Federal Reports

Beginning in 2021, the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted several audits to assess HUD’s anti-fraud efforts and to develop inventories of fraud risks in HUD programs. Our previous work found that HUD’s fraud risk management program was in its early stages of development, and we recommended that HUD perform program-specific fraud risk assessments and incorporate these assessments into an agency-wide plan to further advance its program.  To continue assisting HUD in improving its anti-fraud efforts, we conducted this work to identify potential fraud risks and schemes that that could negatively impact the Capital Fund formula grant program, HUD, and its public housing agencies (PHAs).  We identified four program-specific fraud risk factors that increase the chance of fraud occurring by increasing the incentive, opportunity, and likelihood that an individual will consider committing fraud.  We used these risk factors, along with the results of brainstorming sessions, interviews, and reviews of audit reports, investigations, and press releases from HUD OIG, and other agencies to develop an inventory of 73 fraud schemes.  The 73 fraud schemes include 58 that were listed in HUD’s fraud risk catalog and 15 schemes that we identified.  These fraud schemes can be used to defraud HUD and its PHAs and undermine the integrity of the Capital Fund program, which awarded $3.1 billion in formula grants in fiscal year 2024. We recommend that HUD use the fraud risks and schemes inventory in this report and involve relevant stakeholders to create a program-specific fraud risk inventory to support its anti-fraud efforts and enhance oversight of the Capital Fund program.  We also recommend that these fraud risks and schemes be communicated to all stakeholders, including public housing agencies.  Additionally, we recommend that HUD determine how data currently being collected can be leveraged to identify and mitigate fraud risks. 

The VA Office of Inspector General (OIG) Mental Health Inspection Program (MHIP) evaluates Veterans Health Administration’s (VHA’s) continuum of mental healthcare services. This inspection focused on inpatient care delivered at the Margaret Cochran Corbin VA Campus (facility) in New York.

The facility met some VHA requirements for inpatient mental health units, such as the presence of a mental health executive council and completion of twice-yearly environment of care inspections. The OIG could not confirm if the facility had a formalized interdisciplinary safety inspection team. The facility’s multiyear plan to direct veteran-centered, recovery-oriented care did not have input from the local recovery coordinator.

Some electronic health records reviewed did not include evidence of timely suicide risk screenings and documentation of medication risk and benefit discussions. Discharge instructions lacked important details for follow-up appointment locations and medication management. Consistent with prior published reports, inpatient staff did not complete the other lethal means text field in safety plans for addressing ways to make veterans’ environments safer. 

The inpatient unit physical environment incorporated recovery-oriented elements such as artwork. However, communal rooms were locked and therefore inaccessible to veterans unless there were staff to monitor. The OIG identified unit fire doors with three-point hinges that posed ligature risks and a nonfunctional panic button. Many inpatient staff did not complete training on environment of care inspection requirements or suicide prevention strategies. 

VA concurred with the OIG’s 17 recommendations. The Under Secretary for Health agreed to require staff completion of the other lethal means text field within the safety plan template. The Facility Director agreed to implement a range of corrective actions, including strengthened processes and staff training, a formalized interdisciplinary safety inspection team, and improved coordination and documentation practices to support safe, recovery-oriented mental health care on the inpatient unit.

This report represents our current assessment of the U.S. Small Business Administration's programs and activities that pose significant risks, including those that are particularly vulnerable to fraud, waste, error, mismanagement, or inefficiencies. The Challenges are not presented in order of priority, as we believe that all are critical management or performance issues.

The report summarizes the activity of the FEC Office of Inspector General from April 1, 2025 through September 30, 2025.

In accordance with the Reports Consolidation Act of 2000, OIG is submitting a statement on what it considers to be the most significant management and performance challenges facing the Peace Corps. At Peace Corps OIG, we base this statement on the following: our audit, evaluation, and investigative work; our knowledge of the Peace Corps’ activities and operations; and the insights of agency senior leaders who provide their perspectives and expertise. For fiscal year (FY) 2026, we identified the following challenge areas:  Volunteer Delivery System; Volunteer Health and Safety; Human Capital Management; and Information Technology Security Management.

Addressing the issues related to these challenge and performance areas will enhance the agency’s operational efficiencies, minimize potential fraud, waste, and abuse, and improve mission effectiveness.

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 Oregon Secretary of State, totaling almost $22.1 million. This included federal funds, state matching funds, interest income, and program income earned on the reissued Section 251 and Election Security grants.

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm Harper, Rains, Knight, & Company, P.A. (HRK) to audit the Commission’s financial statements and related footnotes as of September 30, 2025.  The contract requires that the audit be performed in accordance with U.S. generally accepted government auditing standards Office of Management and Budget audit guidance, Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual, and Audit Requirements for Federal Financial Statements.  HRK found:

• The financial statements present fairly, in all material respects, the Commission's financial position as of September 30, 2025, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years then ended in accordance with accounting principles generally accepted in the United States of America.
• One material weakness related to the Commission not having appropriate controls in place to review the validity of material financial adjustment transactions recorded by their service provider on their behalf.
  While the report includes one material weakness related to a gap in controls over financial reporting by a shared service provider, HRK’s objective was not to provide an opinion on the effectiveness of the Commission's internal control or compliance.

The Inspector General Act of 1978, as amended, requires that the Inspector General take appropriate steps to ensure that any work performed by non-Federal auditors complies with the auditing standards established by the Comptroller General. We evaluated the independence, objectivity, and qualifications of the auditors and specialists; reviewed the plan and approach of the audit; monitored the performance of the audit; sought and obtained clarification of the auditor's methodology and findings; and reviewed HRK's reports and related audit documentation.

HRK is responsible for the attached independent auditor’s report and the conclusions expressed therein. The OIG does not express opinions on the Commission’s financial statements or internal control over financial reporting, or conclusions on compliance or other matters. The audit report provides an opinion on the Commission’s financial statements and communicates reporting requirements on internal control over financial reporting and compliance with laws and regulations.