Federal Reports

This is the second report of the fiscal year 2025 financial statements audit of the Smithsonian Institution performed by the independent public accounting firm of KPMG LLP (KPMG). On February 27, 2026, KPMG issued its independent auditor’s report on the Smithsonian Institution’s statement of financial position as of September 30, 2025, and the related statements of financial activity and cash flows. KPMG expressed an unmodified opinion that concluded the financial statements were presented fairly, in all material respects, in accordance with the applicable financial reporting standards. 
 

We have reviewed the U.S. Department of Housing and Urban Development’s (HUD’s) Detailed
Accounting Report and the related management assertions for National Drug Control Program activities
for the fiscal year ended September 30, 2025. We also reviewed the Budget Formulation Compliance
Report, which includes budget formulation information for fiscal year 2027, and the related
management assertions for National Drug Control Program activities. HUD’s management is responsible
for preparing the Detailed Accounting Report and Budget Formulation Compliance Report in accordance
with (or based on) the Office of National Drug Control Policy’s (ONDCP) Circular, National Drug Control
Program Agency Compliance Reviews, dated September 9, 2021. Our responsibility is to express a
conclusion about the reliability of each assertion made in these reports.
We performed this review as required by section 705(d) of Public Law 105-277, which requires National
Drug Control Program agencies to submit to the Director of ONDCP a detailed accounting of all funds
spent by the agencies for National Drug Control Program activities during the previous fiscal year and
that the accounting be authenticated by agency inspectors general before submission.

For our review, we performed the following: (1) reviewed HUD’s evidence for the assertions, (2)reviewed HUD’s source files for data reported in the Detailed Accounting Report, (3) determined whether HUD made the assertions required by ONDCP, and (4) made necessary inquiries of HUD and ONDCP personnel.

Based upon our review, we are not aware of any material modifications that should be made to HUD’s
Detailed Accounting Report and Budget Formulation Compliance Report for them to be in accordance
with ONDCP’s Circular, National Drug Control Program Agency Compliance Reviews, dated September 9,
2021.

HUD’s management’s assertions, along with the Detailed Accounting Report and Budget Formulation
Compliance Report, are included as attachment A.
 

The objective of this inspection was to determine if the Farm Credit Administration complied with the Payment Integrity Information Act for FY 2025.

Annual summary perspective on the most serious management and performance challenges facing the FTC, as well as a brief assessment of the agency’s progress in addressing those challenges.