Federal Reports

An Amtrak lead ticket agent based in Sanford, Florida, and an Amtrak onboard services trainee based in Lorton, Virgina, resigned from employment on January 6, 2026, and December 18, 2025, respectively, while under investigation. Our investigation found that the former lead ticket agent stole several pieces of jewelry, valued at over $30,000, from the Sanford Station lost and found. The lead ticket agent then provided the jewelry to the onboard services trainee, who sold the jewelry to a pawn shop. When interviewed by our agents, both former employees admitted to their involvement in the theft and that they split the money obtained from the sale of the jewelry. The former employees are ineligible for rehire.

Based on our investigation, the lead ticket agent has been arrested and charged with grand theft. Judicial proceedings are pending for the onboard services trainee.

We audited New York City (NYC) Department of Social Services (DSS) with the objective of evaluating DSS’ fraud risk management practices for its Emergency Solutions Grants Coronavirus Aid, Relief, and Economic Security Act (ESG CARES Act) funded activities and assessed the maturity of its efforts to prevent, detect, and respond to fraud.  Fraud within activities funded by the ESG CARES Act can lead to significant financial losses, reputational damage to the grantee and the United States Department of Housing and Urban Development (HUD), breach of fiduciary duty, and most importantly, loss of funding assistance for individuals and families who are homeless or receiving homeless assistance or other homelessness prevention activities.  A robust antifraud program will help ensure that pandemic grant funds, as well as grant funds allocated through annual appropriations, are put toward their intended uses, and that funds are spent effectively, and assets are safeguarded. 

Congress provided $4 billion for the ESG CARES Act program, which represented a 1,379 percent increase to the regular 2020 annual ESG appropriation.  Given the influx of funding, we initiated a series of audits examining ESG CARES Act grantees’ fraud risk management practices and evaluated whether selected ESG CARES Act grantees were adequately prepared to prevent, detect, and respond to fraud.  The DSS was selected because it was authorized more than $383 million in ESG CARES Act program funds, a 2,518 percent funding increase from its formula ESG allocation for fiscal year 2020. 

New York City Department of Social Services can improve its fraud risk management practices for ESG CARES Act funded activities.  We found that DSS did have several antifraud activities that could be expanded to include ESG CARES Act funded activities; however, it had not developed a comprehensive and formal fraud risk management framework to include a complete fraud risk assessment, development of a fraud risk profile, an antifraud strategy, and establishment of a monitoring and evaluation process to assess the effectiveness of its antifraud activities.  Based on the Chief Financial Officers Council’s Antifraud Playbook, we determined that DSS’ fraud risk management maturity, as it related to its ESG CARES Act funds, was between the initial and operational maturity levels, which is lower than the goal state for organizations who have high fraud exposure.  This occurred because DSS believed its fraud risk management practices generally followed the GAO’s Framework, that these practices were embedded into its existing policies and procedures, and were sufficient.  

HUD relies on its grantees to implement fraud risk activities and antifraud controls to protect the funding provided to carry out its programs.  Without maturing its fraud risk management practices, DSS cannot effectively protect the $383 million of HUD’s ESG CARES Act and ESG annual funding against fraud risks.  If DSS were to incorporate best practices, it could achieve a higher maturity level which would better protect the funds used to provide critical assistance that vulnerable beneficiaries rely on as well as protect against negative effects that fraud can have on an agency.  

 We recommend that the Director of HUD’s New York City Office of Community Planning and Development require DSS to (1) evaluate and enhance its fraud risk management activities by incorporating fraud risk management practices, and (2) obtain training or technical assistance on the implementation of fraud risk management practices.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

The Inspector General Act of 1978 requires the Inspector General to prepare semiannual reports summarizing the activities of the Office of Inspector General for the preceding six-month period. The semiannual reports are intended to keep the Secretary and Congress fully informed of significant findings, progress the Agency has made, and recommendations for improvement.

Why We Did This Report

We performed this audit in accordance with the Chief Financial Officers Act of 1990, as codified at 31 U.S.C. § 3521(e), which requires the U.S. Environmental Protection Agency Office of Inspector General to audit the financial statements prepared by the Agency each year. 
 

Summary of Findings

We rendered a disclaimer of opinion on the EPA’s consolidated financial statements for fiscal year 2025, meaning that we were unable to obtain sufficient evidence to determine whether they were fairly presented and free of material misstatement because of the interaction and possible cumulative effect of multiple uncertainties, including those related to ongoing litigation and U.S. Government Accountability Office inquiries.