Federal Reports

On behalf of the National Park Service (NPS), we conducted a quality control review (QCR) of an independent public accountant’s (IPA) fiscal year 2016 single audit of the Northern Virginia Regional Commission, an NPS grantee. The purpose of our QCR was to determine whether the IPA performed the single audit in accordance with all applicable auditing standards and the Code of Federal Regulations.Auditors may receive an overall QCR rating of pass, pass with deficiencies, or fail. Based on our review, we assigned an overall rating of fail to the IPA’s work because its audit documentation did not support the opinions expressed in the audit report. Our QCR revealed several major deficiencies in the IPA’s audit work, including an inadequate understanding of required internal controls, an unreasonable determination of certain compliance requirements, and the selection of an inappropriate type of data for its audit sampling.On January 29, 2018, we gave the IPA our QCR report and requested a response. The IPA disagreed with the rating we assigned, stating, “We believe the audit procedures performed and supporting file documentation were sufficient to allow us to meet our responsibilities as auditors, and that our audit documentation did support the opinions expressed in the audit report.” Because the IPA was unable to provide sufficient documentation of the procedures performed and evidence examined, however, we continue to assign the IPA a rating of fail.

We determined that Victor Valley Wastewater Reclamation Authority officials, through its main engineering contractor, presented incorrect data and misinformed the Federal Emergency Management Agency (FEMA) in obtaining a Federal grant of more than $33 million for its pipeline replacement and relocation project. We made four recommendations, directing FEMA to disallow the $33 million in grant funds awarded to the Authority for Project 828 — or $1.4 million if FEMA disallows $31.7 million of ineligible costs we questioned in our previous report (OIG-17-25-D; January 2017); and to coordinate with DHS for any applicable suspension and debarment actions. FEMA concurred with three recommendations. For the remaining recommendation, FEMA is awaiting additional documentation from the grantee and subgrantee before making a determination.

We conducted this audit to evaluate (1) the criteria and process for determining the number and locations of field offices; (2) the U.S. Census Bureau’s plans for reducing costs associated with the fewer number of field offices as part of reengineered field operations; and (3) the planned process for collaboration between the Bureau and the General Services Administration for implementing the area Census office leasing program.

This report was issued in conjunction with the Office of Inspector General for the Railroad Retirement Board's Semiannual Report to the Congress. It was incorporated by reference in the corresponding Semiannual Report which is available at the link below.

To address the threats and opportunities presented by ecommerce, the Postal Service could provide services close to its core competencies to serve ecommerce businesses reliant on return shipping as a part of their business model. The Postal Service is well situated to serve the product returns market and already offers many return shipping services demanded by ecommerce retailers and consumers.

This report summarizes work we initiated and completed during this semiannual period on a number of critical Departmental activities. Over the past 6 months, our office completed 14 audits, inspections, responses to Congressional requests, and public investigative reports—as well as 1 Congressional testimony—addressing programs and personnel associated with the Economics and Statistics Administration (ESA), First Responder Network Authority (FirstNet), International Trade Administration (ITA), National Oceanic and Atmospheric Administration (NOAA), National Telecommunications and Information Administration (NTIA), U.S. Patent and Trademark Office (USPTO), and the Department itself.