Federal Reports

We engaged an independent public accounting (IPA) firm to audit the Defense Intelligence Agency’s Fiscal Year 2025 financial statements.  We evaluated the reliability of data supporting the financial statements, determined the reasonableness of the statements produced, and examined disclosures in accordance with applicable guidance.  We issued the results of our evaluation in a final report dated November 14, 2025.

We contracted with the independent public accounting firm RMA Associates, LLC (RMA) to audit the consolidated financial statements of the United States International Development Finance Corporation (DFC) for the fiscal year ended September 30, 2025, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract required the audit to be performed in accordance with U.S. generally accepted auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. 

In its audit of DFC, RMA reported 

• the consolidated financial statements were fairly presented, in all material respects, in accordance with U.S. generally accepted accounting principles;

• no material weaknesses1 and no significant deficiencies2 in internal control over financial reporting; and 

• no reportable noncompliance with provisions of laws tested and other matters. 

RMA is responsible for the attached auditor’s report dated November 14, 2025 and the conclusions expressed therein. We do not express opinions on DFC’s consolidated financial statements, or report on internal control over financial reporting, or report on compliance and other matters.

In accordance with the Reports Consolidation Act of 2000, the Office of Inspector General (OIG) 
is required to report in the U.S. Equal Employment Opportunity Commission’s (EEOC or Agency)
Agency Financial Report what we have determined to be the most serious management and 
performance challenges facing the Agency. This statement provides our views on the Agency’s 
management challenges for fiscal year (FY) 2026. Due to the Office of Management and Budget’s
direction on the Agency Financial Report due date, the OIG had less time than expected to prepare 
this statement. We were unable to obtain and verify the Agency’s latest updates to year-end 
information. Nevertheless, we believe the Management Challenges capture the most important 
hurdles facing EEOC in FY 2026.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Kiewit Power Constructors Company (Kiewit) under Contract No. 13156 for work performed in support of TVA’s coal combustion residual conversion program.  Our audit objective was to determine if the costs billed to TVA were in accordance with the contract’s terms.  Our audit scope included approximately $133.7 million in costs billed to TVA between January 1, 2023, and September 30, 2024.

In summary, we determined Kiewit overbilled TVA $51,251, including (1) $24,192 in ineligible fee and general and administrative costs, of which $8,097 was due in part to contradictory language in the contract, (2) $15,957 in a duplicate materials cost, and (3) $11,102 in incorrect craft labor costs. We also determined Kiewit billed TVA for reimbursement of temporary living allowance (TLA) costs that were not supported.  Specifically, Kiewit billed TVA an average of $4,396 per month per employee for TLA.  However, Kiewit only provided documentation supporting an average of $2,310 per month per employee in TLA costs incurred. Based on our analysis and Kiewit’s inability to provide documentation supporting the full amount of TLA costs it incurred, we have referred this matter to the Office of the Inspector General Investigations for further review.  In addition, we noted opportunities to improve contract administration by TVA related to (1) tax exemption requests, (2) craft labor rate schedules that did not match the Project Labor Agreement, and (3) TLA employee certification forms that were not notarized as required by the contract.