Federal Reports

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) conducted an evaluation of the operational effectiveness of information technology (IT) security controls for the HUDUSER system, which is operated by HUD’s Office of Policy Development and Research (PD&R).  The OIG identified four significant weaknesses involving website security, underscoring the need to strengthen technical security controls.  To address these findings, we provide eight new recommendations, which will be formally tracked by our office.  These recommendations are designed to enhance HUD’s IT security posture by preventing web-based threats from exploiting the HUDUSER system, ensuring the integrity and confidentiality of sensitive information.  The OIG has determined that this report contains sensitive information and is therefore not appropriate for public disclosure. 

This review determined that the Peace Corps complied with the Payment Integrity Information Act for FY 2025. The agency provided payment integrity information through the Office of Management and Budget’s FY 2025 annual data call; published its improper payment information in the Agency Financial Report for FY 2025; and posted that report on the Peace Corps’ website.

To meet the Tennessee Valley region’s growing demand for power, the Tennessee Valley Authority (TVA) is investing in existing assets and new generation.  In fiscal year 2025, TVA invested more than $4.6 billion in capital investments and plans to invest $4.2 billion in fiscal year 2026.  Due to potential risks to cost and schedule from rework in TVA projects, we performed an evaluation of contractor rework for Major Projects at TVA.  The objectives were to evaluate TVA’s oversight of contractor rework and determine if rework was being handled in accordance with contract terms and conditions.  Our scope included active projects in the implementation phase for TVA’s Major Projects organization.

We reviewed nine contracts associated with our sample of projects and identified rework was required for two.  We determined the rework was handled in accordance with contract terms and conditions.  Specifically, where defects were discovered, contractors took corrective actions to remedy the defects at its expense.  However, we also identified a lack of guidance for oversight of rework because TVA’s project management Standard Programs and Processes do not define rework or provide any information on how rework should be documented and tracked.