IRA - Discrimination Financial Assistance Program

View Report

Date Issued

Monday, September 8, 2025

Submitting OIG

Department of Agriculture OIG

Agencies Reviewed/Investigated

Department of Agriculture

Report Number

50601-0006-23

Report Description

OIG evaluated USDA’s internal controls related to consistent and accurate reviews of applications for assistance and proper disbursements of the Discrimination Financial Assistance Program.

(Note: The attached report was updated March 12, 2026 to replace previously published redacted report).

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$11,074,892

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
1	Yes	$5,369,000	$0
We recommend that USDA re-review the 3,019 applications without documented concurrence and take appropriate action. As appropriate, recover any of the $5,369,000 unsupported questioned costs awarded to the 563 flagged applicants that are determined to be unallowable.
2	Yes	$2,018,620	$0
We recommend that USDA recover $914,810 of the remaining $2 million in questioned costs disbursed to applicants that were identified as improper payments during its reconciliation review.
3	Yes	$3,687,272	$0
We recommend that USDA identify and incorporate lessons learned and best practices for future programs that may require a non-governmental entity to administer the program. This should include modifying its contracts to receive Treasury approval prior to spending $3,687,272 in questioned costs to disburse Federal program funds by a third-party bank.