Federal Reports

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Harper, Rains, Knight and Company, P.A (HRK) to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal year 2017. The contract required that the audit be done in accordance with U.S. generally accepted government auditing standards(GAGAS) contained in Government Auditing Standards issued by the Comptroller General of the United States and Office of Management and Budget (OMB) Bulletin 17-03, Audit Requirements for Federal Financial Statements.HRK reported that EEOC’s fiscal year 2017 financial statements and notes were fairly presented, in all material respects, in accordance with accounting principles generally accepted in the United States of America. HRK noted no instances of material weaknesses or significant deficiencies FY 2017 Financial Statements. HRK noted no instances of noncompliance or other matters that were required to be reported under Government Auditing Standards or OMB Bulletin 17-03.

CMS usually selected DMEPOS suppliers, calculated the sampled Durable Medical Equipment Prosthetics, Orthotics, and Supplies (DMEPOS) single-payment amounts (SPAs), and monitored suppliers in accordance with its established procedures and applicable Federal requirements. We determined that CMS consistently followed its established program procedures and applicable Federal requirements for 192 of the 215 winning suppliers associated with the sampled SPAs reviewed.

KPMG LLP (KPMG), under contract with the Department of Homeland Security (DHS) Office of Inspector General, conducted an integrated audit of DHS’ fiscal year (FY) 2017 consolidated financial statements and internal control over financial reporting. KPMG issued an unmodified (clean) opinion over the Department’s financial statements, reporting that they present fairly, in all material respects, DHS’ financial position as of September 30, 2017. However, KPMG identified six significant deficiencies in internal control, two of which are considered material weaknesses. Consequently, KPMG issued an adverse opinion on DHS’ internal control over financial reporting. KPMG also reported instances in which DHS did not comply with four laws and regulations. DHS concurred with all of the recommendations.

Under a contract monitored by NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s closing package schedule as of September 30, 2017. KPMG’s audit report for the FY 2017 Consolidated Financial Statements of the U. S. Government includes an opinion on the closing package schedule, internal control over financial reporting specific to the closing package financial statements, and compliance and other matters specific to the closing package schedule.

This report transmits KPMG LLP’s report on its financial statement audit of the NCUA financial statements for the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), which comprise the balance sheets as of September 30, 2017 and December 31, 2016, and the related statements of net cost, changes in net position, and combined statements of budgetary resources for the periods then ended, and the related notes to the financial statements. On September 28, 2017, the NCUA Board voted unanimously to close the TCCUSF effective October 1, 2017, ahead of its sunset date of June 30, 2021.