Federal Reports

We found, based on our review of samples of approved and rejected TPD discharge applications, that FSA appropriately approved and rejected the applications. We determined that FSA applied appropriate criteria to approve and reject individual TPD discharge applications in accordance with Federal program requirements. We also found that Nelnet generally serviced those TPD accounts throughout the TPD discharge process in accordance with Federal program requirements.2 In addition, based on our review of FSA’s processes and samples of TPD discharge applications, we determined that FSA ensured that accurate information on student loan discharges was entered into the TPD databases.Although we found that FSA appropriately approved or rejected applications, we identified design weaknesses in FSA’s control activities for the TPD discharge application review process that may negatively affect the operating efficiency and effectiveness of the process and increase the risk that FSA approves applications that are inaccurate or incomplete. In addition, we found weaknesses in FSA’s documented procedures and its quality control review for its TPD discharge application review process. We also found weaknesses in FSA’s monitoring of the TPD discharge process.

Implementing the Coronavirus Aid, Relief, and Economic Security (CARES) Act is among the Department of Transportation’s (DOT) highest priorities in this time of national emergency. The CARES Act provides DOT with over $36 billion to prevent, prepare for, and respond to COVID-19 across all modes of transportation. To its credit, DOT swiftly distributed these funds and has begun implementing the Act’s requirements to provide much-needed relief to American workers, families, and businesses. As the Department is aware, the volume of CARES Act funds and the speed with which the funds have been disbursed creates oversight challenges. Therefore, to support the Department in meeting its mission while promoting effective stewardship of significant taxpayer dollars, we are providing a summary of key risk areas for DOT’s consideration in bolstering its oversight of CARES Act grantees and contractors. These potential risk areas and our suggested actions to mitigate those risks are drawn largely from our prior work assisting DOT with oversight of a significant influx of funds for economic stimulus and emergency relief. By maintaining focus on these risk areas early on and putting in place key internal controls, DOT can promote efficiencies; help ensure compliance; and better prevent fraud, waste, and abuse.