Independent Auditors’ Report on the U.S. Department of the Interior’s Financial Statements for Fiscal Year 2025

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Title Full

Date Issued

Friday, January 16, 2026

Submitting OIG

Department of the Interior OIG

Agencies Reviewed/Investigated

Department of the Interior

Components

Departmentwide

Report Number

r 2025-FIN-022

Report Description

KPMG’s audit of DOI’s FY 2025 financial statements found 1 material weakness and 2 significant deficiencies in financial reporting internal controls.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

External Link

https://www.doioig.gov/reports/audit/independent-auditors-report-us-department-…

Open Recommendations

This report has 8 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
2025-FIN-022-01	Yes	$0	$0
We recommend the Department implement comprehensive training for new control operators, focusing on accurate completion and review of financial statement templates and related disclosures. Training should emphasize understanding control objectives, consistent application of policies and procedures, and thorough review practices to detect and correct errors.
2025-FIN-022-04	Yes	$0	$0
We recommend that the Department continue to design policies to perform and document a risk assessment of new or revised accounting standards.
2025-FIN-022-07	No	$0	$0
We recommend the Department implement a periodic retrospective review to verify the data, methods, and assumptions are accurate, complete, and consistent with established estimation methodologies.
2025-FIN-022-02	No	$0	$0
We recommend the Department periodically assess the effectiveness of training and update materials as needed to reflect changes in personnel, processes, or reporting requirements.
2025-FIN-022-03	No	$0	$0
We recommend the Department assign experienced personnel as the reviewer or a second review by a different employee when new employees are performing the control.
2025-FIN-022-05	No	$0	$0
We recommend the Department provide ongoing guidance and training to process owners to ensure compliance with the standards.
2025-FIN-022-06	No	$0	$0
We recommend the Department enhance risk assessment procedures to identify and implement changes needed to internal processes and controls to ensure ongoing compliance with SFFAS 54.
2025-FIN-022-08	Yes	$0	$0
We recommend the Department establish and document a formal control requiring periodic review and validation of the application of the data used to generate the accounting estimate.