A Picture of General Services Administration on the front cover
Title: Administrator's Semiannual Management Report to Congress
Report No. 61
April 1, 2019 - September 30, 2019
U.S. General Services Administration
Emily W. Murphy
Administrator
Office of Administrative Services Robert Stafford
Chief Administrative Services Officer
Office of Executive Secretariat and Audit Management
Theresa Ottery
Director
October 2019
This report is in the public domain. Authorization to reproduce it in whole or in part is granted. While permission to reprint this publication is not necessary, the citation should be:
U.S. General Services Administration, Office of Administrative Services, Office of Executive Secretariat & Audit Management, Administrator's Semiannual Management Report to Congress, No. 61, Washington, DC 20405.
Copies of this report can be obtained using any of the following:
Mail: Office of Executive Secretariat and Audit Management
Office of Administrative Services
U.S. General Services Administration 1800 F Street, NW
Washington, DC 20405
E-mail: GAO-IGAuditMgmtDiv@gsa.gov
Online: Semiannual Management Report to Congress
Telephone: (202) 384-2511
Contents
Message from the Administrator 3
Overview 4
U.S. General Services Administration Organization 4
Organization of Audit Follow-up Program 5
Agency Audit Follow-up Official 5
Chief Administrative Services Officer (CASO) 5
Heads of Services and Staff Offices, Regional Administrators 5
Synopsis of Audit Activity 6
Audits with Disallowed Costs 7
Audits with Better Use Funds (Potential Cost Savings) 8
Audits under Appeal/Litigation 9
Contract Audits 10
Internal Audits 16
Open OIG Recommendations Not Fully Resolved as of September 30, 2019 17
Glossary of Terms 30
Appendix 32
Message from the Administrator
I am pleased to submit the U.S. General Services Administration (GSA) Semiannual Management Report to Congress. GSA�s report summarizes audit-related actions and accomplishments for the 6 months ending September 30, 2019.
Since becoming the Administrator of GSA, I have made audit responsiveness an organizational priority. Individual performance plans hold GSA senior management accountable for strengthening internal controls and improving audit results. Senior leaders actively participate in the oversight of internal control and audit resolution. GSA staff jointly analyzes, monitors, and consults on audit issues and findings to ensure cross-organizational resolution and process improvement. And, GSA continues to create new audit data analysis functionality and tools to improve the agency�s ability to address issues and risks. Agency attention to the work of audits has strengthened and enhanced GSA�s internal controls and performance management.�
GSA's responsibility for delivering value and savings in acquisition, real estate, and technology sets a high standard for GSA performance. The more effectively GSA manages its programs and risks, the better GSA can assist other agencies meet their mission goals and support the American public.
As measures of our progress, during the past 6 months, GSA took final action on 38 contract audits, both pre-award and post-award, and took the last steps on 44 Office of Inspector General (OIG) audits, a closure rate 14 percent higher than the previous reporting period. GSA's actions represent the recovery of $1,373,302 in Government funds.
GSA is committed to providing customer agencies with maximum value on behalf of the American taxpayer. We appreciate the work and insights of the GSA OIG in helping accomplish this goal and look forward to continued work with the GSA OIG and Congress to support the Government to be more responsive to the American taxpayer.
Overview
This report, GSA's 61st report to Congress since the implementation of the reporting requirement, presents management's perspective on audit resolution and follow-up activity for the semiannual reporting period, in addition to general statistical summaries. The data in this report indicates that GSA's audit monitoring and management activities continue to play a significant and effective role in the effective management of GSA operations, the accomplishment of the agency mission, and the effective use of taxpayer dollars.
U.S. General Services Administration Organization
GSA's Public Buildings Service and Federal Acquisition Service provide Government-wide delivery of real estate, acquisition, and technology services. GSA's Office of Government-wide Policy manages the development of specific Government-wide policies and regulations. GSA's 11 regions provide local support to Federal agencies nationwide, while GSA's several staff offices provide support to other GSA organizations and other Federal agencies and the public.
The Administrator of General Services directs the execution of all GSA functions. Members of the Administrator's office, as well as Regional Administrators and Heads of Services and Staff Offices, advise and make recommendations on policy or operational issues of national scope. Heads of Services and Staff Offices also are responsible for the execution of programs and services within their offices, under the leadership of the Administrator.
Organization of Audit Follow-up Program
GSA has effective systems in place for tracking and managing audit recommendations, and enhancement and modification of these systems is ongoing. GSA's management, which is held accountable for ensuring that appropriate corrective action is taken promptly, works with supervisors and program managers who develop remedies to identified vulnerabilities and report progress in implementing solutions. Agency managers have the responsibility to act on the auditor's recommendations, with the audit resolution process overseen by the Agency Audit Follow-up Official. The descriptions of the duties of the GSA officials involved in the audit follow-up process are below.
Agency Audit Follow-up Official
The GSA Deputy Administrator as the Agency Audit Follow-up Official has overall responsibility for the audit follow-up program. This includes responsibility for ensuring the adequacy of the agency's follow-up system, monitoring the resolution of audit recommendations, and ensuring timely implementation of corrective actions. The incumbent in this position also makes final decisions to resolve differences between agency management and the GSA OIG.
Chief Administrative Services Officer (CASO)
The CASO provides direction and oversight to the officials in the Office of Administrative Services (OAS) who manage the GSA's Audit Resolution and Follow-up System. Their responsibilities are as follows:
* Liaison with the GSA OIG and the U.S. Government Accountability Office (GAO) for the coordination of OIG and GAO audits in progress within GSA, and coordinate preparation of responses and reports for the signature of the Heads of Service and Staff Offices or the Administrator, as required;
* Ensure timely resolution and implementation of internal and external audit recommendations made by the GSA OIG and GAO;
* Oversee the collection and proper accounting of monetary amounts determined due to the Government as the result of audit-related claims;
* Analyze GSA's programs, upon request from the Administrator, particularly as related to past or present audit recommendations; and
* Maintain an automated control system for internal and external audits that provides an accurate means for monitoring, analyzing, tracking, and documenting actions taken to implement audit recommendations.
Heads of Services and Staff Offices, Regional Administrators
Heads of Services and Staff Offices and Regional Administrators to whom audit recommendations pertain have primary responsibility for resolving and implementing recommendations promptly, and for the following:
* Ensure controls are implemented to provide timely, accurate, and complete responses to audit
reports;
* Develop, advocate, and document agency positions on audit recommendations;
* Prepare responses to GSA OIG and GAO draft and final reports;
* Provide comments on audit decision papers prepared by the GSA OIG to accurately state management's position on unresolved audit recommendations.
Synopsis of Audit Activity
The Inspector General Act of 1978, as amended, requires the Administrator of General Services to report directly to Congress on management decisions and final actions taken on audit recommendations made by the GSA OIG.
This report covers the period of April 1, 2019, through September 30, 2019. Included in the report are summaries of GSA audit activities concerning the following:
* GSA implementation of GSA OIG audit report recommendations;
* Final actions not taken on audits one year after the date of the management decision; and,
* Audit reports and audit actions involving financial recommendations, including disallowed costs, funds to be put to better use (better use funds), or both.
On April 1, 2019, GSA had 103 contract and internal audit reports pending final action. These reports contained financial recommendations totaling $677,567,801 (section A, pages 7 and 8).
* Financial recommendations for 84 contract audits totaled $677,567,801.
* Financial recommendations for 19 internal audits totaled $0.
Between April 1, 2019, through September 30, 2019, GSA finalized management decisions on 37 audit reports concerning nationwide GSA programs and operations.
* In 37 of the 37 audits, a total of $13,305,584 in pre- and post-award contracts and internal program spending was found to have been incorrectly charged to the Government and determined to be disallowed costs. GSA OIG did not issue any post-award audits during this reporting period.
* In 22 of the 37 audits, it was recommended that $75,024,285 could be used more effectively (better use funds) if management took action to implement and complete the GSA OIG recommendations (see Appendix).
During this 6-month reporting period, GSA successfully took final action on 44 audits. These audits represent the recovery of $1,373,301.88 (section C, page 7) in Government funds and the identification of $123,242,424 in potential future savings (section C, page 8), of which $0 affected GSA�s budget.
As of October 1, 2019, GSA had 119 open audit reports. Six of these audits involve claims under appeal or in litigation.
Audits with Disallowed Costs
Final action for the six-month period
Ending March 31, 2019
A. Audit reports for which final action had not been taken by the commencement of the reporting period.
B. Audit reports on which GSA/OIG management decisions were made during the reporting period.
Number of Audit Reports
103
37
Disallowed Costs
$44,109,154
$13,305,584
C. Audit reports on which final action was taken during the reporting period.
(i) the dollar value of disallowed costs
- collections������.$1,189,973.91
- offset������������..$0.00
- property in lieu of cash���� ..$0.00
- surplus��������..$183,327.97
- other��.����..�����...$0.00
(ii) the dollar value of disallowed costs that were written off by management.
44
$6,992,242.94
$1,373,301.88
($5,618,941.06)
D. Audit reports for which no final action has been taken by the end of the reporting period and audit reports issued during this reporting period.
119
$50,645,015
Audits with Better Use Funds (Potential Cost Savings)
Final action for the six-month Number of Audit
Ending March 31, 2019 Reports
A. Audit reports for which final 103
action had not been taken by the commencement of the reporting period.
B. Audit reports on which 37
management decisions were made during the reporting period.
No budget Impact (Actual and Estimated)
$633,458,647
$75,024,285
Budget Impact
$0
$0
C. Audit reports on which final
44
$123,242,424
$0
action was taken during the
reporting period.
(i) the actual dollar value of
$0
recommendations that were
actually completed.
(ii) the actual dollar value of
$0
recommendations that
management has subsequently
concluded should not or could not
be implemented or completed.
(iii) the actual dollar value of
$0
recommendations that
management has subsequently
concluded should not or could not
be determined (calculated).
(iv) the estimated dollar value of
$123,242,424
''funds to be put to better use'' as
agreed to by GSA management
and the OIG.
D. Audit reports for which no final action has been taken by the end of the reporting period and audit reports issued during this reporting period.
119
$576,439,933
$0
Audits under Appeal/Litigation
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
Disallowed Costs
Better Use Funds
A140110P4X15003
Suffolk Construction Company, Inc.
11/10/2014
$0
A140116P4X15016
City Lights Electrical Company, Inc.
01/30/2015
$0
A140074Q6X15037
Engility Corporation
06/10/2015
$1,886,901
A140118P4X16005
N.B. Kenney Company, Inc.
11/13/2015
$0
A160027Q7X16068
Agilent Technologies, Inc.
09/08/2016
$3,352
A170108P3X18011
RK Mechanical, Incorporated
12/21/2017
$0
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A090042Q9X09019
Computer Sciences Corporation
12/29/2008
$14,951,923
Investigation in
process - An
investigation has
been opened by either the OIG or the Justice Department
regarding actions
taken by the
contractor
A140110P4X15003
Suffolk Construction Company, Inc.
11/10/2014
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A140116P4X15016
City Lights Electrical Company, Inc.
01/30/2015
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A140074Q6X15037
Engility Corporation
06/10/2015
$1,886,901
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A150083QAX16004
LCG Systems, LLC
11/10/2015
$149,663
In the process of
collection - GSA is
in the process of collecting funds owed the
Government from
the contractor
A140118P4X16005
N.B. Kenney Company, Inc.
11/13/2015
$0
Litigation in
process - The
contractor has
appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A150113P4X16008
Matsuo Engineering Centerre Construction, A Joint Venture
11/20/2015
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A160039Q3X16055
Carahsoft Technology Corporation
08/08/2016
$0
Unresolved - Agreement has not been reached between OIG and Contracting Officer on the Decision Record
A160027Q7X16068
Agilent Technologies, Inc.
09/08/2016
$3,352
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A150083QAX17005
LCG Systems, LLC
10/13/2016
$982,360
In the process of
collection - GSA is
in the process of collecting funds owed the
Government from
the contractor
A140133Q9X17007
ARES Corporation
10/27/2016
$2,526,383
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A120149Q4X17015
Lockheed Martin Integrated Systems, Incorporated
12/29/2016
$12,221,921
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160074P4X17023
ARRIBA Corporation
01/26/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160104P5X17028
M. A. Mortenson Company
02/22/2017
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A150001Q2X17033
Noble Sales Co., Inc.
03/30/2017
$285,906
Investigation in
process - An
investigation has
been opened by either the OIG or the Justice Department
regarding actions
taken by the
contractor
A160088QAX17039
CSRA, Inc.
05/17/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160117Q6X17043 StrategicHealthSolutions, LLC
06/20/2017
$169,269
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160106P2X17052
RK Mechanical, Inc.
09/13/2017
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A160056QAX17053
Omniplex World Services Corporation
09/28/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A160136Q6X18005
Insight Public
Sector, Inc.
11/16/2017
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A170058QAX18006
August Schell Enterprises,
Inc.
12/14/2017
$2,466
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170108P3X18011
RK Mechanical, Incorporated
12/21/2017
$0
Litigation in
process - The
contractor has appealed the Contracting Officer's decision
and the audit is
now in the litigation
process
A160105P4X18017
NCES-Nuprecon JV
02/28/2018
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A160052P2X18019
Concentric Security, LLC
03/08/2018
$0
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A170099Q5X18021
DHA Group, Inc.
03/23/2018
$1,402,985
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170046Q4X18026
Enlightened, Inc.
04/20/2018
$261,427
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
Contract Audits
Audits with Management Decisions made prior to September 30, 2018, but with
Final Action not taken as of September 30, 2019.
Financial recommendations are not included for contract awards or actions that are not completed.
REPORT NUMBER NAME OF CONTRACTOR
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO
FINAL ACTION
Disallowed Costs
Better Use Funds
A170038Q9X18029
Lexis Nexis, a division of RELX, Inc.
05/09/2018
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170115Q3X18030
Cognosante, LLC.
05/11/2018
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
A170086Q5X18033
VT Aepco, Inc.
06/07/2018
$83,236
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A180033Q7X18036
Sea Box, Inc.
06/11/2018
$25,816
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A180035Q3X18034
Millennium Systems Services, Inc.
06/12/2018
$54,029
Price/settlement negotiated - Negotiations have been completed between Contracting Officer and contractor
A180021QAX18046
T-Rex Solutions, LLC
09/07/2018
$0
In negotiation -
Negotiations are proceeding between
Contracting Officer
and contractor
Internal Audits
Audits with Management Decisions Made Prior to September 30, 2018,
but with Final Action not Taken as of September 30, 2019.
Financial recommendations are not included for internal audits or actions that are not completed.
REPORT NUMBER TITLE OF REPORT
DATE OF REPORT
MANAGEMENT DECISION AMOUNTS
REASON FOR NO FINAL ACTION
PROJECTED COMPLETION DATE
Disallowed Costs
Better Use Funds
A150131QTP16004
Audit of FAS's Contractor Assessments Program
(Reopened for an implementation review)
09/21/2016
$0
Audit Record is in Implementation Status
11/29/2019
A160019P4R17003
PBS Failed to Enforce Kress Building Lease Provisions and May Have Exposed Tenants to Health Risks
(Reopened for an implementation review)
01/27/2017
$0
Audit Record is in Implementation Status
06/30/2020
A160133P6R18002
Audit of GSA's Public Buildings Service Does Not Track and Report All Unused Leased Space as Required
12/04/2017
$0
Audit Record is in Implementation Status
11/30/2020
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A150131QTP16004
Audit of FAS's Contractor Assessments Program
(Reopened for an implementation review)
9/21/2016
003
Establish and implement a formal, national training curriculum for experienced Industrial Operations Analysts to cover, at a minimum, the number of required annual continuing education hours and appropriate subject areas for enhancing applicable knowledge and
skills
06/23/2017
11/29/2019
A160019P4R17003
PBS Failed to Enforce Kress Building Lease Provisions and May Have Exposed Tenants to Health Risks
(Reopened for an implementation review)
01/27/2017
001
OIG recommends that the Southeast Sunbelt Region PBS Regional Commissioner Enforce the terms of the lease and take immediate action to ensure that all necessary maintenance and repairs are addressed
07/31/2017
06/30/2020
A160019P4R17003
PBS Failed to Enforce Kress Building Lease Provisions and May Have Exposed Tenants to Health Risks
(Reopened for an implementation review)
01/27/2017
002
OIG recommends that the Southeast Sunbelt Region PBS Regional Commissioner Develop and distribute guidance that ensures the immediate communication of environmental concerns and test results to affected building tenants
07/31/2017
06/30/2020
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A160133P6R18002
Audit of GSA's Public Buildings Service Does Not Track and Report All Unused Leased Space as Required
08/10/2018
001
Develop and implement a process to ensure that PBS reports and mitigates all unused space for all non-cancelable occupancy agreements in its lease portfolio
09/30/2019
01/31/2020
A160133P6R18002
Audit of GSA's Public Buildings Service Does Not Track and Report All Unused Leased Space as Required
08/10/2018
002
Take action to ensure that existing and future non-cancelable occupancy agreements comply with PBS's policy
03/31/2020
11/30/2020
A160134P2R19001
Audit of the Public
Buildings Service's Use of Contract Employees in the New England and Northeast and Caribbean Regions
12/12/2018
001
The PBS Regional
Commissioners for the New England and
Northeast and Caribbean
Regions develop,
implement, and maintain
the management controls and policies and procedures necessary to
ensure that PBS is not awarding and
administering contracts in a manner that creates prohibited personal
services contracts
09/30/2019
10/30/2019
A160134P2R19001
Audit of the Public
Buildings Service's Use of Contract Employees in the New England and Northeast and Caribbean Regions
12/12/2018
002A
The PBS Regional
Commissioner for the
Northeast and Caribbean
Region direct regional
management to ensure that controls are strengthened to ensure that personnel in charge of service contracts adhere to and enforce contract requirements
09/30/2019
10/30/2019
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A160134P2R19001
Audit of the Public Buildings Service's Use of Contract Employees in the New England and Northeast and Caribbean Regions
12/12/2018
002G
Ensure that CORs are properly certified and designated prior to being assigned contract oversight responsibilities
09/30/2019
11/30/2019
A170120OTF19001
Limited Scope Audit of the Technical Security Controls for the Enterprise Content Management System
12/19/2018
001
Ensure that the technical security control weaknesses identified by our audit are mitigated in accordance with the applicable standards, guidelines, and recommendations as defined by GSA IT, NIST, and CIS
12/31/2019
12/31/2019
A170120OTF19001
Limited Scope Audit of the Technical Security Controls for the Enterprise Content Management System
12/19/2018
002
Assess applicable GSA IT policies to determine the most appropriate technical security
12/31/2019
12/31/2019
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
001
Conduct a comprehensive assessment of the PBS Occupational Safety and Health Program, focusing on the program's ability to ensure compliance with applicable occupational safety and health requirements. Take corrective action to address any weaknesses identified through the assessment
10/31/2019
10/31/2019
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
004
Institute controls to ensure that PBS has a complete and publicly accessible repository for all environmental studies conducted on any and all of its properties in the Heartland Region
10/31/2019
10/31/2019
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
005
Institute controls to ensure that all health, safety, and environmental studies are distributed upon completion of the occupants of any Heartland Region property where studies are performed
10/31/2019
10/31/2019
A170027P6R19002
Audit of Environmental Issues at the Goodfellow Federal Complex in St. Louis, Missouri
03/15/2019
006
Institute controls to ensure that corrective action is taken and publicly disclosed in response to all health, safety, and environmental studies performed within the Heartland Region
07/31/2019
10/31/2019
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
001
Quantify potential losses to GSA due to vacant space when planning space consolidation projects, and incorporate this risk analysis into business decisions
09/30/2019
09/30/2019
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
002
Develop a control to identify when termination rights are upcoming for a lease in order to have time to confirm with the tenant agency if space will still be required
08/30/2019
08/30/2019
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170047PRR19003
Audit of the PBS National Capital Region's Lease Financial Performance
03/20/2019
004
Implement a control to pass through recoveries to tenant agencies as required by PBS policy
08/30/2019
08/30/2019
A170092PRR19004
Audit of IT Security Requirements in GSA Leasing Support Services Contracts
03/21/2019
001
Coordinate with GSA IT to ensure that the IT requirements and solutions for the pending GLS Plus real estate broker solicitation accurately reflect the actual IT security requirements for contractor performance
01/31/2020
01/31/2020
A170092PRR19004
Audit of IT Security Requirements in GSA Leasing Support Services Contracts
03/21/2019
002A
Identify other Public Buildings Service contracts through which contractors access government data through GSA Google or Virtual Desktop Interface accounts to ensure the contracts include terms and conditions necessary to protect the data
10/31/2019
10/31/2019
A170092PRR19004
Audit of IT Security Requirements in GSA Leasing Support Services Contracts
03/21/2019
002B
Identify other Public Buildings Service contracts through which contractors access government data through GSA Google or Virtual Desktop Interface accounts to ensure guidance is in place defining roles and responsibilities governing compliance with applicable IT security requirements
01/31/2020
01/31/2020
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
001
Return refunds of overpayments to the appropriate tenant agencies
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
002
Develop and implement a process to refund recoveries of overpayments to tenant agencies as required
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
003
Strengthen management controls to ensure standard lease terms are enforced and communicated effectively and in a timely manner to lease administrative personnel
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
004
Strengthen oversight reporting with the Office of the Chief Financial Officer to ensure that PBS processes stop payments timely for terminated leases
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
005
Strengthen internal controls to prevent billing errors, discrepancies in its collections, and improper retention of tenant funds
A170047P9R19005
Audit of the PBS Pacific Rim Region's Lease Financial Performance
06/13/2019
006
Monitor and collect unpaid rent from tenant agencies
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A180073P2R19006
GSA's Northeast and Caribbean Region Lacks Policies and Procedures for Emergencies and Evacuations in Puerto Rico
06/19/2019
001
Coordinate the development of policies and procedures for emergencies and evacuations in all areas where GSA has a presence
based on lessons learned and applicable federal regulations
07/31/2020
07/31/2020
A180073P2R19006
GSA's Northeast and Caribbean Region Lacks Policies and Procedures for Emergencies and Evacuations in Puerto Rico
06/19/2019
002
Recoup $9,062 for hotel overcharges and billing errors
12/13/2019
12/13/2019
A180073P2R19006
GSA's Northeast and Caribbean Region Lacks Policies and Procedures for Emergencies and Evacuations in Puerto Rico
06/19/2019
003
Inform affected evacuees that they can seek reimbursement of a total of $806 of underpaid meals and incidental expenses due to errors identified on the travel vouchers
12/13/2019
12/13/2019
A180073P2R19006
GSA's Northeast and Caribbean Region Lacks Policies and Procedures for Emergencies and Evacuations in Puerto Rico
06/19/2019
004
Attempt to recover the $2,868 in lodging tax paid and issue a
reminder to cardholders and approving officials of their responsibility to provide
effective oversight of government charge card transactions
12/13/2019
12/13/2019
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
001
Establish a measurement to align budget consumed to work completed
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
002
Develop standard operating procedures to guide the performance of the TOA task order. At a minimum, these procedures should require the inclusion of a readiness assessment and a schedule of deliverables into future interagency agreements with each customer agency
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
003
Modify and enforce interagency agreements to ensure the contracting officer's representative receives the information necessary to monitor contractor performance and enforce the Quality Assurance Surveillance Plan
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
004A
Determine if modifications to the task order are necessary to address key personnel in
the performance of the TOA task order
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
004B
Determine if modifications to the task order are necessary to address circumstances under which the TOA contractor must charge onsite rates
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
005
Seek monetary recoveries associated with unqualified contract employees and improperly approved travel claims, and strengthen controls to ensure future compliance with task order provisions
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
006A
Establish a standard invoice review process to ensure invoices are reviewed in a comprehensive and consistent manner
A170103QTP19003
Insufficient Management of Transition Support May Impede the Government-Wide Transition to Enterprise Infrastructure Solutions
06/28/2019
006B
Establish a standard invoice review process to ensure contracting personnel only approve invoices for payment that are supported by appropriate documentation
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
001
Cancel McKinsey's Contract Number GS-10F-0118S
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
002
Cancel McKinsey's Schedule 70 Contract Number GS-35F-646GA
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
003
Review all FAS contracts with team-based pricing to ensure they comply with Federal Acquisition Regulation requirements
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
004
Establish additional controls to ensure contracting staff obtain required audit records to perform audits prior to awarding contract actions
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
005
Assess whether the Division Director should be involved in future McKinsey contact or contract actions
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
006
Establish additional controls to ensure that FAS contracting staff maintain independent and impartial relationships with FAS contractors in accordance with federal regulations
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
007
Take appropriate action to address the Division Director's use of invalid price comparisons, reliance on unsupported information, and violation of standards of ethical conduct
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170118Q6P19004
Improper Pricing on the McKinsey Professional Services Contract May Cost the United States an Estimated $69 Million
07/23/2019
008
Take appropriate action to address the Washington Branch Chief's actions on the McKinsey Schedule 70 contract award and this audit
GSA is awaiting OIG feedback from GSA�s response to the final report before implementation
can begin
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
001A
Return refunds of overpayments to the appropriate tenant agencies
GSA is developing its response to OIG due on 11/05/2019
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
001B
Develop and implement a process to return refunds of overpayments to the appropriate tenant agencies as required
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
002
Evaluate U.S. Postal Service-owned space leases for terms and conditions allowing for the risk of long term vacancies and FFO loss and implement necessary safeguards to protect PBS against this risk
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
003
Implement a process to ensure timely and accurate execution of lease actions, such as adjustments to lease payments, real estate tax adjustments, buyouts, broker commission credits, and operating costs
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
004
Develop and implement appropriate internal controls to ensure PBS Region 5 leasing actions include the appropriate terms and conditions
GSA is developing its response to OIG due on 11/05/2019
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
005
Develop management reports that would exclude the effect of all prior year expense entries from FFO calculations as well as their effect on general and administrative allocations
A170047P5R19007
Audit of the PBS Great Lakes Region's Lease Financial Performance
08/23/2019
006
Develop and implement internal controls for employee time coding to prevent erroneous direct hour charges to building locations
A190030O5F19003
Audit of GSA's Fiscal Year 2018 Travel Card Program
09/20/2019
001
Strengthen controls to improve the timeliness and reliability of OAS's process to review questionable travel card charges
GSA is developing its response to OIG due on 11/04/2019
A190030O5F19003
Audit of GSA's Fiscal Year 2018 Travel Card Program
09/20/2019
002
Strengthen controls to improve the timeliness and effectiveness of OAS's process to resolve delinquencies
A190030O5F19003
Audit of GSA's Fiscal Year 2018 Travel Card Program
09/20/2019
003
Use travel voucher data to identify travel card policy violations and establish controls to address the violations identified
Open OIG Recommendations Not Fully Resolved as of September 30, 2019
Audits with Management Decisions and Approved Due Dates
Number
and Title of Report
Report Issue Date
Recommendation Number
Entire Recommendation
Original Due Date
Current Due Date
A190030O5F19003
Audit of GSA's Fiscal Year 2018 Travel Card Program
09/20/2019
004
Perform voucher audits to identify travel card policy violations and address recurring issues
GSA is developing its response to OIG due on 11/04/2019
A190030O5F19003
Audit of GSA's Fiscal Year 2018 Travel Card Program
09/20/2019
005
Implement controls to verify travel card refunds as required by the Government Charge Card Abuse Prevention Act of 2012
JE19-006
Alert Report: Agency Management Alert GSA's Continuity Plan is Outdated and Insufficient
09/26/2019
001
Review, update, and obtain approval for the agency-wide GSA national continuity plan that reflects current business operations, meets federal requirements, provides for reconstituting GSA's operations, and supports the physical reconstitution efforts of the Executive Office of the President and the executive departments and agencies
GSA is developing its response to OIG due on 11/22/2019
JE19-006
Alert Report: Agency Management Alert GSA's Continuity Plan is Outdated and Insufficient
09/26/2019
002
Establish a formal, annual process for reviewing GSA's national continuity plan, making adjustments and revisions as appropriate, and securing formal approval for any adjustments and revisions
Glossary of Terms
The following definitions, based on the Inspector General Act Amendment of 1978, apply to terms used in this Semiannual Management Report:
Questioned Costs. Costs questioned by the OIG as a result of:
� an alleged violation of a provision of a law, regulation, contract, grant, cooperative
agreement, or other agreement or document governing the expenditure of funds;
� a finding that, at the time of an audit, such cost is not supported by adequate
documentation;
� a finding that the expenditure of funds for the intended purpose is unnecessary
or unreasonable.
Disallowed Cost. Questioned costs that GSA management in a management decision sustained or agreed should not be charged to the Government.
Recommendation that Funds be Put to Better Use. A recommendation by the GSA OIG that funds could be used more efficiently if management took action to implement and complete the recommendations, including:
� reductions in outlays;
� de-obligation of funds from programs or operations;
� withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or bonds;
� costs not incurred by implementing recommended improvements related to the
operations of the establishment, a contractor, or grantee;
� avoidance of unnecessary expenditures noted in pre-award reviews of contract or
grant agreements;
� any other savings that are identified specifically.
Management Decision. The evaluation by management of the findings and recommendations included in an audit report and the issuance of a final decision by management and concurrence by the OIG concerning its response to such findings and recommendations, including planned corrective actions to remedy weaknesses identified in the report.
Final Action. The completions of all actions that GSA management concluded in its management decision were necessary with respect to the findings and recommendations included in the audit report. In the event that GSA concluded no action was necessary, final action occurred when the management decision was made.
Glossary of Terms
Management Actions - Questioned Costs. The following are the different management actions used by GSA management to resolve questioned costs in an audit report.
� Audit reports on which management decisions were made during the period: Data pertaining to the number of audit reports on which management decisions were
made during the period and the associated amount of disallowed costs was furnished by
the OIG.
� Write-offs: For the purposes of this report, write-offs are interpreted to represent the
difference between the disallowed cost and the amount successfully recovered.
Management Actions - Better Use Funds. The following are the different management actions used by GSA management to resolve the "better use" of funds in an audit report.
� Better Use Funds: The figure represents amounts cited as "cost avoidance" and "funds
to be put to better use," as agreed to by GSA management and the OIG. Prior to April
1990, no funds were identified by the OIG specifically as "funds to be put to better use,"
and no management decisions were issued based on the consideration of "better use" of
funds.
� Budget Impact Funds: Funds identified as "budget impact" involve the obligation
process. Audit-related savings of these funds, depending on the particular fund
involved, may be available for reprogramming.
� No Budget Impact Funds: Funds identified as "no budget impact" are composed of
estimated and actual amounts, and do not involve obligated monies, and; therefore,
cannot be construed as having a material effect on GSA's appropriated funds.
� Audit reports on which management decisions were made during the period: Data pertaining to the number of audit reports on which management decisions were
made during the period and the associated dollar amounts agreed to by management
were furnished by the OIG.
� Value of recommendations that management concluded should not or could not be
calculable: Management was unable to determine the award amounts and "better use
funds" implemented since the amount is included in the overall award to the prime
contractor and savings could not be determined.
U.S. General Services Administration � Semiannual Management Report to Congress Page 31
Appendix of the OIG Number of Management Decisions
This memo is intended to relate the total management decisions for the period
April 1, 2019 through September 30, 2019. The totals are based on H1 EB/JA
Data Match Report, dated October 1, 2019 and JA's AIS database. The OIG's
management decision statistics are, as follows:
Amount of Amount of
Type of Number of Better Use Disallowed
Audit Audits Funds Cost
Preaward 22 $ 75,024,285 $ 615,489
Postaward 5 $ 0 $12,678,165
Internal 10 $ 0 $ 11,930
Totals 37 $ 75,024,285 $ 13,305,584
U.S. General Services Administration � Semiannual Management Report to Congress Page 32
A Picture of General Services Administration on the back cover