Federal Reports

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

This statutory report presents the activities and accomplishments of the OIG from October 1, 2025, through March 31, 2026. The audits, investigations, and related work highlighted in the report are products of our mission to identify and stop fraud, waste, and abuse; and promote accountability, efficiency, and effectiveness through our oversight of the Department’s programs and operations.

The independent public accounting firm of Allmond & Company, LLC, under contract with the Office of Inspector General, audited Help America Vote Act (HAVA) grants administered by the Mississippi Secretary of State's Office, totaling $15.07 million. This included federal funds, state matching funds, and interest income earned on the Election Security and Reissued Section 251 grants.

The National Security Agency (NSA) Office of the Inspector General (OIG) publicly released an unclassified version of its Semiannual Report (SAR) to Congress summarizing the OIG’s oversight work during the first half of fiscal year 2026. 

As required by the Inspector General Act of 1978, as amended, the SAR was transmitted to Congress on 22 May 2026. 

This report details the Office of Inspector General's Spring 2026 Semiannual Report to Congress. The following topics are included:

• SBA's Top Management and Performance Challenges
• Summary of OIG Oversight Work
• Small Business Access to Capital
• Disaster Assistance Program
• Contracting and Counseling Programs
• Agency Management
• Other Significant OIG Activities
• OIG Hotline
• Organizational Overview
• Appendices

We determined that the Rural Housing Service did not consistently perform timely servicing of multi-family housing projects we reviewed in the Midwest Region, which is essential to ensure that borrowers provided rental residents with safe and sanitary housing.

Our Objective(s) 

To evaluate single audit reports uploaded to the Federal Audit Clearinghouse between January 1, 2026, and March 31, 2026, and identify findings that affect directly awarded Department of Transportation (DOT) programs. 

Why This Audit 

OIG performs oversight of independent, non-Federal auditors' single audit reports. Over the past 3 fiscal years, on average over 200 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 Found 

Auditors reported 26 findings related to 17 grantees that included significant noncompliance with Federal guidelines requiring prompt action from DOT's Operating Administrations. 

• Of the 26 findings, 8 were repeat findings related to 6 grantees. 

Auditors identified questioned costs totaling $2,703,783 for five grantees. 

• Of this amount, $1,148,672 was related to the Northern Arizona Intergovernmental Public Transportation Authority, Flagstaff, AZ, and $971,676 was related to the Confederated Tribes of the Colville Reservation, Nespelem, WA. 

We identified nonmonetary repeat findings that caused qualified opinions for four grantees. 

Recommendations 

We made 3 recommendations to strengthen OST oversight of non-Federal entities and determine the allowability of questioned costs.

This report details the Office of Inspector General's Spring 2026 Semiannual Report to Congress. The following topics are included:

• SBA's Top Management and Performance Challenges
• Summary of OIG Oversight Work
• Small Business Access to Capital
• Disaster Assistance Program
• Contracting and Counseling Programs
• Agency Management
• Other Significant OIG Activities
• OIG Hotline
• Organizational Overview
• Appendices