Federal Reports

We determined that the FS Pacific Southwest Region’s Regional Office has deficiencies in the facility’s maintenance and safety procedures and observed that appropriate physical security measures did not exist in some areas, resulting in potential exposure to security threats.

This report presents the results of our audit of the United States Department of Agriculture’s (USDA) consolidated financial statements for the fiscal year ending September 30, 2025.

The VA OIG contracted with the independent public accounting firm Kearney & Company, P.C. (Kearney) to audit VA’s financial statements as of September 30, 2025. Kearney provided an unmodified opinion and noted material weaknesses and significant deficiencies in internal control and instances of noncompliance with laws and regulations. Regarding internal control, Kearney identified two material weaknesses. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. Kearney also identified three significant deficiencies. A significant deficiency is a deficiency, or combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Kearney also identified two instances of noncompliance with the law.

Kearney is responsible for the attached audit report dated January 27, 2026, and the conclusions expressed in the report. The OIG does not express opinions on VA’s financial statements, internal control, or compliance with FFMIA, nor does the OIG express conclusions on VA’s compliance with laws and regulations. The independent auditor will follow up on these internal control and compliance findings and evaluate the adequacy of corrective actions taken during the FY 2026 audit of VA’s financial statements.

Octavia Murphy, a resident of Bourbonnais, Illinois, pleaded guilty on January 27, 2026, in U.S. District Court, Central District of Illinois, to one count conspiracy to commit wire fraud and four counts wire fraud. In the same investigation, Regina Murphy, a resident of Kankakee, Illinois, pleaded guilty on December 17, 2025, in U.S. District Court, Central District of Illinois, to one count conspiracy to commit wire fraud and one count wire fraud.

Our investigation found that Octavia and Regina Murphy, along with 12 alleged codefendants, submitted false information to the Small Business Administration and its participating lenders to receive Economic Injury Disaster Loan (EIDL) advances, Paycheck Protection Program (PPP) loans, and PPP loan forgiveness. Octavia Murphy orchestrated a scheme whereby she submitted false applications containing material misstatements and fictitious documentation to make claims for pandemic relief programs on behalf of herself and the other co-conspirators, for which she was paid kickbacks. Regina Murphy and numerous co-conspirators voluntarily provided Octavia Murphy with their personally identifiable information and their bank routing transit and account numbers. As a result of the scheme, Octavia Murphy, Regina Murphy and the other codefendants received $93,000 in EIDL advances and $74,428 in PPP loans to which they were not entitled.

Judicial proceedings for the codefendants, including five Amtrak employees, are ongoing.

AmeriCorps Office of Inspector General (OIG) investigated allegations that the Foster Grandparent Program (FGP) Director of Community Action Partnership of North Alabama (CAPNA) had not performed the duties of the position since 2019, contrary to representations made to AmeriCorps in grant documents.

The Department of Game, Fish, and Parks should take steps to improve its grant performance reporting and subaward management.