http://www.oig.dot.gov/rss.jsp?agency=4 The 10 most recent releases on the U.S. DoT OIG web site ... FHWA en-US webmaster@oig.dot.gov (OIG Webmaster) http://www.oig.dot.gov/images/dot.gif http://www.oig.dot.gov/rss.jsp?agency=4 http://www.oig.dot.gov/item.jsp?id=2578 At the request of U.S. Senator Christopher S. Bond, we will review the performance of the Department of Transportation (Department) and the Denali Commission in using Federalaid highway funds to improve Alaskas surface and maritime transportation infrastructure. Our objectives are to (1) assess the Denali Commissions use of Federalaid highway funds and (2) evaluate the Departments oversight of the Denali Commission and state transportation agencies. Thu, 19 Nov 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2578 http://www.oig.dot.gov/item.jsp?id=2567 Benton J. Campbell, United States Attorney for the Eastern District of New York, today announced the settlement of claims that Tutor Perini Corporation, formerly Perini Corporation (“Perini”), a publiclytraded construction services corporation, falsely and fraudulently reported that certain minority and disadvantaged business enterprises (“DBEs”) were performing subcontracted work on federally funded public works contracts with the City and State of New York, when in fact nonDBE subcontractors were performing the work. Pursuant to the settlement, Perini has paid the United States $9,750,000. The settlement does not constitute an admission of liability by Perini.The settlement announced today is the result of a joint investigation conducted by the Federal Construction Fraud Task Force, which was organized by the United States Attorneys Office in June 1999 to investigate fraud and corruption in the construction industry. In addition to the U.S. Attorneys Office, the members of the Task Force include the Internal Revenue Service, Criminal Investigation Division; the USDOT Office of the Inspector General; the U.S. Department of Labor Office of the Inspector General; the New York City Department of Investigation; the Inspector General for the Metropolitan Transportation Authority; and the Inspector General for the Port Authority of New York and New Jersey.For further information, please see the press release of the U.S. Attorneys Office, Eastern District of New York. Thu, 05 Nov 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2567 http://www.oig.dot.gov/item.jsp?id=2563 The Office of Inspector General will conduct an audit to evaluate the effectiveness of the Federal Highway Administrations National Review Team in conducting national oversight of highway funds and mitigating risks posed by the implementation of the American Recovery and Reinvestment Act of 2009. Mon, 02 Nov 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2563 http://www.oig.dot.gov/item.jsp?id=2559 The Office of Inspector General is initiating an audit of the Federal Highway Administration (FHWA) and State DOT oversight of projects administered by Local Public Agencies (LPAs). We will review projects using both American Recovery and Reinvestment Act of 2009 (ARRA) and nonARRA Federalaid highway funds. The audit objective is to assess the effectiveness of FHWAs process to improve State oversight of LPA projects. Thu, 29 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2559 http://www.oig.dot.gov/item.jsp?id=2558 The Office of Inspector General is initiating an audit of the Federal Highway Administrations (FHWA) FederalAid Highway Program Oversight of Procurement Practices for American Recovery and Reinvestment Act (ARRA)Funded Contracts at State Departments of Transportation (DOT). Our objective is to assess the adequacy of FHWAs oversight of state DOT contracting practices for awarding ARRA contracts. Wed, 28 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2558 http://www.oig.dot.gov/item.jsp?id=2552 On October 9, 2009, Michael Spinelli, a former Con Edison utility company inspector, was sentenced in U.S. District Court, Brooklyn, New York, to serve three years probation and ordered to pay a $100 special assessment for his role in accepting bribes from general contractors on New York area roadway reconstruction projects. Mr. Spinelli previously pled guilty and admitted that from 1970 to 2001, he conspired with others to accept bribes on numerous roadway reconstruction projects awarded by DOT grantees throughout the New York area and did not declare these bribes as income on his Federal tax returns. In exchange for the bribes, Mr. Spinelli and others expedited payments to the general contractors for the cost of the additional work they performed to avoid utilities on the roadway projects. On December 5, 2008, other defendants in this case, Andrew Catapano, President of AFC Enterprises, Incorporated, and John Mikuszewski, Consultant to Rosewood Contracting Corporation, pled guilty midway through their trial to charges of conspiracy and admitted that they conspired to bribe union officials and utility company representatives on numerous roadway reconstruction projects awarded by DOT grantees throughout the New York area from 1998 to 2001. They were subsequently sentenced to terms of incarceration and ordered to forfeit $1.2 million to the government. Fri, 09 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2552 http://www.oig.dot.gov/item.jsp?id=2547 On October 6, 2009, we issued our report on the Department of Transportation Operating Administrations plans for ensuring Recovery Act fund recipients submit accurate, complete, and timely data on the use of these funds, as required by Section 1512 of the Recovery Act. Office of Management and Budget (OMB) guidance states that starting October 22, 2009, Federal agencies are to perform a limited data quality review of recipient information and notify the recipients of two key data problemsmaterial omissions and significant reporting errors. Our audit objective was to determine whether the Departments Operating Administrations have established processes to perform such reviews and notify recipients of the need to make appropriate and timely changes. We found that the Departments Operating Administrations overseeing the implementation of the Recovery ActFederal Aviation Administration (FAA), Federal Highway Administration (FHWA), Federal Railroad Administration (FRA), Federal Transit Administration (FTA), and Maritime Administration (MARAD)have taken steps to ensure that Recovery Act recipients comply with Section 1512 reporting requirements. These steps range from conducting outreach to recipients regarding the specific reporting requirements to drafting processes for performing limited data quality reviews. Each Operating Administration aims to have a process in place before conducting the reviews, and as of September 25, 2009, two of five Operating AdministrationsFAA and FTAhave drafted processes. However, it is too early to determine whether these processes will adequately identify omissions and significant reporting errors. As we continue to conduct our Recovery Act work, we will monitor the Operating Administrations progress, and may conduct additional work of the adequacy of Operating Administrations and recipients internal control procedures for ensuring data quality. Tue, 06 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2547 http://www.oig.dot.gov/item.jsp?id=2541 On September 21, we issued a quality control review report on a single audit performed by Clifton Gunderson on the City of Phoenixs (the City) use of DOT grants for the fiscal year ending June 30, 2008. During this period, the City received about $200 million of grants from FTA, FHWA, FAA, and NHTSA. Clifton Gunderson rendered an unqualified (clean) opinion on the Citys financial statements and did not question any costs concerning DOT grant programs. However, it identified a significant deficiency in internal control over compliance with the FHWA programthe City did not prepare the Schedule of Expenditures of Federal Awards on an accrual accounting basis. We determined that Clifton Gundersons work generally met the requirements of Generally Accepted Government Auditing Standards, the Single Audit Act of 1984, as amended, and the Office of Management and Budget Circular A133.We found nothing to indicate that Clifton Gundersons opinion on the financial statements or reports on internal control and compliance were inappropriate or unreliable. However, we identified several documentation deficiencies in Clifton Gundersons workpapers. Based on the explanations and additional information provided by Clifton Gunderson, we determined that these documentation deficiencies did not affect the overall audit results. However, they should be corrected in future audits to adequately support the audit conclusion. Clifton Gunderson concurred with our recommendation and agreed to provide its FY 2009 audit workpapers for our followup review. Mon, 21 Sep 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2541 http://www.oig.dot.gov/item.jsp?id=2538 Powers Fasteners, Inc., a Brewster, New York company, was charged today in federal court with making a false statement in connection with the construction of a federally approved highway project, the I90 connector tunnel. Fri, 18 Sep 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2538 http://www.oig.dot.gov/item.jsp?id=2521 On August 3, Robert Prosperi of Lynnfield, Massachusetts, Gregory A. Stevenson of Furlong, Pennsylvania, John J. Farrar of Canterbury, Connecticut, and Marc Blais of Lynn, Massachusetts, were convicted of conspiracy and fraud charges following a three week trial in U.S. District Court, Boston, Massachusetts. Mr. Prosperi and Mr. Stevenson were convicted of conspiracy to commit highway project fraud and mail fraud, conspiracy to defraud the government with respect to claims and making false statements in connection with highway projects and mail fraud. Mr. Farrar was convicted of conspiracy to commit highway project fraud and mail fraud, and making false statements in connection with highway projects and mail fraud. Mr. Blais was convicted of making false statements in connection with highway projects and mail fraud. On July 8, 2009, Gerard M. McNally of Rockland, Massachusetts, and Keith Thomas, of Billerica, Massachusetts, each pled guilty to five counts of fraud on a federal highway project, five counts of mail fraud, one count of conspiracy to commit mail fraud, and one count of conspiracy to submit false claims. All six individuals, who were in managerial positions in the Aggregate Industries (AI) concrete division, were convicted of fraud and related offenses for engaging in a scheme to provide approximately 5,000 truckloads of concrete that did not meet specifications to Big Dig contracts between 1996 and 2005. Sentencing is scheduled for November. The investigation was conducted by DOT/OIG, the Massachusetts State Police, and the Federal Bureau of Investigation and prosecuted by the U.S. Attorneys Office for the District of Massachusetts with assistance from the Massachusetts Office of the Attorney General. Mon, 03 Aug 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2521