Federal Reports

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.

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

Why We Did This Report

The Reports Consolidation Act of 2000 requires each inspector general to prepare an annual statement summarizing what the inspector general considers to be “the most serious management and performance challenges facing the agency” and to briefly assess the agency’s progress in addressing those challenges. To that end, we have prepared this statement, which identifies what we consider to be the six most serious management and performance challenges facing the EPA in fiscal year 2026. These challenges represent the Agency’s vulnerabilities to fraud, waste, abuse, and mismanagement, as well as the most significant barriers to the EPA accomplishing its mission.

Summary of Findings

We identified six top management challenges for the EPA: 

• Managing contracts, grants, and associated data systems.
• Meeting statutory requirements for ensuring the safe use of chemicals.
• Managing information technology modernization.
• Maintaining mission efficiency and effectiveness during organizational change.
• Managing cooperative federalism and state oversight.
• Preparing for and responding to natural and manmade disasters.