Federal Reports

The OIG investigated allegations of contract fraud and misuse of Federal funds related to a municipal boat access site renovation partially funded by a grant from the U.S. Fish and Wildlife Service (FWS).We did not substantiate allegations of contract fraud or the misuse of Federal funds. The problems we identified appeared to be the result of poor project management and poor workmanship, rather than fraud. The municipality has initiated legal proceedings to resolve the problems with the contractor.

A Baggage Foreman in Newark, New Jersey, was terminated from employment March 21, 2018, and an Usher/Gateman in Wilmington, Delaware, received a three-day suspension on March 15, 2018, for violation of company policies related to shipping boxes on Amtrak trains. Our investigation determined the Baggage Foreman shipped five boxes on a train without collecting and remitting the shipping fees to the company.

A Carman Journeyman in Chicago, Illinois, was terminated from employment March 26, 2018, following an administrative hearing for stealing Amtrak property from trains in the Chicago Yard.

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The OIG audited the costs claimed by the Government of Guam’s Department of Agriculture 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 $4.6 million on 31 grants that were open during the State fiscal years that ended September 30, 2015, and September 30, 2016. 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 although the Department complied, in general, with applicable grant accounting and regulatory requirements, it had not 1) established sufficient internal controls over employee time reports, 2) submitted Federal Financial Reports in a timely manner, 3) limited the use of grant-funded vehicles to official business, and 4) maintained complete property records for assets acquired with grant funds or hunting and fishing license revenues. We also determined that Guam legislation could divert control of Program funds to the chief technology officer.In addition, we identified prior year grant fund expenditures of $139,764 that were related to Department administration building upgrades that will no longer benefit the Division, and that the relocation of the Division’s coordination staff from the administration building to the fisheries building negatively affects the authorized and original purpose of the fisheries building. Further, we found that the FWS failed to initiate and address, in a timely manner, the consultation processes regarding environmental compliance for the Program.

Our audit objective was to determine if U.S. Postal Service contracting officers (COs) are administering Time and Materials (T&M) and Labor Hour Contracts in accordance with Supplying Principles and Practices (SP&P). As of July 2017, there were 105 open T&M and Labor Hour contracts awarded during fiscal years (FY) 2006 – 2017, valued at $432 million. Our statistical sample included 70 contracts totaling over $294 million.