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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-14-57-D We audited one large project (Project 558) for debris removal activities with an award totaling $4.46 million. The audit covered the period October 29, 2012, to September 16, 2013, during which the Township received an advance payment of $1.67 million of FEMA funding from the State. At the time of our audit, the Township had completed work under the project, but had not submitted any claims for reimbursement of project expenditures to the State. The Township provided us with a list of debris removal expenditures (labor, materials, and equipment; and contract costs) totaling approximately $4.6 million that it planned to claim to the State under the award. We used this list of expenditures to conduct the audit.

>FEMA Should Review the Eligibility of $689,138 of $5.57 Million in Public Assistance Grant Funds Awarded to Little Egg Harbor Township, New Jersey, for Hurricane Sandy Debris Removal Activities 		2014
OIG-14-58-D The New York State Division of Homeland Security and Emergency Services (State), a FEMA grantee, awarded Saltaire $13.2 million for damages resulting from Hurricane Sandy, which occurred on October 29, 2012. The award provided 90 percent funding for debris removal (Category A), emergency protective measures (Category B), and permanent work (Categories C–G) for 13 projects (9 large and 4 small projects).1 We audited 10 of the 13 projects totaling $12.97 million or 98 percent of the award (see exhibit). The audit covered the period October 27, 2012, through July 23, 2013, during which Saltaire claimed $347,288 for work in our audit scope. At the time of our fieldwork, insurance covered a small amount of storm-related damage. 1

>The Village of Saltaire, New York, Generally Managed FEMA’s Public Assistance Grant Funds Effectively 		2014
OIG-14-59 We have audited the accompanying consolidated financial statements of the U.S. Customs and Border Protection (CBP), which comprise the consolidated balance sheets as of September 30, 2013 and 2012, and the related consolidated statements of net cost, changes in net position, and custodial activity, and combined statements of budgetary resources for the years then ended, and the related notes to the consolidated financial statements.

>Independent Auditors’ Report on U.S. Customs and Border Protection’s FY 2013 Financial Statement 		2014
OIG-14-60 The independent public accounting firm KPMG LLP conducted the audit of DHS’ FY 2013 financial statements and is responsible for the attached management letter dated January 15, 2014, and conclusions expressed in it. We do not express opinions on DHS’ financial statements or internal control, nor do we provide conclusions on compliance with laws and regulations

>Management Letter for the FY 2013 DHS Financial Statements and Internal Control over Financial Reporting Audit 		2014
OIG-14-61 The audit objectives were to determine whether Idaho used State Homeland Security Program grant funds in accordance with the law, program guidance, state homeland security strategies, and other applicable plans. We also addressed the extent to which funds awarded enhanced the ability of Idaho grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded Idaho about $14.5 million in State Homeland Security Program grants during fiscal years 2010 through 2012. Idaho does not have a FEMA-designated urban area; therefore, it did not receive Urban Areas Security Initiative grant funds.

>Idaho’s Management of Homeland Security Grant Program Awards For Fiscal Years 2010 Through 2012 		2014
OIG-14-62 The audit objective was to determine whether Alaska used Homeland Security Grant Program funds in accordance with the law, program guidance, and state homeland security plans and other applicable plans. We also addressed the extent to which funds awarded enhanced the ability of grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded Alaska approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010 through 2012.

>Alaska’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-63-D The City received a Public Assistance grant award of $130.2 million from the Mississippi Emergency Management Agency (.State), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal activities, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 85 large projects and 52 small projects.1 This is our second audit of this subgrantee; the first audit resulted in OIG Audit Report DA-08-08: Audit of Hurricane Katrina Activities for City of Waveland, Mississippi, July 17, 2008. We conducted this audit because of a complaint that our Office of Investigations received in February 2011. The complainant alleged that the City's sewer system contractor had overcharged the City for installing temporary bladder tanks as a temporary sewer collection system. We did not audit these costs during our previous 2008 audit because, at the time, the City had not completed the work. Therefore, we limited this audit to $5.2 million FEMA awarded the City under Projects 4916 and 4917 for the installation of a temporary sewer collection system (.See Exhibit, Schedule of Projects Audited and Questioned Costs). The audit covered the period from August 29,2005, to July 26, 2013, during which the City claimed $5.2 million in FEMA funds for the two projects. At the time of our audit, the City had not completed work on some of its projects and; therefore, had not submitted a final claim to the State for all project expenditures.

>FEMA Should Recover $1.7 Million of Public Assistance Grant Funds Awarded to the City of Waveland, Mississippi – Hurricane Katrina ( 		2014
OIG-14-64 (Revised) Our audit objective was to determine whether the Department of Homeland Security (DHS) complied with the Act in fiscal year 2013. In addition, we also evaluated the accuracy and completeness of DHS’ improper payment reporting and its efforts to reduce and recover improper payments for fiscal year 2013. Although DHS met all the reporting requirements of the Act, it did not meet its annual reduction targets established for each program deemed susceptible to improper payments. As such, we concluded that DHS did not fully comply with IPERA. We reviewed the accuracy and completeness of DHS’ improper payment reporting and DHS’ efforts to reduce and recover improper payments.

>Department of Homeland Security’s FY 2013 Compliance with the Improper Payments Elimination and Recovery Act of 2010 (Revised) 		2014
OIG-14-65 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of U.S. Customs and Border Protection’ (CBP) fiscal year (FY) 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 19, 2014, and the conclusions expressed in it.

>Management Letter for the U.S. Customs and Border Protection’s FY 2013 Consolidated Financial Statements 		2014
OIG-14-66 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>U.S. Immigration and Customs Enforcement’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-67 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>National Protection and Programs Directorate’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-68 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>Federal Law Enforcement Training Center’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-69 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>United States Coast Guard’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-70 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>Intelligence and Analysis’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-71 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>U.S. Citizenship and Immigration Services’ Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-72-D We audited one large project (Project 150) for debris removal activities with an award totaling $5.4 million. The audit covered the period from October 29, 2012, to December 2, 2013, during which the Borough received an advance payment of $2.0 million from the State. At the time of our audit, the Borough had completed work under the project, but had not submitted any claims for reimbursement of proect expenditures to the State. The Borough provided us with a list of debris removal expenditures (force account and contract) totaling approximately $6.9 million that it planned to claim to the State under the award.2 We used this list of expenditures to conduct the audit. We conducted this performance audit between May 2013 and December 2013 pursuant to the InspectorfGeneralfActfoff1978, as amended.

>FEMA Should Review the Eligibility of $523,007 of $5.4 Million in Public Assistance Grant Funds Awarded to the Borough of Belmar, New Jersey, for Hurricane Sandy Debris Removal Activities 		2014
OIG-14-73 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>Management Directorate’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-74 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>United States Secret Service’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-75 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>The Office of Financial Management’s Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-76 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the Federal Emergency Management Agency Component of the FY 2013 Department of Homeland Security Financial Statement Audit 		2014
OIG-14-77 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it.

>Federal Emergency Management Agency's Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-78 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it.

>Office of Health Affairs' Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-79 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it.

>Transportation Security Administration's Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-80 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the USCIS Component of the FY 2013 DHS Financial Statement Audit 		2014
OIG-14-81 The objectives of the audit were to determine whether Iowa distributed, administered, and spent State Homeland Security Program grant funds strategically, effectively, and in compliance with laws, regulations, and guidance. We also addressed the extent to which funds awarded enhanced the ability of Iowa grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded Iowa approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010–12. Iowa does not have an urban area designated by FEMA; therefore, it did not receive Urban Areas Security Initiative grant funds during this period.

>Iowa’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-82 According to DHS, during fiscal year 2012, DHS components hosted or sponsored 35 conferences exceeding $100,000 at atotal cost of$7.5 million. We conducted this audit as a follow-on to our prior report DHS' Policies and Procedures Over Conferences, OIG-13-96, to determine whether the DHS conference spending was appropriate, reasonable, and necessary. The amount DHS spent on conferences was appropriate, reasonable, and necessary in most instances. Conference packages submitted for approval stated the purpose of the conference. In addition, the conference agenda reflected appropriate content and encompassed full working days for the attendees. In many instances, the components made an effort to reduce conference costs by limiting the number of attendees and selecting a location within the local area.

>DHS Conference Spending 		2014
OIG-14-83 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG isresponsible for the attached management letter dated January 15, 2014, and the conclusions expressed in it

>Science and Technology Directorate's Management Letter for FY 2013 DHS Financial Statements Audit 		2014
OIG-14-84 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the FLETC Component of the FY 2013 DHS Financial Statement Audit 		2014
OIG-14-85 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the Immigration and Customs Enforcement Component of the FY 2013 Department of Homeland Security’s Financial Statement Audit 		2014
OIG-14-86 The audit objectives were to determine whether Maine used State Homeland Security Program grant funds in accordance with the law, program guidance, state homeland security strategies, and other applicable plans. We also addressed the extent to which grant funds enhanced the ability of grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. We reviewed approximately $14.5 million in State Homeland Security Program grants awarded to Maine during fiscal years 2010 through 2012. Maine did not receive Urban Areas Security Initiative grant funds.

>Maine's Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-87 After the Federal Emergency Management Agency (FEMA) reduced the amount ofawards in fiscal years 2011 and 2012, Alabama decided that funding statewide initiatives to assist all local jurisdictions was more beneficial than allocating smaller amounts to individual jurisdictions. The Alabama Department of Homeland Security’s investment in statewide projects may have been more beneficial and a good use of limited grant funds. Alabama, however, did not obtain the required consent of local units of government before funding the statewide initiatives. It also did not have a current state homeland security strategy and a method to measure preparedness, nor did it always follow an established internal control to approve expenditures. In most cases, subgrantees complied with procurement requirements, but they did not always comply with inventory and property record requirements.

>Alabama's Management of State Homeland Security Program Grants Awarded During Fiscal Years 2010 Through 2012 		2014
OIG-14-88 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the U.S. Coast Guard Component of the FY 2013 DHS Financial Statement Audit 		2014
OIG-14-89 The audit objectives were to determine whether the State distributed and spent State Homeland Security Program grant funds effectively and efficiently, and in compliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced the State’s ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded the State approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010 through 2012.

>South Dakota’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-90 The audit objectives were to determine whether North Dakota distributed and spent State Homeland Security Program grant funds effectively and efficiently, and in compliance with applicable Federal laws and egulations. We also addressed the extent to which grant funds enhanced North Dakota’s ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded the State approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010 through 2012.

>North Dakota’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-91-D The objective of the audit was to determine the efficiency and effectiveness of FEMA policies and procedures concerning disaster grant costs associated with permanently relocated facilities. Specifically, we determined whether (1) FEMA’s present policies and procedures effectively address how FEMA should use program income to offset permanently relocated facility costs; and (2) internal controls were in place to identify when applicants receive program income to offset permanently relocated facility costs. The audit included a review of costs for permanently relocated damaged facilities in Mississippi and Louisiana for Hurricane Katrina and in Texas for Hurricane Ike.

>FEMA Could Realize Millions in Savings by Strengthening Policies and Internal Controls Over Grant Funding for Permanently Relocated Damaged Facilities 		2014
OIG-14-92 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of the DHS’ FY 2013 financial statements and internal control over financial reporting. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated December 11, 2013, and the conclusions expressed in it.

>National Flood Insurance Program’s Management Letter for FY 2013 DHS Financial Statements Audit (Redacted) 		2014
OIG-14-93 The audit objectives were to determine whether New Hampshire distributed, administered, and spent State Homeland Security Program grant funds strategically, effectively, and in compliance with laws, regulations, and guidance. We also addressed the extent to which funds awarded enhanced the ability of state grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other anmade disasters. The Federal Emergency Management Agency (FEMA) awarded New Hampshire approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010 through 2012

>New Hampshire’s Management of State Homeland Security Program Grants Awarded During Fiscal Years 2010 Through 2012 		2014
OIG-14-94 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the FY 2013 Department of Homeland Security’s Financial Statement Audit 		2014
OIG-14-95-D We audited Public Assistance funds awarded to St. Stanislaus College Preparatory (St. Stanislaus) located in Bay Saint Louis, Mississippi (FIPS Code 045-22226-00). St. Stanislaus received a Public Assistance grant award of $26.6 million from the Mississippi Emergency Management Agency (State), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal activities, emergency protective measures, and repairs to permanent buildings and facilities. The award consisted of 26 large projects and 11 small projects. We audited four large projects with awards totaling $11.2 million (see Exhibit, Schedule of Projects Audited and Questioned Costs). The audit covered the period of August 29, 2005, to February 19, 2013, during which St. Stanislaus claimed $12.2 million in FEMA funds for the four projects. At the time of our audit, St. Stanislaus had not completed work on all projects and, therefore, had not submitted a final claim to the State for all project expenditures.

>FEMA Should Recover $8.0 Million of $26.6 Million in Public Assistance Grant Funds Awarded to St. Stanislaus College Preparatory in Mississippi – Hurricane Katrina 		2014
OIG-14-96 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the FY 2013 United States Customs and Border Protection Financial Statement Audit 		2014
OIG-14-97 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the FY 2013 Department of Homeland Security’s Financial Statement Audit – National Protection and Programs Directorate 		2014
OIG-14-98 We contracted with the independent public accounting firm KPMG LLP (KPMG) to conduct the audit of Department of Homeland Security fiscal year 2013 consolidated financial statements. The contract required that KPMG perform its audit according to generally accepted government auditing standards and guidance from the Office of Management and Budget and the Government Accountability Office. KPMG is responsible for the attached management letter dated March 11, 2014, and the conclusion expressed in it.

>Information Technology Management Letter for the Transportation Security Administration Component of the FY 2013 Department of Homeland Security Financial Statement Audit 		2014
OIG-14-99 Radio frequency identification technology is a form of automatic identification and data capture teclogy that uses electric or magnetic fields at radio frequencies to transmit information. Our overall objective was to determine whether USCIS has effectively managed the implementation of radio frequency identification technology. We determined that USCIS has effectively managed the implementation of radio frequency identification technology by establishing an information technology infrastructure to secure personal information and implementing safeguards to minimize the risk of using radio frequency identification-enabled permanent resident cards. For example, USCIS has granted its card production system the authority to operate, evaluated privacy implications of using the system, and ensured that no personal data is transmitted by permanent resident cards. However, USCIS had not deployed timely security patches on the servers and workstations that support radio frequency identification processes, assessed annually the effectiveness of security controls implemented on the system that produces radio frequency identification cards, or ensured employees producing these cards receive the mandatory annual privacy awareness training.

>Radio Frequency Identification Security at USCIS Is Managed Effectively, But Can Be Strengthened 		2014
OIG-15-01-D The Administrators of the Tulane Educational Fund(Tulane) received a Federal Emergency Management Agency (FEMA) Public Assistance award of $291.9 Million for damages caused by Hurricane Katrina in August 2005. The objective our audit was to determine whether Tulane accounted for and expended the FEMA grant funds correctly. Tulane’s contractor could not support or justify $13.0 million of the $36.1 million (gross) that we audited. These findings occurred because (1) the contractor could not show that it actually incurred the costs that it billed Tulane; (2) Tulane did not ensure that its contractor’s billings were valid, eligible, and supported; and (3) Louisiana, as the grantee, did not effectively execute its responsibilities to ensure compliance with Federal regulations and FEMA guidelines.

>FEMA Should Recover $13 Million of Grant Funds Awarded to The Administrators of the Tulane Educational Fund, New Orleans, Louisiana 		2015
OIG-15-02-D The Hospital received an award of $110 million from the Indiana Department of Homeland Security, a FEMA grantee, for damages caused by severe storms and flooding that occurred May 30, through June 27, 2008. Our objective of the audit was to determine whether the Hospital accounted for and expended FEMA grant funds according to federal regulations and FEMA guidelines. Columbus Regional Hospital, Columbus Indiana, (Hospital) generally accounted for FEMA projects on a project-by-project basis as Federal regulations and FEMA guidelines require. However, the Hospital’s claim included ineligible costs.

>FEMA Should Recover $3 Million of Ineligible Costs And $4.3 Million of Unneeded Funds from the Columbus Regional Hospital 		2015
OIG-15-03-D The County received over $24 million in Public Assistance awards for three federally declared flooding events. Our objective was to determine whether the County accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. The County has procedures in place to account for disaster-related costs on a project-by-project basis. The County however, has completed very little of the work FEMA approved for the three federally declared disasters. At the time of our field work, the County did not have sufficient records available for us to determine whether the County is fully capable of managing the three Federal grants.

>The State of North Dakota Needs to Assist Ramsey County in Completing $24 Million of FEMA Public Assistance Projects for Three Federally Declared Disasters that Occurred in 2009–2011 		2015
OIG-15-04-IQO The Office of Integrity and Quality Oversight, Investigations Quality Assurance Division conducted an oversight review of the Federal Law Enforcement Training Center, Office of Professional Responsibility from June 2014 to August 2014. The review covered OPR activity from October 1, 2011, (FY 2012) to June 1, 2014 (FY 2014). We found that the Office of Professional Responsibility generally complied with applicable directives, policies, guidelines, and investigative standards. We observed commendable practices with the thoroughness of investigations, the quality of reports, and the productive relationships maintained with operational entities within the Federal Law Enforcement Training Center. We found particular issues with the agency’s underreporting of complaints to the Office of Inspector General, the absence of annual Law Enforcement Availability Pay documentation and certifications, and weaknesses in safeguarding evidence. We made 21 recommendations to the Office of Professional Responsibility Division Chief who agreed with them in whole or in part. There are no open recommendations in this report.

>Oversight Review of the Department of Homeland Security Federal Law Enforcement Training Center Office of Professional Responsibility 		2015
OIG-15-05 The Coast Guard has undertaken a project to modernize information technology onboard certain ships and aircraft. This technology is referred to collectively as Command, Control, Communication, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems. The C4ISR project is a major information technology investment with an acquisition life cycle cost of $1.5 billion through fiscal year 2026. The Coast Guard has implemented information technology systems that effectively support the mission needs of some ships and aircraft. Specifically, the systems have met overall performance requirements and have improved operational capabilities, including increased situational awareness, better communication within the Coast Guard and with its partners, and enhanced sensor capabilities. The Coast Guard, however, has not carried out some planned system enhancements that were necessary to support mission needs of certain aircraft and legacy ships. These enhancements were not carried out because of significant budget reductions. Revised plans do not fully address how the Coast Guard will meet the critical technology needs of these aircraft and legacy ships. As a result, these ships and aircraft continue to rely on obsolete technology which impacts mission performance and makes operations and maintenance more difficult and costly.

>U.S. Coast Guard Command, Control, Communication, Computers, Intelligence, Surveillance, and Reconnaissance Modernization 		2015
OIG-15-06-D Between 1994 and 2013, FEMA operated seven Long Term Recovery Offices. FEMA obligated and spent more than $4 billion in administrative costs and more than $1 billion in salaries for these offices. Our audit objective was to determine whether FEMA’s policies, procedures, and performance measures for establishing, operating, and closing Long Term Recovery Offices meet Federal statutes and are consistently applied. FEMA does not track costs or data associated with performance measures for Long Term Recovery Offices. Without tracking costs or data, FEMA cannot determine whether these offices are cost effective. FEMA establishes, operates, and closes Long Term Recovery Offices without standardized policies, procedures, and performance measures. Without these controls in place, FEMA is at risk for mismanagement of Federal disaster funds and cannot ensure consistency in establishing and managing these offices. Correcting these deficiencies will provide FEMA the information and guidance it needs to determine whether Long Term Recovery Offices are cost effective. In addition, FEMA can better ensure consistency in establishing and managing these offices.

>FEMA Needs To Track Performance Data and Develop Policies, Procedures, and Performance Measures for Long Term Recovery Offices 		2015
OIG-15-07 The U.S. Office of Special Counsel (OSC) received a whistleblower disclosure concerning U.S. Customs and Border Protection’s Ysleta Border Patrol Station (Ysleta Station) in El Paso, Texas. The whistleblower alleged that supervisors and border patrol agents at the Ysleta Station claim administratively uncontrollable overtime (AUO), but fail to perform duties that qualify for AUO. The whistleblower also alleged that supervisors at the Ysleta Station authorize AUO to compensate injured agents who are assigned administrative duties and are not working overtime hours. OSC referred this allegation to DHS Acting Secretary Rand Beers. The Department subsequently requested our assistance with this allegation and several other AUO-related allegations from other DHS components. We assembled a taskforce of auditors, program analysts, investigators, and attorneys to review these allegations. Federal regulations allow agencies to pay AUO annually to employees in positions that require substantial amounts of irregular or occasional overtime work and in which the hours of duty cannot be controlled administratively. Ysleta Station did not have sufficient AUO documentation to allow us to specifically identify a violation of law, rule, or regulation. However, most activities that second-line supervisory border patrol agents performed during AUO hours and some activities that first-line supervisory agents and nonsupervisory agents performed appear to have been administratively controllable. We did not find evidence to substantiate that Ysleta Station agents who sustained work-related injuries were paid AUO improperly.

>Evaluation of Alleged AUO Misuse at U.S. Border Patrol, Ysleta Station 		2015

*NDAA, Pub. L. 117-263, section 5274 Response Received. View responses

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