U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration USDOT – PHMSA HMEP Grants Major Audit Findings NASTTPO April 25, 2012

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Agenda PHMSA’s Mission and Dedication Recognizing the Need for Improvement Top 10 OIG Findings For More Information…

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Grant Program History $26.1 Million

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Program Reviews and Status Internal Review Led to the implementation of internal controls and Grant Solutions 2010 Independent Review  Led to the development of an Action Plan under implementation  18 Recommendations 13 Recommendations being addressed 5 for future consideration Office of Inspector General HMEP Program Audit  Final Report issued on January 12, 2012  10 recommendations Three closed Seven satisfied pending action

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Inputs Outputs Internal Review Outcome Inputs Outputs Increased Staff Specialization, Monitoring & Technical Assistance Automation Efficiency, Consistency & Transparency Improved Processes Best Practices, Alignment with OMB & Updated Program Focus Outreach Maximized award benefits, Less returned funds Partnerships Information Leveraging, Increased Program Presence Grantee Accountability Eliminate inappropriate spending, increased program benefits Goal: Continuous Improvement of compliance, increased effectiveness, & enhanced transparency

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Independent Review Outcome Findings: 1) Lack of clear internal and external guidance on allowable uses of grant funds (courses, equipment) 2)Grantee administrative requirements not clear/not well articulated 3)Inconsistencies in completeness of grantee files 4)Lack of adequate oversight of grantee performance 5)Vague proposals included in application 6)Grantees utilize multiple funding sources (DHS/FEMA, EPA) without clear separation 7)Numbers Trained (as noted on Report to Congress) are unclear 8)Failure to manage grants in accordance with “federal norms”:  App Review/Awarding, Admin/Oversight, Close-out, and Compliance 9)Regulations do not align with assurance documents or grantee submissions/practices

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Top 10 OIG Findings - 7 -

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Improve Grantee Monitoring Conduct site visits and desk audits Implement monthly grantee monitoring to provide assistance and education Use a team approach to review applications and requests, as needed

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Improve Grantee Expenditure Review Grants Portal Update the PHMSA Expenditure Guidance —Last issued, February 2012 —Continue to update based on new activity requests and application review *All activities must receive prior approval by PHMSA in order to be funded*

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Update Terms and Conditions Review for issuance each cycle Increase grantee accountability Enable PHMSA to take action in the event of non- compliance

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Improve Outreach Updated the Outreach Plan –Webinars –Conferences –Training –Partner with the Hazardous Materials Safety Assistance Team

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Outreach Cont…. Provide Educational Materials for Grantees Site Visit Guidance HMEP Activities Guidance Sample Application Report to Congress Coming Soon: SF-270 Supporting Documentation Guidance

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Staff Training PHMSA wide competency based training program Certificates of completion for grants management PHMSA specific grants training

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Reduce Deobligations Researching the best approach to grant funds allocation Provided grantees with a three-year history of funds usage

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration HMEP Grant Funds Utilized Source: HAZMAT Intelligence Portal (HIP), April 10, 2012 Target = 19.6 M (90% of Total HMEP Funds Budgeted ($21.8M)) Target

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Modified Grants Schedule Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb April 1 st 2 nd Qtr SF-425 Due July 1 st 3 rd Qtr SF-425 Due Sept 30 th 4 th Qtr SF-425 Due Dec 31 st Close-Out Reports Due Jan 1 st 1 st Qtr SF-425 Due March 16 th Application Process Begins May 1 st Deadline for Applications August 1 st HMEP Grants Awarded* Oct 1 st All Grants Open for Use (HMEP, HMIT, and SPSTG) Sept 30 th Deadline for Return of Signed Awards NOTE: * NOTE: Grant award must be signed and returned before funds are available for disbursement.

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Implement Standard Operating Procedures Application Review Monthly Monitoring Report Review Payment Request Review Activity Request Review * SOPs are intended to be evergreen and will be updated with system and procedural changes *

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Long Term – Review Regulations Review the regulations to ensure they reflect the program’s intent and address gaps Regulatory initiatives identified to date: –Need for a revised Final Close-out report –Need for a Quarterly Progress Report * Changes to reporting requirements must be approved by OMB*

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Action Plan Item/ActivityDue Date (2011)Status Eligible/Ineligible List (Allowable/Unallowable)December 31 st COMPLETE Regulation Quick Reference GuideMarch 15 th COMPLETE Internal Training PlanMarch 28 th COMPLETE Outreach PlanMarch 28 th COMPLETE Guidance DocumentApril 15 th COMPLETE Quarterly Reporting Requirement (in ’11 Award T&Cs)April 15 th COMPLETE Proposed Activity Template 2 April 15 th COMPLETE Perform Site VisitsApril 15 th COMPLETE Standard Operating Procedures (full grant cycle)March 2012IN-PROCESS Compliance ProtocolJune 3 rd COMPLETE Quarterly/Final Report TemplateFebruary 2012COMPLETE Performance MeasuresDecember 16 th COMPLETE RegulationsMay 2012TO BEGIN FEB ‘

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Safety Enhancement Website program program Grants Website For More Information…..

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Questions (202)