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Audits, Inspections, and Evaluations

Report Number Title Issue Date Fiscal Year
OIG-15-11 The U.S. Office of Special Counsel (OSC) received a whistleblower disclosure concerning employees at U.S. Customs and Border Protection’s (CBP) National Targeting Center–Cargo, in Herndon, Virginia and the National Targeting Center– Passenger, in Reston, Virginia. The whistleblower alleged that employees in both locations regularly claim administratively uncontrollable overtime (AUO), but fail to perform duties that qualify for AUO. 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. The National Targeting Center did not have sufficient AUO documentation to allow us to specifically identify a violation of law, rule, or regulation. However, most of the tasks employees performed during AUO hours appear to have been administratively controllable.

>Evaluation of Alleged AUO Misuse at U.S. Customs and Border Protection's National Targeting Center 		2014
OIG-15-14 This report responds to the annual reporting requirement and summarizes 18 audits completed in fiscal year 2014. The audits included about $447 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded by the Federal Emergency Management Agency (FEMA) to 13 states, 4 territories, and the District of Columbia during 3-year periods between fiscal years 2009 and 2012. During fiscal year 2014, we issued reports for Alabama, Alaska, American Samoa, Delaware, District of Columbia, Guam, Hawaii, Idaho, Iowa, Maine, New Hampshire, North Dakota, Northern Mariana Islands, Oregon, Puerto Rico, South Dakota, Vermont, and Wyoming. In most instances, the states and urban areas administered grant programs efficiently and effectively and in compliance with grant guidance and regulations. We also identified one innovative practice that other jurisdictions could consider using. We identified two major areas for improvement: strategic planning and oversight of grant activities. We also identified about $14.5 million in questioned costs.

>Annual Report to Congress on States’ and Urban Areas’ Management of Homeland Security Grant Programs Fiscal Year 2014 		2015
OIG-15-12-D The District received a Public Assistance grant award of $4.9 million for damages resulting from Hurricane Katrina, which occurred in August 2005. Our audit objective was to determine whether the District accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. For the projects we reviewed, the Gulfport School District, Mississippi, (District) properly accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines.

>Gulfport School District, Mississippi, Properly Accounted for and Expended FEMA Public Assistance Grant Funds Awarded for Hurricane Katrina Damages 		2015
OIG-15-10 The independent public accounting firm, KPMG LLP, has issued an unmodified (clean) opinion on the Department of Homeland Security's (DHS) consolidated financial statements. In the independent auditors’ opinion, the financial statements present fairly, in all material respects, the financial position of DHS as of September 30, 2014.

>Independent Auditors' Report on DHS' FY 2014 Financial Statements and Internal Control over Financial Reporting 		2015
OIG-15-09 We have identified major challenges that affect both the Department as a whole, as well as individual components. DHS must continually seek to integrate management operations under an authoritative governing structure capable of effectively overseeing and managing programs that cross component lines. DHS’ mission to protect the Nation from domestic and international threats and respond to natural and manmade disasters is further challenged by the unpredictable nature of these hazards. DHS must overcome the challenges inherent with uniting the Department under the Secretary’s Unity of Effort Initiative, as well as those over which it has little control. This year, we are reporting the Department’s major challenges in the following areas: (1) DHS Operations Integration, (2) Acquisition Management, (3) Financial Management, (4) IT Management and Privacy Issues, (5) Transportation Security, (6) Border Security and Immigration Enforcement. (7) Grants Management, (8) Employee Accountability and Integrity, (9) Infrastructure Protection, Cybersecurity, and Insider Threat

>Major Management and Performance Challenges Facing the Department of Homeland Security 		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
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-15-05 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-15-04-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-15-03-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-15-02-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-15-01-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-14-147 HSGP guidance requires a state administrative agency to administer and manage grant funding awarded under the HSGP. According to the District of Columbia Homeland Security and Emergency Management Agency (DCHSEMA), in March 2007, it was designated as the state administrative agency for HSGP. As such, DC HSEMA is responsible for managing the SHSP and UASI grants in accordance with established Federal guidelines. DC HSEMA was allocated SHSP grant funds for the District of Columbia, as well as UASI grant funds for the National Capital Region (NCR). During fiscal years (FYs) 2010 through 2012, FEMA awarded the DC HSEMA SHSP and UASI grant funds totaling about $189 million. Figure 1 illustrates the UASI funding the NCR received and the SHSP funding the District of Columbia received over the 3 year period. UASI funding for the NCR averaged about $57 million per year during FYs 2010 through 2012, the period covered by our audit. The District of Columbia received its highest level of SHSP funding in FY 2010, but faced a decline of more than $7 million from FYs 2010 to 2012

>District of Columbia’s Management of Homeland Security Grant Program Awards for Fiscal Years 2010 Through 2012 		2014
OIG-14-151 We audited the Federal Emergency Management Agency’s (FEMA) Logistics Supply Chain Management System program. According to FEMA, the Logistics Supply Chain Management System replaced its earlier logistics operations systems to automate and track distribution better and deliver emergency supplies more dependably. FEMA also intended for the system to help track supplies provided by partners in other Federal agencies; nongovernmental organizations; state, local, and tribal governments; and the private sector. Our audit objective was to determine whether FEMA’s Logistics Supply Chain Management System is able to support Federal logistics operations effectively in the event of a catastrophic disaster. After spending about $247 million over 9 years, FEMA cannot be certain that its supply chain management system will be effective during a catastrophic disaster. FEMA estimated that the life cycle cost of the system would be about $556 million—$231 million more than the original life cycle cost estimate. According to FEMA, the Logistics Supply Chain Management System became fully operational in January 2013, which was about 19 months behind schedule. However, the system could not perform as originally planned. Specifically, it cannot interface with the logistics management systems of FEMA’s partners, nor does FEMA have real time visibility over all supplies shipped by its partners. As of March 2014, the Logistics Supply Chain Management System still had not achieved full operational capability. We attribute these deficiencies to inadequate program management and oversight by the Department of Homeland Security (DHS) and FEMA. As a result, FEMA may not be able to efficiently and effectively aid survivors of catastrophic disaster.

>FEMA’s Logistics Supply Chain Management System May Not Be Effective During a Catastrophic Disaster 		2014
OIG-14-149-D We audited Public Assistance grant funds awarded to the East St. Tammany Events Center (Center) in Slidell, Louisiana, (Public Assistance Identification Number 103-USUFP-00). Our audit objective was to determine whether the Center accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, awarded the Center $3.7 million ($2.8 million after insurance reductions) for damages resulting from Hurricane Katrina, which occurred on August 29, 2005. The award provided 100 percent funding for four large and nine small projects. 1 The audit covered the period August 29, 2005, through July 31, 2014, the cutoff date of our audit, and included a review of all projects, or 100 percent of the total award (see Exhibit, Schedule of Projects Audited). As of our cutoff date, the Center had claimed $2.7 million and had completed all projects.

>East St. Tammany Events Center Generally Followed Regulations for Spending FEMA Public Assistance Funds 		2014
OIG-14-152-D Our audit objective was to determine whether the Utility District accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines. The Utility District received a Public Assistance grant award of $2.5 million from the Mississippi Emergency Management Agency (Mississippi), 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 three large projects and six small projects.

>West Jackson County Utility District, Mississippi, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Hurricane Katrina Damages 		2014
OIG-14-148-D he Louisiana Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, awarded the Foundation $11.2 million for damages resulting from Hurricane Katrina, which occurred on August 29, 2005. The award provided 100 percent funding for 12 large projects.1 The audit covered the period August 29, 2005, through January 9, 2014, the cutoff date of our audit, and included a review of 12 large projects totaling $11.2 million, or all projects (see Exhibit, Schedule of Projects Audited).2 At the time of our audit, the Foundation had completed all 12 projects and had claimed $5.3 million, but had not requested any projects be closed. Therefore, all of the projects remained open.

>FEMA Should Disallow $9.6 Million of Disaster-Related Costs Incurred by the University of New Orleans Research and Technology Foundation, New Orleans, Louisiana 		2014
OIG-14-150-D We audited Hazard Mitigation Grant Program (HMGP) funds the Federal Emergency Management Agency (FEMA) awarded to the State of Louisiana from September 2005 through March 2014. Our objectives were to determine (1) the amount of HMGP funds FEMA authorized; (2) the amount of HMGP funds FEMA obligated; and (3) the progress the Governor’s Office of Homeland Security and Emergency Preparedness (Louisiana), a FEMA grantee, is making in closing approved HMGP grants.

>FEMA and the State of Louisiana Need to Accelerate the Funding of $812 Million in Hazard Mitigation Grant Program Funds and Develop a Plan to Close Approved Projects ( 		2014
OIG-14-146-D The County received a Public Assistance award of $6.2 million from the Georgia Emergency Management Agency (Georgia), a FEMA grantee, for damages resulting from tornadoes and strong winds, which occurred in April 2011. The award provided 75 percent FEMA funding for debris removal activities and emergency protective measures. The award consisted of 5 large projects and 14 small projects

>Catoosa County, Georgia, Effectively Managed FEMA Public Assistance Grant Funds Awarded for Severe Storms and Flooding in April 2011 		2014
OIG-14-145-D We audited Public Assistance grant funds awarded to the City of Cedar Rapids, Iowa (City) (Public Assistance Identification Number 113-12000-00). Our overall audit objective was to determine whether the City accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The specific objective of this phase of the audit was to determine whether FEMA (1) correctly applied the "50 Percent Rule" when deciding to replace, rather than repair, City facilities, and (2) properly approved facility relocations.

>FEMA’s Incorrect Decisions to Replace Rather than Repair Facilities in Cedar Rapids, Iowa Cost Taxpayers Over $12 Million 		2014
OIG-14-142 The Transportation Security Administration (TSA) is responsible for protecting the Nation's transportation systems to ensure freedom of movement for people and commerce. As part of its mission, TSA screens checked baggage to deter, detect, and prevent the carriage of any prohibited items, such as explosives and incendiaries, onboard passenger commercial aircraft. TSA primarily relies on its screening workforce and two types of equipment to screen checked baggage - explosives detection systems and explosives trace detection. Through covert testing conducted at domestic airports, we determined whether Transportation Security Officers were following established policies and procedures to prevent threat items from being placed onto commercial aircraft. We also determined the operational effectiveness of TSA's checked baggage screening technology. We identified vulnerabilities in this area caused by human and technology-based failures.

>(U) Vulnerabilities Exist in TSA's Checked Baggage Screening Operations 		2014
OIG-14-143-D Our audit objective was to determine whether the Village’s policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process to identify areas where the Village may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses.

>The Village of Corrales, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-144 An anonymous whistleblower alleged that USBP agents assigned to headquarters “illegally claim” AUO daily but do not perform duties justifying their AUO claims. Further, the whistleblower asserted that, “the duties and responsibilities of Border Patrol headquarters employees are regular, predictable, and controllable and that headquarters work is not sufficiently urgent to warrant the use of AUO.”

>Evaluation of Alleged AUO Misuse at U.S. Border Patrol Headquarters ( 		2014
OIG-14-141-D Our audit objective was to determine whether the Department’s policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process to identify areas where the Department may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses.

>New York City Department of Correction Has Adequate Policies, Procedures, and Business Practices in Place to Effectively Manage FEMA Public Assistance Grant Funds 		2014
OIG-14-140 This report presents our annual review of the United States Coast Guard’s (USCG) mission performance, as required by the Homeland Security Act of 2002. The act defines the USCG’s 11 statutory missions as either non homeland security missions or homeland security. The act also prohibits the Secretary of Homeland Security from substantially reducing any of the USCG’s missions after its transfer to the Department of Homeland Security, except as specified in subsequent acts.

>Annual Review of the United States Coast Guard's Mission Performance (FY 2013) 		2014
OIG-14-136-D Our audit objective was to determine whether the City's policies, procedures, and business practices are adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process to identify areas where the City may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early in the grant cycle, grant recipients have the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding.

>The City of Albuquerque, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-137 The Department of Homeland Security (DHS) Visa Security Program is intended to prevent terrorists, criminals, and other ineligible applicants from receiving visas. DHS assigns special agents with expertise in immigration law and counterterrorism to U.S. diplomatic posts overseas to perform visa security activities . We reviewed the program’s effectiveness in preventing ineligible applicants from receiving U.S. visas; DHS’ annual reporting to Congress on the program’s expansion; and the efforts to expand the program to additional overseas posts, including the potential impact of a new initiative, the Pre ‐ Adjudicated Threat Recognition and Intelligence OperationsTeam.

>The DHS Visa Security Program 		2014
OIG-14-139 The United States Customs and Border Protection (CBP) employs radio frequency identification technology in its Trusted Traveler Programs to allow preͲscreened travelers expedited processing at designated ports of .Radio frequency identification is a form of automatic identification and data capture technology that uses radio frequencies to transmit information. The flexibility and portability of radio frequency identification technology has introduced new security risks to agency systems, such as cloning of an identification tag and the security of the database that stores personal data. Without effective security controls and procedures over this technology and its supporting infrastructure, unauthorized individuals could modify identification tag content or access sensitive data stored in the system databases.

>Enhancements in Technical Controls and Training Can Improve the Security of CBP’s Trusted Traveler Programs 		2014
OIG-14-138 In 2007,TSA began deploying advanced imaging technology to screen airline passengers for weapons, explosives, and other concealed objects. In 2009 and 2010, TSA used American Recovery and Reinvestment Act funds to purchase 251 Secure 1000SP advanced imaging technology units from Rapiscan Systems. By June 2013, TSA had removed the units from service because the company could not develop enhanced software to enable the units to comply with the privacy requirements of the FAA Modernization and Reform Act of 2012. Rapiscan Systems assumed all costs associated with their removal and storage. In May 2013, Representative Bennie Thompson requested that we review TSA’s management of its advanced imaging technology inventory. Specifically, Mr. Thompson requested that we review the removal and potential redistribution of the noncompliant units, and related costs.

>TSA’s Management of Secure 1000SP Advanced Imaging Technology Units 		2014
OIG-14-135 We evaluated the Department of Homeland Security’s (DHS) enterprise-wide security program for Top Secret/Sensitive Compartmented Information intelligence systems. Pursuant to the Federal Information Security anagement Act, we reviewed the Department’s security program including its policies, procedures, and system security controls for enterprise-wide intelligence systems. In doing so, we assessed the Department’s continuous monitoring, configuration management, identity and access management, incident response and reporting, risk management, security training, plans of actions and milestones, remote access, contingency planning, contractor systems and security capital planning. The United States Coast Guard (USCG) has migrated the Coast Guard Intelligence Support System into a new system that is supported by DHS, the Defense ntelligence Agency and USCG.

>(U) Review of DHS' Information Security Program for Intelligence Systems for Fiscal Year 2014 		2014
OIG-14-134-D During 2004, the Louisiana Legislative Auditor and our office issued Audit reports on the State’s management of the Hazard Mitigation, Unmet Needs, and Flood Mitigation Assistance grant programs. The scope of our 2004 audit included funding for the Hazard Mitigation Grant Program and Unmet Needs programs totaling $40,524,912 in Direct project costs and administrative and management costs from Eight disasters declared between September 1998 and October 2002. We recommended that, among other actions, FEMA identify and deobligate any ineligible, unsupported, or duplicate funding. In March 2005, as a result of our recommendations, FEMA Region VI started the process of recouping $30.4 million from the State. By May 2007, the State had provided FEMA Region VI with sufficient documentation to reduce the original debt from $30.4 million to $26.6 million. In July 2010, the Regional Administrator, after applying cost overruns, reduced the debt to $23.1 million and referred it to the FEMA Finance Center in September 2010 for issuance of the Bill for Collection. In January 2012, the FEMA Finance Center transferred the debt to Treasury. As of May 2014, Treasury still held the uncollected debt.

>FEMA’s Efforts To Collect a $23.1 Million Debt from the State of Louisiana Should Have Been More Aggressive 		2014
OIG-14-132 We audited security controls for Department of Homeland Security Information technology systems at Dallas/Fort Worth International Airport. Four Department components—the Management Directorate, Transportation Security Administration, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement—Operate information technology systems that support homeland security operations at this airport. Our audit focused on how these components have implemented computer security operational, technical, and management controls for their systems at the airport and nearby locations.

>Audit of Security Controls for DHS Information Technology Systems at Dallas/Fort Worth International Airport 		2014
OIG-14-133-D Our audit objective was to determine whether the Corporation accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. Although it has been almost 9 years since Hurricane Katrina, the Corporation has not spent the majority of its funding. Therefore, we expanded our audit objective to determine whether its policies, procedures, and business practices are adequate to properly account for and expend FEMA grant funds. Our goal was to identify areas where the Corporation may need additional technical assistance or monitoring to correct noncompliance with Federal regulations before it spends the majority of its funding

>Louisiana Should Monitor $39.8 Million of FEMA Funds Awarded to Pontchartrain Housing Corporation I to Ensure Compliance with Federal Regulations 		2014
OIG-14-131 U.S. Customs and Border Protection (CBP) secures our Nation’s borders and facilitates lawful international trade and travel while enforcing Federal laws and regulations. To accomplish its mission, CBP often stations officers and agents in remote areas of the country without adequate housing options. In 2008, CBP identified a need for employee housing along the southwest border, particularly in Arizona and Texas, given the remoteness and limited housing market. CBP began planning the construction of employee housing in Ajo, Arizona, in 2008 and completed construction in late 2012. We conducted this audit to determine whether CBP followed good business practices in planning and managing employee housing in Ajo, Arizona.

>CBP Did Not Effectively Plan and Manage Employee Housing in Ajo, Arizona (Revised) ( 		2014
OIG-14-130-D At the time of audit fieldwork, the New Jersey Office of Emergency Management (New Jersey), a FEMA grantee, had awarded the City just over $18 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 S), and permanent work {Categories C-G) for nine projects (eight large projects and one small).1 We included five of the nine projects totaling $16.8 million or 93 percent of the award in our review (see Exhibit, Schedule of Projects Reviewed). The audit covered the period October 26, 2012, through April 9, 2014. At the time of our fieldwork, the City had not submitted any claims to New Jersey for work under the projects in our audit scope.

>The City of Elizabeth, New Jersey, Has Adequate Policies, Procedures, and Business Practices in Place to Effectively Manage FEMA Public Assistance Grant Funds 		2014
OIG-14-127-D Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency {FEMA) funds according to Federal regulations and FEMA guidelines. The County received a Public Assistance grant award of $87.7 million from the Mississippi Emergency Management Agency (Mississippi), a FEMA grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. The award provided 100 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 126 large projects 1 and 109 small projects.

>FEMA Should Recover $4.9 Million of $87.7 Million in Public Assistance Grant Funds Awarded to the Hancock County, Mississippi, Board of Supervisors for Hurricane Katrina Damages 		2014
OIG-14-129 A severe influenza pandemic presents a tremendous challenge, which may affect millions of Americans, cause significant illnesses and fatalities, and substantially disrupt our economic and social stability. It is DHS’ responsibility to ensure it is adequately prepared to continue critical operations in the event of a pandemic. In 2006, Congress appropriated $47million in supplemental funding to DHS for necessary expenses to plan, train, and prepare for a potential pandemic. DHS reported that it spent this funding on personal protective equipment, pandemic research, exercises, and medical countermeasures. The Department and components purchased personal protective equipment and medical countermeasures (specifically, antiviral medical countermeasures) to reduce potential effects of a pandemic and ensure the workforce can continue operations. We conducted an audit of the DHS pandemic preparedness efforts to determine if DHS effectively manages its pandemic preparedness supply of personal protective equipment and antiviral medical countermeasures.

>DHS Has Not Effectively Managed Pandemic Personal Protective Equipment and Antiviral Medical Countermeasures 		2014
OIG-14-128-D We conducted this audit early in the Public Assistance process to identify areas where the Pueblo may need additional technical assistance or monitoring to ensure compliance. In addition, by undergoing an audit early n the grant cycle, grant recipients have the opportunity to correct noncompliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient documentation or locate missing documentation before too much time elapses. Our audit covered the period July 19, 2013, through January 28, 2014. At the time of our audit,FEMA estimated the Pueblo, a FEMA grantee, sustained approximately $7.4 million in damages from two disasters.

>Santa Clara Pueblo, New Mexico, Needs Assistance to Ensure Compliance with FEMA Public Assistance Grant Requirements 		2014
OIG-14-126 In fiscal year 2012, Federal agency fleets consisted of more than 650,000 motor vehicles around the world. The Department of Homeland Security (DHS) had the second largest civilian motor vehicle fleet in the Federal Government, owning or leasing about 56,000 vehicles, with reported annual operating costs of about $534 million. Our audit objective was to determine whether, for fiscal year 2012, DHS met requirements to right-size its motor vehicle fleet composition, eliminate underused vehicles, and acquire vehicles that reduce petroleum use and greenhouse gas emissions.

>DHS Does Not Adequately Manage or Have Enforcement Authority Over Its Components' Vehicle Fleet Operations 		2014
OIG-14-125-D We audited Federal Emergency Management Agency (FEMA) Public Assistance grant funds awarded to the City of Flagstaff, Arizona (City), Public Assistance Identification Number 005-23620-00. Our audit objective was to determine whether the City accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. The Arizona Division of Emergency Management (Arizona), a FEMA grantee, warded the City $3.5 million for damages resulting from severe storms and flooding during the incident period of July 20, to August 7, 2010. The award provided 75 percent FEMA funding for one large project and four small projects. The audit covered the period of July 20, 2010, to August 8, 2013. We audited the one large project (Project 12) for a total of $3.3 million or 97 percent of the award. At the time of our audit, the City had ompleted work on the large project and submitted its final claim to Arizona. However, Arizona had not completed its review of the City’s final claim; therefore, the project remained open.

>City of Flagstaff, Arizona, Generally Accounted for and Expended FEMA Grant Funds Properly, But FEMA Should Disallow $124,443 and Deobligate $57,941 of Public Assistance Grant Funds 		2014
OIG-14-124-D We audited Public Assistance funds awarded to Cobb County, Georgia (County) (FIPS Code 067-99067-00). Our audit objective was to determine whether the County accounted for and expended Federal Emergency Management Agency (FEMA) funds according to Federal regulations and FEMA guidelines. The County received a Public Assistance grant award of $7.7 million from the Georgia Emergency Management Agency (Georgia), a FEMA grantee, for damages resulting from severe storms and flooding, which occurred in September 2009. The award provided 75 percent FEMA funding for debris removal, emergency protective measures, and permanent repairs to buildings and facilities. The award consisted of 32 large projects and 184 small projects.

>FEMA Should Recover $985,887 of Ineligible and Unneeded Public Assistance Grant Funds Awarded to Cobb County, Georgia, as a Result of Severe Storms and Flooding 		2014
OIG-14-123-D Applying FEMA’s 50 percent repair or replace rule correctly can be very difficult and susceptible to error, misinterpretation, and manipulation. Our audit results have demonstrated that millions of dollars are at risk from incorrect 50 percent repair or replace rule decisions. In fiscal years 2012 and 2013, we recommended FEMA disallow over $100 million of costs that resulted from questionable 50 percent repair or replace decisions in five audits. In those audits, FEMA made the replace decisions based on collective 50 Percent Rule estimates of $31 million for repairs and $50 million for replacements (based on FEMA’s application of its policy). Due to various problems we identified, we ultimately recommended that FEMA should have paid $226 million to repair facilities, instead of $327 million to replace them. In our discussions with FEMA officials, they acknowledged the difficulties involved in reversing replacement decisions after they had communicated those decisions to grant recipients.

>FEMA's Progress in Clarifying its "50 Percent Rule" for the Public Assistance Grant Program 		2014
OIG-14-116 In February and March 2013, media sources reported U.S. Immigration and Customs Enforcement (ICE) released hundreds of immigration detainees, including detainees with criminal convictions. The publicized releases occurred the weekend before sequestration went into effect on March 1, 2013, generating speculation that the releases were improperly motivated. We determined that the following factors influenced ICE’s decision to release 2,226 immigration detainees between February 9 and March 1, 2013.

>ICE's Release of Immigration Detainees (Revised) 		2014
OIG-14-120-D We audited Public Assistance grant funds awarded to New York City’s Department of Transportation (Department) in New York, New York (Public Assistance Identification Number 061-51000-51). Our audit objective was to determine whether the Department’s policies, procedures, and business practices were adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process with the goal of identifying areas where the Department may need additional technical assistance or monitoring. In addition, proactively auditing grant recipients early in the grant cycle allows them the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient

>New York City’s Department of Transportation Needs Assistance to Ensure Compliance with Federal Regulations 		2014
OIG-14-121-D We audited Hazard Mitigation Grant Program funds awarded to the Puerto Rico Department of Housing (FIPS Code 000-92151) following Hurricane Georges in September 1998. We conducted the audit at the request of FEMA Region II to facilitate FEMA's closeout of the grant. The Puerto Rico Department of Housing (Department) received a Hazard Mitigation Grant Program award of $165.3 million from the Puerto Rico Office of Management and Budget (Puerto Rico), a Federal Emergency Management Agency (FEMA) grantee, to implement the New Secure Housing Program. The award provided 75 percent FEMA funding under the New Secure ousing Program and 100 percent under the Emergency Home Repairs Program.

>The Puerto Rico Department of Housing Generally Complied with FEMA Hazard Mitigation Grant Program Eligibility Requirements for Participants of the New Secure Housing Program – Hurricane Georges 		2014
OIG-14-119 The National Protection Programs Directorate (NPPD) is primarily responsible for fulfilling the DHS national, non-law enforcement cybersecurity missions. Within NPPD, the Office of Cybersecurity and Communications is responsible for the implementation of the Enhanced Cybersecurity Services program. Our overall objective was to determine the effectiveness of the Enhanced Cybersecurity Services program to disseminate cyber threat and technical information with the critical infrastructure sectors through ommercial service providers. NPPD has made progress in expanding the Enhanced cybersecurity Services program. For example, as of May 2014, 40 critical infrastructure entities participate in the program. Additionally, 22 companies have signed memorandums of agreement to join the program. Further, NPPD has established the procedures and guidance required to carry out key tasks and operational aspects of the program, including an in depth security validation and accreditation process. NPPD has also addressed the privacy risk associated with the program by developing a Privacy Impact Assessment. Finally, NPPD has engaged sector specific agencies and government furnished information providers to expand the program, and has developed program reporting and metric capabilities to monitor the program.

>Implementation Status of the Enhanced Cybersecurity Services Program 		2014
OIG-14-118-D The objective of this aspect ofthe audit was to determine FEM A's efficiency and effectiveness to register non-English/Spanish-speaking disaster survivor$ for disaster assistance and provide them with information through its Helpline. We reviewed the capabilities, management, and policies and procedures of FEMA's Disaster Assistance Helpline from September 2013 to June 2014. To accomplish our objective, we interviewed FEMA officials from the Response and Recovery Division, the National Service Processing Center, Disaster Affairs, External Affairs, Strategic Communications, Public Affairs, and the Helpline itself (operators); reviewed policies, procedures, processes, executive orders, strategy documents, as well as FEMA's limited English Proficiency efforts, as they relate to the Helpline; analyzed the efficiency, effectiveness, and accessibility of the Helpline through covert testing; and performed other procedures necessary to accomplish our objective. We did not assess internal controls related to FEMA's Helpline because it was not necessary to accomplish our objective.

>FEMA Should Take Steps To Improve the Efficiency and Effectiveness of the Disaster Assistance Helpline for Disaster Survivors That Do Not Speak English or Spanish 		2014
OIG-14-117 To improve operations, CBP developed a threer-pronged Resource Optimization Strategy. The second prong of the strategy is the Workload Staffing Model, which CBP uses to identify staffing needs for its Office of Field Operations’ CBP Officers at ports of entry. We conducted this audit to determine the reliability of the Workload Staffing Model in establishing the number of CBP Officers needed to fulfill mission requirements. CBP’s Workload Staffing Model includes a sound methodology to determine its staffing needs for CBP Officers and identify staffing shortages. However, the results of the model may not be accurate because CBP cannot ensure that the data entered into the model is reliable. CBP also does not have adequate internal controls over the model. Specifically, CBP’s Office of Field Operations does not (1) catalog, track, and validate all data and systems used in workload calculations; (2) systematically approve changes and additions to the Workload Staffing Model; and (3) have written policies and procedures on developing and using the model. In its December 2013 Strategy and Action Plan (2014 tо 2017), CBP acknowledges concerns about data from other systems used in the Workload Staffing Model.

>U.S. Customs and Border Protection’s Workload Staffing Model 		2014
OIG-14-115-D We audited Public Assistance grant funds awarded to New York City’s Department of Design and Construction (Department) in New York, New York (Public Assistance Identification Number 081-51000-19). The New York State Division of Homeland Security and Emergency Services (New York), a FEMA grantee, awarded the Department $13.3 million for d amages resulting from Hurricane Sandy, which occurred on October 29, 2012. The award provided 90 percent funding for two projects—one large debris removal project (Category A) and one large permanent work project (Category C).1 We audited both large projects for the period October 29, 2012, through June 27, 2013 (see exhibit). As of June 2014, the Department had completed all work under the award, but had not yet submitted its final claim to the grantee or FEMA. Therefore, the projects remain open.

>New York City’s Department of Design and Construction Needs Assistance To Ensure Compliance with Federal Regulations 		2014
OIG-14-114-D We audited Public Assistance grant funds awarded to Jefferson County, Alabama, (County) (FIPS Code 073-99073-00). The County received a Public Assistance award of $17.7 million from the Alabama Emergency Management Agency (Alabama), a FEMA grantee, for damages resulting from tornados, straight-line winds, and flooding that occurred in April 2011. The award provided 90 percent FEMA funding for debris removal activities; emergency protective measures; repair/replacement of vehicles; and repairs to buildings and other facilities. The award consisted of 12 large projects and 8 small projects. We audited all projects, or 100 percent of the $17.7 million award (see Exhibit, Schedule of Projects Audited and Questioned Costs). The audit covered the period April 15, 2011, to August 27, 2013, during which the County claimed $17.7 million.

>FEMA Should Recover $3.9 Million of Public Assistance Grant Funds Awarded to Jefferson County, Alabama, as a Result of Severe Storms in April 2011 		2014

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

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