Presented by Gary Middleton Program Director, DOT OIG, Office of - PowerPoint PPT Presentation

SURFACE TRANSPORTATION OVERSIGHT ISSUES AND FUTURE CHALLENGES Presented by Gary Middleton Program Director, DOT OIG, Office of Surface Transportation U.S. Department of Transportation, Office of Inspector General Annual NASHTU Conference Washington, DC April 21, 2015 U.S. Department of Transportation Office of Inspector General

WHO ARE THOSE AUDITORS? Office of Inspector General Federal Granting Agency State Oversight Single Audits (CPAs) Grantees « » 2 U.S. Department of Transportation Office of Inspector General

ABOUT US Office o Of e of Insp nspec ector Ge Gener eral The Inspector General has a unique role as the source for objective examination of a Department’s programs and their integrity. OIG works within a Department to promote effectiveness and prevent waste, fraud, and abuse in departmental programs. We do this through audits and investigations. OIG also consults with Congress about programs in progress and proposed new laws and regulations. « » 3 U.S. Department of Transportation Office of Inspector General

OIG AND DOT: COMPLEMENTARY GOALS Safety Stewardship Protect Federal taxpayer investments DOT OIG Strengthen DOT’s business operations Organizational excellence Common ground: Auditors and program staff share the same goal of having an efficient and effective programs. « » 4 U.S. Department of Transportation Office of Inspector General

AUDIT PROCESS Anno unc e me nt F ina l L e tte r Ag e nc y Aud it E xit Dra ft Re po rt a nd Co mme nts E xe c utio n Co nfe re nc e Re po rt a nd E ntra nc e (30 d a ys) F o llo w-up Co nfe re nc e oc e ss. OIG auditor s will c ommunic ate with the audite e thr oughout the audit pr « » 5 U.S. Department of Transportation Office of Inspector General

U.S. DEPARTMENT OF TRANSPORTATION Regional Offices OFFICE OF INSPECTOR GENERAL Audit • Atlanta, GA • Baltimore, MD • Cambridge, MA • Fort Worth, TX • New York, NY • Oklahoma City, OK • San Francisco, CA • Seattle, WA Investigations • Cambridge, MA • Chicago, IL • Fort Worth, TX • New York, NY • San Francisco, CA • Sunrise, FL • Washington DC « » 6 U.S. Department of Transportation Office of Inspector General

AVIATION Wildl dlife H Hazard M rd Mitigat ation on « » 7 U.S. Department of Transportation Office of Inspector General

BRIDGES Inter ersta state 3 te 35W W Bridge ( ge (2007) « » 8 U.S. Department of Transportation Office of Inspector General

TUNNELS Centr ntral A Arter ery T Tunnel nel (2006) « » 9 U.S. Department of Transportation Office of Inspector General

TRANSIT Effects ts o of Hurricane ne S Sand ndy o on N New Y York’s s Subway S System stem « » 10 U.S. Department of Transportation Office of Inspector General

HIGHWAY PROJECTS Alask skan W n Way V Viaduct R t Replacement P ement Projec ect « » 11 U.S. Department of Transportation Office of Inspector General

BIG MONEY « » 12 U.S. Department of Transportation Office of Inspector General

FEDERAL DOT DOLLARS FY 2014 Actual Administration (dollars in millions) Federal Aviation Administration $15,497 Federal Highway Administration 44,014 Federal Motor Carrier Safety Administration 534 National Highway Traffic Safety Administration 882 Federal Transit Administration 12,279 Federal Railroad Administration 2,811 Pipeline and Hazardous Materials Safety Administration 191 Maritime Administration 430 Saint Lawrence Seaway Development Corporation 31 Office of the Secretary 876 Office of the Inspector General 83 Surface transportation Board 28 Total DOT Outlays $77,657 Totals may not add due to rounding. Source: U.S. Department of Transportation Budget Highlights, Fiscal Year 2016 « » 13 U.S. Department of Transportation Office of Inspector General

2014 RETURN ON INVESTMENT Audits $ 22 • 129 audit reports • 411 recommendations • Over $553 million in financial recommendations Investigations DOT OIG’s return for • 58 indictments each budget dollar spent in fiscal year 2014 • 64 convictions • Over $1.3 billion in fines, restitutions, recoveries, and forfeitures—the bulk of which comes from Toyota’s settlement with the Federal Government. « » 14 U.S. Department of Transportation Office of Inspector General

FRAUD AWARENESS AND REPORTING Issues: • Knowledge of fraud potential • Recognize and report fraud • (800) 424-9071 or hotline@OIG.dot.gov • Current fraud issues related to transportation projects « » 15 U.S. Department of Transportation Office of Inspector General

INVESTIGATIVE PRIORITIES: GRANT & PROCUREMENT FRAUD • Bribery, Kickbacks, and Corruption • Bid-Rigging and Collusion • Conflict of Interest • False Statements and Claims • Product Substitution • Quality Control Testing Fraud • Labor, Time, and Materials Overcharging • Disadvantaged Business Enterprise Fraud « » 16 U.S. Department of Transportation Office of Inspector General

DOT OIG AUDITS RECENTLY COMPLETED OR UNDERWAY

We’re going to parachute in and do a surprise audit, but I want to keep the whole thing low key. « » 18 U.S. Department of Transportation Office of Inspector General

FHWA-RELATED AUDITS Completed • ARRA project closeout • Oversight of Tribal Transportation Program • Oversight of the Bridge Inspection Program and implementation of MAP-21 bridge provisions • Oversight of major projects « » 19 U.S. Department of Transportation Office of Inspector General

FHWA-RELATED AUDITS Underway • Oversight of preliminary engineering on highway projects • Oversight of States’ use of Federal-aid funds through the Financial Integrity Review and Evaluation Program (FIRE) • Oversight of the State Transportation Improvement Programs (STIP) • FHWA project agreements with State Departments of Transportation « » 20 U.S. Department of Transportation Office of Inspector General

STIPs Audit • What are STIPs • Why STIPs are important • Why we are looking at the FHWA STIP process « » 21 U.S. Department of Transportation Office of Inspector General

STIPs Audit • Self-initiated audit announced March 24, 2015. • Objective: • To assess FHWA policies, procedures, and guidance for ensuring that STIPs receive comprehensive, consistent reviews and meet Federal requirements, including coordination with the Federal Transit Administration. • Status and approach « » 22 U.S. Department of Transportation Office of Inspector General

FUTURE AUDIT CHALLENGES • Budget uncertainty and limited resources • Data transparency and availability • Innovative financing requires innovative auditing « » 23 U.S. Department of Transportation Office of Inspector General

FIND US ON THE WEB @ http://www.oig.dot.gov/audits « » 24 U.S. Department of Transportation Office of Inspector General

QUESTIONS? We don’t want you to view this panel as being in any way confrontational, so please ask questions. « » 25 U.S. Department of Transportation Office of Inspector General