Topics in the Office of Inspector General Office of Inspector - - PowerPoint PPT Presentation

Topics in the Office of Inspector General

Office of Inspector General, U.S. Department of Transportation

Presented by: Tony Wysocki | Program Director, Surface Transportation Audits Mike Masoudian | Project Manager, Surface Transportation Audits Aron Wedekind | Project Manager, Surface Transportation Audits

American Association of State Highway Transportation Officials (AASHTO) Internal and External Audit Committee Meeting August 27, 2020

DOT-OIG - Who We Are And What We Do OIG’s Response to COVID-19 Surface Transportation Issues Examples of Recently Completed and Ongoing Audits Q&A

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Agenda

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• 1. DOT-OIG - Who We Are & What We Do

DOT-OIG - Who We Are And What We Do

Strategic Plan At-A-Glance

Mission

• OIG conducts audits and investigations on behalf of the

American public to improve the performance and integrity of DOT’s programs to ensure a safe, efficient, and effective national transportation system.

Vision

• The United States will achieve a safer, more efficient, and more

effective national transportation system because OIG enhances the performance and integrity of the DOT’s programs.

• OIG also will serve as a model Federal agency by maintaining a

workplace culture that values its people as it continuously improves its performance.

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DOT-OIG - Who We Are And What We Do

Core Values

Safety

Is DOT’s highest priority and central to OIG’s identity. OIG is committed to conducting effective audits and investigations of DOT’s programs and operations to reduce fatalities and injuries across all modes of transportation.

Accountability

Is at the heart of OIG’s work. Through independent and fair audits and investigations, OIG seeks to ensure that all DOT agencies are accountable for their results and for the resources the public invests in them.

Integrity

Is OIG’s foundation. OIG maintains the highest standards of integrity in its work for the American people, Congress, the Secretary, and senior Department officials, and strives to set the example for objectivity, independence, accuracy, and transparency.

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DOT-OIG - Who We Are And What We Do

Strategic Goals

1. Increase the effectiveness of DOT safety programs and deter activity that threatens the safety of the national transportation system. 2. Improve DOT’s mechanisms for overseeing transportation investments and deter fraud, waste, and abuse. 3. Strengthen DOT’s business operations through improved financial management and the development of a secure and modern information technology infrastructure. 4. Communicate the results of OIG’s work to the public, Congress, and the Department. 5. Promote organizational and workforce excellence.

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DOT-OIG - Who We Are And What We Do

Inspector General Act of 1978, as amended.

• The OIG reports to the Secretary of Transportation and Congress.
• Gives the OIG autonomy to do its work without interference. The IG is chosen by the

President and IG appointees are subject to Senate confirmation.

• Prevents officials in the scrutinized agency from interfering with audits or investigations; it

also requires the IG to keep the Secretary of Transportation and Congress informed of findings.

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OIG’s Organization Chart

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DOT-OIG - Who We Are And What We Do

Office of Investigations

• Investigators conduct criminal, civil, and administrative

investigations of fraud and other allegations affecting DOT, its operating administrations, programs, and grantees.

• Allegations appearing criminal in nature are presented

to the Department of Justice for prosecutorial consideration.

• Manages a Hotline Complaint Center, investigates

whistleblower complaints, including referrals from U.S. Office of Special Counsel.

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DOT-OIG - Who We Are And What We Do

Office of Auditing and Evaluation

• Comprised of auditors, analysts, information technology experts, economists,

statisticians, engineers, accountants, and other subject matter experts.

• In addition to performance audits aimed at improving the economy, efficiency, and

effectiveness of transportation programs, our staff specialize in financial and information technology audits, and acquisition and procurement audits.

• Follows the Generally Accepted Government Auditing Standards, known as the

Yellow Book.

• Conducts Single Audits on DOT’s grantees.

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DOT-OIG - Who We Are And What We Do

To learn more about our office, please consult these resources on our web site: DOT-OIG’s Information Toolkit

• Provides information on OIG's mission,

budget, authority, organizational structure, and audit and investigative operations.

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DOT-OIG - Who We Are And What We Do

Audit Reports and Other Products

• Available to the public on our Web site oig.dot.gov

Audit Recommendation Dashboard

• Goal is to enhance transparency and accountability. oig.dot.gov/recommendation-

dashboard

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The Myth of Auditing

We’re going to parachute in and do a surprise audit, but I want to keep the whole thing low key.

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Sources of Audit Work

• Requests from Congress
• Laws, such as annual appropriation acts, authorization acts
• Also, requests from senior Department officials

Congressional Requests & Mandates

• Identified in our planning
• High dollar areas, e.g., grant funding distributed by DOT

Self-Initiated Work

• Whistleblower referrals
• Hotline complaints

OIG’s Investigators

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OIG’s Audit Process

Proposal: Team researches topic, develops audit plan, proposes audit objectives. Survey: Team refines objectives, scope, & methodology and milestones. Verification: Team gathers and analyzes evidence and develops findings and recommendations. Report Development: Draft is written and reviewed by internal stakeholders and sent to auditee for review and comment. Report Issuance: Final report issued and sent to audited agency, the Office of the Secretary, OMB, congressional committees and staff. Follow-up: OIG monitors DOT’s actions to address recommendations in final report.

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Return on Investment: FY2019 Highlights

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Return on Investment: FY2019 Audit Highlights

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Return on Investment: FY2019 Investigative Highlights

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Office of Surface Transportation Audits

• David Pouliott is our Assistant Inspector General
• Portfolio: Our work covers the following DOT components:
• Federal Highway Administration (FHWA)
• Federal Motor Carrier Safety Administration (FMCSA)
• Federal Railroad Administration (FRA)
• Federal Transit Administration (FTA)
• Maritime Administration (MARAD)
• National Highway Traffic Safety Administration (NHTSA)
• Pipeline and Hazardous Materials Safety Administration (PHMSA)
• DOT-Wide and Office of the Secretary (OST)

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In-Presentation Knowledge Check

Virtual Knowledge Check, #1

#1. OIG’s auditors follow standards commonly referred to as? 1) Yellow Submarine 2) The Yellow Book 3) The Yellow Pages

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Virtual Knowledge Check, #2

#2. In OIG’s investigations, allegations that appear criminal in nature are presented to which department for prosecutorial consideration? 1) Department of Motor Vehicles 2) The Department of Justice 3) The Justice League

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• 2. OIG’s Response to COVID-19

OIG’s Response to COVID-19

Coronavirus Aid, Relief, and Economic Security (CARES) Act

• Provided DOT with over $36 billion to prevent,

prepare for, and respond to COVID-19. Included these amounts:

• FTA - $25 billion
• FRA - $1 billion
• OIG supports DOT’s implementation of the Act to

expedite our Nation’s economic recovery while maximizing efficiencies, ensuring compliance, and promoting fraud awareness.

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OIG’s Response to COVID-19

Memorandum to the Secretary: Key Potential Risk Areas for the Department of Transportation in Overseeing CARES Act Requirements, June 17, 2020

Summarized risks and mitigation actions for DOT’s consideration in bolstering its oversight

• f CARES Act grantees and contractors:
• 1. Effectively managing grants to support the Nation’s airports
• 2. Adapting existing stewardship and oversight approaches while making prudent use
• f waivers in surface transportation
• 3. Executing contracts and grants effectively to achieve transportation program and

project outcomes

• 4. Tracking and monitoring CARES Act funds while ensuring the availability and

integrity of DOT’s financial management systems

• 5. Increasing outreach and education to transportation agencies to prevent and detect

fraud, waste, and abuse by maintaining focus on these risk areas early

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OIG’s Response to COVID-19

OIG’s Mission Operations

• Work continues while maximizing use of

communications and collaboration tools.

• Maximum telework environment.

During our Q&A we’d like to hear about your experiences in conducting audits and

• versight in the COVID environment.

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• 3. Surface Transportation Issues

Surface Transportation Issues

• DOT annually provides over $50 billion for

building and maintaining the Nation’s surface infrastructure, including millions of miles of roads, bridges, tunnels, and tracks.

• DOT also administers and oversees

additional funding to address the impact of natural disasters. OIG’s oversight helps DOT address the many issues and challenges confronting the Nation’s surface transportation system:

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Surface Transportation Issues

• Another critical aspect of DOT’s mission goal

is to enhance the safety of our Nation’s roads, pipelines, and rail lines.

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Surface Transportation Issues

• The future transportation environment is

evolving and includes emerging technologies and industries.

• There are increasing and changing

demands on the Nation’s transportation system which may involve leveraging innovative financing and supporting R&D.

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• 4. Examples of Recently Completed & Ongoing Audits

Examples of Recently Completed & Ongoing Audits

FHWA Lacks Adequate Oversight and Guidance for Engineer’s Estimates, 3/13/19

Objectives: Assess (1) FHWA’s progress in implementing key recommendations from its 2015 National Review of State Cost Estimation Practice and (2) FHWA’s 2004 Guidelines on Preparing Engineer’s Estimate, Bid Reviews and Evaluation, including how the Agency monitors the accuracy of the estimates prepared by the States. Findings Included:

• FHWA has made limited progress in implementing 6 recommendations from its 2015 National Review.
• FHWA lacks adequate guidance and processes to oversee and monitor the accuracy of Engineer’s

Estimates. Recommendations: Four to help FHWA ensure that the Engineer’s Estimate is accurate and an effective tool for evaluating highway construction bids.

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Examples of Recently Completed & Ongoing Audits

Inadequate Data and Guidance Hinder FHWA Force Account Oversight, 5/29/19

Objectives: To (1) determine the scope and magnitude of force account projects funded through the Federal-aid Highway Program and (2) assess FHWA’s processes for overseeing compliance with Federal force account requirements. Findings Included:

• FHWA has designated force account as a low-risk activity. As such, it does not track force account

activity and cannot readily identify which federally funded projects used force account or the amount and type of activity that received Federal funding.

• FHWA provides minimal oversight, does not monitor whether States comply with force account

regulations, and has gaps in its guidance. FHWA’s risk-based stewardship and oversight framework gives it discretion in determining the scope of its oversight, as long as it is based on objective data and information. Recommendations: Four to improve FHWA’s oversight of States’ compliance with Federal force account requirements.

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Examples of Recently Completed & Ongoing Audits

Body of work related to DOT’s oversight of the Florida International University pedestrian bridge project.

• Florida International University (FIU), Miami,

FL, pedestrian bridge collapse occurred on March 15, 2018.

• FIU project was partially funded by a

Transportation Investment Generating Economic Recovery (TIGER) discretionary grant.

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Examples of Recently Completed Audits

Initial Audit of Florida International University Pedestrian Bridge Project— Assessment of DOT’s TIGER Grant Review and Selection Processes, 10/29/18

Requested by the Secretary of Transportation and the Ranking Member of the Senate Committee on Commerce, Science, and Transportation

Objective: Assess whether the FIU project met Federal and DOT requirements for the TIGER application, selection, and grant agreement processes. Findings Included:

• We did not find any evidence connecting the Office of the Secretary of Transportation’s review and

selection of the FIU project grant application in 2013 to the pedestrian bridge collapse in 2018. Decisions on the bridge’s design and construction were made after the grant was selected.

• Observed documentation shortfalls in the project review and selection processes.

Recommendations: None, report for informational purposes only.

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Examples of Recently Completed Audits

Gaps in FHWA’s Guidance and the Florida Division’s Process for Risk-Based Project Involvement May Limit Their Effectiveness, 5/12/20

Requested by the Secretary of Transportation; Ranking Member of the Senate Committee on Commerce, Science, and Transportation; and members of the Florida delegation to the House of Representatives

Objective: Assess FHWA’s oversight of transportation projects in Florida—from the Agency’s initial involvement through construction—with a focus on the FIU and I-4 projects. Findings Included:

• FHWA’s guidance for implementing its framework for risk-based project involvement Agency-wide

does not clearly explain how its Divisions should assess and document project risks

• FHWA Headquarters lacks a process for monitoring and evaluating the impact of its risk-based

project involvement, which limits its ability to determine if it is achieving its goal—improve projects and make efficient and targeted use of its limited resources. Recommendations: Eight to improve FHWA’s guidance and the Florida Division’s process for risk- based project involvement.

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Examples of Ongoing Audits

Infrastructure & Grant Focus

• FHWA’s Oversight of Project Change Orders
• Objective: Assess FHWA’s oversight of project change orders.
• FRA’s Oversight of Federal Funding for Amtrak
• Objective: Assess FRA’s oversight of Federal funding to Amtrak.
• FHWA’s Post-Award Oversight of BUILD and TIGER Grants
• Objective: Assess FHWA’s post-award BUILD and TIGER grant oversight.

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Examples of Ongoing Audits

Safety Focus

• NHTSA’s Oversight of Federal Motor Vehicle Safety Standards
• Objective: Assess NHTSA’s efforts to set and enforce Federal Motor Vehicle Safety Standards.
• PHMSA’s Safety Culture
• Objective: Assess PHMSA’s efforts to foster a positive safety culture as it carries out its mission

and other responsibilities.

• FMCSA’s Oversight of Commercial Driver Disqualifications
• Objective: Assess FMCSA’s oversight of State driver’s licensing agencies’ actions to disqualify

commercial drivers when warranted.

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Examples of Ongoing Audits

Emergency Relief

• FTA’s Hurricane Sandy Funding Progress
• Objectives: Assess FTA’s (1) progress in obligating Hurricane Sandy funds and (2) actions to

ensure timely expenditure of those funds.

• DOT Emergency Relief Funding
• Objective: Assess DOT’s controls over the use of its emergency relief program funds, to

include DOT’s controls over the distribution of appropriated funds under Public Laws 115- 123, and 116-20.

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• 5. Q&A

Questions?

We don’t want you to view this panel as being in any way confrontational, so please ask questions.

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David Pouliott

Assistant Inspector General | Surface Transportation Audits David.Pouliott@oig.dot.gov | 202.366.5630

Tony Wysocki

Program Director | Surface Transportation Audits Anthony.Wysocki@oig.dot.gov | 202.493.0223

Contacts

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Mike Masoudian

Project Manager | Surface Transportation Audits Michael.Masoudian@oig.dot.gov | (202) 366-0358

Aron Wedekind

Project Manager | Surface Transportation Audits Aron.Wedekind@oig.dot.gov | (202) 366-8010

Contacts

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To report fraud, waste, and abuse at DOT, please contact the OIG Hotline: 1-800-424-9071 hotline@oig.dot.gov www.oig.dot.gov/hotline