Federal Reports

For your information is our final report, Major Management and Performance Challenges Facing the Department of Homeland Security. This annual publication, required by the Reports Consolidation Act of 2000, summarizes what the OIG considers the most serious management and performance challenges facing the Department of Homeland Security and assesses its progress addressing them. It is intended to help the Department improve program performance and ensure the effectiveness of its operations.

The report summarizes the FTC OIG’s activities and accomplishments during the second half of the FY 2022 reporting period.

The Office of the Inspector General conducted a review of the Ackerman Combined Cycle Plant (AKC) to identify factors that could impact AKC’s organizational effectiveness. During our evaluation, plant personnel informed us the culture at the plant was generally positive due to strong engagement between team members and with plant management. However, plant personnel informed us of operational concerns regarding (1) the plants grounding process, (2) work management, and (3) a valve that was not operating properly. Management subsequently addressed the valve concern and is in the process of addressing the concerns related to the grounding process.

This report summarizes the results of CLA’s independent evaluation and contains four recommendations that will assist the agency in improving the effectiveness of its information security and its privacy programs and practices. NCUA management concurred with and has planned corrective actions to address the recommendations.

Independent Review of 4003(b) Loan Recipient’s Validation Memo – Caribbean Sun Airlines, Inc.

We audited the U.S. Department of Housing and Urban Development’s (HUD) fraud risk management program at the enterprise and program-office levels and assessed its overall maturity.  Our objective was to determine HUD’s progress in implementing a fraud risk management framework at the enterprise and program-office levels that encompasses control activities to prevent, detect, and respond to fraud.The Antifraud Playbook established by the Chief Financial Officers Council and the U.S. Department of the Treasury assess maturity of an agency’s fraud risk management program in four phases: (1) culture, (2) identifying and assessing fraud, (3) preventing and detecting fraud, and (4) turning insight into action.  We found that in all four phases HUD’s fraud risk management program was in the early stages of development, or at an “ad hoc” maturity level.  HUD’s program is still in its infancy because HUD had not previously dedicated sufficient resources to lead and implement fraud risk management activities. Although HUD has recently taken steps to mature its program, HUD needs to commit resources to enhancing antifraud controls and promoting a culture of fraud risk management. Without improvements to its program, HUD may miss opportunities to identify and eliminate fraud vulnerabilities, leaving its funds and reputation at risk.We recommend that the Chief Risk Officer (1) perform a complete agency-wide fraud risk assessment and develop a plan to improve the maturity of HUD’s fraud risk management program; (2)  communicate to program staff the differences between HUD’s processes for enterprise risk management, Payment Integrity Information Act of 2019, and financial risk management risk assessment and how those processes relate to HUD’s fraud risk management program; (3) develop policies, procedures, and strategies for collecting and analyzing data to identify fraud within HUD’s programs, promote fraud awareness, and develop antifraud risk mitigation tools.  We also recommend that the Chief Financial Officer determine and seek to fulfill an appropriate level of dedicated staff resources to administer HUD’s enterprise and fraud risk management programs effectively and increase fraud risk awareness and strengthen antifraud controls in HUD’s program offices.

SIGTARP is initiating an evaluation to summarize the findings it made in its reports and other products on HAMP and HHF, and to assess the status of the recommendations in those products. The results of this evaluation will offer valuable information to Treasury, members of Congress, and the public on SIGTARP’s oversight of HAMP and HHF, and lessons learned that could be applied to similar ongoing and future housing programs.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report provides a descriptive evaluation of VHA facilities’ leadership and organizational risks. The report focuses on executive leadership position stability and engagement, budget and operations, staffing, employee satisfaction, patient experience, accreditation surveys and oversight inspections, factors related to possible lapses in care, and VHA performance data.This report describes observations from healthcare inspections performed at 45 VHA medical facilities from November 30, 2020, through August 23, 2021. Each inspection involved interviews with key staff and reviews of clinical and administrative processes. The results in this report are a snapshot of VHA performance at the time of the fiscal year 2021 OIG reviews.The OIG did not issue recommendations but developed this summary report for the Under Secretary for Health, Veterans Integrated Service Network directors, and facility senior leaders to consider when improving operations and clinical care at VHA facilities.

We audited costs claimed and grant compliance by the Mississippi Department of Marine Resources under grants awarded by the FWS.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report provides a focused evaluation of Veterans Health Administration (VHA) facilities’ quality, safety, and value (QSV) programs. This report describes findings from healthcare inspections performed at 45 medical facilities during fiscal year 2021 that focused on facility committees responsible for QSV oversight functions, systems redesign and improvement programs, protected peer reviews of clinical care, and medical center surgical programs.Each inspection involved interviews with key staff and reviews of clinical and administrative processes. The OIG found general compliance with many of the selected requirements. However, the OIG identified weaknesses with protected peer review and facility surgical work groups and issued three recommendations for• peer review committee documentation of individual improvement actions for Level 3 peer reviews,• surgical work groups that meet at least monthly with consistent attendance by required members, and• surgical work groups’ monthly review of surgical deaths.

The Reports Consolidation Act of 2000 requires the Executive Branch Inspectors General to identify and report annually on the top management challenges facing their agencies.

What We Looked AtWe performed a quality control review (QCR) on the single audit that Mauldin & Jenkins performed for the South Carolina Department of Transportation's (SCDOT) fiscal year that ended June 30, 2021. During this period, SCDOT expended approximately $707 million from the U.S. Department of Transportation (DOT) grant programs. SCDOT determined that DOT's major programs were the Highway Planning and Construction Cluster and the Formula Grants for Rural Areas.Our QCR objectives were to determine whether (1) the audit work complied with the Single Audit Act of 1984, as amended, and the Office of Management and Budget's Uniform Guidance, and the extent to which we could rely on the auditor's work on DOT's major programs and (2) the SCDOT's reporting package complied with the reporting requirements of the Uniform Guidance.What We FoundMauldin & Jenkins' audit work complied with the requirement of the Single Audit Act, the Uniform Guidance, and DOT's major programs. We found nothing to indicate that Mauldin & Jenkins' opinion on each of DOT's major programs was inappropriate or unreliable. However, we identified a deficiency in SCDOT's reporting package that required correction and resubmission.

The Tennessee Valley Authority’s (TVA) Enterprise Planning organization engages in long-term generation and capacity planning to support TVA’s mission of providing low-cost, reliable electricity. TVA’s capacity plan is designed to ensure resource adequacy while working to minimize cost to customers and develop a long-term strategy for the TVA power system. Long-term generation planning allows for the optimal use of available resources to meet the future energy needs across TVA’s service area, factoring in operating area and system constraints. Collectively, the capacity and generation plans are referred to as the Power Supply Plan. Due to the importance of power supply planning to TVA’s fuel cost forecasting and operational decision-making, we conducted an evaluation to determine whether TVA is using accurate inputs to develop the Power Supply Plan.We tested seven inputs to the Power Supply Plan, including two key inputs, and determined six were inaccurate. Specifically, we found errors in the (1) fuel costs, (2) load forecast, (3) Southeastern Power Administration hydro generation forecast, (4) solar purchased power agreement contract terms, (5) coal ancillary services, and (6) demand response capacities and costs. We also noted an opportunity for improvement related to the level of detail contained in the documentation available to guide the load forecasting process. Due to the complex nature of TVA’s power supply planning models and forecasting methodologies, we were unable to determine the overall impact of the errors identified on the Power Supply Plan. While the impacts we were able to quantify were low, having errors in six of seven inputs we reviewed indicates there could be risk to the integrity of information being provided to and by TVA’s Power Supply Plan. Additionally, various personnel raised concerns regarding the reliability of information being provided by TVA’s Power Supply Plan, specifically in the burn forecast.

The lack of board members continues to be the biggest risk to CSB operations.

The lack of board members continues to be the biggest risk to CSB operations.

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report highlights the results of a focused evaluation of VHA facilities’ high-risk processes. The report describes findings from healthcare inspections performed at 45 medical facilities during fiscal year 2021 that focused on selected management of disruptive and violent behavior requirements. Each inspection involved interviews with key staff and reviews of clinical and administrative processes.The OIG found general compliance with many of the selected requirements. However, the OIG identified weaknesses with and issued three recommendations related to• required members’ attendance at disruptive behavior committee or board meetings,• patient notification of Orders of Behavioral Restriction, and• completion of required training.

As part of a Council of the Inspectors General on Integrity and Efficiency (CIGIE) Disaster Assistance Working Group cross-cutting initiative, we summarized the conclusions, findings, and recommendations of 28 reports related to the Federal Government’s natural disaster preparedness and response issued by 7 Offices of Inspector General (OIGs). The seven participating OIGs included U.S. Departments of Defense, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, and Transportation and the U.S. Small Business Administration. Many of these reports focused on the Federal Government’s preparedness to respond to the devastating 2017 hurricanes.The 28 OIG reports, issued between June 2015 and November 2021, made 89 recommendations to the Federal agencies and grant recipients, including recapturing questioned costs, strengthening internal controls, maintaining adequate oversight of contractors and grants, and complying with Federal regulations. Agencies should learn from the results of these reports and implement controls and systems to limit future obstacles to spending disaster funds efficiently and effectively.Click below to read more about each management challenge. Challenge 1: Performance Management and AccountabilityChallenge 2: Human Capital ManagementChallenge 3: Financial ManagementChallenge 4: Procurement ManagementChallenge 5: Grant ManagementChallenge 6: Homeland Security and Disaster PreparednessChallenge 7: Information Technology Security and ManagementAppendix B Click here to access the full report. To access the CIGIE's 2021 Top Management and Performance Challenges Facing Multiple Federal Agencies report, click here.

A U.S. Postal Service money order is a financial document similar to U.S. currency and is sold by Postal Service window clerks. Customers can purchase money orders for a fee in varying amounts and redeem them at any post office. Although the Postal Service categorizes money orders as market dominant products, they can be purchased from certain commercial banks and money transfer agencies such as Western Union and MoneyGram. The maximum amount for a single Postal Service, Western Union, or MoneyGram domestic money order is $1,000.What We Did

This Office of Inspector General (OIG) Comprehensive Healthcare Inspection Program report highlights the results of an evaluation of VHA facilities’ mental health programs. The report describes findings from healthcare inspections performed at 44 medical facilities during fiscal year 2021 that focused on suicide risk screening and evaluation processes in emergency departments and urgent care centers. Each inspection involved interviews with key staff and reviews of clinical and administrative processes. The OIG found general compliance with most of the selected requirements. However, the OIG identified a weakness with the completion of mandatory training by staff who develop suicide safety plans and issued one recommendation. Lack of training could prevent staff from providing optimal treatment to veterans who are at risk for suicide.

We performed a review of the U.S. Department of Housing and Urban Development’s (HUD) monitoring and tracking of Continuum of Care (CoC) grantees that have been slow to spend their grant funds. Our objectives were to determine whether HUD was effectively tracking and monitoring CoC grant spending and to determine the impact of COVID-19 on CoC grantee spending.HUD generally tracked and monitored its grantees; however, it did not prioritize grantees that encountered challenges in spending their CoC grant funds before the grants expired. This condition occurred because HUD did not have written guidance that detailed how field offices should review grantees for spending issues. Between 2017 and 2020 HUD recaptured nearly $257 million from CoC grantees that had not fully spent their funds. While several factors outside of HUD’s control contributed to the spending challenges, improved tracking and monitoring could help ensure that the grantees timely address those factors and mitigate their impact. Without proactive measures, grantee spending challenges will likely continue, leading to unused funds that could otherwise have gone toward addressing homelessness. In addition, although the pandemic did impact how CoC grantees carried out their programs and some grants had to be temporarily put on hold, overall nationwide CoC grant fund spending was not significantly impacted in the long term by COVID-19.We recommend that the Deputy Assistant Secretary for Operations for HUD’s Office of Community Planning and Development (CPD) implement written procedures to ensure consistency among field offices in reviewing spending, potentially preventing up to an estimated $47 million in annual CoC recaptures. In addition, we recommend that CPD’s Deputy Assistant Secretary of Special Needs Programs design and implement a strategy-intensive training program for grantees.

This interim report presents the results of our self-initiated audit of mail delivery, customer service, and property conditions at the Kearny Main Post Office (MPO) in Kearny, NJ (Project Number 22-170-2). The Kearny MPO is in the New Jersey District of the Atlantic Area and services ZIP Codes 07031 and 07032. These ZIP Codes serve about 56,039 people and are considered to be urban areas. We judgmentally selected the Kearny MPO based on the number of Stop-the-Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail.

This interim report presents the results of our self-initiated audit of mail delivery, customer service, and property conditions at the Belleville Annex in Belleville, NJ (Project Number 22-170-1). The Belleville Annex is in the New Jersey District of the Atlantic Area and services ZIP Codes 07104, 07109, and 07110. These ZIP Codes serve about 114,608 people and are considered to be urban areas. We judgmentally selected the Belleville Annex based on the number of Stop-the-Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail.

This interim report presents the results of our self-initiated audit of mail delivery, customer service, and property conditions at the Union Post Office in Union, NJ (Project Number 22-170-3). The Union PO is in the New Jersey District of the Atlantic Area and services ZIP Codes 07040, 07083 and 07088. These ZIP Codes serve about 80,153 people in a predominantly urban area. We judgmentally selected the Union Post Office based on the number of Stop-the-Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery, and indicators for undelivered mail.

This report presents the results of our self-initiated audit of efficiency of operations at the Dominick V. Daniels Processing and Distribution Center (DV Daniels P&DC), in Kearny, NJ (Project Number 22-169). We conducted this audit to provide U.S. Postal Service management with timely information on operational risks at this P&DC. We judgmentally selected the DV Daniels P&DC based on a review of operational and service metrics. The DV Daniels P&DC is in the New York Metro Division and processes letters, flats, and parcels. The DV Daniels P&DC services multiple 3-digit ZIP Codes in urban and rural communities (see Table 1).

An Amtrak electrician based in Chicago, Illinois, was terminated from employment on October 19, 2022, after our investigation found that the employee violated company policies by misusing a company-owned computer and misusing company time, which included outside business activities. We also found that the former employee violated company policy by not attending to his daily required duties.

Our objective for this report was to assess how effective the company has been in achieving its emissions-reduction goals.We found that the company appears to be on track to reach its 2030 goal to reduce emissions by 40 percent below its 2010 baseline, to purchase 100 percent carbon-free electricity by 2030, and to purchase 100 percent renewable electricity by 2035. We identified, however, two opportunities that could help it more easily achieve these goals. First, the company could collect and analyze its own data to reduce idling time for diesel locomotives. Second, it could require sustainability training for management employees. To address the report’s findings, we recommended that the company analyze its data to better target and reduce excess idling. Further, to ensure management employees are aware of the company’s sustainability goals, we recommend that the company make its sustainability training mandatory for all management employees.

The Pacific Northwest National Laboratory (PNNL) is 1 of 17 national laboratories operated by the Department of Energy. PNNL carries a broad portfolio of scientific activities within chemistry, earth science, biology, and data science. PNNL conducts research utilizing controlled substances in contributing to fentanyl standards establishment and detection technology. The Pacific Northwest Site Office oversees PNNL for the Department’s Office of Science.We initiated this inspection to determine the extent that PNNL effectively manages controlled substances.Based on our inspection, we found that PNNL’s management of its controlled substances was incomplete. Specifically, PNNL did not incorporate all applicable Federal property regulations into its management of controlled substances, as it did not classify them aspersonal property, did not categorize them as sensitive personal property, and did not follow prescribed inventory standards. This occurred because PNNL and the Pacific Northwest Site Office misclassified controlled substances as chemical assets. However, nothing came to our attention to indicate that PNNL’s safeguarding, use of, and record-keeping for controlled substances were not effective.Failure to address all applicable Federal requirements resulted in PNNL not properly tracking and reporting controlled substances inventories, not sending disposition reports to the Pacific Northwest Site Office, and improper segregation of duties for physical inventory counts. Moreover, the lack of additional mechanisms for identifying lost, misplaced, or stolen controlled substances could pose a danger to public health and safety.To address the issues identified in this report, we made one recommendation that, if fully implemented, should help ensure that PNNL properly manages its controlled substances.

The SBIR and STTR Extension Act of 2022 reauthorized the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. The Inspector General of a Federal agency that participates in the SBIR or STTR programs must submit an annual report to Congress describing its investigations involving those programs (15 U.S.C. Section 638b(c). Information in this report presents the OIG investigative information related to SBIR for FY 2022.

As part of a Council of the Inspectors General on Integrity and Efficiency (CIGIE) Disaster Assistance Working Group cross-cutting initiative, we summarized the conclusions, findings, and recommendations of 28 reports related to the Federal Government’s natural disaster preparedness and response issued by 7 Offices of Inspector General (OIGs).  The seven participating OIGs included U.S. Departments of Defense, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, and Transportation and the U.S. Small Business Administration.  Many of these reports focused on the Federal Government’s preparedness to respond to the devastating 2017 hurricanes.

The 28 OIG reports, issued between June 2015 and November 2021, made 89 recommendations to the Federal agencies and grant recipients, including recapturing questioned costs, strengthening internal controls, maintaining adequate oversight of contractors and grants, and complying with Federal regulations.  Agencies should learn from the results of these reports and implement controls and systems to limit future obstacles to spending disaster funds efficiently and effectively.

Click below to read more about each management challenge.

•  Challenge 1:  Performance Management and Accountability
• Challenge 2:  Human Capital Management
• Challenge 3:  Financial Management
• Challenge 4:  Procurement Management
• Challenge 5:  Grant Management
• Challenge 6:  Homeland Security and Disaster Preparedness
• Challenge 7:  Information Technology Security and Management
• Appendix B

Click here to access the full report. To access the CIGIE's 2021 Top Management and Performance Challenges Facing Multiple Federal Agencies report, click here.

This report presents a summary of the results of our self-initiated audits assessing mail delivery, customer service, and property conditions at four selected delivery units in the Milwaukee, WI region (Project Number 22-147) and responds to a request from Senator Tammy Baldwin asking for a review of delivery operations in the Milwaukee area. The four delivery units we audited were the North Milwaukee and Dr. Martin Luther King Jr. Stations, the Waukesha Main Post Office (MPO), and the Bradley Carrier Annex. We judgmentally selected these delivery units based on the number of Stop-the-Clock (STC) scans occurring at the delivery unit, rather than at the customer’s point of delivery. We previously issued interim reports to district management for each of these units regarding the conditions we identified. In addition, we issued a report on the efficiency of operations at the Milwaukee Processing and Distribution Center (P&DC), which services these four delivery units. All four delivery units are in the Wisconsin District of the Central Area and have a combined total of 147 city routes and 14 rural routes. Staffing at the delivery units during our audit included 162 full-time city carriers, 34 city carrier assistants, 14 rural carriers, five assistant/replacement rural carriers, 21 full-time clerks, and 22 postal support employees (see Table 1).

BackgroundThe U.S. Postal Service plans to replace and expand its current delivery fleet with a mix of internal combustion engine and battery electric powertrain, purpose-built Next Generation Delivery Vehicles (NGDV), and commercial off-the-shelf vehicles. As a result, the Postal Service has initiated several efforts to prepare its Vehicle Maintenance Facilities (VMF) — where the current fleet is serviced and repaired — to maintain NGDVs upon initial deployment in late 2023.What We DidOur objective was to assess the Postal Service’s VMF preparedness plans to maintain the future fleet of NGDVs. For this audit, we engaged a contractor to help us identify VMF preparedness and fleet transition best practices from five domestic and foreign delivery fleets and compared Postal Service practices against them. In addition, we conducted site visits at judgmentally selected VMFs in the Los Angeles, CA; Detroit, MI; Atlanta, GA; Pittsburgh, PA; and Baltimore, MD areas to understand their experiences with prior fleet transitions.

An Amtrak Supervisor based in Hamilton, New Jersey, violated company policy bymisusing his company-owned vehicle by regularly stopping at bars and restaurants onhis way home from work and by not keeping this vehicle at an approved location.During his interview with the OIG, the employee admitted to using the vehicle forpersonal use. The employee was terminated after his disciplinary hearing on October17, 2022.

We recommended the NPS obtain updated guidance on its authority to provide LWCF grants specifically program administration costs.

This report represents our current assessment of the U.S. Small Business Administration's programs and activities that pose significant risks, including those that are particularly vulnerable to fraud, waste, error, mismanagement, or inefficiencies. The Challenges are not presented in order of priority, except for the COVID 19 challenge, which we address first in this report. We also view the other challenges as critically important to SBA operations.

This management alert presents issues the U.S. Postal Service Office of Inspector General (OIG) identified during the Channel Partner Visibility and Compliance audit (Project Number: 22-069). Our objective is to provide notification of these issues for accelerated attention and action. Specifically, we found material weaknesses in internal controls over the U.S. Postal Service’s Channel Partner programs.In recent years, the Postal Service designed a strategy to address issues related to its relationships with Channel Partners. Most recently, the Postal Service issued termination letters for its Resellers’ contracts, effective September 30, 2022. The Postal Service established the USPS Connect eCommerce program in May 2022, to foster direct relationships with partners, including those that previously worked through Resellers. Although termination of the Resellers’ contracts addresses some of the issues we have identified, it does not mitigate other risks that could continue with implementation of the Connect eCommerce program.See Appendix A for additional information about this management alert.

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

The Office of Inspector General is required by statute to report annually the most serious management and performance challenges facing the U.S. Department of Commerce (the Department). Attached is our final report on the Department’s top management and performance challenges for fiscal year 2023.

The Inspector General’s Statement on the SEC’s Management and Performance Challenges, October 2022

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Native American Programs’ sale of defaulted loan notes and real estate-owned (REO) properties on tribal trust and other restricted lands. We performed this audit as a result of congressional interest in the Section 184 program and work performed during prior HUD, Office of Inspector General, audits. The objective of our audit was to determine whether HUD appropriately marketed, sold, and tracked defaulted loan notes and REO Section 184 tribal trust land properties.HUD appropriately marketed and sold Section 184 properties on restricted lands. However, its systems and controls for managing its portfolio of defaulted loan notes and REO Section 184 tribal trust land properties had weaknesses. This condition occurred because HUD prioritized its limited resources to focus on processing and guaranteeing new loans rather than defaulted loan notes and REO properties on trust land. As a result, HUD may continue to experience delays in selling defaulted loan notes and REO properties. These weaknesses could lead to unnecessarily vacant, abandoned, and blighted properties on trust lands, which could have a negative impact on the Loan Guarantee Fund.We recommend that the Deputy Assistant Secretary for Native American Programs (1) consider conducting an analysis of staffing resources needed to manage the REO and notes sales on tribal trust properties program and adjust staffing accordingly; (2) revise HUD’s internal policies and procedures to include detailed written policies and procedures for the marketing, preservation, and sale of defaulted loan notes and REO properties on tribal trust and other restricted lands; and (3) work with the Office of the Chief Information Officer to develop an electronic solution, such as a new module in Native Advantage or one similar to the Federal Housing Administration’s P260 tracking system, to track the sale of defaulted loan notes and REO properties on tribal trust and other restricted lands. While the solution is being developed, HUD should put controls into place to ensure that manual systems used to track defaulted loans and REO properties are complete and accurate.

What We Looked AtSince March 2020, Congress has provided $69.5 billion in supplemental funding to the Federal Transit Administration (FTA) to help transit systems in the United States mitigate the impacts of the Coronavirus Disease 2019 (COVID-19) pandemic. As of August 1, 2022, FTA had obligated over $63 billion and expended over $46 billion. In addition to increased funding, the Coronavirus Aid, Relief, and Economic Security (CARES), Coronavirus Response and Relief Supplemental Appropriations (CRRSA), and American Rescue Plan (ARP) Acts permitted changes in how recipients use FTA funds. Accordingly, our audit objective was to assess the design of FTA’s controls to address risks FTA has identified for COVID-19 relief funding. What We FoundFTA’s 2021 Internal Control Plan identified 16 risks and mitigation strategies related to its COVID-19 relief funds, 12 of which FTA currently considers to be risks. We determined that FTA’s controls fully address 8 of these 12 identified remaining risks, because they are relevant and sufficient in scope and specificity to mitigate the related risk, and partially address 4 of the 12 remaining risks. For the four risks that Agency officials indicated no longer applied, we found that FTA’s controls partially address two risks and do not address two. We included our assessment of these areas should FTA management determine the risks are applicable at a future time. Adding controls for those risk areas that are not fully addressed will help the Agency mitigate the potential impact of the risks facing its COVID-19 relief funding. Our RecommendationsFTA concurred with our two recommendations to improve controls for addressing COVID-19 funding risks. We consider all recommendations resolved but open pending completion of the planned actions.

On October 11, 2022, an Amtrak pipe fitter based in Miami, Florida, signed a civil settlement agreement with the U.S. Attorney’s Office, Southern District of Florida, and agreed to pay $10,000 in restitution and a $5,000 penalty. Our investigation found that the employee submitted an application that contained false statements and information to the Small Business Administration in order to qualify for a CARES Act Economic Injury Disaster Loan Advance, resulting in the receipt of funds to which he was not entitled.

On October 11, 2022, an Amtrak coach cleaner based in Miami, Florida, signed a civil settlement agreement with the U.S. Attorney’s Office, Southern District of Florida, and agreed to pay $10,000 in restitution and a $5,000 penalty. Our investigation found that the employee submitted an application that contained false statements and information to the Small Business Administration in order to qualify for a CARES Act Economic Injury Disaster Loan Advance.

The small business segment in the U.S. is growing and has a strong potential to generate more revenue for the Postal Service. Consumer expectations are changing, including demands for faster shipping. For small businesses to compete with larger competitors, they need help with speedy and efficient logistics and fulfillment. Additional services and further outreach to small businesses at post offices can position the Postal Service for continued success serving this segment. The Postal Service’s Delivering for America 10-year plan, released in March 2021, acknowledges the need to improve how the retail network serves small businesses.