Federal Reports

We investigated an allegation that a senior USGS manager retaliated against a subordinate employee because the employee had participated in another investigation against him.We determined that the employee’s role in the other investigation against the senior manager constituted protected activity, but the evidence did not show that the senior manager knew of the employee’s involvement in that investigation. Accordingly, the evidence did not support a finding that the senior manager retaliated against the employee in violation of the Whistleblower Protection Act.

The OIG investigated allegations that a salable mineral known as caliche was improperly removed from the construction site of a school built on Bureau of Land Management (BLM) land that was conveyed to the school district through a recreation and public purposes lease. The U.S. Government retains the mineral rights in this type of lease and must be compensated if salable minerals are removed.We found that the BLM was aware of the alleged theft for more than 4 years but failed to resolve the complainant’s allegations. Furthermore, we believe the BLM may have violated the National Environmental Policy Act because we found no evidence the BLM completed a required mineral potential report as part of an environmental assessment. This step should have identified caliche as a salable mineral and alerted the BLM to the need to review its proposed disposition before the lease was signed.Our investigation also confirmed that a subcontractor retained by the school removed caliche from the construction site. The BLM, however, did not receive payment, and the Government incurred an estimated loss of $195,976. As a result of our investigation, and more than 4 years after the original complaint was made, the BLM issued a trespass notice to the subcontractor to resolve the unauthorized removal of caliche.Finally, we determined the BLM may have violated Federal regulations when it conveyed 41.24 acres of Federal land to the school district, even though the school intended to use only about 10 acres and had no plans to expand.We presented our investigative findings to the U.S. Attorney’s Office for the District of New Mexico, which declined to prosecute the matter.

SBA OIG reviewed PPP regulations and the Paycheck Protection Program and Health Care Enhancement Act, in addition to guidance published in SBA’s PPP Interim Final Rules and PPP Frequently Asked Questions.We determined SBA did not always have sufficient controls in place to detect and prevent duplicate PPP loans. As a result, lenders made more than one PPP loan disbursement to 4,260 borrowers with the same tax identification number and borrowers with the same business name and address. These disbursements totaled about $692 million for PPP loans approved from April 3 through August 9, 2020.We recommended in part that SBA:1. Review identified potential duplicate disbursements for eligibility and take action to recover any improper payments2. Review controls related to all PPP loan reviews to ensure that duplicate loans are not forgiven and not subject to an SBA guaranty, as appropriate3. Strengthen E-Tran controls for future PPP-type programs to ensure the controls align with program requirements and are active at all times4. Strengthen controls and guidance for lenders to ensure lenders meet program requirements for future PPP type programs

We audited the costs claimed by the State of Minnesota, Department of Natural Resources (Department) under grants awarded by the U.S. Fish and Wildlife Service (FWS) through the Wildlife and Sport Fish Restoration Program. The audit included claims totaling approximately $153 million on 43 grants that were open during the State fiscal years that ended June 30, 2017, and June 30, 2018. The audit also covered the Department’s compliance with applicable laws, regulations, and FWS guidelines, including those related to collecting and using hunting and fishing license revenues and reporting program income.We found that the Department complied, in general, with applicable grant accounting and regulatory requirements. We did, however, question costs totaling $56,089 for potential diversion of license revenue related to the disposition of surplus equipment. We found the Department did not identify or report all its earned program income, and we found the Department had not reconciled its real property records with the FWS’ real property inventory.The FWS concurred with our recommendations and will work with the Department to implement corrective actions.

OIG evaluated APHIS’ controls over the licensing of exhibitors of dangerous animals and the agency’s efforts to safeguard both the animals and members of the public who visit exhibitor facilities.