HTF Agency Implementation of FMFIA

As part of its FY 2003 report, the OIG identified a lack of formal procedures in the agencies under the HTF to identify, assess, and monitor management controls.

FHWA

To strengthen the grants management program, FHWA developed a policy and supporting review program for the Division offices that includes toolkits for required reviews to ensure consistency of application across offices. The policy requires annual conduct of a risk assessment of state billing processes. Based on the risk assessment, the Division office is required to perform a process review of the highest rated area. Division offices must also perform periodic reviews of sample state billings to ensure proper documentation; conduct annual reviews of inactive project obligations with outstanding balances of over $500,000; sample test administrative financial processes and controls (e.g., credit card purchases, convenience checks, travel vouchers, etc.); and timely follow up on all audit findings applicable to FHWA programs. As part of the annual Section 2/4 certification, each Division Administrator must identify all actions taken and the results of those actions to support his/her certification and assurance statement. FHWA intends to implement this policy in FY 2005.

FTA

FTA implemented new guidance to its offices on the requirements of FMFIA. The guidance included a management control plan and risk assessment needed to conduct reviews. Full implementation of the new policy and guidance will be in place during FY 2005.

FMCSA

FMCSA, with the support of an independent contractor, made progress in developing a FMFIA program for the Agency. The Agency formed a FMFIA Steering Committee; developed FMFIA program governance, a Management Control Plan, and an evaluation tool; and established a FMFIA review cycle. Currently, the Steering Committee is in the process of completing the FMFIA management control evaluations, which will be used to support the Administrator's annual statement of assurance for the FY 2004 financial statements. Once complete, personnel in each functional area of the Agency will be able to determine if the stated controls in the overall Management Control Plan are in place and functioning as intended.

NHTSA

NHTSA implemented a management control program that identifies and documents key management control areas, assesses and documents risk of key management control areas, prepares and updates management control plans based on risk assessments, and performs and documents periodic management control reviews throughout the year.