Federal Reports

In accordance with the Government Performance and Results Modernization Act of 2010, this report presents the results of the OIG's work over fiscal year 2025 in meeting its performance goals.

We are pleased to present our oversight plan for the 2026 calendar year. This risk-based plan 
intends to serve as a roadmap for independent and objective oversight of the U.S. AbilityOne 
Commission’s (Commission) programs and operations through reviews, audits, evaluations, and 
investigations. Our audit, evaluation and investigative teams prioritize oversight of nearly $4 
billion funds that are disbursed through the AbilityOne Program (Program) and the AbilityOne 
Commission. The goal is to prevent and detect fraud, waste and abuse, and enhancing economies 
and efficiencies in AbilityOne and its programs.

Throughout the oversight cycle, the OIG will continue to focus on high-risk areas in the program 
and operations. Our process to assess and prioritize the planned work include but are not limited 
to, assessing the top management and performance challenges, congressional interests, key risks 
for which the Commission and other stakeholders expressed concern, and the results of our prior 
work. We then used this information to inform the design of our oversight reviews for usefulness 
to the Commission for its work and operations. 

During the oversight cycle we may reassess and adjust this plan to ensure that we continue to focus our resources on the highest risks and impact areas. 

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.

Semiannual Report to Congress: April 1, 2025, through September 30, 2025

The independent public accounting firm KPMG LLP (KPMG) under contract with the DHS, Office of Inspector General, has issued an unmodified (clean) opinion on DHS’s fiscal year 2025 consolidated financial statements.  KPMG noted that the financial statements present fairly, in all material respects, DHS’s financial position as of September 30, 2025. KPMG issued an adverse opinion on DHS’s internal control over financial reporting as of September 30, 2025. The report identifies material weaknesses in internal control in five areas: 1. Information Technology Controls and Information Systems 2. Financial Reporting 3. Taxes Receivable, Net 4. Construction in Progress 5. Internal Control Monitoring KPMG also identified a significant deficiency related to Grant Recipient Monitoring as well as noncompliance with the following two laws: 1. Federal Managers’ Financial Integrity Act of 1982 2. Federal Financial Management Improvement Act of 1996. 

The Inflation Reduction Act of 2022 allocated $8.8 billion to the Department of Energy for issuing grants to states, U.S. territories, and Indian Tribes for distribution to the public in the form of home energy rebates. The Department’s Office of State and Community Energy Programs is responsible for oversight and guidance of the $87.6 million of grants awarded to the New Mexico State Energy Office (NMSEO).

We initiated this inspection to assess the NMSEO’s internal controls to administer the Home Energy Rebates programs under the Inflation Reduction Act of 2022.

We found that the NMSEO had not established a comprehensive internal controls system, though it has offered rebates since September 2024. Specifically, the NMSEO did not: (1) identify, assess, and document potential risks that could prevent the programs from achieving stated objectives; (2) document important control activities; and (3) ensure the activities of the implementing company aligned with what the Office of State and Community Energy Programs had approved.

Additionally, we identified areas of potential risk related to the NMSEO’s proposed plan to contract a company to implement a multifamily energy rebates program. Under the proposed plan, the multifamily implementing company would oversee its own work for installing energy-saving equipment and approving rebate requests. Additionally, the implementing company did not plan to verify self-reported household income or follow up with property owners to ensure they meet certain occupancy and rent requirements.

A fully established internal controls system helps protect Department funds and meet program objectives. Further, without well-documented policies and procedures, continuity of operations for the programs could be at risk when personnel normally assigned to complete those procedures are unavailable.

To address the issues identified in this report, we made one recommendation and one suggested action that, if fully executed, should help strengthen the NMSEO’s internal controls to implement the Home Energy Rebates programs.