Federal Reports

Our objective was to evaluate FAS’ administration and oversight of the Export Credit Guarantee Program. Specifically, our objective wasto determine whether FAS had adequate controls in place to ensure that the Export Credit Guarantee Program was administered in compliance withapplicable laws, regulations, policies, and procedures.

We included an audit of the Tennessee Valley Authority’s (TVA) economic development (ED) grants in our annual audit plan based on findings from our 2013 audit of TVA’s Valley Investment Initiative, where we found TVA’s oversight of that program could be improved. Currently, there are two main grant programs utilized—Performance Grant Program and InvestPrep Program. Our audit objectives were to determine if TVA has (1) adequate processes and procedures in place for awarding ED grants and (2) established performance metrics to determine if grant program objectives are met. The scope of the audit included ED grants active between June 1, 2015, and May 31, 2017.We found (1) TVA has adequate processes in place for awarding ED grants but does not have a Standard Program and Process for InvestPrep grants, (2) ED has not included InvestPrep grants in any compliance review program, and (3) the ED organization has not established specific performance metrics to determine if grant program objectives are met.

We audited the costs claimed by the New Jersey State Department of Environmental Protection, Division of Fish and Wildlife, 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 $50.9 million on 35 grants that were open during the State fiscal years that ended June 30, 2015, and June 30, 2016. The audit also covered the Division’s compliance with applicable laws, regulations, and FWS guidelines, including those related to collecting and using hunting and fishing license revenue and reporting program income.We found that the Division generally complied with applicable grant accounting and regulatory requirements, but did not (1) report losing control of real property purchased with grant funds and license revenue, (2) submit Federal financial reports (SF-425s) in a timely manner, (3) properly manage its personal equipment inventory, or (4) provide adequate support for the in-kind hours claimed as a portion of the grant match requirement.Both the FWS and the Department agreed with our six recommendations, and they will work together to implement corrective actions.