Federal Reports

Revised on October 18, 2019, to correct typos on pages 10, and 26-28 of the report. We corrected the projected percent of the completeness attribute for the FAIN testing (p. 10) and the transposed column headings for accuracy and completeness in Appendices IV and V (pp. 26-28). The corrected typos do not impact stakeholders' reliance on reporting findings and conclusions.We found that PBGC generally complied with the requirements for completeness, timeliness, quality, and accuracy of the data, and implementation and use of the government-wide financial data standards established by OMB and Treasury. Overall, we rated PBGC data to be of “higher” quality based on the established standards. However, we observed some inconsistencies, variances and errors that might have impacted PBGC’s reporting of reliable and consistent federal spending data for public use. This occurred because PBGC did not address the Broker’s warning reports and relied on the Broker to validate the data. Also, some of the errors were attributable to third parties (e.g. GSA, SAM, and Broker). Appendix IV provides a summary table of audit results, Appendix V shows the data element analysis and Appendix VI details errors not-attributable to the agency. We made one recommendation related to ensuring quality control reviews prior to submissions to the Broker and use of the Broker’s warning reports to ensure proper data reporting. PBGC agreed with the recommendations and plans to compete action by September 2019.

This report assesses the effectiveness of the company’s internal controls over the use of procurement cards.Although the company’s policies and practices for controlling its use of procurement cards are generally effective, we found performance gaps and opportunities for improvement in key areas. For example, about 13.4 percent of the 87,000 transactions we reviewed were potentially noncompliant with company policy due to possible split purchases to circumvent single purchase spending limits, purchase of goods or services that may have been available at a lower price, and payment of as much as $81,000 in sales tax even though the company is exempt. Additionally, some cardholders may not have competitively bid purchases when required. Our work also identified weaknesses in oversight of the procurement card program, card holder training, and supervisor training. We recommended that the company ensure that program administrators monitor transactions -- particularly those in high-risk categories -- for policy noncompliance and potential misuse and take steps to address any issues, require card holders and supervisors to take training on their responsibilities, and update the policy to reflect these new requirements.

We audited costs claimed by the State of North Carolina Department of Environmental Quality, Division of Marine Fisheries, 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 $8.4 million on 16 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 the collection and use of hunting and fishing license revenues and the reporting of program income.We found that the Department complied, in general, with applicable grant accounting and regulatory requirements. We found, however, that the Department had not included the 3-percent limitation on the Statewide cost allocation plan in its indirect cost proposal, had no written policies and procedures related to drawdowns, and had not updated its policies and procedures related to equipment disposal.The FWS concurred with the four recommendations we made to address our findings and will work with the North Carolina Department of Environmental Quality, Division of Marine Fisheries, to implement the recommendations. We considered one recommendation resolved and implemented and three recommendations resolved but not implemented.

We have conducted health and safety reviews of adult day care facilities, adult day service centers, and adult foster care homes in various States. Those reviews identified multiple health and safety issues that put vulnerable adults at risk. We conducted this review to determine whether similar issues existed in California's Community-Based Adult Services Program (the Program). California operates the Program under a Federal waiver to its Medicaid State plan. The Program funds community-based adult services for people aged 65 years and older and individuals with disabilities aged 18 years and older who are eligible for medical assistance and require the level of care provided in a nursing home but choose to live in the community. These services include skilled nursing care, social services, therapies, and personal care.

FEMA did not take sufficient actions to prevent fraud, waste, and abuse of transportation assistance funds for vehicles considered damaged or destroyed by Hurricanes Harvey, Irma, and Maria in FY 2017. These weakness occurred because FEMA does not require that agencies collect and retain documentation used to establish applicant eligibility; consider pre-disaster vehicle market value when determining award amounts; provide guidance to state, territorial and tribal governments on how to set transportation assistance thresholds; and conduct post-payment reviews to ensure funds are spent appropriately. We made three recommendations that, when implemented, will help FEMA ensure it is spending Federal funds for transportation assistance properly. FEMA concurred with one recommendation and non-concurred with two recommendations.

This report provides the results of our audit to assess the Department of Commerce’s (the Department’s) cybersecurity information sharing program, consistent with the Cybersecurity Information Sharing Act of 2015 (CISA). Our audit objective was to determine the capabilities and practices of the Department to carry out cybersecurity information sharing.