Report PDF - US Environmental Protection Agency

We conducted our audit work between January 2012, and January 2013. Our
examination disclosed material noncompliance with 2 CFR §176.60, Section 1605
of the Recovery Act, and Section 23 of the cooperative agreement pertaining to
Buy American requirements. Chapter 3 of this report includes a discussion of the
noncompliance. In addition, TDOT did not fully comply with Programmatic
Condition 4 of the cooperative agreement pertaining to the reporting of actual
project results. Chapter 4 of this report includes a discussion of the
noncompliance related to TDOT’s potential overstatement of project results in its
final report.
As a result, unless TDOT can establish that the project met Buy American
requirements, we recommend that EPA disallow and recover Recovery Act funds.
For the potentially overstated project results, we recommend that EPA review the
assumptions used by TDOT to calculate projected results, assist TDOT with any
recalculations, and adjust the DERA program reporting of TDOT results to reflect
recalculated results.
In our opinion, TDOT has not complied with the requirements of 2 CFR §176.60,
Section 1605 of the Recovery Act for the cooperative agreement period ending
November 30, 2011.
Robert K. Adachi
Director for Forensic Audits
13-R-0321 4