Federal Reports

We determined that the Forest Service did not provide financial assistance to facilities that purchase and process ecosystem restoration byproducts in accordance with IIJA requirements, resulting in $86 million in questioned costs and $94 million in unsupported costs.

Our Objective(s)To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between July 1, 2025 and September 30, 2025, and identify findings that affect directly awarded Department of Transportation (DOT) programs.
Why This AuditOIG performs oversight of independent, non-Federal auditors' single audit reports. Over the past 3 fiscal years, on average over 250 single audit reports were issued that included findings related to programs directly funded by DOT. We issue memoranda that summarize these reports' significant findings and recommendations that require priority action by DOT. When warranted, we also recommend that DOT recover funds inappropriately expended by non-Federal entities.
What We FoundAuditors reported 20 findings related to 15 grantees that included significant noncompliance with Federal guidelines which require prompt action from DOT's Operating Administrations.

Of the 20 findings, 11 were repeat findings related to 6 grantees.

Auditors identified questioned costs totaling $4,203,255 for 8 grantees.

Of this amount, $1,610,569 was related to the Joint Programs of the Shoshone and Arapaho Tribes of the Wind River Reservation, Fort Washakie, WY; $1,200,000 was related to the Saginaw Transit Authority Regional Services, Saginaw, MI; and $575,874 was related to the Puerto Rico Bus Authority, San Juan, PR.

We identified nonmonetary repeat findings that caused a disclaimer of opinion for one entity and qualified opinions for three entities.
RecommendationsWe made 4 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.

Introduction

This management alert presents issues the U.S. Postal Service Office of Inspector General (OIG) identified during the Counterfeit Postage Program audit (Project Number 25-072). Our objective is to provide immediate notification of these issues related to an identified deficiency in the prevention of Enterprise Payment Account (EPA) fraud.

Background

The Postal Service offers mailers the ability to obtain and pay for package labels through various systems designed to improve customer experience.

The audit of AmeriCorps’ Grant Closeout Process found that AmeriCorps’ grant closeout policies and procedures generally complied with the provisions of 2 C.F.R. § 200.344 with the following issues identified: 1) AmeriCorps did not have adequate policies and procedures for processing grant funds returned post-closeout; 2) AmeriCorps did not have sufficient internal controls to ensure timely grant closeout; and 3) AmeriCorps’ recording of grant data into USAspending.gov was inconsistent and inaccurate. These issues stemmed from AmeriCorps’ lack of a formal procedure to process grant funds returned after closeout, which led to data discrepancies between the Payment Management System and AmeriCorps’ grant system of record, eGrants. AmeriCorps relies on manual data entry methods to report grant award information to USAspending.gov, without sufficient system controls or independent reviews to detect and correct errors prior to submission. Furthermore, AmeriCorps failed to effectively utilize administrative closeouts when grant recipients did not provide final reports within one year of the award’s period of performance end date. AmeriCorps’ response to the findings and recommendations is included in the report.

A high-speed rail technician based in New York City resigned from his position on February 10, 2026, prior to his administrative hearing. We found that the former employee violated company policies by working a second full-time job at a hospital while he was on company time. The former employee is not eligible for rehire.