Identify and implement meaningful ways to measure on-the-job training (OJT) instructor performance and take action to address poor performers.
Recommendation Dashboard
OIG’s Office of Auditing and Evaluation makes recommendations to the Department of Transportation and a few independent transportation entities to correct deficiencies and encourage improvements in the safety, economy, efficiency, and management of their programs and operations. Our audit report findings and conclusions explain the basis for the specific corrective actions we recommend. This Recommendation Dashboard provides more information than ever before about the current status of OIG recommendations, which we plan to update on a weekly basis. For more information, see answers to frequently asked questions.
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Audit Report: AV2026031 issued on
Despite Implementing the National Training Initiative and Increasing Supplemental Pay, FAA Still Faces Challenges Meeting Air Traffic Controller On-the-Job Training Goals
Recommendations Closed: 0 of 6
No. 1 to FAA
No. 2 to FAA
Develop and implement a long-term strategy for identifying, standardizing, reducing, mitigating, and resolving impediments to OJT.
No. 3 to FAA
Assess the benefits of implementing more flexible and differentiated NTI expectations (e.g., by facility type, phase of training, etc.) and implement any identified beneficial revisions.
No. 4 to FAA
Review and revise the OJT Instructor Course, inclusive of any ongoing or previously planned efforts, to ensure it best reflects current standards and expectations.
No. 5 to FAA
Adhere to the current OJT instructor selection process and strengthen the program by ensuring the most qualified instructors are identified.
No. 6 to FAA
Assess the benefits of expanding the NTI to include other types of training (e.g., debriefs, audio and video reviews, etc.) and implement any identified methods to improve the initiative.
Audit Report: FI2026029 issued on
OST Generally Complied With Fund Transfer and Reprogramming Requirements but Did Not Sufficiently Maintain Written Authorizations for Retention Incentives and Senior Executive Bonuses
Recommendations Closed: 1 of 4
No. 1 to OST
Implement a process to verify that retention incentives are approved by the Assistant Secretary for Administration and documented in accordance with the DOT Department Personnel Manual and Consolidated Appropriation Act of 2024 (Pub. L. No. 118-42), Section 105 of Division F.
No. 2 to OST
Develop and implement a comprehensive policy that outlines the process for awarding senior-level employee and senior executive bonuses, including a requirement to verify that awards and bonuses are supported, documented, and approved in accordance with Federal regulations.
No. 3 to OST
Formalize internal procedure(s) for managing and monitoring the number of political and presidential appointees in OST in accordance with the Consolidated Appropriation Act of 2024 (Pub. L. No. 118-42), Section 183, and that may be contained in future appropriations laws.
No. 4 to OST
Review and, to the extent required, ratify the $142,827 in questioned costs identified in accordance with the DOT Department Personnel Manual and Consolidated Appropriation Act of 2024 (Pub. L. No. 118-42), Section 105 of Division F.
Audit Report: SA2026027 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending March 31, 2026
Recommendations Closed: 1 of 3
No. 1 to OST
Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
Determine the allowability of the questioned transactions and recover $1,732,107, if applicable.
No. 3 to OST
Work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $971,676, if applicable.
Audit Report: AV2026026 issued on
FAA Followed Its Policy When Responding to Fume Events in Boeing 737 MAX 8 Aircraft, But Further Assessment Is Warranted
Recommendations Closed: 0 of 4
No. 1 to FAA
Notify affected LEAP-1B operators if software modification and Federal Aviation Administration (FAA) certification or rulemaking exceed Boeing's and FAA's End-to-End Agreement completion timelines.
No. 2 to FAA
Provide outreach to operators with CFM International LEAP-1B engines not covered in the National Transportation Safety Board (NTSB) AIR-25-03 recommendations.
No. 3 to FAA
Oversee air carrier training programs to ensure newly hired or trained flight crews of airplanes equipped with CFM International LEAP-1B engines are being made aware of the risks posed by LRD activation.
No. 4 to FAA
Provide guidance to air carriers on incorporating limited cockpit visibility operations into flight crew training scenarios and simulators.
Audit Report: FI2026025 issued on
FAA Did Not Adequately Monitor and Enforce IIJA-Funded Contracts’ Compliance With Buy American Requirements
Recommendations Closed: 0 of 6
No. 1 to FAA
Update written procedures to clarify what Buy American-related clauses are required in contracts partially or fully funded by IIJA and when these clauses must be added into an existing contract. Implementing this recommendation could put up to $272.7 million in Federal funds to better use by improving FAA's ability to enforce Buy American compliance in IIJA-funded contracts.
No. 2 to FAA
Implement written procedures to verify that contracting officials comply with Acquisition Management System (AMS) requirements for applying Buy American waivers to contracts partially or fully funded by IIJA.
No. 3 to FAA
Implement written procedures to track and annually review all Buy American waivers associated with contracts partially or fully funded by IIJA. This annual review must check if each waiver remains relevant and aligns with current requirements.
No. 4 to FAA
Implement a written reference guide to detail how Buy American-related data should be entered into the Federal Procurement Data System Next Generation.
No. 5 to FAA
Update AMS to include requirements that contractors on contracts partially or fully funded by IIJA submit updated Buy American Act certificates if anything changes during the life of the contract. This AMS update should also explain how to implement this requirement when IIJA funds are added to existing contracts.
No. 6 to FAA
Conduct and record annual training for procurement staff regarding Buy American requirements for contracts involving IIJA funds
Audit Report: FI2026024 issued on
FRA Can Improve Its Oversight and Management of Accountable Personal Property
Recommendations Closed: 0 of 8
No. 1 to FRA
Coordinate with FRA's program offices to develop and implement policies and procedures for the management of APP, including, but not limited to: a) a process to assign and delegate responsibilities for APP; b) clearly defined roles and responsibilities for positions related to property management oversight; and c) a review and approval mechanism to ensure that procedures are comprehensive, aligned with regulatory requirements and regularly updated.
No. 2 to FRA
Develop and implement policies and procedures that promote enhanced communication for property acquisitions, transfers, and disposals between the Office of Facilities and Asset Management, contracting officers, contractors, and program offices.
No. 3 to FRA
Develop and implement procedures that ensure the timely recording of FRA-owned APP in the asset management system.
No. 4 to FRA
Develop and implement procedures to record all acquisition data in the asset management system.
No. 5 to FRA
Develop and implement a procedure to ensure acquisition documentation is centrally stored in the asset management system or other readily available system to enhance support for FRA's financial accounts.
No. 6 to FRA
Design and implement a solution to accurately record data necessary to track the net-book value of capitalized assets in FRA's asset management system.
No. 7 to FRA
Design and implement a solution to accurately track historical activity for all APP transactions in FRA's asset management system.
No. 8 to FRA
Develop and implement a procedure to ensure that disposals of future APP are accurately reflected in FRA's records and ensure current APP records are accurately recorded.
Audit Report: FI2026023 issued on
FAA Does Not Effectively Secure Its High-Impact Systems Supporting the National Airspace System
Recommendations Closed: 0 of 4
No. 1 to FAA
Identify all required National Institute of Standards and Technology (NIST) Special Publication (SP) 800-53 Rev 5 high baseline security controls that have not yet been selected and implemented, conduct a security impact analysis to document potential security ramifications from not implementing the identified controls, and develop plans of action and milestones.
No. 2 to FAA
Identify and update system documentation that has outdated NIST SP 800-53 security controls documented within the System Security Plan (SSP) and update all SSP documentation and appendices to reflect the current selection and implementation status of security controls.
No. 3 to FAA
Develop and implement a process to ensure that system vulnerabilities currently being tracked only in FAA's Security Management & Assessment Reporting Tool (SMART) system are fully tracked within Cyber Security Assessment & Management (CSAM), the Departmental system of record.
No. 4 to FAA
Update and track mitigation efforts for all identified NIST SP 800-53 Rev 5 high baseline security controls that were assessed as either “other than satisfied” or with an implementation status as “not implemented;” and accurately document the controls implementation status within the SSP.
Audit Report: AV2026022 issued on
FAA Took Action To Improve Monitoring and Increase Staffing Levels at Contract Towers, but Staffing Shortages Remain
Recommendations Closed: 0 of 3
No. 1 to FAA
Develop and implement a process to validate the hours worked submitted by contractors and recover any overpayments.
No. 2 to FAA
Evaluate the impact of current FAA training and controller retention initiatives on the FAA’s Contract Tower (FCT) Program hiring pool and implement any improvements to address staffing shortfalls at contract towers.
No. 3 to FAA
Collaborate with FCT contractors and other stakeholders to explore alternative approaches, including pending exemption and waiver requests, to expand the controller hiring pool at contract towers and implement viable approaches.
Audit Report: SA2026021 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending December 31, 2025
Recommendations Closed: 1 of 2
No. 1 to OST
Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
Work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $5,475,471, if applicable.
Audit Report: ST2026020 issued on
MARAD’s Policies and Procedures Are Not Sufficient To Assess Risk and Effectively Oversee IIJA-Funded Port Infrastructure Development Program Grants
Recommendations Closed: 6 of 8
No. 1 to MARAD
Complete the Process Level Risk Assessment for PIDP by determining and documenting which PIDP subprocesses will be tested and when; testing the design and effectiveness of internal controls for the selected subprocesses; and developing and implementing related corrective actions, as needed.
No. 2 to MARAD
Further clarify for MARAD reviewing officials and grantees the existing criteria for determining what constitutes red (Material Deviations), yellow (Limited/Controlled Deviations), or green (No Deviations) for the quarterly assessments of a project's scope, schedule, and budget.
No. 3 to MARAD
Require completion of checklists and provide corresponding instructions for MARAD personnel who perform pre-award, interim, and closeout site visits to promote consistency among those visits.
No. 4 to MARAD
Develop and implement a process to require MARAD supervisory reviews of all site visit documentation and require supervisors to also document the results of their review.
No. 5 to MARAD
Enhance existing policies and procedures to provide clearer definitions, best practices, and references to Title 2, Code of Federal Regulations, Part 200 on critical topics, such as unallowable costs, and reissue the procedures for MARAD personnel to use when reviewing a grantee's Request for Advance or Reimbursement.
No. 6 to MARAD
Develop and issue instructions for MARAD personnel to use in reviewing grantees' Federal Financial Reports.
No. 7 to MARAD
Develop and seek to implement a Strategic Human Capital Plan in line with Governmentwide policy and departmental priorities.
No. 8 to MARAD
Implement training related to Title 2, Code of Federal Regulations, Part 200, including unallowable cost under Federal awards, for staff who oversee PIDP.
Audit Report: QC2026018 issued on
Quality Control Review of the Management Letter for the Surface Transportation Board’s Audited Financial Statements for Fiscal Year 2025
Recommendations Closed: 2 of 17
No. 1 to STB
Ensure that documentation that evidences the performance of revenue reconciliations is complete and accurate.
No. 2 to STB
Update policies and procedures to specify how the completion of the reconciliation process is evidenced.
No. 3 to STB
Develop specific procedures to ensure that program managers, Contracting Officer's Representatives, and/or Human Resources personnel notify the Access Control Officers for service organization systems used by the agency when an employee or contractor separates from the agency or no longer needs access.
No. 4 to STB
Implement and document a second-level review of the accounting information assigned to vendor-initiated payments to ensure that payments are assigned to the correct contracts and option years and that payments are assigned to the correct Treasury Account Symbol.
No. 5 to STB
Create and enforce agency-specific written policies and procedures that specify how personnel actions should be initiated, reviewed, and submitted. These policies and procedures should specify the roles and responsibilities of Human Resources personnel relating to this process and the required elements and documentation of management's review of personnel actions prior to submission.
No. 6 to STB
Perform and document routine reviews on a monthly or more frequent basis to ensure that all personnel actions processed during the period were appropriately reviewed and approved by a second, authorized Human Resources official and the information reported on the Standard Form 50 is accurate in all respects.
No. 7 to STB
Enforce existing policies and procedures requiring all employees to submit a leave request for all annual leave used.
No. 8 to STB
Require timekeepers or other appropriate personnel to verify that all employee leave requests have been submitted and properly approved by the certifying officials and that all leave hours taken agree with the leave type that was requested and approved.
No. 9 to STB
Revise policies and procedures to ensure that supervisors are reviewing employee timesheets at a level of precision that ensures that leave requests have been submitted and approved for all leave hours taken.
No. 10 to STB
Perform its annual physical inventory at a higher level of precision, including identifying and following up on items that have been reported as lost or stolen or for which the stated location is not accurate.
No. 11 to STB
Correct and then regularly update all listings of STB's assets to enable the agency to quickly and accurately locate all items issued to STB personnel.
No. 12 to STB
Work with the service provider to identify, at least quarterly, upward adjustments that have been offset by downward adjustments in the general ledger or perform an independent review of the general ledger activity of both accounts so that manual adjustments can be recorded to properly state the ending balances of both accounts, if needed.
No. 13 to STB
Design and implement policies and procedures which enhance the internal review process for upward and downward adjustment transactions and include a reconciliation of the undelivered orders balances with the supporting documentation to ensure that transactions have been recorded correctly.
No. 14 to STB
Perform a review of all employees' leave balances to ensure they are accurate and comply with 5 U.S. Code § 6304 requirements.
No. 15 to STB
Enforce standard operating procedures to require a second Human Resources Specialist or the Human Resources Director to review all employee transfer and onboarding documents to ensure that the documentation is complete and agrees with the information that was entered into the payroll and personnel system before the information is submitted to the payroll service provider.
No. 16 to STB
Perform and document STB's assessment of the recoverability of excess taxes that were paid in error by the agency in matching Old-Age, Survivors, and Disability Insurance and Medicare contributions and the conclusion that was reached.
No. 17 to STB
Research the impacted employee's payroll records to confirm the error and determine why the error occurred. Appropriate action should then be taken to identify any other affected employees and to correct the root cause of the error.
Audit Report: QC2026019 issued on
Quality Control Review of the Management Letter for the Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 10
No. 1 to FHWA
FHWA management enforce the FHWA Configuration and Change Management Process to ensure that approvals and documentation related to application changes ae completed in accordance with the National Institute of Standards and Technology (NIST) 800-53, DOT and system requirements.
No. 2 to FHWA
FHWA management enforce the change management requirements per the DOT Compendium and the FHWA Configuration and Change Management Process policy to ensure testing and approvals are appropriately performed and documented for each change.
No. 3 to OST
User access application management implement and enforce the password complexity requirements in accordance with NIST 800-53, Office of the Chief Information Officer (OCIO) Cybersecurity Compendium Workbook, and the application's System Security Plan (SSP).
No. 4 to OST
OCIO management enforce required policies and procedures to ensure that roles and permissions are clearly identified, documented and approved within a new access request form/ticket prior to provisioning administrator access within grant management system's operation system.
No. 5 to OST
FHWA and OCIO management implement a quarterly access review of user access configured within the FHWA grant management system and user access application databases and the FHWA grant management system operating system in accordance with the DOT OCIO, Cybersecurity Compendium Workbook.
No. 6 to FTA
FTA management implement a quarterly access review process over all integrated Appian platform access reviews in accordance with the DOT Compendium.
No. 7 to FHWA
FHWA management further refine and enhance their estimation methodology to ensure it remains responsive to future expense fluctuations, including conducting a timely comprehensive risk assessment as a result of their quarterly lookback process.
No. 8 to FTA
FTA enhance and finalize the FTA Grant Accrual Standard Operating Procedure (SOP) to more clearly outline the historical day calculation methodology used in the accrual calculation.
No. 9 to FTA
FTA ensure the review process is sufficient to identify any deviations from the outlined policy.
No. 10 to FTA
FTA communicate the finalized SOP to preparers of the grant accrual workbook to ensure appropriate understanding of the enhanced methodology and review requirements.
Audit Report: QC2026017 issued on
Quality Control Review of the Management Letter for the Federal Aviation Administration’s Audited Consolidated Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 4
No. 1 to FAA
Establish policies and procedures for granting procurement system access to users provisioned outside of the recurring new user process, including documented justification and approval by a system administrator.
No. 2 to FAA
Provide additional resources or training for appropriately assessing and recording lease terms with similar circumstances in accordance with existing policies and procedures.
No. 3 to FAA
Consider designing modified financial reporting controls as part of government furlough planning and reassess the nature of journal vouchers requiring the Director of Financial Management review.
No. 4 to FAA
Communicate to journal voucher preparers and reviewers a reminder regarding their responsibility to review supporting documentation for indicators of intragovernmental transactions and ensure trading partner attributes are included as appropriate while preparing and reviewing manual journal vouchers.
Audit Report: QC2026016 issued on
Quality Control Review of the Management Letter for the National Transportation Safety Board’s Audited Financial Statements for Fiscal Year 2025
Recommendations Closed: 1 of 9
No. 1 to NTSB
Document that NTSB's preparation of the financial statements and footnotes is compliant with the most recent version of the financial reporting requirements as of the interim submission deadline stated in OMB Circular A-136, including any revisions required for new reporting requirements, before providing the financial statements and footnotes to external parties.
No. 2 to NTSB
Develop a process for ensuring that all initial and subsequent benefits coverage changes requested by employees are processed timely and accurately.
No. 3 to NTSB
Develop policies and procedures that include the performance of periodic reviews of employees' Official Personnel Folders to ensure that they are complete and accurate.
No. 4 to NTSB
Create and enforce written procedures to review all employee onboarding documents, including documentation received for transferred employees and individuals returning to Federal civilian service, to ensure that the documentation is complete and accurate.
No. 5 to NTSB
Perform and document routine reviews of employees' Official Personnel Folders to verify that payroll and benefits elections are correct, including retirement plan assignments and benefit elections. Take action to correct any errors, including the collection or return of excess employee contributions, when warranted.
No. 6 to NTSB
Verify that all accountable and sensitive property has been located during the agency's annual self-audit process, including educating employees regarding their responsibility to report damaged, lost, and stolen property immediately after a loss has been identified.
No. 7 to NTSB
Develop and implement a follow up procedure to verify that (1) all assets marked for disposal have been moved to a disposal holding area immediately before or after the assets' status is changed to disposal and (2) the disposal of the asset has taken place in a timely manner.
No. 8 to NTSB
Create and enforce agency-specific written policies and procedures that specify how personnel actions should be initiated, reviewed, and submitted. These policies and procedures should specify the roles and responsibilities of human resources personnel relating to this process and the required elements and documentation of management's review of personnel actions prior to submission.
No. 9 to NTSB
Review and revise its current methodology relating to the estimation and recording of accounts payable accruals to ensure that the bases used to calculate these accruals do not include any expense types or amounts for which separate accruals are recorded.
Audit Report: QC2026015 issued on
Quality Control Review of the Management Letter for the Great Lakes St. Lawrence Seaway Development Corporation’s Audited Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 9
No. 1 to GLS
Update its guidance and procedures to include procedures performed by the reviewer to ensure that all reconciliation procedures have been performed and the reconciliation documentation is complete, accurate, and internally consistent.
No. 2 to GLS
Develop a contingency plan that assigns a backup designated point of contact for the Federal Personnel and Payroll System who is trained to perform the required functions and can immediately take over those responsibilities, if needed.
No. 3 to GLS
Perform and document, at least monthly, a follow up review of any User Access Request forms that were submitted during that period to verify that the forms were processed in Federal Personnel and Payroll System and access was terminated.
No. 4 to GLS
Correct and then regularly update all listings of GLS's non-capitalized assets to enable the agency to quickly and accurately locate all items issued to GLS personnel.
No. 5 to GLS
Perform a full inventory of all non-capitalized and capitalized property during its annual physical inventory, including identifying and following up on items that have been reported as lost or stolen or for which the stated location is not accurate.
No. 6 to GLS
Develop a process to: a. identify and track all unusual transactions, including corrections relating to prior year activity that were processed during the current fiscal year; b. review the posting logic that was applied within Oracle for each correcting entry to ensure the entries had the intended effect; and c. record reclassification journal entries in the general ledger using the appropriate general ledger accounts for the correction of errors, in accordance with generally accepted accounting principles and Department of Treasury requirements, when appropriate.
No. 7 to GLS
Update written standard operating procedures and desk procedures to include the steps to be performed when recording unusual transactions and error corrections within Oracle and any additional actions to be taken, such as the recording of reclassification journal entries.
No. 8 to GLS
Update its written procedures or develop a desk procedure that provides detailed guidance or instructions for the calculation of the organization's year-end accounts payable and other accruals.
No. 9 to GLS
Develop a look-back analysis or otherwise document its review and assessment of disbursements made early in the subsequent reporting period (i.e., at the beginning of the next fiscal year) to identify items which should have been included in its year-end accounts payable balance and amend the existing accrual, if needed, prior to the preparation of the financial statements.
Audit Report: AV2026014 issued on
FAA’s Oversight of United Airlines’ Maintenance Practices Is Hindered by Inadequate Inspection Resources, Ineffective Workforce Planning, and Impediments to Accessing Air Carrier Data
Recommendations Closed: 0 of 6
No. 1 to FAA
Develop and implement a policy for FAA personnel to determine when an inspection should be postponed based on the percentage and/or type of questions that cannot be answered. This should include a management control so that FAA personnel with authority to assign inspections use "resources not available" when this threshold is met.
No. 2 to FAA
Provide analytical support from FAA's Safety Analysis Branch to CMOs to gather, analyze, and trend data for questions that have been answered "not observable" to support risk-based decision making.
No. 3 to FAA
Reevaluate FAA's Business Staffing Rules so that workload, fleet count based on make/model/series, and aircraft models and series with separate maintenance review board reports are considered in the staffing algorithm for each inspector position.
No. 4 to FAA
Require that an independent workplace survey of the FAA United CMO be conducted to determine how inspector fleet assignments and workload distribution are impacting office culture. This should include implementing an action plan to address these needs.
No. 5 to FAA
Establish and implement an action plan to address FAA's documented staffing shortages and provide continuous resources to the United CMO that addresses retirement trends, average training time, and staffing turnover for a period longer than 3 years to ensure sufficient oversight.
No. 6 to FAA
Develop a strategic plan to provide outreach and education to the entire inspector work force on the protections of Safety Management System (SMS) data once the designation of protection is published in the Federal Registry. This should include education on inspectors' ability to request and review an air carrier's SMS data and records when conducting surveillance and addressing non-compliances.
Audit Report: SA2026013 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending September 30, 2025
Recommendations Closed: 1 of 4
No. 1 to OST
Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
Determine the allowability of the questioned transactions and recover $2,592,686, if applicable.
No. 3 to OST
Work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $1,033,618, if applicable.
No. 4 to OST
Work with the Federal Transit Administration to determine the allowability of questioned tribal transactions and recover $576,951.
Audit Report: FI2026012 issued on
Noncompliant Contracting Practices Leave GLS Vulnerable to Inefficient and Cost-Ineffective Outcomes
Recommendations Closed: 2 of 5
No. 1 to GLS
Implement standardized, written procedures to verify that applicable contract award and closeout contract file documentation requirements are met for each GLS contract.
No. 2 to GLS
Implement standardized, written procedures to verify that applicable Federal and Department independent government cost estimates and fair and reasonable price determination requirements are met prior to awarding a GLS contract. Implementing this recommendation could put up to $18.7 million in Federal funds to better use by improving GLS’s ability to establish fair, reasonable, and realistic contract pricing.
No. 3 to GLS
Conduct an assessment of acquisition staff levels and needs, and based on this assessment, develop a plan to address shortages of critical acquisition personnel needed to carry out the Agency's contracting needs.
No. 4 to GLS
Implement standardized, written procedures to maintain warrant information for all current and former contracting officers (including the Chief of the Contracting Office).
No. 5 to GLS
Review and take corrective action to address the approximately $11.5 million in questioned costs related to contracting officers awarding contracts without evidence that they had the proper warrant authority to do so.
Audit Report: QC2026011 issued on
Quality Control Review of the Independent Auditors’ Report on the Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 3
No. 1 to OST
Implement processes to perform administrative functions without the use of shared accounts.
No. 2 to OST
Design and implement controls over privileged developer access to certain systems, including periodic recertification of accounts and enforcing segregation of duties.
No. 3 to OST
Design, implement, and re-enforce requirements for controls to consistently approve and document recertification requests as required by internal policy and standards for effective internal control systems.
Audit Report: QC2026010 issued on
Quality Control Review of the Independent Auditor’s Report on the Federal Aviation Administration’s Audited Consolidated Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 4
No. 1 to FAA
Update its annual retrospective review through a grant recipient survey, review of invoice documentation, and/or other means for a lookback period greater than 4 months to analyze the results of the prior year accrual and determine if the 4-month lookback period remains sufficient to validate the grant accrual methodology in subsequent periods.
No. 2 to FAA
Analyze the reasons for the changes in the calculated average billing cycle and grant recipient billing patterns in recent periods and document the impact on its grant accrual methodology as part of its annual retrospective review prior to year-end.
No. 3 to FAA
Design and implement procedures to document the analysis performed to support any future changes to the grant accrual methodology prior to implementing such changes.
No. 4 to FAA
Implement a procedure, as part of its process for recording SF-132 activity, to reconcile the SF-132 line number to the applicable United States Standard General Ledger account to verify that the transaction is recorded accurately and in accordance with OMB Circular No. A-11.
Audit Report: QC2026009 issued on
Quality Control Review of the Independent Auditor’s Report on the Surface Transportation Board’s Audited Financial Statements for Fiscal Year 2025
Recommendations Closed: 7 of 18
No. 1 to STB
Amend its existing policy regarding the review and approval of journal vouchers to include a review of all non-reversing entries recorded during the fiscal year and to review all year-end journal vouchers before they are recorded in the agency's general ledger.
No. 2 to STB
Perform and document a review of all manual journal entries that includes a before and after analysis which illustrates the effect of the entry on the principal financial statements using the current year Treasury United States Standard General Ledger (USSGL) Section V Crosswalks to the financial statements. If accounts are presumed to offset, then they must offset within the same line of the same financial statement within the same fiscal year reporting period (i.e., before closing entries are recorded following the end of the fiscal year).
No. 3 to STB
At least quarterly, initiate and document a review of all entries and account balances for which a manual correcting entry may be needed to address potential misstatements due to system posting logic, such as offsetting upward and downward adjustments of prior year obligations, and record the appropriate entries to prevent misstatement of financial statement accounts and line items.
No. 4 to STB
During the review of manual journal vouchers, verify and document that the authoritative guidance and internal tools used to support the entry are valid and current.
No. 5 to STB
Have the STB Finance Team complete training relating to adjusting entries, including the selection of USSGL accounts, to improve the quality and precision of the review and approval process.
No. 6 to STB
Independently review the most current version of OMB Circular A-136 and the USSGL Treasury Crosswalks to identify changes in data elements, classification, and presentation and ensure that these changes are incorporated into financial statement and footnote templates for current year reporting. A search for new versions of the USSGL Crosswalks and OMB Circular A-136 should be performed each time the financial statements are prepared.
No. 7 to STB
Review the current version of OMB Circular A-136 to independently verify that all required footnotes are included and bring any omissions to the service provider’s attention so that errors or omissions can be corrected.
No. 8 to STB
Review the service provider’s Financial Statement and Notes Review Checklist to verify that the checklist is up to date and includes all required elements per OMB and Treasury guidance and then complete the checklist independently. Alternatively, STB management should develop and complete its own review checklist based on current Treasury and OMB reporting requirements.
No. 9 to STB
Request its financial management service provider to: 1) reevaluate the inclusion of account balances that were excluded in the Other Liabilities footnote, or 2) disaggregate (i.e., separately report) intragovernmental Other Liabilities balances reported as a single line item on the balance sheet that are not included in the footnote so that the total amounts reported for Other Liabilities on the Balance Sheet and in the footnote agree.
No. 10 to STB
Ensure that its review process includes procedures to disaggregate material balances reported in the financial statements and footnotes, agree balances to source documents, agree the footnotes to the principal financial statements, and verify the mathematical accuracy of all statements and schedules included in the financial statement package.
No. 11 to STB
Document the review and certification of the financial statements and footnotes clearly and indicate what was reviewed, when the review was performed, and who performed the review for each reporting period.
No. 12 to STB
Complete training relating to the preparation and/or review of financial statements and footnotes to improve management’s understanding of Federal reporting requirements and to ensure that the financial statements and footnotes are complete, accurate, and appropriately presented.
No. 13 to STB
Perform a review of 100 percent of employee benefit elections and Official Personnel Folders(OPFs) to ensure they are complete and accurate.
No. 14 to STB
Develop policies and procedures that include the performance of periodic reviews of employees' OPFs to ensure that they are complete and accurate.
No. 15 to STB
Obtain replacement documentation for employee forms and other documentation that have been determined to be incomplete or irretrievable from databases and other electronic sources following management's initial and periodic routine reviews.
No. 16 to STB
Implement and enforce its existing policies and procedures requiring the periodic review of all open obligations to ensure that closeout of completed contracts, including the de-obligation of funds and return of the balances for any advanced payments, is performed regularly and timely.
No. 17 to STB
Develop and implement a written procedure that provides detailed guidance and instructions for the calculation of the organization's year-end accounts payable and other accruals.
No. 18 to STB
Develop and implement a look-back analysis or other control procedure to review disbursements made early in the subsequent reporting period (i.e., at the beginning of the next fiscal year) to identify subsequent transactions and undelivered orders balances related to goods and services received in the current and prior fiscal years that should have been included in the year-end accounts payable balance. Any prior accrual should be amended, when needed, prior to the external release or publication of the financial statements.
Audit Report: QC2026007 issued on
Quality Control Review of the Independent Auditor’s Report on the Great Lakes St. Lawrence Seaway Development Corporation’s Audited Financial Statements for Fiscal Year 2025
Recommendations Closed: 0 of 5
No. 1 to GLS
GLS should amend its procedures relating to the annual count and valuation of OM&S to include verification of unit and total costs. This should include locating or reconstructing source documentation for the total quantity on hand for each item and matching the costs entered in the system to the source documents.
No. 2 to GLS
GLS should determine how average costs are calculated within the inventory tracking system. If the average cost in the system for specific inventory items does not represent the average cost of inventory on hand, the average cost in the system should be periodically adjusted when the annual inventory is performed or at year-end.
No. 3 to GLS
GLS should tighten its controls relating to personnel’s completion of inventory issuance requests so that warehouse personnel are aware when items are checked out and the inventory tracking system can be updated timely.
No. 4 to GLS
GLS should implement a procedure (e.g., require two people to sign off on the shipping receipt or bill of lading) for all operating materials and supplies to ensure that the quantity received agrees with the quantity recorded and placed into inventory.
No. 5 to GLS
GLS should continue executing its corrective action plan and complete the review of the unit and total costs of inventory items.
Audit Report: FI2026004 issued on
FHWA Can Improve Its Oversight of ATCMTD Reimbursements To Reduce Program Risk
Recommendations Closed: 0 of 5
No. 1 to FHWA
Direct FHWA's Office of Acquisition and Grants Management to revise language in the Acquisition Procurement Memorandum 009-G defining the level of detail direct recipients need to submit in support of their reimbursement request for FHWA officials to complete sufficient reviews and approve reimbursement.
No. 2 to FHWA
Require FHWA's Office of Acquisition and Grants Management to obtain detailed support for the $1.9 million in unsupported costs we identified in this report, seek recovery from the recipient for any or all of these unsupported costs that cannot be validated, or provide adequate rationale for not recovering them.
No. 3 to FHWA
Strengthen FHWA's process to validate that State Department of Transportation (DOT) ATCMTD reimbursement requests comply with Federal regulations.
No. 4 to FHWA
Strengthen FHWA's process to evaluate that State DOTs have demonstrated how they will carry out financial oversight responsibilities for ATCMTD grants in accordance with their Stewardship and Oversight Agreements with FHWA.
No. 5 to FHWA
Strengthen FHWA's process to evaluate that State DOTs maintain supporting documentation for ATCMTD reimbursements upon FHWA's request as required in their Stewardship and Oversight Agreements.
Audit Report: ST2026005 issued on
FTA Did Not Verify Transit Asset Management Performance Target Progress Prior to Awarding Capital Investment Grants
Recommendations Closed: 0 of 1
No. 1 to FTA
Develop and document implementation of a methodology to verify that CIG applicants that are subject to the TAM performance target progress requirement have made progress on established TAM performance targets before awarding CIG grants.
Audit Report: PT2026003 issued on
DOT Complied With Return to In-Person Work Requirements and Began Implementing Monitoring Procedures
Recommendations Closed: 1 of 1
No. 1 to OST
Document and fully implement the Departmentwide process for monthly monitoring of compliance with in-person work requirements.
Audit Report: ST2026002 issued on
DOT’s National Roadway Safety Strategy Targeted Factors Contributing to Fatalities, but DOT Can Improve How It Measures Success
Recommendations Closed: 0 of 1
No. 1 to OST
Work with the Federal Highway Administration, Federal Motor Carrier Safety Administration, National Highway Traffic Safety Administration, and the NRSS Action Team to develop requirements and procedures for measuring the success of individual priority actions in achieving program outcomes.
Audit Report: FI2026001 issued on
FTA’s Oversight Is Insufficient To Verify Timely and Proper Spending of Hurricane Sandy Funds
Recommendations Closed: 4 of 4
No. 1 to FTA
Develop and implement enhanced monitoring mechanisms for all recipients with unexpended Hurricane Sandy funds that focus on identifying and addressing challenges and delays in managing the progress of grant project activity and closeout.
No. 2 to FTA
Review and take corrective action to address the approximately $95.4 million in questioned costs based on recipients incurring new project costs during lapses in the grants’ periods of performance.
No. 3 to FTA
Develop and implement a standardized process to prevent grants' periods of performance from ending before project activities are completed. This should include required timeframes for recipients to request the extension based on the current grant performance end date and any revisions to project activity milestones.
No. 4 to FTA
Update FTA guidance on conducting timely grant closeout, including potential delays in completing the steps recipients must take between project activity completion and beginning the grant closeout process and how to handle these delays. Implementing this recommendation could put up to $117.5 million in Federal funds to better use by improving FTA's ability to enforce timely grant closeout and deobligation of unexpended Hurricane Sandy grant funds.
Audit Report: AV2025050 issued on
FAA Can Improve Its Guidance and Documentation Practices to More Effectively Administer the International Aviation Safety Assessment Program
Recommendations Closed: 4 of 7
No. 1 to FAA
Update and track IASA program milestones to improve timeliness and mitigate risk from civil aviation authorities under assessment.
No. 2 to FAA
Establish and implement processes to ensure routine upkeep of program documents, including checklists.
No. 3 to FAA
Create and implement a process to document when exceptions to the normal IASA in-country assessment process are appropriate and how they should be handled.
No. 4 to FAA
Develop and implement a policy to maintain a historical record of all interim and completed Risk Assessment Tools for future trend analyses.
No. 5 to FAA
Establish a formal prioritization methodology for new assessments, reassessments, technical assistance, and other duties.
No. 6 to FAA
Formalize process of how and when Operations Specifications for foreign air carriers are limited when a risk is identified.
No. 7 to FAA
Finalize the proposed changes and related updates to FAA Order 8900.1, Volume 12.
Audit Report: QC2025049 issued on
Quality Control Review of the Independent Auditor’s Report on the Assessment of DOT’s Information Security Program and Practices
Recommendations Closed: 0 of 7
No. 1 to OST
Establish and implement guidance for performing Cybersecurity Framework 2.0 activities through policies and procedures, including the development of current and target cybersecurity profiles which consider anticipated changes in DOT’s cybersecurity posture.
No. 2 to OST
Define and implement policies and procedures that utilize standard data elements and taxonomy to develop and maintain an up-to-date inventory of all software assets and associated licenses, including Executive Order-critical software.
No. 3 to OST
Document policies and procedures for developing and maintaining a comprehensive and accurate inventory of data and the corresponding metadata for DOT's data types.
No. 4 to OST
Create and maintain a comprehensive inventory of data and corresponding metadata.
No. 5 to OST
Work with FAA CIO to secure a reliable funding stream for continuous vetting.
No. 6 to OST
Work with FAA CIO to initiate and complete the background investigation of FAA employees in public trust positions.
No. 7 to OST
Work with FAA CIO to enroll FAA employees into continuous vetting through Trusted Workforce.
Audit Report: ST2025047 issued on
MARAD Has Made Progress on Most of the 24 NAPA Recommendations Subject to OIG Review but Faces Challenges in Fully Addressing Them
Recommendations Closed: 1 of 1
No. 1 to MARAD
Formally designate, in writing, a senior official responsible for identifying the remaining steps that will be taken to address each recommendation, as well as coordinating resources, overseeing implementation, and reporting on the Academy’s progress toward completing each recommendation.
Audit Report: AV2025045 issued on
DOT Changed Its Processes To Address Rising Consumer Complaints but Can Enhance Its Procedures To Hold Airlines Accountable
Recommendations Closed: 1 of 2
No. 1 to OST
Launch the Aviation Complaint, Enforcement, and Reporting System to replace the legacy Consumer Complaint Application database for collecting and categorizing airline consumer complaint information.
No. 2 to OST
Develop and implement formal written procedures for OACP staff to verify airlines' refund data that reduces civil penalties before giving credits and offsets.
Audit Report: AV2025044 issued on
FAA’s Oversight of Infrastructure Investment and Jobs Act Funds is Hindered by Unclear Policies and Internal Control Challenges
Recommendations Closed: 0 of 6
No. 1 to FAA
Clarify for project managers the types of changes to an airport sponsor's condition that would trigger the need for a project manager to conduct an interim risk assessment of the sponsor's overall risk level.
No. 2 to FAA
Clarify the grant payment policy on how a project manager should use the Project Manager Assessment Checklist to determine an airport sponsor's grant payment risk level and how project managers should document that risk level.
No. 3 to FAA
Determine whether the $338 million questioned in this report as unsupported costs are supported and allowable.
No. 4 to FAA
Recover any of the $338 million questioned in this report as unsupported costs that are determined to be unsupported or unallowable.
No. 5 to FAA
Provide formal training to project managers on how to conduct risk assessments, determine risk levels, and conduct oversight in accordance with FAA's Airport Improvement Program, grant oversight, and grant payment policies.
No. 6 to FAA
Establish a process to provide reasonable assurance that project managers comply with FAA's Airport Improvement Program, grant oversight, and grant payment policies for the assessment of airport sponsors' risks and approval of sponsors' grant payment requests.
Audit Report: QC2025043 issued on
Quality Control Review of the Independent Auditor’s Report on the Surface Transportation Board’s Information Security Program and Practices
Recommendations Closed: 1 of 5
No. 1 to STB
Develop and implement a formal process for defining, documenting, and maintaining its cybersecurity target profile(s).
No. 2 to STB
Develop and formalize thresholds or target values for key cybersecurity and risk performance metrics, at a minimum, in the following areas:
Cybersecurity risk management program;
Data exfiltration and enhanced network defenses;
Information security continuous monitoring (ISCM) policies, strategy, and
processes; and
Incident detection, analysis, handling, and response activities.
No. 3 to STB
Develop and implement detailed procedures to support its existing supply chain risk management policy and implementation plan.
No. 4 to STB
Establish policies and standards for data classification, quality, access, lifecycle management, and metadata management.
No. 5 to STB
Identify the baseline knowledge, skills, and abilities required for STB's cybersecurity workforce, conduct an assessment to determine any skill gaps, and customize specialized training to address the identified deficiencies.
Audit Report: FI2025042 issued on
DOT’s Working Capital Fund Is Not Fully Transparent Regarding Costs and Types of Services Provided to Customers
Recommendations Closed: 7 of 7
No. 1 to OST
Update WCF customer documentation to provide a clear understanding of how their advance payments are used regarding what services were provided and at what costs for both estimated and actuals.
No. 2 to OST
Review and take corrective action to address the approximately $1.2 million in questioned costs based on errors and unsupported charges included in customer bills.
No. 3 to OST
Review and take corrective action to address the approximately $443,062 in questioned costs based on issues with WCF-funded employees' salaries, benefits, and bonuses identified in the report.
No. 4 to OST
Reassess DOT's WCF management structure to evaluate how best to consolidate it under one central office to better promote and provide for economy and efficiency in WCF activities.
No. 5 to OST
Develop and implement a written standard operating procedure to accurately track and maintain DOT's WCF-funded employees—including a regular assessment of employees' work contributions to the delivery of WCF services to customers.
No. 6 to OST
Document and implement the policy and decision tree the WCF Improvement Project reported it is developing to help better determine what positions should be WCF-funded.
No. 7 to OST
Formally institute the workforce planning system the WCF Improvement Project reported it is working to implement to better track and oversee each WCF-funded employee.
Audit Report: SA2025040 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending June 30, 2025
Recommendations Closed: 1 of 2
No. 1 to OST
Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
Determine the allowability of the questioned transactions and recover $27,114, if applicable.
Audit Report: ST2025039 issued on
FTA’s Oversight of State Safety Oversight Agencies Could Be Enhanced Through Communication, Audit Process, and Data Management Improvements
Recommendations Closed: 1 of 5
No. 1 to FTA
Develop and provide to State Safety Oversight (SSO) program audit participants a methodology—the steps the FTA Audit Team will take and the indicators the audit team will look at to determine whether or not the SSOA is in compliance with the regulation.
No. 2 to FTA
Develop and implement quality control procedures to address identified oversight gaps. The procedures should include a process to ensure findings specify suitable criteria, minimum documentation requirements, examples of model evidentiary documentation, and a requirement that the rationale for compliance and audit methodology decisions be included in the audit documentation.
No. 3 to FTA
Develop and implement a plan for how OTrak will accommodate future changes to the SSO audit structure, such as those anticipated as a result of the implementation of risk-based inspections.
No. 4 to FTA
Establish and implement supervisory review of OTrak data entries to identify un- or mis-recorded entries and improve the reliability of OTrak data.
No. 5 to FTA
Update OTrak to enable the complete text of findings and recommendations to be captured in database fields.
Audit Report: FI2025037 issued on
FHWA Can Strengthen Oversight and Provide Additional Guidance To Improve Federal-aid Recipients’ Buy America Compliance
Recommendations Closed: 0 of 6
No. 1 to FHWA
Issue best practices for Buy America materials certification, including standardized templates which detail required data fields, such as identifying project information.
No. 2 to FHWA
Update guidance for FHWA's minimal use threshold, including the definition of "total contract cost."
No. 3 to FHWA
For the $594,000 in questioned costs relating to Seattle Department of Transportation's West Seattle Bridge project, review materials certification documents relating to cathodic protection system and clamp straps incorporated into the project without adequate documentation at the time of our audit. Should any amount be found to be unsupported or unallowable, provide justification for accepting the costs or take appropriate corrective actions.
No. 4 to FHWA
Enhance oversight reviews to include greater focus on Buy America compliance.
No. 5 to FHWA
Increase awareness of Buy America requirements to include documenting certification of shop and field welding consumables and processes.
No. 6 to FHWA
For the $160,336 in questioned costs related to Texas Department of Transportation's (TxDOT) I-10 and I-35 projects, work with TxDOT to confirm Buy America compliance for those foreign materials and determine if any amount is unsupported or unallowable under Buy America rules. Should any amount be found unsupported or unallowable, provide a justification for accepting the costs or take appropriate corrective actions.
Audit Report: AV2025038 issued on
FAA Has Not Resolved Persistent Issues With SkyWest’s Maintenance Practices
Recommendations Closed: 0 of 7
No. 1 to FAA
Provide training or formal instruction to managers and inspectors on how to identify and resolve systemic hazards.
No. 2 to FAA
Establish clear procedures on how Certificate Management Offices should address significant delays in obtaining air carrier data, including defining an escalation process.
No. 3 to FAA
Provide formal guidance to Certificate Management Offices to aid in consistent internal communication and Compliance Action processing during periods of key personnel turnover.
No. 4 to FAA
Reinforce a structured resolution process within the Compliance Action framework that includes documented escalation procedures, mediation steps, and clear criteria for resolving inspector disagreements to ensure consistency and improve adherence to FAA policy.
No. 5 to FAA
Clarify within inspector guidance the proper use of General Correspondence letters to ensure they are not used in place of Compliance Action letters.
No. 6 to FAA
Reinforce through inspector training the process for identification of repeat findings and the comprehensive resolution of these findings.
No. 7 to FAA
Update guidance and provide training for Principal Inspectors on the proper categorization of actions used to address inspector findings in Safety Assurance System.
Audit Report: AV2025036 issued on
FAA Can Improve the Reliability of Overall Benefit and Cost Projections for NextGen by Fully Assessing the Impact of External Factors
Recommendations Closed: 0 of 1
No. 1 to FAA
Develop and adopt, as appropriate, a process for systematically identifying key external factors and refining how they are incorporated in business cases as required by OMB Circular A-94.
Audit Report: ST2025035 issued on
NHTSA’s Special Crash Investigations Program Lacked Adequate Procedures in Key Program Areas
Recommendations Closed: 0 of 3
No. 1 to NHTSA
Revise NHTSA's Special Crash Investigation Procedures Manual to include processes for: a. identifying, and prioritizing crashes to investigate; b. selecting types of crashes for investigation that are likely to produce the most useful results to improve safety and that align with the program's mission; c. assigning crashes to the investigators; d. documenting crashes considered but not selected for investigation; e. adopting an investigation scheduling process that includes tracking and monitoring functions to encourage timeliness and provide early warning of, and document delays in, completing crash investigations; f. establishing realistic timelines and assessing the impact of delays on crash investigation timelines and, if assessments show timelines are not realistic, adjust schedule requirements as needed; g. developing a post-investigation process to assess the impact of each crash investigation; and h. periodically assessing and updating the procedure manual.
No. 2 to NHTSA
Revise the document retention policy and procedure to include a schedule for all supporting evidence for special crash investigations.
No. 3 to NHTSA
Develop, document, and implement a written process to periodically assess and communicate to decisionmakers, stakeholders, and the public how NHTSA's SCI Program investigations are used to identify and influence highway safety improvements.
Audit Report: AV2025034 issued on
FAA Has Made Progress in Advancing BVLOS Drone Operations but Can Do More To Achieve Program Goals and Improve Data Analysis
Recommendations Closed: 0 of 7
No. 1 to FAA
Update the Key Performance Indicators as BEYOND continues into its next phase tailored to specific lead participant operational objectives and FAA goals.
No. 2 to FAA
Create a mechanism in BEYOND to add new lead participants to both replace lead participants who drop out of the program and to enhance geographic and programmatic diversity.
No. 3 to FAA
Consolidate all BVLOS drone flight data across multiple programs and FAA offices into a single searchable repository to enable comprehensive trending and analysis.
No. 4 to FAA
Develop and implement a process to enhance clarity and transparency across lines of business with program participants regarding how the Agency is using collected drone operational flight data to inform policy efforts and identify any informational gaps and opportunities.
No. 5 to FAA
Develop and implement a process to validate drone partnership program data that enhances accuracy and reduces manual workload.
No. 6 to FAA
Issue a formal policy on how to incorporate societal and economic benefit data into future operational assessments for specific BVLOS drone operations.
No. 7 to FAA
Develop and implement a standardized approach to commence a new community engagement collection and education effort in the next phase of BEYOND.
Audit Report: ST2025033 issued on
Opportunities Exist for PHMSA To Improve Procedures and Data Quality To Administer the HazMat Emergency Preparedness Fund and Grant Program More Effectively
Recommendations Closed: 2 of 4
No. 1 to PHMSA
Revise the registration and fee assessment processes to provide reasonable assurance that the data PHMSA uses to assess registration fees are accurate and verifiable.
No. 2 to PHMSA
Develop and implement a better registration and fee process to ensure data quality. This should include features that can automatically identify potential data problems and make improvements to the system’s data fields and controls.
No. 3 to PHMSA
Develop and implement a management review process to ensure that the minimum oversight requirements of the monitoring plan for all risk level activities are met.
No. 4 to PHMSA
Update the HazMat Grants Standard Operating Procedures with all recent procedural changes adopted or being implemented to include: a. current desk review, site visit, quarterly monitoring call, Federal Financial Report, and Performance Report processes, b. current spot check templates, c. new data collection tool processes, and d. an escalation process to ensure grantees submit all Federal Financial Reports and Performance Reports in a complete, accurate, and timely manner.
Audit Report: SA2025031 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending March 31, 2025
Recommendations Closed: 1 of 3
No. 1 to OST
Coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
Determine the allowability of the questioned transactions and recover $1,241,528 if applicable.
No. 3 to OST
Work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $1,442,356 if applicable.
Audit Report: ST2025029 issued on
FRA Needs To Improve Its Inspection and Data Collection Processes to Effectively Oversee Compliance with the Roadway Worker Protection Regulation
Recommendations Closed: 12 of 13
No. 1 to FRA
Revise Roadway Worker Protection activity codes or guidance to capture when an inspector reviews on-track safety programs or manuals in part or in full.
No. 2 to FRA
Train all safety inspectors and Specialists on how to accurately capture Roadway Worker Protection inspection activities using the correct Roadway Worker Protection activity codes and, when needed, descriptions of their work.
No. 3 to FRA
Remove Roadway Worker Protection activity and defect codes from the next version of the Track and Structures Compliance Manual.
No. 4 to FRA
Incorporate current Roadway Worker Protection-related activity code definitions into the system inspectors use to record inspection reports, currently the Railroad Inspection Systems for Personal Computers.
No. 5 to FRA
Develop and implement a process for updating the code definitions in the system inspectors use to record inspection reports, currently the Railroad Inspection Systems for Personal Computers, when Roadway Worker Protection activity and defect codes are changed.
No. 6 to FRA
Add instructions for planning 49 C.F.R. Part 214 work to the Universal Inspection Planning Process with Territory Inspection Plans guidance.
No. 7 to FRA
Use the Track and Structures Communications Hub or other FRA system to provide frequently updated Roadway Worker Protection-related data that inspectors can use to inform their oversight by identifying railroads, locations, or practices that pose higher risks to roadway workers.
No. 8 to FRA
Develop, document, and implement automatic data quality checks on the data warehouse that transmits data for DataHub's FRA Inspection Defect Details Report.
No. 9 to FRA
Develop, document, and implement quality assurance/quality controls and standardized on-demand reporting for FRA’s new Secure Site.
No. 10 to FRA
Develop and implement guidance for when it is appropriate to perform and how to document on-track safety program reviews, including documentation of new or change notifications received, approval and disapproval notifications, and, when reviews occur, completed on-track safety program review checklists.
No. 11 to FRA
Develop and implement centralized storage for documentation of FRA's Roadway Worker Protection oversight including but not limited to on-track safety program notifications, correspondence on approvals/disapprovals, review checklists, and training materials.
No. 12 to FRA
Add a warning or disclaimer to future Annual Enforcement Reports that include legacy cases stating that the number of violations associated with cases and the violation totals published in Appendix A may be incorrect.
No. 13 to FRA
Add a warning or disclaimer to the fiscal years 2020 to 2023 Annual Enforcement Report files as a header or footer and to the FRA website where the Annual Enforcement Reports are housed stating that the number of violations associated with cases and the violation totals published in Appendix A may be incorrect.
Audit Report: ST2025028 issued on
FMCSA’s Procedures To Oversee IIJA-Funded Motor Carrier Safety Assistance Program Grants Are Insufficient
Recommendations Closed: 5 of 5
No. 1 to FMCSA
Issue guidelines that clearly and comprehensively address MCSAP oversight responsibilities, to include: (a) reimbursement request review steps and documentation in support of these steps, (b) expectations for program and process reviews as well as onsite monitoring, and (c) documentation and supervisory review of quarterly report monitoring.
No. 2 to FMCSA
Revise annual risk assessment guidelines to: (a) include an assessment of MCSAP-specific risks; (b) place a necessary level of emphasis on Organizational Management factors; (c) clarify how to address risk factors and Division Office flexibility to change the priority level to something other than what the tool suggests; and (d) provide steps to revise the annual risk assessment template, as needed, to reflect risk changes.
No. 3 to FMCSA
Develop and implement a process to notify FMCSA's State Programs Division of grantees that receive a medium or high priority level-from the annual risk assessment; document and maintain these risk levels in a centralized location.
No. 4 to FMCSA
Revise monitoring plan guidelines to: (a) incorporate supervisory review and approvals of monitoring plans; (b) verify plans are fully completed and include rationale for any activities not completed; and (c) update the monitoring plan template, as needed, to reflect these changes.
No. 5 to FMCSA
Revise guidelines: (a) on the impact of Commercial Vehicle Safety Plan (CVSP) goal performance for creating a clear line between the performance of CVSP goals and when to take enforcement action and (b) for CVSP goal performance tracking to urge Division Offices to document oversight of CVSP goals; identify which systems to review and how often to review them; and follow-up with the State grantee when needed.
Audit Report: AV2025026 issued on
FAA Has Taken Steps To Prevent and Mitigate Runway Incursions, but Work Remains To Improve Data Analytics and Implement Key Initiatives
Recommendations Closed: 0 of 5
No. 1 to FAA
Complete development and implementation of the Integrated Safety Dashboard and include milestones for full deployment and use of the system by FAA's lines of business.
No. 2 to FAA
Establish procedures for how FAA will use the Integrated Safety Dashboard to analyze safety data, identify trends, and make decisions, as well as develop metrics to determine whether these efforts prevent and mitigate runway incursions.
No. 3 to FAA
Implement the recommendations from the draft MITRE report along with developing an implementation plan.
No. 4 to FAA
Continue developing detailed cost and schedule estimates to complete the Agency's “Technology Sprint” Initiative, as well as estimates for sustaining its legacy surface surveillance technologies.
No. 5 to FAA
Until implemented, provide quarterly updates, using existing reporting mechanisms, to internal and external stakeholders, including Congress, on the Agency's progress in implementing the Safety Review Team's recommendations. This includes updating target action dates for implementing the recommendations, highlighting recommendations that are considered safety critical, and those FAA has exclusive control over to implement.
Audit Report: SA2025024 issued on
Summary Report on Significant Single Audit Findings Impacting DOT Programs for the 3-Month Period Ending December 31, 2024
Recommendations Closed: 1 of 4
No. 1 to OST
OIG recommends that OST coordinate with impacted Operating Administrations to develop a corrective action plan to resolve and close the findings highlighted in this report.
No. 2 to OST
OIG recommends that OST determine the allowability of the questioned transactions and recover $933,026 if applicable.
No. 3 to FHWA
OIG recommends that OST work with the Federal Highway Administration to determine the allowability of questioned tribal transactions and recover $5,803,740, if applicable.
No. 4 to FTA
OIG recommends that OST work with the Federal Transit Administration to determine the allowability of questioned tribal transactions and recover $136,402, if applicable.
Audit Report: ST2025022 issued on
FHWA Lacks Adequate Guidance and Procedures for Its Oversight of Construction Quality Assurance
Recommendations Closed: 0 of 13
No. 1 to FHWA
Establish requirements for complete and current Division approvals of State Department of Transportation (State DOT) construction quality assurance programs.
No. 2 to FHWA
Implement controls to ensure that all applicable construction quality assurance program documents used on State DOT and locally-administered National Highway System (NHS) projects are approved by Divisions and referenced in Stewardship and Oversight Agreements as required.
No. 3 to FHWA
Require Divisions to develop and implement written procedures for conducting appropriate oversight of State DOT construction quality assurance programs and addressing the minimum oversight areas as described in FHWA's 2006 policy on construction quality assurance.
No. 4 to FHWA
Assess the project materials certifications related to the $24.3 million in questioned costs we identified. Develop an action plan to confirm that materials submitted under these certificates conform to required standards and take appropriate remedial action, if necessary.
No. 5 to FHWA
Develop and implement guidance for Divisions' review of materials certifications, including verification that certifications conform to required standards, and establish a uniform definition for exceptions that State DOTs should report.
No. 6 to FHWA
Update the Agency's guidance on construction monitoring to establish minimum requirements for Divisions' oversight on construction inspection.
No. 7 to FHWA
Assess the risk of construction quality assurance on locally-administered NHS projects whose local agencies are direct recipients of Federal-aid funds and implement actions to mitigate risks.
No. 8 to FHWA
Update the Agency's construction quality assurance stewardship review process to address all aspects of compliance and Division oversight. The updated process should address the tracking of States' compliance status and Divisions' required oversight activities.
No. 9 to FHWA
Update the Agency's construction quality assurance assessment process to incorporate a systematic assessment of fraud risks affecting the program.
No. 10 to FHWA
Update the Agency's webpage on detecting and reporting fraud in consultation with the Office of Inspector General to correct inaccurate and out-of-date information.
No. 11 to FHWA
Develop and implement an Agencywide construction quality assurance fraud risk strategy, with associated guidance and training, that Divisions can use to prevent, detect, and respond to fraud risks.
No. 12 to FHWA
Update FHWA construction quality assurance related webpages to correct out-of-date information.
No. 13 to FHWA
Implement controls for maintaining current and complete construction quality assurance information on FHWA's website, including program office webpages and those on the Policy and Guidance Center.
Audit Report: QC2025020 issued on
Quality Control Review of the Management Letter for the Federal Aviation Administration’s Audited Consolidated Financial Statements for Fiscal Years 2024 and 2023
Recommendations Closed: 7 of 15
No. 1 to FAA
KPMG recommends that FAA management formally communicate to procurement system users' supervisors their responsibility to ensure that the system administrators are notified by the individual users or their supervisors when individuals separate from FAA.
No. 2 to FAA
KPMG recommends that FAA management provide procurement system administrators additional resources or tools, such as a reviewer checklist, to help facilitate adequate review of the procurement system New User ID Form and the annual procurement system User Recertification Request Forms prior to provisioning or recertifying user access to the procurement system, to include verifying that users are provisioned with the appropriate roles and approval thresholds.
No. 3 to FAA
KPMG recommends that FAA management design and implement a monitoring control to ensure procurement system administrators consistently verify that the procurement system new user and recertification forms were completed appropriately and signed by the authorized supervisor or COR for all active users prior to provisioning or recertifying user access to the procurement system.
No. 4 to FAA
KPMG recommends that FAA management implement measures to ensure the timely and accurate completion of the annual recertification of FAA employees with access to the service organization’s payroll system, in accordance with the reporting timeline prescribed by DOT (e.g., identifying specific individuals to serve as backup control operators, modifying the annual recertification timeline, or adopting other effective measures).
No. 5 to FAA
KPMG recommends that FAA management design and implement a procedure to identify and timely record contracting actions within the general ledger that were executed outside of the standard business process (i.e., CO authorizations documented outside of the procurement system).
No. 6 to FAA
KPMG recommends that FAA design and implement a procedure to periodically assess the risk associated with the final project allocations of costs incurred for project obligations with both capitalized and expensed costs, particularly when there has been a change in the scope of the project or there have been de-obligations of project funding. If management determines the risk related to the cost allocation is material, perform additional procedures to respond to the risk identified and determine if adjustments to project cost allocations are necessary.
No. 7 to FAA
KPMG recommends that FAA management ensure that its detailed financial reporting procedures for identifying and disclosing intragovernmental lease payments are consistent with its existing SFFAS 54 accounting policy for intragovernmental leases.
No. 8 to FAA
KPMG recommends that FAA management enforce its existing grant monitoring control procedures, such as strengthen quarterly inactive obligation reviews and requiring regions to certify completion of their dashboard review periodically and consider prioritizing the review of potential inactive grants based on historical grantee disbursement activity.
No. 9 to FAA
KPMG recommends that FAA management design and implement a procedure to review Q4 IIJA grant expense activity, used in the additional IIJA accrual, for outliers in the data (e.g., journal vouchers or unusually large invoices).
No. 10 to FAA
KPMG recommends that FAA management analyze the reasons for the change in the calculated average billing cycle for FY 2024 and document the impact on its grant accrual methodology as part of its annual retrospective review.
No. 11 to FAA
KPMG recommends that FAA management design and implement a policy or procedure to ensure the consistent fund classification of IIJA grants payable and related gross costs activity.
No. 12 to FAA
KPMG recommends that the ESC enforce its existing policy on evidencing the review and approval of journal vouchers (e.g., evidencing review manual journal vouchers with signature and/or certified electronic timestamp).
No. 13 to FAA
KPMG recommends that the ESC perform procedures to validate that FAA journal vouchers it recorded during FY2024 were authorized per its policy.
No. 14 to FAA
KPMG recommends that the ESC design a procedure to review the impact of proposed changes to its manual journal voucher controls prior to implementation.
No. 15 to FAA
KPMG recommends that AFM-300 update its quarterly financial reporting checklist or similar documentation to review amounts reported as federal transfers and non-federal donations during the period and verify that the corresponding journal entries are prepared accurately.
Audit Report: EC2025019 issued on
A More Systematic Approach Is Needed To Identify Potential Anticompetitive Bidding on Federal-Aid Highway Projects
Recommendations Closed: 1 of 1
No. 1 to FHWA
Amend FHWA guidance to recommend that State DOTs conduct frequent, regular, systematic reviews of procurements made over multiple years using specific statistics to identify anticompetitive bidding patterns and, to the extent practical, reduce reliance on historical data when developing engineer's estimates. FHWA implementation of this recommendation and application of the revised guidance by the State DOTs we analyzed could put up to $1.19 billion in funds to better use.