Federal Reports

The Office of Inspector General is issuing this evaluation report to determine whether the U.S. Small Business Administration (SBA) approved disaster loan applications with related Coronavirus Disease 2019 (COVID-19) Economic Injury Disaster Loans (EIDL) or Paycheck Protection Program (PPP) loans with fraud hold codes.In October 2022, SBA established an informal review process to match disaster assistance loan applications to pandemic loans that had fraud hold codes based on taxpayer identification numbers. In August 2023, the agency began transitioning to a new system that uses fraud detection software to review each loan application and includes a check for pandemic program loans with fraud hold codes.Even though SBA implemented controls to mitigate fraud risks in its disaster assistance loan program, the agency approved 188 loans totaling $8,127,613 that were flagged as potentially fraudulent. Agency officials took action to prevent one of these loans from being disbursed after we brought this to their attention.We recommended SBA review and verify the 187 loans that matched to a related COVID-19 EIDL or PPP loan with a fraud hold code for legitimacy and eligibility. The agency agreed with our recommendation and intends to review these loans. Management’s proposed corrective actions satisfy the recommendation.

To summarize and assess the most serious management and performance challenges facing the Social Security Administration.

The U.S. Postal Service’s Mobile Delivery Device – Technology Refresh (MDD‑TR) is a handheld mobile scanning device used by Postal Service employees to improve real-time delivery scanning capabilities. As a part of the Delivering for America plan, the Postal Service committed to modernizing the MDD‑TRs to improve employee efficiency, increase security of mail and package delivery, and ensure employee safety. Select MDD‑TRs also use electronic lock (eLock) technology as a part of a multi-factor authentication requirement to open mail collection boxes and cluster box units — adding another level of security to prevent mail from being stolen. Since 2023, the devices have received software updates improving carrier security and efficiency through address edits, global positioning system, and hazard maps. These improvements support the Postal Service’s commitment to creating a safe and secure work environment.

About This Report
Each year, as required by law, we report on the U.S. Department of Transportation’s (DOT) top management challenges to help the Department meet its strategic priorities across its wide-ranging transportation program areas. We considered several criteria to identify the Department’s top management challenges for fiscal year 2025, including safety impact, documented vulnerabilities, large dollar implications, and the Department’s ability to effect change. In all these challenge areas, it is prudent that DOT focus on oversight that ensures compliance with Federal requirements and prevents fraud, waste, and abuse. Accordingly, in each chapter we’ve included a summary of our investigative work or other recent events to highlight the impact these instances can have on the Department’s ability to achieve its strategic goals.

What We Found
We identified the following top management challenges for fiscal year 2025:

Aviation safety. Strengthen the Federal Aviation Administration’s (FAA) ability to identify and resolve Boeing Production Issues; and improve data analysis and implement initiatives to identify root causes, prevent aviation close calls, and sustain the aviation safety track record.

Surface Transportation Safety. Partner with recipients and the private sector to improve the safety of drivers, passengers, and workers; and enhance verification and enforcement of safety compliance.

Aviation Governance and Modernization. Refine air traffic controller staffing, placement, and training practices to meet facility needs and maintain safety in an evolving operational environment; keep the deployment of NextGen systems and capabilities on track while FAA terminates the Office of NextGen; and improve processes for collecting and analyzing flight delay and cancellation data and consumer complaint data to oversee airlines and protect consumers.

Surface Transportation Infrastructure. Evaluate the progress of surface transportation programs; continue to strengthen oversight of Federal transportation investments; and provide support in a dynamic surface transportation sector.

Grant and Contract Fund Stewardship. Make sound, transparent grant and contract award decisions; and confirm grant and contract funds are used as intended.

Financial Management. Improve stewardship of agency-owned or federally funded property; improve compliance with Federal requirements for monitoring and reporting on grantee spending; and improve compliance with Federal requirements for managing and expending Federal funds.

Information Security. Address longstanding weaknesses to protect DOT’s critical information systems; and execute key cybersecurity initiatives to strengthen DOT’s effectiveness addressing transportation-sector cybersecurity matters.

Transportation Transformation. Integrate new technologies into the National Airspace System; and facilitate innovation by supporting stakeholders in their safe adoption of new technologies.

Organizational Excellence. Hire, train, and retain the workforce necessary to meet Department goals; manage workforce and property assets and facilities in an evolving environment; and address longstanding organizational issues.