ABSTRACT

FTA Has Not Fully Implemented Key Internal Controls for Hurricane Sandy Oversight and Future Emergency Relief Efforts   [open pdf - 196KB]

"In October 2012, Hurricane Sandy caused widespread damage to the transportation infrastructure in the mid-Atlantic and northeastern sections of the United States. In response, the President signed the Disaster Relief Appropriations Act (DRAA), appropriating more than $10 billion to the Federal Transit Administration's (FTA) Public Transportation Emergency Relief Program (ERP). The ERP was established to provide funds for states and public transportation systems to protect, repair, or replace assets damaged in an emergency, such as a natural disaster. The program was also intended to improve coordination between the Department of Transportation (DOT) and the Department of Homeland Security (DHS) by expediting assistance to public transit providers in times of a major disaster or emergency. […] For this follow-up audit, we focused on DRAA's requirement for Federal agencies, including FTA, to employ internal control plans. The Office of Management and Budget (OMB) issued guidance for these plans, which stressed the need for rigorous oversight of Hurricane Sandy funds beyond standard business practices. DOT's internal control plan identified FTA's strategies for mitigating potential risks for its new ERP. FTA also developed an ERP Grant Making and Grants Management Toolkit (ERP Toolkit), which included a Hurricane Sandy Oversight Plan. Accordingly, our audit objectives were to (1) determine if FTA has fully implemented the processes, including internal controls, it established to award and oversee projects receiving Hurricane Sandy funds; (2) determine whether FTA has effective controls in place to reduce the risk of it duplicating payments that Hurricane Sandy grantees receive from DHS's Federal Emergency Management Agency (FEMA) and insurance companies; and (3) identify any issues that may have an impact on timely obligation and expenditure of FTA's Hurricane Sandy funds."

Report Number:
ST-2015-046
Publisher:
Date:
2015-06-12
Copyright:
Public Domain
Retrieved From:
U.S. Department of Transportation Office of the Inspector General: https://www.oig.dot.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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