Federal Reports

The objective of this audit was to evaluate the security of NARA’s publicly-accessible websites. We also evaluated NARA’s progress toward implementing Hypertext Transfer Protocol Secure on all of its websites as required by Office of Management and Budget Memorandum M-15-13, and verified NARA conducted a review of security assessments associated with its cloud web hosting initiative.

For fiscal years (FYs) 2012 and 2013, the South Carolina Office of Economic Opportunity (State agency) claimed costs on behalf of Wateree Community Actions, Inc. (Wateree), for Community Services Block Grant (CSBG) and Low-Income Home Energy Assistance Program (LIHEAP) grants that were allowable under the terms of the grants and applicable Federal regulations. However, Wateree used approximately $700,000 of CSBG and LIHEAP funds to lend money to its Head Start program and inappropriately carried forward unused LIHEAP funds totaling approximately $1.2 million and $850,000 in FYs 2011 and 2012, respectively. Additionally, Wateree did not resolve prior audit findings that were repeated year after year with the same management response and did not submit to the State agency the required independent audit report on time for 2013. These instances of improper management of Federal funds occurred because the State agency (1) was not aware of the regulation to notify the U.S. Department of Health and Human Services of unobligated LIHEAP funds and request that these funds be carried over into the next FY and (2) did not adequately monitor Wateree's management of Federal funds that it received from the State agency.

We found that the Department needs to improve its implementation of the minimum requirements related to identifying and preventing fraud, waste, and abuse in the SBIR program. Although the Department is not required to establish its own overall operating procedures and regulations for the SBIR program, it is required to implement the minimum requirements related to fraud, waste, and abuse established in the SBIR Program Policy Directive. We found that the Department did not adequately implement 7 of the 10 minimum requirements.