Federal Reports

Our objective was to evaluate the U.S. Postal Service’s strategic plan for and performance of the SIPS machine. To complete our evaluation, we reviewed the business case justification for the machines and analyzed package sorter usage data. We also conducted observations at judgmentally selected mail processing facilities, interviewed management, and determined reasons for high or low performance.

What We Looked AtThe Federal Information Security Modernization Act of 2014 (FISMA) requires agencies to implement information security programs. FISMA also requires agencies to have annual independent evaluations performed to determine the effectiveness of their programs and report the results of these reviews to the Office of Management and Budget (OMB). To meet this requirement, the Surface Transportation Board (STB) requested that we perform its fiscal year 2023 FISMA review. We contracted with Williams Adley & Company-DC LLP (Williams Adley), an independent public accounting firm, to conduct this audit subject to our oversight. The audit objective was to determine the effectiveness of STB’s information security program and practices in five function areas—Identify, Protect, Detect, Respond, and Recover. What We FoundWe performed a quality control review (QCR) of Williams Adley’s report and related documentation. Our QCR disclosed no instances in which Williams Adley did not comply, in all material respects, with generally accepted Government auditing standards. Our RecommendationsWhile there are no new recommendations issued for fiscal year 2023, STB concurs with the audit’s findings with respect to the five open recommendations remaining from the fiscal year 2021 FISMA audit.

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Robert E. Lamb, Inc., (Lamb) to provide architectural engineering services to assist with site selection, final programming, and schematic design for a new control center under Contract No. 13659 (formerly Contract No. 11638). Our audit objective was to determine if costs were billed in accordance with the terms of the contract. Our audit scope included about $20.7 million in costs billed to TVA from July 15, 2018, through September 15, 2022.In summary, we determined Lamb billed TVA:$873,147 in costs not provided for in the contract, including (1) $449,311 in equipment costs, (2) $345,503 in insurance costs, and (3) $78,333 in other direct costs. $67,691 in other ineligible costs and incorrect billing rates, including (1) $47,674 in ineligible markups on subcontract costs, (2) $15,784 in ineligible travel costs, and (3) a net $4,233 in labor billing rate errors.We also noted opportunities to improve contract administration by TVA. Specifically, we determined (1) TVA paid Lamb $3,239,091 in construction management fees, although fee was already being paid to Lamb through the contract's time and material labor billing rates; (2) Lamb started and completed work on one purchase order, totaling $484,710, prior to approval by TVA; and (3) TVA could have saved between $40,741 and $113,416 if the contract had included temporary living allowance provisions.(Summary Only)

The Office of the Inspector General conducted a review of the Magnolia Combined Cycle Plant (MCC) to identify factors that could impact MCC’s organizational effectiveness. During interviews, MCC personnel revealed positive interactions with team members and most management. However, we identified issues that could negatively impact MCC’s effectiveness, if not addressed. These issues include (1) improvements needed with work packages and (2) staffing concerns.