Federal Reports

I am pleased to submit the Amtrak Office of InspectorGeneral Semiannual Report to the United StatesCongress for the six months ending September 30,2019. This is the 60th semiannual report we haveproduced since our establishment in 1988.During this period, our investigators identified a fraudscheme in which criminals used stolen credit cards tobuy Amtrak tickets, cancel the tickets in exchange forelectronic vouchers, and subsequently sell the vouchersvia the internet. In one case involving over $540,000 infraudulent vouchers, our agents searched the subject’sresidence, and discovered numerous explosive devices,loaded semi-automatic weapons, armor piercingammunition, cash, and illegal drugs. Our work inthis area has led to arrests, indictments, and in theaforementioned case, a guilty plea.Investigative work also led to a $466,500 settlementrelated to a scheme in which several contractorsallegedly inflated invoices and engaged in bid rigging onAmtrak construction projects. Additionally, our agentspursued multiple cases of health care fraud in whichcriminals bilked Amtrak’s insurance plans through falseclaims, excessive and unnecessary tests, and prescribingunnecessary and expensive drugs and medicalequipment (oftentimes without the patients’ knowledge).Our auditors continued to generate impactful reports,such as a report on security at Washington UnionStation and Ivy City maintenance facility. We foundthat perimeter and interior security weaknesses, someof them longstanding, put Amtrak employees andpassengers at risk. We also completed the third auditin a series that examined staffing practices within thecompany’s Mechanical department, where we foundit had not systematically managed its workforce at keypreventative maintenance facilities, which resulted inunnecessary costs.Finally, we welcome our new Deputy InspectorGeneral, Mary L. Kendall, who brings a wealth ofexperience to our team. In the next six months, wewill continue to focus our efforts on high-impact areasimportant to the company, the Board of Directors,Congress, and the public. We trust that you will findthis report informative.

To see our report, please click on the link below

KPMG LLP has completed the report on its audit of the U.S. Department of the Interior’s financial statements for fiscal years 2019 and 2018. KPMG found the following:• The financial statements were fairly presented, in all material respects, in accordance with U.S. generally accepted accounting principles• One material weakness and three significant deficiencies in internal controls over financial reporting• No instances in which the DOI’s financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996• No reportable noncompliance with provisions of laws tested or other mattersWe reviewed KPMG’s work and found no instances in which KMPG did not comply, in all material respects, with U.S. Generally Accepted Government Auditing Standards.

In accordance with the Reports Consolidation Act of 2000, we are submitting what we have determined to be the most significant management and performance challenges facing the U.S. Department of the Interior (DOI), for inclusion in the DOI’s Agency Financial Report for fiscal year 2019.Six challenge areas are included in this year’s report, namely financial management, workplace culture and human capital, responsibility to American Indians, energy management, IT security, and water programs.Each challenge area connects to the DOI’s mission and strategic plan, and reflects continuing vulnerabilities and emerging issues.This report is based on specific OIG and U.S. Government Accountability Office reviews and other reports, as well as our general knowledge of the DOI’s programs and operations. We met with key DOI officials to gain their perspectives on the challenge areas and progress made under each.

What We Looked AtWe contracted with the independent public accounting firm Leon Snead & Company, P.C., to audit the Surface Transportation Board's (STB) financial statements as of and for the fiscal years ended September 30, 2019, and September 30, 2018, and to report on internal control over financial reporting and compliance with laws and other matters. The contract requires the audit to be performed in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Governmental Accountability Office's and Council of the Inspectors General on Integrity and Efficiency's Financial Audit Manual. In connection with the contract, we performed a quality control review of Leon Snead's report dated November 12, 2019, and related documentation, and inquired of its representatives.What We FoundOur quality control review disclosed no instances in which Leon Snead did not comply, in all material respects, with U.S. generally accepted Government auditing standards.RecommendationsSTB concurred with Leon Snead's three recommendations. We agree with Leon Snead's recommendations and are not making any additional recommendations.

Audit of Fiscal Year 2019 Financial Statement

Compliance with Laws and Regulations

Report on Internal Control