Passenger Trains > DOT OIG audit reveals $11M noncompliant grants, $9M were AMTRAK!

https://www.oig.dot.gov/sites/default/files/library-items/Summary%20Report%20on%20Significant%20Single%20Audit%20Findings%20Impacting%20DOT%20programs%20for%20the%203-Month%20Period%20Ending%20June%2030%202026.pdf
 

Our Objective(s) 

To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between April 1, 2026, and June 30, 2026, and identify findings that affect directly awarded Department of Transportation (DOT) programs. 

Why This Review?
OIG performs oversight of independent, non-Federal auditors’ single audit reports. Over the past 3 fiscal years, on average, over 200 single audit reports were issued that included findings related to programs directly funded by DOT. We issue memorandum that summarize these reports’ significant findings and recommendations that require priority action by DOT. When warranted, we also recommend that DOT recover funds inappropriately expended by non-Federal entities.

What We Found 
Auditors reported 25 findings related to 16 grantees that included significant noncompliance with Federal guidelines requiring prompt action from DOT’s Operating Administrations. 

    Of the 25 findings, 11 were repeat findings related to 7 grantees. 

Auditors identified questioned costs totaling $11,868,055 for four grantees. 

    Of this amount, $9,665,280 was related to the National Railroad Passenger Corporation and Subsidiaries (Amtrak), Washington, DC, and $1,786,702 was related to the Blackfeet Tribe of the Blackfeet Indian Reservation, Browning, MT.

We identified non-monetary repeat findings that caused an adverse opinion for one grantee and qualified opinions for two grantees.

Recommendations
We made 3 recommendations to strengthen OST oversight of non-Federal entities and determine the allow-ability of questioned costs.
 



Edited 1 time(s). Last edit at 08/29/26 00:01 by GenePoon.

Inventory control problems ?

Probably...or underqualiufied staff who are inefficient at their job...or both 

Englewood Wrote:
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> Inventory control problems ?

Englewood Wrote:
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> Inventory control problems ?

Partly, yes.  The report notes that Amtrak failed to secure its stored assets in PHL PennCoach yard (likely the NextGen Acela sets) against vandalism, weather damage, etc. And these units were not included in their inventory of assets for more than one cycle. Amtrak has not demonstrated widespread inventories of all equipment in recent years. (This may reflect problems like the MW worker in NJ who ordered several chain saws each month, and sold them on eBay for several years. There was no reconciliation of orders or inventory held at Adams Yard. The same issue has been mentioned with locomotive parts in some shops.)

It also noted that Amtrak relied on sole source suppliers rather than open bidding or designs which allowed multiple suppliers.  The practice of invoking no-bid contracts is a growing problem in several areas of government.  In a related area, it was noted that Amtrak contracts lacked flow down clauses which would have identified the use of vendors / subcontractors who would otherwise have been barred.  (This MIGHT be related to the 30th street work by a shell company set up by a contractor who would not have been able to get the work on his own due to prior legal problems.)

Amtrak's problems were mirrored in reports on towns and local authorities that received federal taxpayer money.  County and town problems with lack of inventorycontrols , use of unauthorized suppliers or contractors, use of no bid contracts where an open bid would have been fine, et MS GA IL MD and lots in TX

Thanks Lackawanna484 for this clairfication.  This was difficult to read and understand but I apprecate that you did this work and reply.

You can leave the Blackfeet reservation out, they are still wainting to get all their land back!