mandates and initiatives. This report was included in DOT’s Annual Financial Report.

NARA OIG performed this audit to assess the effectiveness and efficiency of NARA's procurement program in acquiring goods and services.

The Office of Inspector General issued an audit of the internal controls over financial operations for the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC).This report provides a more detailed discussion of the specifics underlying the unqualified opinion on internal control over financial reporting reported in the internal control deficiencies section of the combined Independent Auditors’ Report dated November 15, 2016 (AUD-2017-2/FA-16-110-1). We reported:Serious internal control weaknesses in PBGC’s programs and operations include four significant deficiencies: (1) Controls over the Present Value of Future Benefit (PVFB) Liability, (2) Present Value of Nonrecoverable Future Financial Assistance (PV NFFA), (3) Entity-Wide Security Program Planning and Management, and (4) Access Controls and Configuration Management.During FY 2016, we observed improvements to the internal controls within PBGC operations that impacted long-standing control deficiencies reported in previous years. These improvements led to a change in classification of a previously reported material weakness in controls over the PVFB liability to a significant deficiency.

The Office of Inspector General issued the audit of the financial statements of the Single-Employer and Multiemployer Program Funds administered by the Pension Benefit Guaranty Corporation (PBGC) as of and for the years ended September 30, 2016 and 2015 finding:The financial statements were presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. This is the 24th consecutive unmodified financial statement audit opinion.PBGC maintained, in all material respects, effective internal control over financial reporting as of September 30, 2016.Serious internal control weaknesses in PBGC’s programs and operations include four significant deficiencies: (1) Controls over the Present Value of Future Benefit (PVFB) Liability, (2) Present Value of Nonrecoverable Future Financial Assistance (PV NFFA), (3) Entity-Wide Security Program Planning and Management, and (4) Access Controls and Configuration Management).During FY 2016, we observed improvements to the internal controls within PBGC operations that impacted long-standing control deficiencies reported in previous years. These improvements led to a change in classification of a previously reported material weakness in controls over the PVFB liability to a significant deficiency.Instances of noncompliance or other matters that are required to be reported in accordance with Government Auditing Standards.Antideficiency Violation: On August 23, 2016, PBGC reported a violation of 31 U.S.C, 1342 in connection with voluntary services of an independent subcontractor.Potential Antideficiency Violation: PBGC maintains operating leases for all office locations and its Continuity of Operations Plan (COOP) site. However, PBGC did not record its full contractual obligation under its current multiyear lease arrangements.