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

Agenda 1 DOT-OIG - Who We Are And What We Do 2 OIG’s Response to COVID -19 3 Surface Transportation Issues 4 Examples of Recently Completed and Ongoing Audits 5 Q&A 2

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. 4

DOT-OIG - Who We Are And What We Do Core Values Safety Accountability Integrity Is DOT’s highest priority and Is at the heart of OIG’s work. Is OIG’s foundation. OIG central to OIG’s identity. OIG Through independent and fair maintains the highest is committed to conducting audits and investigations, OIG standards of integrity in its effective audits and seeks to ensure that all DOT work for the American investigations of DOT’s agencies are accountable for people, Congress, the programs and operations to their results and for the Secretary, and senior reduce fatalities and injuries resources the public invests in Department officials, and across all modes of them. strives to set the example transportation. for objectivity, independence, accuracy, and transparency. 5

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. 6

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. 7 7

OIG’s Organization Chart 8

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. 9

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. 10

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. 11

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 12

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. 13

Sources of Audit Work Congressional • Requests from Congress Requests & • Laws, such as annual appropriation acts, authorization acts Mandates • Also, requests from senior Department officials Self-Initiated • Identified in our planning Work • High dollar areas, e.g., grant funding distributed by DOT OIG’s • Whistleblower referrals Investigators • Hotline complaints 14

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. 15

Return on Investment: FY2019 Highlights 16

Return on Investment: FY2019 Audit Highlights 17

Return on Investment: FY2019 Investigative Highlights 18

Office of Surface Transportation Audits • David Pouliott is our Assistant Inspector General • Portfolio: Our work covers the following DOT components: o Federal Highway Administration (FHWA) o Federal Motor Carrier Safety Administration (FMCSA) o Federal Railroad Administration (FRA) o Federal Transit Administration (FTA) o Maritime Administration (MARAD) o National Highway Traffic Safety Administration (NHTSA) o Pipeline and Hazardous Materials Safety Administration (PHMSA) o DOT-Wide and Office of the Secretary (OST) 19

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 21

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 22

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: o FTA - $25 billion o 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. 24

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 of 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 of 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 25

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 oversight in the COVID environment. 26

3. Surface Transportation Issues

Surface Transportation Issues OIG’s oversight helps DOT address the many issues and challenges confronting the Nation’s surface transportation system: • 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. 28

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. 29