Audit Reports

What We Looked At
The locks, channels, and accompanying infrastructure of the St. Lawrence Seaway are perpetual transportation assets that require periodic and regular capital reinvestment in order to continue to operate safely, reliably, and efficiently. The Great Lakes St. Lawrence Seaway Development Corporation (GLS) Seaway Infrastructure Program (SIP), previously the Asset Renewal Program, addresses the long-term capital asset renewal needs of the U.S. seaway infrastructure. Adequate internal controls are critical for GLS to generate high-quality cost estimates for its SIP projects and accurately track accumulated SIP project costs. Previously, the Government Accountability Office (GAO) identified issues with GLS’ cost estimating process. Given GAO’s previous findings and the importance of complete and accurate cost estimates, we initiated this audit. Accordingly, our audit objective was to evaluate the reliability of GLS’ cost-estimating process for SIP projects completed during fiscal years 2021 and 2022. As part of our review, we also evaluated GLS’ controls for determining the costs of completed projects.

What We Found
GLS has not established adequate internal controls to effectively manage its estimating process for SIP projects. Specifically, GLS does not follow a formal process for developing reliable cost estimates. Also, GLS does not have policies and procedures for ensuring cost estimates are performed when required. In addition, we determined that GLS lacks adequate documentation of controls over determining the total costs for completed SIP projects. Specifically, GLS does not have a suitable mechanism in place to track the accumulated costs of completed SIP projects.

Our Recommendations
We made four recommendations to improve GLS’ internal controls over the SIP cost estimating process. GLS concurred with our recommendations. We consider the recommendations resolved but open pending completion of planned actions.