Federal Reports

We conducted a performance audit of three National Endowment for the Arts (NEA) awards issued to the Arizona Commission on the Arts (Commission) – Awards No. 17-6100-2062 (2017award), 180989-61-18 (2018 award), and 1855979-61-19 (2019 award). Based on our review, wedetermined that the Commission generally met the financial and compliance requirementsestablished in the award documents. However, we also determined the following areas requireimprovement. Specifically, the Commission:1. Reported $36,483 in costs incurred outside the award period on its FFRs - $4,272 for the2018 award and $32,211 for the 2019 award;2. Did not report a subaward that met the Federal Financial Accountability andTransparency Act reporting requirement; and3. Did not verify potential contractors were eligible to participate in Federal awards.Based on our review, we are questioning $36,483 in reported costs. As a result, we determinedthe Commission did not meet the cost share/match requirement for the 2018 award, resulting in apotential refund due to the NEA totaling $2,136. The report includes three recommendations tothe Commission and two to the NEA to address these findings. The Commission concurred withthese findings and recommendations.

The owner of Corrosion Monitoring Services (CMS), a TVA contractor, pleaded guilty to one felony count of Misprision of a Felony, one felony count of Obstruction of Justice and one felony count of Witness Tampering. The charges were related to an allegation that CMS purposefully damaged metal tubes used in an air heating and exchange system at TVA’s former Paradise Fossil Plant in order to repair those tubes under the CMS contract with TVA.

What We Looked AtWhile track-caused rail accident numbers and rates have declined over the past 2 decades, defective track conditions are still among the most frequent causes of train derailments. The Federal Railroad Administration’s (FRA) Track Division deploys track inspectors and its Automated Track Inspection Program (ATIP) to determine whether railroads are complying with minimum safety requirements for railroad track. Given the impact of track conditions on railroad safety, we initiated this audit to evaluate FRA’s use of automated inspections to aid track safety oversight. What We FoundFRA deploys eight ATIP inspection vehicles to monitor track conditions nationally and recently took actions to improve the program’s operation and oversight. However, the Agency’s formal program metric for ATIP vehicle utilization is outdated. Specifically, FRA contracts out operation of these vehicles to two contractors but only established a single utilization goal to run the ATIP vehicles 150 survey days a year. While some ATIP vehicles came close to the goal individually, collectively the ATIP fleet fell short, with an average 80-percent utilization between fiscal years 2016 and 2021. FRA officials offered several reasons, including weather events, to explain the missed goal. In addition, over half of the 539 ATIP-related inspection reports we reviewed contain inaccurate data—in part because FRA does not have sufficient guidance on recording ATIP-related inspection activities. FRA also relies on inspectors to respond promptly to changing conditions and use their territory knowledge in planning their work but does not have any national or formal district-level track inspection planning processes in place. However, FRA does use ATIP vehicles and survey data to perform data-driven evaluations of railroad track testing programs and improve its data inventories. Until FRA improves ATIP utilization goals and ATIP-related track inspection reporting, it cannot ensure its resources are optimally targeted to support the Agency’s track oversight. Our RecommendationsFRA concurred with all six of our recommendations to improve its use of automated inspections to aid track safety oversight and provided appropriate actions and completion dates. We consider these recommendations resolved but open, pending completion of planned actions.

This report was submitted to the Comptroller General in accordance with Section 5 of the Government Accountability Office Act of 2008. The report summarizes the activities of the Office of Inspector General (OIG) for the six-month reporting period ending March 31, 2022. During the reporting period, the OIG issued two audit reports and began one performance audit. In addition, the OIG closed five investigations including a self-initiated inquiry and opened seven new investigations including two self-initiated inquiries. The OIG processed 63 hotline complaints, many of which were referred to other OIGs for action because the matters involved were within their jurisdictions.The OIG remained active in the GAO and OIG communities by briefing new GAO employees on its audit and investigative missions and participating in committees and working groups of the Council of Inspectors General on Integrity and Efficiency, including those related to the Pandemic Response Accountability Committee. Details of these activities and other accomplishments are provided in the report.

What We Looked AtRecognizing that Unmanned Aircraft System (UAS) is the fastest growing segment of the aviation industry and in response to a Presidential Memorandum, the Federal Aviation Administration (FAA) initiated the 3-year UAS Integration Pilot Program (IPP) in 2017. Through the IPP, FAA worked with selected State, local, and tribal governments, who partnered with private sector entities (e.g., UAS operators) to accelerate safe integration and help develop new rules to enable more complex UAS operations in the National Airspace System (NAS). After ending the IPP as planned in October 2020, FAA launched a follow-on program called BEYOND to address remaining UAS-related challenges, including operations beyond visual line of sight. Citing the importance of the IPP's efforts, the Ranking Members of the House Committee on Transportation and Infrastructure and its Subcommittee on Aviation requested that we assess FAA's IPP, including next steps. Accordingly, our audit objectives were to assess (1) the results of FAA's IPP and (2) FAA's plans for using those results, including how the Agency will incorporate them into its new program BEYOND.What We FoundWhile FAA made progress advancing UAS operations through the IPP, results did not fully meet industry and participant expectations and integration challenges remain. Further, challenges with planning, data requirements, and the Agency's organization hindered the IPP's overall success. FAA also faced challenges balancing the need to ensure aviation safety with UAS innovation, especially given the complexity of proposed operations. In addition, issues coordinating across multiple FAA lines of business and Agency turnover contributed to participant frustration and program challenges. Finally, while FAA incorporated lessons learned and best practices into BEYOND, challenges that limited the IPP's success remain. As a result, it is uncertain when FAA and industry will be positioned to enable operations beyond visual line of sight that are economically viable throughout the NAS.Our RecommendationsWe made six recommendations to improve FAA's use of UAS IPP results, including in its current program, BEYOND. FAA concurred with all six of our recommendations and provided appropriate actions and planned completion dates.