Treasury OIG, OIG-26-038: Audit of Airline Worker Support Extension Certification, VT Mobile Aerospace Engineering, Inc. (Aug. 24, 2026)
Summary
Audit Report OIG-26-038 of the Department of the Treasury Office of Inspector General, dated August 24, 2026, on VT Mobile Aerospace Engineering, Inc.'s certifications for the Payroll Support Program Extension (PSP2). The memorandum states that Saggar & Rosenberg, P.C. performed the audit under a contract monitored by the Office of Inspector General. It reports that VT MAE did not retain all records used to support its PSP1 requested amount and was unable to explain its calculation methodology. It states that the supported amount was $4,340,747 less than the requested amount, that support for leased employees increased eligible compensation to $31,585,652, and that Treasury management stated it would permit the leased employee compensation. The report makes no recommendation.
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“Treasury OIG, OIG-26-038: Audit of Airline Worker Support Extension Certification, VT Mobile Aerospace Engineering, Inc. (Aug. 24, 2026).”
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SENSITIVE BUT
UNCLASSIFIED
(SBU)
asu ry
T r e
U.S.
SBU Cover Sheet
For further information, refer to the
Treasury Security Manual (TD P 15-71) at
http://intranet.treas.gov/security/
TD F 15-05.11 (3/07)
Audit Report
OIG-26-038
CORONAVIRUS DISEASE 2019 PANDEMIC RELIEF
PROGRAMS
Audit of Airline Worker Support Extension
Certification – VT Mobile Aerospace
Engineering, Inc.
August 24, 2026
Office of Inspector General
Department of the Treasury
This Page Intentionally Left Blank
August 24, 2026
MEMORANDUM FOR JEFFREY STOUT
ACTING CHIEF PROGRAM OFFICER
FROM: Pauletta Battle /s/
Assistant Inspector General for Audit
SUBJECT: Audit of Airline Worker Support Extension Certification —
VT Mobile Aerospace Engineering Inc.
Attached is our audit report for the Audit of Airline Worker Support Extension
Certification – VT Mobile Aerospace Engineering Inc. (VT MAE) (OIG-26-038;
August 24, 2026). Under a contract monitored by our office, Saggar & Rosenberg,
P.C. (S&R), a certified independent public accounting firm, performed the audit. The
objective of this audit was to assess the accuracy, completeness, and sufficiency of
VT MAE’s sworn financial statement or other data used to certify the wages, salaries,
benefits, and other compensation amounts submitted and approved by the Department
of the Treasury (Treasury) for the Payroll Support Program Extension (PSP2). This
audit was mandated by Title IV, Subtitle A, Airline Worker Support Extension, of the
Consolidated Appropriations Act, 2021. 1
According to the Consolidated Appropriations Act, 2021, Treasury is required to
provide financial assistance to contractors, who received financial assistance under
Payroll Support Program (PSP1), 2 an amount equal to the amount such contractor was
approved to receive (without taking into account any pro-rata reduction). 3 VT MAE
received PSP1 financial assistance; as such, S&R reviewed the company’s PSP1
information to determine whether the PSP2 requested amount is correct.
The scope of the audit covers PSP1 compensation paid between April 1, 2019,
through September 30, 2019; and the certified PSP2 Application, sworn financial
1
P.L. 116–260 (December 27, 2020)
2
P.L. 116-136, the Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020,
created the Air Carrier Worker Support. The program provided payroll support to passenger air
carriers, cargo air carriers, and certain contractors for the continuation of payment of employee
wages, salaries, and benefits in response to the economic impact of Coronavirus Disease 2019.
Treasury referred to this as PSP1.
3
The recipient’s requested amount is the Treasury’s approved amount, prior to any pro-rata reduction.
i
statement, tax returns, and other documentation submitted to Treasury on
January 13, 2021.
In its audit report, S&R found that VT MAE, a contractor, did not retain all records
used to support its PSP1 requested amount and was unable to explain the
methodology used in its calculation. As a result, S&R was unable to determine if
correct information was reported in the Determining Awardable Amount section of the
PSP2 Application.
Subsequently, VT MAE provided supporting documentation for $ in eligible
PSP1 compensation paid to employees from April 1, 2019, through
September 30, 2019. The supported amount was $4,340,747 less than the
$ requested amount. In addition, the company provided support for its
leased employees totaling $ . Overall, this increased the eligible
compensation to $31,585,652; however, the company was unable to demonstrate
that leased employee compensation was requested or considered when calculating its
PSP1 requested amount. After receiving the preliminary audit results, Treasury
management stated they would permit VT MAE’s leased employee compensation. As
a result, S&R is not making a recommendation.
Our contract required that the audit be performed in accordance with generally
accepted government auditing standards. In connection with the contract, we
reviewed S&R’s report and related documentation and inquired of its representatives.
Our review, as differentiated from an audit performed in accordance with generally
accepted government auditing standards, was not intended to enable us to express an
opinion on VT MAE’s compliance with Treasury’s PSP1 and PSP2 policies and
procedures. S&R is responsible for the attached auditor’s report and the conclusions
expressed therein. Our review found no instances in which S&R did not comply, in all
material respects, with generally accepted government auditing standards.
We appreciate the courtesies and cooperation provided to S&R and our staff during
the audit. If you have any questions or require further information, please contact me
at (202) 927-5400, or a member of your staff may contact Julie Wong, Acting Deputy
Assistant Inspector General for Audit, at (202) 439-6354.
Attachment
cc: Thao P. Tran, Acting Chief Operating Officer, Department of the Treasury
Wenxia Diao, Director of Compliance, Chief Operating Officer, Department of
the Treasury
Jason Morrow, Senior Counsel, Department of the Treasury
Jeff Davis, Partner, Saggar & Rosenberg, P.C.
ii
Contents
Audit Report
Results in Brief ...................................................................................................2
Background ........................................................................................................3
Treasury Disbursement Processes ....................................................5
VT Mobile Aerospace Engineering Inc. ..............................................6
Audit Results ......................................................................................................6
Finding VT MAE Did Not Maintain All Application Documentation ....................7
Appendices
Appendix 1: Objective, Scope, and Methodology .................................................. 12
Appendix 2: VT Mobile Aerospace Engineering, Inc. Management Response ............ 16
Appendix 3: Treasury Management Response ...................................................... 17
Appendix 4: Report Distribution .......................................................................... 19
Abbreviations
CAA Consolidated Appropriations Act
DOT Department of Transportation
DUNS Data Universal Numbering System
IRS Internal Revenue Service
OIG Treasury Office of Inspector General
PSP1 Payroll Support Program, Coronavirus Aid, Relief, and
Economic Security Act
PSP1 Guidelines Guidelines and Application Procedures for Payroll Support to Air
Carriers and Contractors under Division A, Title IV, Subtitle B
of the Coronavirus Aid, Relief, and Economic Security Act
PSP2 Payroll Support Program Extension, Consolidated
Appropriations Act, 2021
PSP2 Guidelines Guidelines and Application Procedures for Payroll Support to
Passenger Air Carriers and Contractors
PSP3 Payroll Support Program 3, American Rescue Plan of 2021
S&R Saggar & Rosenberg, P.C.
SOC 1 System and Organizational Controls
Treasury Department of the Treasury
VT MAE VT Mobile Aerospace Engineering, Inc.
This Page Intentionally Left Blank
August 24, 2026
Jeffrey Stout
Acting Chief Program Officer
Department of the Treasury
This report presents the results of our audit of VT Mobile
Aerospace Engineering Inc.’s (VT MAE) certifications made to the
Department of the Treasury (Treasury) as part of its participation in
the Payroll Support Program Extension (PSP2). This audit was
mandated by Title IV, Subtitle A, Airline Worker Support Extension,
of the Consolidated Appropriations Act, 2021 (CAA). Under the
CAA, Treasury was to provide $16 billion in financial assistance to
passenger air carriers and certain contractors to be exclusively
used for the continuation of payment of employee wages, salaries,
and benefits, in response to the economic impact of the
Coronavirus Disease 2019. 4 Furthermore, the Treasury Office of
Inspector General (OIG) is required to audit certifications made by
passenger air carriers that do not report salaries and benefits to the
Department of Transportation (DOT) (hereinafter referred to as
non-241 air carriers) 5 and contractors.
Our audit objective was to assess the accuracy, completeness, and
sufficiency of VT MAE’s sworn financial statement or other data
used to certify the wages, salaries, benefits, and other
compensation amounts submitted and approved by Treasury for
PSP2. According to the CAA, Treasury is required to provide
financial assistance to contractors, who received financial
assistance under Payroll Support Program (PSP1), an amount equal
to the amount such contractor was approved to receive (without
taking into account any pro-rata reduction). VT MAE received PSP1
financial assistance; as such, we reviewed the company’s PSP1
information to determine whether the PSP2 requested amount is
correct. The scope of the audit covers PSP1 compensation paid
between April 1, 2019 through September 30, 2019; and the
certified PSP2 Application, sworn financial statement, tax returns,
4
The financial assistance provided under the CAA was split between passenger air carriers
($15 billion) and contractors ($1 billion).
5
Passenger air carriers that are not required to report salaries and wages to DOT under
14 CFR Part 241, “Uniform System of Accounts and Reports for Large Certificated Air Carriers.”
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 1
and other documentation submitted to Treasury on
January 13, 2021.
To accomplish the objective, we reviewed applicable federal laws
and regulations; and Treasury’s policies, procedures and guidance,
including but not limited to, Title IV, Subtitle A, Airline Worker
Support Extension of the CAA; Guidelines and Application
Procedures for Payroll Support to Passenger Air Carriers and
Contractors (PSP2 Guidelines); PSP2 Agreement; Guidelines and
Application Procedures for Payroll Support to Air Carriers and
Contractors under Division A, Title IV, Subtitle B of the Coronavirus
Aid, Relief, and Economic Security Act (PSP1 Guidelines); and
Question and Answer: Payroll Support Program Extension for
Passenger Air Carriers and Contractors. We interviewed key
personnel from VT MAE and Treasury. We conducted our fieldwork
from February 2025 through February 2026. Appendix 1 contains
a more detailed description of our objective, scope, and
methodology.
Results in Brief
We found that VT MAE, a contractor, reported correct information
for five of six sections reviewed on its PSP2 Application. 6 These
sections are: (1) Recipient Information, (2) Eligibility Questions,
(3) Company Information, (4) Affiliates, and (5) Certification. We
found that VT MAE did not retain all records used to support its
PSP1 requested amount and was unable to explain the
methodology used in its calculation. As a result, we were unable to
determine if VT MAE reported correct information in the
Determining Awardable Amount section of its PSP2 Application.
Subsequently, VT MAE provided documentation to support
$ in eligible PSP1 compensation paid to its employees
from April 1, 2019, through September 30, 2019. The supported
amount was $4,340,747 less than the $ requested
amount. In addition, the company provided support for leased
employees totaling $ . This increased the eligible
6
The PSP2 Application is comprised of ten sections. We did not review four sections because the
Financial Information, Bankruptcy Information, and Employment Levels sections had no impact on
Treasury’s determination of recipients’ award amounts; and the Validation of PSP1 Award Amount
section was not reviewed because we are verifying VT MAE’s PSP1 requested amount as part of this
audit.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 2
compensation to $31,585,652; however, VT MAE was unable to
demonstrate that leased employee compensation was requested or
considered when preparing its PSP1 Application. After receiving
the preliminary audit results, Treasury management stated they
would permit VT MAE’s leased employee compensation. As a
result, we are not making a recommendation.
As part of our reporting process, we provided VT MAE
management with an opportunity to comment on a draft of this
report. In a written response, VT MAE management acknowledged
that no recommendation was warranted and accepted the report as
final. VT MAE management’s response, in its entirety, is included
as appendix 2 of this report.
In a written response, Treasury management noted that VT MAE
understated its awardable amount; therefore, no amounts are owed
back to Treasury. Additionally, Treasury management appreciates
the work on this engagement and looks forward to working with
the OIG to protect the integrity of the PSP and other recovery
programs. Treasury management’s response, in its entirety, is
included as appendix 3 of this report.
Background
Title IV, Subtitle A, of the CAA, Airline Worker Support Extension,
requires the Treasury to provide financial assistance to air carriers
and contractors that must exclusively be used for the continuation
of payments of employees’ wages, salaries, and benefits. Financial
assistance is to be provided to:
(1) passenger air carriers, in an aggregate amount up to
$15 billion; and
(2) contractors, in an aggregate amount up to $1 billion.
According to the CAA, Treasury is required to provide financial
assistance to contractors, in an amount equal to: (1) the amount
such contractor was approved to receive (without taking into
account any pro-rata reduction) under PSP1; or (2) in the event
such contractor did not receive financial assistance under PSP1, an
amount that the contractor certifies, using sworn financial
statements or other appropriate data, as the amount of wages,
salaries, benefits, and other compensation that such contractor
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 3
paid the employees of such contractor during the period from
October 1, 2019, through March 31, 2020. The amounts
submitted on the application to Treasury were considered sworn
financial statements. To be eligible for payments, contractors must
enter into agreements with Treasury certifying that they meet
certain required assurances, terms, and conditions.
On December 29, 2020, Treasury posted on its website PSP2
Guidelines. Afterwards, Treasury posted a web-based PSP2
Application for applicants to complete and submit. The PSP2
Application was comprised of ten sections:
1. Recipient Information — (1) indication of whether the applicant
is an eligible passenger air carrier or an eligible contractor;
(2) Form-41 filer indication; 7 (3) applicant’s name;
(4) applicant’s taxpayer identification number; and (5) PSP1
Applicant indication, if applicable, by listing the PSP1
Application number, whether PSP1 Application was approved,
and financial assistance received.
2. Eligibility Questions — selection of whether the applicant is a
direct passenger air carrier, an indirect passenger air carrier, a
direct contractor, or a subcontractor. 8
3. Company Information — (1) applicant’s Data Universal
Numbering System (DUNS) number; 9 (2) indication of whether
the applicant is registered with the System for Award
Management; 10 (3) applicant’s entity type; (4) applicant’s
address; and (5) contact person name, title, phone number, and
email address.
7
A Form-41 filer is a large certificated air carrier, who is required to report financial information to
DOT.
8
Direct air carrier means a certificated commuter, foreign air carrier, an air taxi operator, or a Canadian
charter air taxi operator; that directly engages in the operation of aircraft under a certificate,
authorization, permit or exemption issued by DOT. Indirect air carriers are organizers and service
providers who use services of a direct air carrier but do not operate or own the aircraft. A direct
contractor is hired directly by the client to complete a project, whereas a subcontractor is hired by
the contractor to complete tasks within the contract.
9
A DUNS number is a unique nine-digit identifier associated with a company’s credit profile.
10
Entities registered on the System for Award Management, which is administered by the General
Services Administration, are allowed to bid on government contracts and apply for federal
assistance.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 4
4. Financial Information — (1) the applicant’s account type,
number, and routing number; and (2) the financial institution’s
name, address, and telephone number.
5. Bankruptcy Information — applicant’s indication as to whether
they have taken or is contemplating taking action to commence
bankruptcy, to include explanation, debtor name, bankruptcy
court, case number, type of bankruptcy filing, and date of
bankruptcy filing.
6. Employee Levels — (1) applicant’s average number of
employees for 2019 and 2020; (2) employee count as of the
date of the PSP2 Application; (3) if applicant did not apply for
PSP1, number of involuntary reductions after March 27, 2020;
and (4) if applicant applied for PSP1, number of involuntary
reductions after October 1, 2020.
7. Determining Awardable Amount — amount requested under
PSP1 (without taking into account any pro rata reduction), or
applicant’s sworn financial statement consisting of salaries,
wages, benefits, and other compensation for October 1, 2019,
to March 31, 2020.
8. Validation of PSP1 Award Amount — applicant’s recertification
to whether unallowable expenses were included in its PSP1
Application, to include corporate officer compensation,
independent contractors, employer-side payroll taxes, and
amounts other than wages, salaries, benefits, and other
compensation.
9. Affiliates — (1) affiliate name; (2) affiliate applicant type;
(3) affiliate taxpayer ID; and (4) affiliate DUNS number.
10. Certification — names, titles, and signatures of two certifying
officials 11 and application submission date.
Treasury Disbursement Processes
The total PSP2 requested amount (also referred to as awardable
amount) by all contractor applicants exceeded the $1 billion
11
The certifying officials attested under penalty of perjury that the information and certifications
provided in the application and its attachments are true and correct.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 5
available financial assistance. As a result, Treasury applied a
pro-rata rate of 30.4 percent to the requested amount. Generally,
Treasury disbursed two payments—each half of the awarded
amount.
VT Mobile Aerospace Engineering Inc.
Headquartered in Mobile, Alabama, VT MAE is contractor that
provides aircraft maintenance, repair, and overhaul services for
major commercial airlines.
VT MAE submitted its PSP2 Application on January 13, 2021. The
requested amount is $ , which is the amount VT MAE
was approved to receive under PSP1. The company received
$8,118,358, or 30.4 percent of the requested amount. Treasury’s
disbursements to VT MAE were as follows:
• April 8, 2021: $4,059,179
• May 17, 2021: $4,059,179
In addition to PSP2, Treasury awarded VT MAE $8,118,358 under
Payroll Support Program 3 (PSP3) authorized by the American
Rescue Plan Act of 2021. 12 PSP3 was not the subject of this audit.
Audit Results
We found that VT MAE reported correct information for five of six
sections reviewed on its PSP2 Application. These sections are:
(1) Recipient Information, (2) Eligibility Questions, (3) Company
Information, (4) Affiliates, and (5) Certification. We compared
information provided in each section of the PSP2 Application to
supporting documentation including general ledger data, company
sworn financial statement, Internal Revenue Service Form 941, 13
12
P.L. 117-2, the American Rescue Plan of 2021, enacted on March 11, 2021, created the Air
Transportation Payroll Support Program Extension authorizing Treasury to provide additional
assistance to passenger air carriers and contractors that received financial assistance under PSP2.
Treasury referred to this as PSP3.
13
Internal Revenue Service Form 941 is a tax form that businesses file quarterly to report income
taxes, Social Security taxes, and Medicare taxes they withheld from employees’ paychecks.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 6
executive-level business charts, payroll registers, and third-party
benefit claim and invoice data, among other items.
In the Determining Awardable Amount section, 14 we found that VT
MAE did not retain all records used to support its PSP1 requested
amount and was unable to explain the methodology used in its
calculations. As a result, we were unable to determine if VT MAE
reported correct information in the Determining Awardable Amount
section of the PSP2 Application. Subsequently, VT MAE submitted
documentation supporting $31,585,652 in eligible compensation,
which includes $ for leased employees. Nevertheless,
VT MAE was unable to demonstrate that leased employee
compensation was requested or considered during the application
process. After receiving the preliminary audit results, Treasury
management stated they would permit VT MAE’s leased employee
compensation. As a result, we are not making a recommendation.
Finding VT MAE Did Not Maintain All Application Documentation
The PSP2 Agreement between VT MAE and Treasury states:
until the quarter beginning after October 1, 2022, or when no
Taxpayer Protection Instrument is outstanding, the Signatory
Entity must certify compliance with this agreement within
45 days after each of the first three quarters and within
90 days after the end of each year. Recipients and affiliates
must retain all records related to Payroll Support and
compliance with this agreement for three years, including
electronic records with automatic deletion functions like emails.
These records should substantiate factual representations in the
application for Payroll Support and show compliance with this
agreement. If any litigation, claim, investigation, or audit
concerning Payroll Support begins before the three-year period
ends, the recipient and affiliates must keep all records until
these issues are fully resolved and a final decision is made; and
the term “records” includes all relevant financial and accounting
records and all supporting documentation for the information
reported on the recipient’s quarterly reports.
14
VT MAE’s PSP2 requested amount is equal to its PSP1 amount. Additionally, because its PSP1
amount was not audited, we had to confirm employee compensation from April 1, 2019, through
September 30, 2019.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 7
Treasury’s PSP1 Guidelines defines:
wages, salaries, benefits, and other compensation as
remuneration paid by the applicant to its employees for personal
services and includes salaries, wages, overtime pay,
cost-of-living differentials, and other similar compensation, as
distinguished from per diem allowances or reimbursement for
expenses incurred by personnel for the benefit of the applicant.
Treasury’s PSP2 Guidelines defines:
employees as individuals who are employed by an air carrier or
a contractor and whose principal place of employment is in the
United States (including its territories and possessions),
including salaried, hourly, full-time, part-time, temporary, and
leased employees, but excluding any individual who is a
corporate officer or independent contractor;
corporate officer as with respect to a passenger air carrier, a
president; any vice president in charge of a principal business
unit, division, or function (such as sales, administration or
finance); any other officer who performs a policy-making
function; or any other person who performs similar
policy-making functions for the passenger air carrier or
contractor. Executive officers of subsidiaries or parents of a
passenger air carrier or contractor may be deemed corporate
officers of the passenger air carrier or contractor if they perform
such policy-making functions for the passenger air carrier or
contractor;
benefits as without duplication of any amounts counted as
salary or wages, pension expenses in respect of employees, all
expenses for accident, sickness, hospital, and death benefits to
employees, and the cost of insurance to provide such benefits;
any severance pay or other benefits payable to employees
pursuant to a bona fide voluntary early retirement program or
voluntary furlough; and any other similar expenses paid by a
passenger air carrier or contractor for the benefit of employees,
including any other fringe benefit expense described in lines 10
and 11 of Financial Reporting Schedule P-6, 15 Form-41, as
15
The Schedule P-6 is one of the financial reports 241 air carriers must submit to DOT. The schedule
contains data for a company’s quarterly operating expenses and is separated into categories such as
salaries and fringe benefits.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 8
published by the Department of Transportation, but excluding
any federal, state, or local payroll taxes paid by a passenger air
carrier or contractor; and
wages as without duplication of any amounts counted as
benefits, a payment, typically paid on an hourly, daily, or
piecework basis, including cost-of-living differentials, vacation,
paid time off, sick leave, and overtime pay, paid by a passenger
air carrier or contractor to its employees, but excluding any
federal, state, or local payroll taxes paid by the passenger air
carrier or contractor.
Treasury’s Preparing for the PSP2 Application for Passenger Air
Carriers and Contractors states:
applicants that participated in PSP1 may be required to
demonstrate that the requested amount for PSP1 only included
amounts for wages, salaries, benefits, and other compensation
that the applicant paid its employees. This may include
demonstrating that such amounts did not include (1) payments
to corporate officers or independent contractors or
(2) employer-side payroll tax contributions.
VT MAE did not retain all records used to support the PSP1
requested amount of $ ; therefore, we cannot
determine if the Determining Awardable Amount section in the
PSP2 Application was correct. VT MAE management responded to
audit requests stating that the company was unsure what sources
and amounts were used to populate the compensation reported in
the PSP1 Application. In addition, VT MAE management stated
they could not confirm if its PSP1 requested amount included
unallowable items such as corporate officer compensation or
employer-side payroll taxes. As a result, VT MAE may have
included unsupported amounts in its PSP1, PSP2, and PSP3
applications.
We requested the company to provide any documentation that
supports compensation paid to its employees from April 1, 2019,
through September 30, 2019. We determined the eligible
supported compensation amount was $ , which is
$4,340,747 less than the requested amount, as illustrated in
Table 1 below.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 9
Table 1. PSP1 Application Comparison
Requested Supported
Description Amount Amount Difference
Salaries and Wages $ $ $
Benefits $ $ $
Other Compensation $0 $0 $0
Total $ $ $(4,340,747)
Source: S&R Calculation of Awardable Amount
VT MAE management was unable to explain the differences related
to Salaries and Wages and Benefits. They stated that there has
been considerable turnover over the course of the last few years,
but their understanding is that VT MAE personnel at the time
worked to complete the application as quickly as possible, and with
the supporting documentation they had at hand.
During the preliminary finding discussion, VT MAE management
stated that the company paid $ for leased employees
between April 1, 2019, and September 30, 2019. Furthermore, the
company’s management stated that leased employee compensation
could have been included in its PSP1 Application and would offset
the $ variance under Benefits. According to PSP2
Guidelines, leased employees are considered eligible employees.
VT MAE provided leased employee labor agreements, vendor
invoices, and payment documentation to support its leased
employee compensation claim. Our review of the information did
not (1) show that leased employee compensation was included in
the requested amount; or (2) provide an explanation on how leased
employee costs would be categorized. We reviewed the leased
employee data provided and calculated VT MAE paid $
in leased employee compensation during the applicable scope
period. VT MAE was eligible to request up to $31,585,652 under
PSP1, which includes the total supported amount and the leased
employee compensation. After receiving the preliminary audit
results, Treasury management stated they would permit VT MAE’s
leased employee compensation. Therefore, we are not making a
recommendation.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 10
******
We appreciate the courtesies and cooperation provided to our staff
during the audit. A distribution list for this report is provided as
appendix 4.
Saggar & Rosenberg, P.C. /s/
Appendices
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 11
Appendix 1: Objective, Scope, and Methodology
Our objective was to assess the accuracy, completeness, and
sufficiency of VT Mobile Aerospace Engineering Inc.’s (VT MAE)
sworn financial statement or other data used to certify the wages,
salaries, benefits, and other compensation amounts submitted and
approved by the Department of the Treasury (Treasury) for the
Payroll Support Program Extension (PSP2).
As a contractor, VT MAE received Payroll Support Program (PSP1)
assistance; as such, we reviewed the company’s PSP1 information
to determine whether the PSP2 requested amount is correct. The
scope of our audit covered PSP1 compensation paid between
April 1, 2019, through September 30, 2019; and included the
certified PSP2 Application, sworn financial statement, tax returns,
and other documentation submitted to Treasury on
January 13, 2021.
To accomplish this objective, Saggar & Rosenberg, P.C. performed
the following activities during audit fieldwork from February 2025
through February 2026:
• Reviewed applicable Federal laws and regulations, including:
o Title IV, Subtitle A, Airline Worker Support Extension, of
the Consolidated Appropriations Act, 2021;
o Title IV, Subtitle B, Air Carrier Worker Support, of the
Coronavirus Aid, Relief, and Economic Security Act; and
o 14 CFR Part 241, Uniform System of Accounts and
Reports for Large Certificated Air Carriers, amended
April 2, 2025.
• Reviewed Treasury’s policies, procedures, and guidance related
to PSP1 and PSP2:
o Guidelines and Application Procedures for Payroll Support
to Passenger Air Carriers and Contractors,
December 29, 2020;
o PSP2 Agreement;
o Question and Answer: Payroll Support Program Extension
for Passenger Air Carriers and Contractors,
(January 19, 2021, and March 10, 2021, versions);
Audit of Airline Worker Support Extension Certification –
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Appendix 1: Objective, Scope, and Methodology
o Preparing for the PSP2 Application for Passenger Air
Carriers and Contractors, December 29, 2020; and
o Guidelines and Application Procedures for Payroll Support
to Air Carriers and Contractors under Division A, Title IV,
Subtitle B of the Coronavirus Aid, Relief, and Economic
Security Act, March 30, 2020.
• Performed 100 percent testing for six of the ten sections of the
PSP2 Application—specifically, the Company Information,
Recipient Information, Eligibility Questions, Affiliates,
Determining Awardable Amount, and Certification sections. The
other four sections were not reviewed because the Financial
Information, Bankruptcy Information, and Employee Levels, had
no impact on Treasury’s determination of VT MAE’s PSP2
award amounts. The Validation of PSP1 Award Amount section
was not reviewed because we are verifying VT MAE’s PSP1
requested amount as part of this audit.
• Interviewed key Treasury personnel.
• Requested interviews with VT MAE’s management responsible
for the completion and submission of the sworn financial
statement in the Determine Awardable Amount section of the
PSP2 Application; however, those individuals were no longer
with the company. As a substitute, we interviewed VT MAE
management responsible for supporting the PSP2 audit.
• Reviewed sworn financial statement and documents to support
the requested payroll support amount. The documentation
included but was not limited to: (1) general ledger data,
(2) company pay registers, (3) benefit claim information,
(4) Internal Revenue Service Form 941 – Employer’s Quarterly
Federal Tax Return, (5) organizational hierarchy, and (6) VT
MAE’s PSP1 Application.
• Reviewed Government Accountability Office’s Standards for
Internal Control in the Federal Government to identify the
components of internal control that are significant to the audit
objective. Understanding internal control within the context of
an entity’s internal control framework can help auditors
determine whether internal control deficiencies exist. We
concluded that one of the five internal control components,
Control Activities, as related to VT MAE’s payroll system, was
Audit of Airline Worker Support Extension Certification –
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Appendix 1: Objective, Scope, and Methodology
significant to the audit objective. 16 This component states that
control activities are the actions management establishes
through policies and procedures to achieve objectives and
respond to risks in the internal control system, which includes
the entity’s information system. To assess the controls over VT
MAE’s payroll system, we examined VT MAE’s response to
Data Supplier Questionnaires, 17 reviewed a System and
Organizational Controls 1 (SOC 1) report, 18 and interviewed VT
MAE’s management responsible for generating and using the
data. Additional details regarding our assessment of the
reliability of the data are reported in the section below.
• Reviewed Government Accountability Office’s Assessing Data
Reliability guidance, which states that a data reliability
determination does not involve attesting to the overall reliability
of the data or database. For this audit, the audit team has only
determined the reliability of the specific data needed to support
the findings, conclusions, or recommendations in the context of
the audit objective. VT MAE prepared the PSP2 Application
using amounts requested under PSP1; however, VT MAE
management could not describe how, or what sources, were
used to prepare the PSP1 Application. Despite this, we
compared details generated from payroll registers at the
individual employee level, as well as third-party benefit invoices
and payment data from April 1, 2019, through
September 30, 2019, to the amounts presented in the
Awardable Amounts section of the PSP1, and inherently the
PSP2 Application.
To assess data reliability of these sources, we (1) reviewed the
Data Supplier Questionnaires for the payroll and financial
accounting systems, (2) reviewed the SOC 1 report for the
payroll system, and (3) interviewed VT MAE’s management
responsible for generating and using the data. Based on our
assessment, we determined that the data was sufficiently
16
The five components of internal control are Control Environment, Risk Assessment, Control
Activities, Information and Communication, and Monitoring.
17
A Data Reliability Assessment is completed to assess the reliability of data originating from a system
to determine if it is reliable for the purposes of the audit of a third-party vendor’s accounting and
financial controls. The Data Supplier Questionnaire would be one of the tools used during the Data
Reliability Assessment.
18
SOC 1 report addresses a company’s internal control over financial reporting, which pertains to the
application of checks-and-limits. Essentially, it is the audit of a third-party vendor’s accounting and
financial controls.
Audit of Airline Worker Support Extension Certification –
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Appendix 1: Objective, Scope, and Methodology
reliable to support the findings and conclusions to answer the
objective of this audit.
We conducted this performance audit in accordance with generally
accepted government auditing standards. Those standards require
that we plan and perform the audit to obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and
conclusions based on our audit objective. We believe that the
evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objective.
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 15
Appendix 2: VT Mobile Aerospace Engineering, Inc. Management
Response
Audit of Airline Worker Support Extension Certification –
VT Mobile Aerospace Engineering Inc. (OIG-26-038) 16
Appendix 3: Treasury Management Response
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Appendix 3: Treasury Management Response
Audit of Airline Worker Support Extension Certification –
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Appendix 4: Report Distribution
Department of the Treasury
Deputy Secretary
Treasury Audit Liaison
Office of Strategy, Planning, and Performance Improvement
Office of the Deputy Chief Financial Officer, Risk and Control
Group
VT Mobile Aerospace Engineering Inc.
Senior Counsel
Office of Management and Budget
OIG Budget Examiner
United States Senate
Committee on Homeland Security and Governmental Affairs
Committee on Finance
Committee on Banking, Housing, and Urban Affairs
Committee on Commerce, Science, and Transportation
Committee on Appropriations
Committee on the Budget
United States House of Representatives
Committee on Oversight and Government Reform
Committee on Financial Services
Committee on the Budget
Committee on Transportation and Infrastructure
Audit of Airline Worker Support Extension Certification –
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