http://www.oig.dot.gov/rss.jsp?agency=7 The 10 most recent releases on the U.S. DoT OIG web site ... FTA en-US webmaster@oig.dot.gov (OIG Webmaster) http://www.oig.dot.gov/images/dot.gif http://www.oig.dot.gov/rss.jsp?agency=7 http://www.oig.dot.gov/item.jsp?id=2579 The Office of Inspector General is initiating an audit of the of the Federal Transit Administrations (FTAs) oversight of Phase 1 of the Dulles Corridor Metrorail Project in the Washington, D.C., metropolitan area. The project uses both American Recovery and Reinvestment Act of 2009 funds and nonARRA Federal New Starts funds. Our audit objectives are to (1) evaluate the effectiveness of FTAs oversight of the Dulles Corridor Metrorail Project and (2) assess potential safety concerns. Thu, 19 Nov 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2579 http://www.oig.dot.gov/item.jsp?id=2560 On October 26, we issued a quality control review report on a single audit performed by Deloitte & Touche on the New York Metropolitan Transportation Authoritys use of DOT grants for the fiscal year for the State of New York ending December 31, 2007. During this period, the Authority received about $1.55 billion of grants from FTA. Deloitte & Touche rendered an unqualified (clean) opinion on the Authoritys financial statements and did not question any costs concerning DOT grant programs. In addition, it did not identify any significant deficiencies in internal controls over compliance with the FTA programs. We determined that Deloitte & Touches 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 Deloitte & Touches opinion on the financial statements or reports on internal control and compliance were inappropriate or unreliable. We also performed a limited review of PricewaterhouseCoopers work on two subcomponents of the Authority, the New York City Transit Authority and Metropolitan Suburban Bus Authority for the State of New York fiscal year ending December 31, 2008. We identified several documentation deficiencies in PricewaterhouseCoopers workpapers. Based on the explanations and additional information provided by PricewaterhouseCoopers, 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. Deloitte & Touche and PricewaterhouseCoopers concurred with our recommendations. Mon, 26 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2560 http://www.oig.dot.gov/item.jsp?id=2561 On October 26, we issued a quality control review report on a single audit performed by KPMG on the Los Angeles County Metropolitan Transportation Authoritys use of DOT grants for the State of California fiscal year ending June 30, 2008. During this period, the Authority received about $277 million of grants from FTA. KPMG rendered an unqualified (clean) opinion on the Authoritys financial statements, but questioned more than $3.3 million charged to FTA programs. We determined that KPMGs 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 KPMGs opinion on the financial statements or reports on internal control and compliance were inappropriate or unreliable. KPMG concurred with our recommendations. Mon, 26 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2561 http://www.oig.dot.gov/item.jsp?id=2582 The Office of Inspector General (OIG) issued a management advisory to the Federal Transit Administration (FTA) on a potentially serious safety issue related to the adequacy of foundations at a segment of the Dulles Corridor Metrorail Project. This issue remains unresolved a year after we first brought it to FTAs attention in a November 2008 Hotline complaint. A credible source contacted OIG asserting that the Metropolitan Washington Airports Authority, the project sponsor, had not conducted sufficient testing on eleven pier foundations and their underlying steel piles that were built 30 years ago, and will support a portion of the projects new guiderail. The FTAs response to our Hotline complaint was incomplete and inconsistent with subsequent engineering information that FTA provided to us. In our management advisory, we prompted FTA to conduct a review of project management performance to assess whether adequate oversight is being conducted on the project. In addition, we urged FTA to develop a plan outlining how it will ensure that sufficient testing of the existing foundations will take place before additional construction is undertaken at the locations in question. Finally, we encouraged FTA to outline additional steps it plans to take to enhance future oversight of the project. We will consider actions taken as a result of this management advisory as part of our planned audit of FTAs Dulles Project oversight, which we announced on November 19, 2009. Thu, 22 Oct 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2582 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=2505 On June 30, Manu Shah, owner of Shah Engineering, Inc. (SEI), was sentenced in U.S. District Court, Springfield, Illinois, to 41 months in prison and ordered to pay $10 million in restitution. Shah Engineering, Inc. was also sentenced to 2 years of probation and fined $500,000. On February 1, 2007, Mr. Shah pled guilty to two counts of mail fraud and one count of false statements. SEI agreed to plead to one count of mail fraud. This case was opened upon referral from the Illinois Department of Transportation (IDOT). IDOT conducted an audit of SEI and determined that SEI overstated their overhead expenses for IDOT contracts, for City of Chicago contracts, and for Illinois State Toll Highway Authority contracts. The investigation and further audit revealed overbilling of approximately $2.2 million in Federal Transit Administration (FTA) funds, $2.6 million in Federal Highway Administration funds, and approximately $448,000 in Federal Aviation Administration funding. Mr. Shah was the primary contractor or subcontractor on various projects for engineering and architectural services for IDOT and other state governmental agencies from 1997 to 2005. IDOT issued SEI a Notice of Suspension on August 15, 2005. Referral to the FTA for debarment action is pending. Tue, 30 Jun 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2505 http://www.oig.dot.gov/item.jsp?id=2490 Pursuant to Sections 3(d)(e) of the Presidential Memorandum For Heads of Executive Departments and Agencies dated March 20, 2009, entitled Ensuring Responsible Spending of Recover Act Funds, we are publishing this notification of communication with a registered lobbyist from the Offshore Marine Service Association. Thu, 11 Jun 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2490 http://www.oig.dot.gov/item.jsp?id=2456 On April 30 the Inspector General testified before the Senate Committee on Appropriations, Subcommittee on Transportation, Housing and Urban Development, and Related Agencies, regarding the Department of Transportations (DOT) oversight of the American Recovery and Reinvestment Act (ARRA) and OIGs related audit and investigative strategy. In anticipation of ARRAs passage, we initiated a threephase approach to conducting related work. We completed Phase 1 with the issuance of our March 31, 2009 report on key oversight challenges facing DOT. We also identified several ongoing audits that have a direct connection to the programs funded under ARRA and related requirements. We plan to fasttrack the most timesensitive results of our work on these audits to ensure we provide DOT, Congress, and taxpayers with timely and relevant information. We have started Phase 2 of our strategy, which involves systematic reviews of the DOT agencies that received funding in ARRA. These scans will examine vulnerabilities in program management and planning that could impede DOTs ability to provide effective oversight of ARRAfunded projects and meet new statutory and Office of Management and Budget requirements. We plan to begin reporting the results of Phase 2 this summer. Phase 3 is a longterm initiative in which we will drill down on highrisk areas that emerge as a result of our agency scans. Thu, 30 Apr 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2456 http://www.oig.dot.gov/item.jsp?id=2457 The American Recovery and Reinvestment Act (ARRA) of 2009 designated $20 million to DOT OIG through Fiscal Year 2013 to conduct audits and investigations of DOT projects and activities funded by ARRA. In anticipation of ARRAs passage, we initiated a threephase approach to conducting related audit and investigative work, expanded our investigative outreach efforts, and maximized new funding and program flexibilities. The actions we have taken and plan to take will help position our Office to meet the increased workload under ARRA and protect the Federal investment over the long term. Wed, 29 Apr 2009 00:00:00 GMT http://www.oig.dot.gov/item.jsp?id=2457