Office of the Inspector General: Review of Seven Offices by Michael Erbschloe - HTML preview

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U.S. Department of Transportation OIG

 

The Office of Inspector General (OIG) is committed to fulfilling its statutory responsibilities and supporting members of Congress, the Secretary, senior Department officials, and the public in achieving a safe, efficient, and effective transportation system. Since OIG was established in 1979, we have been dedicated to providing independent and objective reviews of the economy, efficiency, and effectiveness of Department of Transportation (DOT) programs and operations, and to detecting and preventing fraud, waste, abuse, and criminal violations of laws affecting DOT.

 

By law, the Inspector General (IG) reports to the Secretary of Transportation and Congress. OIG is the principal law enforcement office within DOT with authority to carry firearms, execute warrants, and make arrests. OIG often collaborate with other Federal, State, and local law enforcement entities, and must report possible criminal violations to the U.S. Attorney General. OIG’s Office of Investigations also manages our Hotline Complaint Center that is staffed 24 hours a day, 7 days a week. This office is also responsible for investigating whistleblower complaints, including those referred by the U.S. Office of Special Counsel.

 

OIG’s Office of Auditing and Evaluation is comprised of auditors, analysts, information technology experts, economists, statisticians, engineers, accountants, and other subject matter experts. In addition to performance audits aimed at improving the economy, efficiency, and effectiveness of transportation programs, our audit staff specialize in financial management, information technology, and acquisition and procurement audits. While OIG’s work is akin to that of private sector auditors and management consultants, OIG reports are made available to the public via the USDOT website.

 

OIG neither issues regulations nor sets departmental policy. OIG’s role is to provide facts for the policy-makers in the Department and Congress. One of OIG’s key deliverables is our statutorily required annual report on DOT’s top management challenges (TMC), which provides a forward looking assessment for the coming fiscal year to aid DOT’s operating administrations in focusing attention on the most serious management and performance issues facing the Department. For fiscal year 2019, OIG identified eight major challenges facing DOT:

 

1. Effectively implementing FAA’s new safety oversight strategy

2. Protecting against a wide range of threats to aviation safety and security

3. Maintaining focus on the railroad industry’s implementation of positive train control

4. Improving NHTSA’s data use, processes, and oversight of vehicle safety defects

5. Providing effective stewardship over surface infrastructure safety and investments

6. Modernizing the National Airspace System while introducing new capabilities and making sound investment decisions

7. Systematizing cybersecurity strategies to deter surging cyber threats

8. Harnessing innovative procurement and financing practices while maintaining oversight of acquisitions, grants, and assets

 

OIG investigates allegations of fraud, waste, abuse, and other violations of law by DOT employees, contractors, grantees, and regulated entities. Some of the most significant issues we investigated fiscal year 2019 include:

  • Highway safety. A Virginia trucking company was ordered to pay $3.25 million in forfeiture, fines, and restitution for violating FMCSA safety regulations designed to prevent fatigue related crashes.
  • Hazardous waste materials safety. As a result of OIG investigation, a Michigan man was convicted for a scheme to distribute human body parts infected with diseases (such as HIV and hepatitis) to customers requesting cadavers for medical and dental training.
  • Employee integrity. OIG special agents brought a former FAA employee to justice for making thousands of dollars in unauthorized personal purchases and cash withdrawals using Government credit cards.
  • Grant and procurement fraud. A New York R&D firm agreed to forfeit nearly $5 million in assets after our investigation uncovered its multimillion-dollar research grant fraud scheme.
  • Aviation safety. As a result of OIG investigation, a South Florida man was sentenced to 7 years in prison for multiple fraud schemes against FAA, including flying a commercial carrier without an airman’s certificate.
  • Amtrak. A former Amtrak contracting officer plead guilty to a $7.6-million bribery scheme in which he steered contracts and provided pricing information to a company for about $20,000 in bribes and other valuable items, including trips to the beach.
  • Disadvantaged Business Enterprise (DBE) fraud. OIG special agents brought a Pennsylvania bridge painting contractor and project manager to justice for their involvement in a $4.5-million DBE fraud scheme.

 

 

OIG conducts independent and objective audits and reviews of DOT programs and activities to ensure they operate economically, efficiently, and effectively. Some of the significant issues reviewed fiscal year 2019 include:

  • Detention and delays. OIG estimates that average truck crash rates increase 6.2% with every 15 minutes a truck is delayed at a shipping and receiving facility. Detention may also reduce driver and carrier income over $1 billion annually.
  • NextGen. FAA manages $1.7 billion in NextGen developmental projects using project level agreements. However, 12 of the 22 agreements OIG sampled did not align with FAA's high-priority areas.
  • Cybersecurity. In all five function areas (Identify, Protect, Detect, Respond, and Recover), OIG found DOT's information security program and practices to be at the Defined maturity level—the second lowest tier of the information security maturity model.
  • Referral of criminal activity. OIG made recommendations to help DOT and its Operating Administrations help enable prompt referrals of fraud, waste, abuse, or other criminal violations to DOT OIG.
  • FAA’s office and warehouse leases. FAA’s office and warehouse leases represent a potential value of $1.4 billion. OIG estimates that FAA could have put $37.6 million to better use by addressing various weaknesses in its management of leased offices and warehouses.
  • FAA’s maintenance technicians. As directed by the House Committee on Appropriations, OIG assessed FAA’s plans for hiring and placing its approximately 6,000 maintenance technicians who play a vital role in repairing, replacing, and certifying air traffic equipment.
  • Light passenger vehicle recalls. OIG audit found that NHTSA’s management of light passenger vehicle recalls lacks adequate processes for monitoring recalls and verifying recall completion rates.