Federal Reports

The independent public accounting firm of McBride, Lock & Associates, LLC, under contract with the Office of Inspector General, audited Help America Vote Act (HAVA) grants administered by the Wyoming Secretary of State, totaling just under $12 million. This included federal funds, state matching funds, and interest income earned on the reissued Section 101 and Election Security grants.

The objective of this Federal Information Security Modernization Act of 2014 (FISMA) review was to determine the effectiveness of the Peace Corps’ information security program and practices based on the fiscal year (FY) 2025 Inspector General (IG) FISMA Reporting Metrics v2.0,1 which are categorized into 6 functional areas and 10 associated domains. The review also evaluated the Peace Corps’ efforts in addressing previously issued exceptions and recommendations.

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Financial Statements of the Federal Prison Industries, Inc. (FPI) for fiscal year (FY) 2021, dated December 2021, was withdrawn and removed from the OIG’s website and Oversight.gov as a result of material misstatements in FPI’s financial statements that were discovered in FY 2023.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.

The previously-issued audit report containing the Annual Financial Statements of the Federal Prison Industries, Inc. (FPI) for fiscal year (FY) 2022, dated March 2023, was withdrawn and removed from the OIG’s website and Oversight.gov as a result of material misstatements in FPI’s financial statements that were discovered in FY 2023.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 FY 2022 financial statements and completed FY 2023 financial statements.

Our objective for this report was to assess the company’s efforts to support the project and oversee its interests as the project advances.

We found that Amtrak has made notable progress meeting its near-term obligations for the Hudson Tunnel Project, but the company could reduce its risks and help improve overall project performance by clarifying its role with external partners, engaging all relevant internal stakeholders, and strengthening its document management system.

To help improve overall project performance while safeguarding its interests, we recommend that the Amtrak 1) assess where interpretations of its role on the project may differ from its project partners and take steps to remedy those differences, 2) work with GDC to ensure the company has adequate, ongoing visibility into project risks on the construction packages it is not leading ,3) identify all necessary internal support activities and assign accountability for each, and 4) finalize its internal project document management system and procedures. 

Pursuant to requirements established by the Government Management Reform Act of 1994, the Office of Inspector General engaged the independent public accounting firm of KPMG LLP (KPMG) to perform the audit, The Department of Energy’s Fiscal Year 2025 Consolidated Financial Statements. During the audit, KPMG considered the Department’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the consolidated financial statements.

KPMG performed the audit in accordance with generally accepted government auditing standards.

During the audit, KPMG identified certain deficiencies in internal control that were considered to be a material weakness and a significant deficiency. KPMG communicated these concerns in the audit report, dated December 10, 2025. Specifically, KPMG identified a material weakness over the environmental management liability estimate driven by the inability to obtain sufficient appropriate audit evidence to support the liability and cost estimates for Portsmouth Paducah Project Office and Waste Isolation Pilot Plant, the contingency estimate for Savannah River Site, and the changes in liability and cost estimates for the Hanford Site as of and for the year ended September 30, 2025. Additionally, the audit identified certain deficiencies in internal control that KPMG considered to be a significant deficiency related to access controls over the Department’s various financial systems. The findings that led to the significant deficiency will be included in a separate management letter covering The Department of Energy’s Unclassified Cybersecurity Program for Fiscal Year 2025.

The attached letter contains 9 new findings, 4 repeat findings, and a total of 27 recommendations that were issued during the audit, The Department of Energy’s Fiscal Year 2025 Consolidated Financial Statements. Except for three findings, management concurred with each of the recommendations included in the management letter and had taken or planned to take corrective actions. Management’s responses are included with each finding.

This report provides an overview of the work of the Office of Inspector General during the period of April 1, 2025 through September 30, 2025.