Open Recommendations

Update the risk assessment regarding the evaluation of internal controls to ensure it includes all significant programs, key processes, and other material line items on the consolidated financial statements.

In conjunction with relevant program offices, perform and document the internal control evaluation for significant programs or processes affecting the financial statements. This should include entity level controls, manual controls, general information technology controls, and system application controls covering key financial statement line items and risks.

Update the existing policy and implement adequate controls to ensure that the statement of assurances provided by the program offices are adequately documented and reviewed for completeness and accuracy to provide a sufficient basis to support the Administrator’s statement of assurance.

Address the control deficiencies over transactions arising from the implementation of the CARES Act and related legislation by working with the Office of Capital Access and the Office of Disaster Recovery and Resilience to implement the recommendations in Appendix I – Material Weaknesses.

(U) Rec. 1: The DoD OIG recommended that the Commander of the U.S. Army Materiel Command develop and implement a plan to inventory and sign lateral transfers of all Army defense articles transferred to Ukraine under Presidential Determination execute orders at all logistics enabling nodes in accordance with Army Regulation 710-2. Long term funding should be considered for all implemented solutions.

(U) Rec. 2: The DoD OIG recommended that the Commander of the U.S. Army Security Assistance Command coordinate with the Security Assistance Group-Ukraine to reconcile the property book discrepancies; if the property book cannot be reconciled, initiate, and process a financial liability investigation of property loss, in accordance with Army Regulation 735-5, to correct its property book.

We recommend the DHS OCFO, in coordination with the OCIO, the OCISO, and component IT and financial management, develop, implement, and monitor internal manuals and corrective action plans. PTS

We recommend that DHS perform an analysis to assess the risks of the migration to a new general ledger system, and implement processes and controls to ensure all necessary journal entries are completely recorded each period.

We recommend that DHS enforce accountability of personnel responsible for performing controls over actuarially derived insurance liabilities.

We recommend that DHS obtain additional resources to remediate known control deficiencies.

We recommend that DHS communicate internally to establish and implement policies related to transfers and adjustments of seized and forfeited property.

We recommend that DHS communicate externally to establish agreement with third parties that receive transfers requiring such parties to provide sufficient data elements to achieve DHS objectives.

We recommend that DHS monitor the consistent implementation of policies to validate that they achieve DHS's objectives.

We recommend that DHS develop and maintain a complete listing of temporary storage areas that hold seized and forfeited property.

We recommend that DHS enforce consistent security measures at temporary storage areas that hold seized and forfeited property.

KPMG recommends that FHWA management consider the increased IIJA funding and subsequent increase in expenses and develop an estimation methodology responsive to fluctuations in future expenses.

KPMG recommends that FHWA management review and update accounting policies and operating procedures to capitalize costs for the construction and procurement of non-heritage fixed assets on behalf of FLMA partners.

KPMG recommends that FHWA management establish and maintain communications channels with FLMA partners and establish protocols for communicating asset-level detail for projects required by each agency's property accountants.

KPMG recommends that FHWA management perform an assessment of costs expensed for completed fixed asset construction projects to determine materiality and record correcting accounting entries as needed.

KPMG recommends that DOT management perform procedures to consistently approve and document new or modified user account and recertification requests and timely remove separated users as required by internal policy and standards for effective internal control systems.

KPMG recommends that DOT management update policies and procedures to assign backup responsibilities for control operators.

KPMG recommends that DOT management provide training to system administrators on documented procedures.

KPMG recommends that DOT management conduct monitoring to assess whether control operators are performing control activities in accordance with policy.

We recommend that Kentucky identify ways to address the challenges related to meeting the requirements for conducting monthly caseworker visits, including consulting with ACF.

We recommend that Kentucky conduct the name-based checks on the one applicant and one adolescent household member identified by our audit as lacking the required checks and reiterate to staff the importance of adhering to the policies and procedures requiring background checks to be completed before approving foster homes.