Federal Reports

The Office of Inspector General conducted an audit of the U.S. Patent and Trademark Office’s (USPTO’s) Trademark Next Generation (TMNG) system. Our audit objective was to determine whether USPTO provided effective oversight of TMNG implementation.

What We Looked AtUnder the Office of National Drug Control Policy (ONDCP) Circular Accounting of Drug Control Funding and Performance Summary (Circular), when drug-related obligations total less than $50 million and a detailed accounting would be an unreasonable burden, agencies may submit alternative reports. For this reason, the National Highway Traffic Safety Administration (NHTSA) submitted alternative Drug Control Obligation Summary and the Performance Summary reports. We reviewed the reports and related management assertions to determine the reliability of those assertions in compliance with the Circular in all material respects. We conducted our review in accordance with generally accepted Government auditing standards for attestation engagements. Specifically, we reviewed selected accounting internal controls to determine whether drug control funds were properly identified in the accounting system. In addition, we reviewed NHTSA's internal controls for performance measures to gain an understanding of how the measures were developed. We limited our review processes to inquiries and analytical procedures appropriate for an attestation review according to the Circular's criteria.What We FoundNHTSA's Drug Control Obligation Summary report identified $11,013,185 in total obligations. When we traced those obligations to the Department of Transportation's accounting system and underlying contracts, we found no exceptions. The performance target in NHTSA's Performance Summary report for fiscal year 2018 was to complete testing of oral fluid drug screening devices by determining the sensitivity, specificity, and false positive and false negative rates for each device tested. NHTSA indicated that it met its performance target.Based on our review, we are not aware of any material modifications that should be made to NHTSA's fiscal year 2018 Drug Control Obligation Summary and Performance Summary reports in order for them to be in accordance with the Circular.

What We Looked AtEach year, the Federal Highway Administration (FHWA) oversees more than $40 billion in Federal funding for highway and bridge projects across the United States. For each project, a State Department of Transportation (State DOT) develops a conceptual cost estimate that is refined over time. The cost estimate prepared at the final design stage, called the Engineer's Estimate, is an essential element in the project-approval process--used by State DOTs as a benchmark for analyzing bids and to authorize the Federal funds. While underestimating the Engineer's Estimate can lead to project delays as additional funding is sought, overestimating causes an inefficient use of funds, which have been obligated and cannot be used for other projects. In either case, the Federal-aid highway program can be negatively affected. Accordingly, our objectives for this self-initiated audit were to assess (1) FHWA's progress in implementing key recommendations from its 2015 National Review of State Cost Estimation Practice (2015 National Review) and (2) FHWA's 2004 Guidelines on Preparing Engineer's Estimate, Bid Reviews and Evaluation (2004 Guidance), including how the Agency monitors the accuracy of the estimates prepared by the States.What We FoundFHWA has made limited progress in implementing the six key recommendations from its 2015 National Review, particularly those related to developing a national cost-estimation training and updating the Agency's 2004 Guidance. FHWA also has not followed up to determine whether and how its Division Offices are progressing on the other four key recommendations, which focused on their processes for developing reliable cost-estimating practices. Finally, FHWA lacks adequate guidance and processes to oversee and monitor the accuracy of Engineer's Estimates.Our RecommendationsWe made four recommendations to help FHWA ensure that the Engineer's Estimate is accurate and an effective tool for evaluating highway construction bids. FHWA concurred with two recommendations and partially concurred with the other two. We consider all four recommendations resolved but open pending completion of planned actions.