Federal Reports

What We Looked AtWe reviewed the City of Bangor's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated January 15, 2019.What We FoundWe found that the report contained a procurement and suspension and debarment finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the City complies with the procurement and suspension and debarment requirements. We also recommend that FTA recovers $81,888 from the City, if applicable.

What We Looked AtWe reviewed the City of Long Beach's single audit report for the fiscal year ending June 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated November 9, 2018.What We FoundWe found that the report contained an allowable costs/cost principles finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the City complies with the allowable costs/cost principles requirements. We also recommend that FTA recovers $1,656 from the City, if applicable.

What We Looked AtWe reviewed the Metro Regional Transit Authority's single audit report for the fiscal year ending December 31, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated September 24, 2018.What We FoundWe found that the report contained a special test and provisions finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the Authority complies with the special test and provisions requirements.

What We Looked AtWe reviewed the Worcester Regional Transit Authority's single audit report for the fiscal year ending June 30, 2018, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated September 21, 2018.What We FoundWe found that the report contained a cash management finding that needs prompt action from the Federal Transit Administration's (FTA) management.RecommendationsWe recommend that FTA ensures that the Authority complies with the cash management requirements.

What We Looked AtThis report presents the results of our quality control review (QCR) of KPMG LLP's management letter related to the audit it conducted, under contract with us, of the Federal Aviation Administration's (FAA) consolidated financial statements for fiscal years 2018 and 2017. In addition to its audit report on FAA's financial statements, KPMG issued a management letter that discusses four internal control matters that it was not required to include in its audit report.What We FoundOur QCR of KPMG's management letter disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards.RecommendationsKPMG made four recommendations in its management letter. FAA concurred with all four recommendations.

OIG data analytics noted the Memphis, TN, Main Post Office (MPO) issued 18 refunds involving Business Reply Mail (BRM), totaling $180,397, on 10 separate dates from January 1 through October 31, 2018. This was the fourth highest amount compared to other offices nationwide and represented 94 percent of the overall amount of postage affixed BRM refunds within the Tennessee District for the same timeframe. In addition, Memphis MPO postage affixed BRM refunds have been consistent over the past three years, with $169,929 and $179,526 issued in calendar years 2016 and 2017, respectively. The objective of this audit was to determine whether postage affixed BRM refunds were properly issued, supported, and processed at the Memphis MPO.

What We Looked AtWe reviewed the Puerto Rico Highways and Transportation Authority's single audit report for the fiscal year ending June 30, 2017, in order to identify findings that affect directly awarded Department of Transportation programs. An independent auditor prepared the single audit report, dated December 14, 2018.What We FoundWe found that the report contained a subrecipient monitoring finding that needs prompt action from the Federal Transit Administration's (FTA) management and an activities allowed or unallowed finding that needs prompt action from the Federal Highway Administration's (FHWA) management.RecommendationsWe recommend that FTA ensures that the Authority complies with the subrecipient monitoring requirements. We also recommend that FHWA ensures that the Authority complies with the activities allowed or unallowed requirements, and recommend that FHWA recovers $74,746 from the Authority, if applicable.