Federal Reports

SB & Company, LLC (SBC)—an independent public accounting firm—presented an unmodified opinion on the Denali Commission’s (the Commission’s) fiscal year (FY) 2017 financial statements.1 SBC performed the audit in accordance with U.S. generally accepted government auditing standards and Office of Management and Budget (OMB) Bulletin 17-03, Audit Requirements for Federal Financial Statements.In its audit of the Commission, SBC• identified no instances of deficiency or material weakness in internal control over financial reporting;• identified no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or OMB audit guidance; and• determined that the financial statements were fairly presented in all material respects and in conformity with U.S. generally accepted accounting principles. The Denali Commission OIG oversaw the audit performance, including the review of SBC’s report and related documentation and inquiries of its representatives. Our review disclosed no instances where SBC did not comply, in all material respects, with U.S. generally accepted government auditing standards. As differentiated from an audit in accordance with these standards, our review was not intended to enable us to express any opinion on the Commission’s financial statements. Therefore, we do not express any opinion on the Commission’s financial statements, conclusions about the effectiveness of internal control, or conclusions on compliance with laws, regulations, contracts, and grant agreements. SBC is solely responsible for the attached audit report, dated November 6, 2017, and the conclusions expressed in it.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2017 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

This report includes EAC OIG’s independent assessment of the top management challenges facing EAC in fiscal year 2018.

Audit of NARA's financial statements for fiscal years 2017 and 2016; and the results of the Office of Inspector General (OIG) oversight of the audit and the report.

Texas Medicaid did not always stop making capitation payments after a beneficiary's death, despite its efforts to identify and recover any unallowable payments. Specifically, Texas Medicaid paid managed care organizations $1.8 million ($1 million Federal share) for capitation payments between January 1, 2013, and December 31, 2015, for deceased beneficiaries.