Federal Reports

The objective was to determine the extent that Cybersecurity and Infrastructure Security Agency’s (CISA) Office for Bombing Prevention (OBP) manages and assesses national capabilities to counter improvised explosive devices (C-IED). OBP needs to improve management of component participation or tracking milestone completion dates as required.

An Information Technology Manager based in Washington, D.C., was terminated from the company on March 30, 2022. We found that the manager violated company policies by discussing bidding strategies with a vendor and providing exclusive access to company facilities prior to the vendor submitting its bid to the company, giving the vendor an unfair competitive advantage.

This report presents the results of our self-initiated audit of Deposit by Mail (DBM) Controls at the U.S. Postal Service’s [redacted] (Project Number 22-234). The [redacted] is in the Lakeshores division of the Western Processing region of the Postal Service. This audit was designed to provide Postal Service management with timely information on potential financial and security risks related to DBM service at the [redacted].In February 2015, the Postal Service and a bank initiated the DBM service to allow cash and high-value mailings to be sent to the bank from retail customers through the Postal Service Priority Mail system. The bank has [redacted] retail customers that participate in the DBM service. The Postal Service receives only the revenue from postage paid on the Priority Mail pieces as high-value DBM mail is handled and processed like any other Priority Mail. DBM mail is processed at [redacted] —for delivery to the bank. The U.S. Postal Inspection Service and Postal Service personnel are responsible for security at these [redacted]. Our review focused on DBM mail service routed through the [redacted].

We reviewed the process RD used to prioritize loans and grants for substance use disorder facilities.

In reviewing FY 2019 through 2020 expenditures and obligations, an independent auditor found an instance of noncompliance with laws and regulations.

We audited the State of Florida’s Housing Repair and Replacement Program (HRRP), one of the programs that the State developed to address its unmet disaster recovery housing needs because of Hurricane Irma in 2017. We audited this program due to the large amount of Community Development Block Grant Disaster Recovery (CDBG-DR) funding allocated of $346.2 million. Our audit objective was to determine whether the State administered its 2017 CDBG-DR funds for its HRRP effectively and efficiently. Specifically, we focused on determining whether the State (1) effectively used funds for eligible homeowners and properties, (2) effectively ensured that homeowners did not receive duplication of benefits, and (3) administered this housing program in a cost-efficient and prudent manner.The State administered its HRRP effectively for the seven projects reviewed by ensuring that funds were used for eligible homeowners and properties and duplication of benefits did not occur. However, the State did not have cost reasonableness analyses for the overhead and profit amounts paid to contractors totaling $107,036 and allowed percentages up to 65 percent of the contract price. The State also misclassified $134,383 in activity delivery costs that were not eligible to be classified to the HRRP activity. These deficiencies occurred because the State did not have adequate policies and procedures to ensure the cost reasonableness of overhead and profit and proper classification of expenditures. As a result, the State could not provide assurance that disaster recovery grant funds were used in a cost-efficient and prudent manner and funds were properly classified in the reporting system for the projects and activity delivery costs reviewed.We recommend that the Deputy Assistant Secretary require the State to (1) support or reimburse its HRRP for $107,036 in overhead and profit expenditures from non-Federal funds, review the remaining contracts executed under similar circumstances, and support or reimburse overhead and profit expenditures; (2) update policies and procedures to ensure that cost reasonableness analyses are performed on overhead and profit percentages charged by contractors for future contracts; (3) develop and implement procedures to carry out recent changes made to the State’s policy manual; and (4) train staff to ensure the proper classification of expenditures.

We contracted with Williams, Adley & Company-DC, LLC, an independent certified public accounting firm (CPA firm), to audit the financial statements of the National Endowment for the Arts (NEA) for the fiscal year ended September 30, 2021. In the Independent Auditors' Report, the CPA firm concluded that the NEA’s financial statements were fairly presented in all material respects and thereby issued an unmodified opinion on those statements. In the Report on Internal Control, the CPA firm did not identify any material weaknesses. In the Report on Compliance, the CPA firm concluded that there were no instances of noncompliance for fiscal year 2021 that would be reportable under U.S. generally accepted government auditing standards.