Audit of the Federal Prison Industries, Inc. Restated Annual Financial Statements Fiscal Year 2021

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Date Issued

Tuesday, December 16, 2025

Submitting OIG

Department of Justice OIG

Agencies Reviewed/Investigated

Department of Justice

Components

Federal Bureau of Prisons

Other DOJ Components

Report Number

26-005

Report Description

The previously-issued audit report containing the Annual Financial Statements of the Federal Prison Industries, Inc. (FPI) for fiscal year (FY) 2021, dated December 2021, was withdrawn and removed from the OIG’s website and Oversight.gov as a result of material misstatements in FPI’s financial statements that were discovered in FY 2023. The report now linked to this page contains the auditor’s report on the FPI’s restated financial statements for FY 2021.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use	Additional Details
3	No	$0	$0	Status as of December 31, 2025
Design and implement policies and procedures to identify changes in operational activities that necessitate a change in accounting treatment.
4	No	$0	$0	Status as of December 31, 2025
Design and implement policies and procedures to identify risks related to presentation matters that are pertinent to the users of the financial statements.
5	No	$0	$0	Status as of December 31, 2025
Design and implement a formal revenue recognition review process for significant judgments and elections.