Federal Reports

The financial statements and accompanying notes contained in the closing package were prepared for the purpose of complying with the requirements of the U.S. Department of the Treasury's Financial Manual (TFM) Volume I, Part 2, Chapter 4700 for the purpose of providing financial information to the U.S. Department of the Treasury and U.S. Government Accountability Office to use in preparing and auditing the Financial Report of the U.S. Government, and are not intended to be a complete presentation of PBGC's financial statements.

Under a contract monitored by NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s closing package schedule as of September 30, 2018. The audit report for the FY 2017 Consolidated Financial Statements of the U. S. Government includes: (1) an opinion on the closing package schedule, (2) internal control over financial reporting specific to the closing package financial statements, and (3) compliance and other matters specific to the closing package schedule.

The OIG investigated allegations of mismanagement from students, faculty, and administrators at Haskell Indian Nations University (Haskell) against the Haskell President. The complaints included allegations that the Haskell President and other university officials mishandled misconduct complaints, and that the Haskell President bullied employees, committed nepotism for the benefit of a family member, and showed favoritism towards a subordinate employee. We also investigated allegations of an improper computer purchase using Title III funds.We found that university officials did not consistently follow Haskell’s guidelines for handling complaints of misconduct and that Haskell’s administration inaccurately reported crime statistics in 2014 and 2015. We also found that Haskell employees felt bullied and intimidated by the Haskell President, and we found that the President’s presence in a meeting influenced a family member’s appointment to a high-level position. We did not find evidence that the President showed favoritism or that computers were purchased improperly as alleged.During our investigation, we learned of allegations that a Haskell instructor sexually assaulted a student. We referred that matter to the Lawrence Police Department.

We have audited the accompanying Closing Package Financial Statements of the U.S. Postal Service which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report – Reclassified Balance Sheet as of September 30, 2018, and the related GTAS Reconciliation Reports – Reclassified Statement of Net Cost and Reclassified Statement of Changes in Net Position, for the year then ended, and the related notes to the financial statements (hereinafter referred to as the “closing package financial statements”).

We conducted this audit to determine whether the Ascension Parish School Board (Board) accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The Board sustained an estimated $90.6 million in damages caused by severe storms and flooding that occurred in August 2016. We determined that the Board accounted for disaster-related costs correctly, as Federal regulations require. However, the Board did not follow all Federal procurement regulations in awarding $25.6 million in disaster-related contracts, resulting in $9.1 million in ineligible costs. Additionally, there were issues with direct administrative costs related to a Recovery Program and Grants Management services contract. This occurred because FEMA did not ensure the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness monitored the Board’s subgrant activities for compliance with Federal procurement requirements

The OIG investigated allegations that Prime 8, LLC, a company that conducted oil and gas operations and inspections in the Gulf of Mexico, violated departmental regulations and created records to support fictitious inspections of offshore platforms regulated by the Bureau of Safety and Environmental Enforcement (BSEE).We found the company did not perform platform visits and inspections as required, and documents prepared by the company’s owner concealed that the mandatory platform visits had not occurred. Because of the inaccuracies in the company’s documents, BSEE inspectors could not have known that the company did not complete the required inspections.We referred our investigation to the U.S. Attorney’s Office for the Southern District of Texas, which declined prosecution.

The auditors expressed the opinion that the closing package financial statements referred to above present fairly, in all material respects, the financial position of the United States Department of Education as of September 30, 2018, and its net cost and changes in net position for the year then ended in accordance with U.S. generally accepted accounting principles. The auditors noted that their our audit of the general-purpose financial statements as of and for the year ended September 30, 2018 disclosed the following material weakness, significant deficiency, and compliance and other matters: (1) Material Weakness-Controls over the Reliability of Information Used in the Modeling Activities Need Improvement; (2) Significant Deficiency-Information Technology Controls Need Improvement; (3) Compliance and Other Matters-Requirement for Referring Delinquent Student Loan Debts to Treasury.