Federal Reports

The Integrated Financial and Acquisition Management System (iFAMS) is a comprehensive financial management system intended to replace multiple legacy systems and combine both acquisition and financial functions. iFAMS, as part of the system’s financial-related functionality, contains sensitive acquisition information like pricing and labor rates. This information must be protected. The VA OIG conducted this audit to determine whether iFAMS user access controls that are intended to limit account privileges are sufficient to safeguard VA data and comply with applicable laws, regulations, and guidance.

The OIG found access was not sufficiently limited as required for all 20 Technology Acquisition Center (TAC) users sampled. The team determined 91 percent of the 2,818 users with access to TAC data did not work for TAC but were requesting access to TAC information as of February 2025. Additionally, 78 percent of these users had roles that granted exceptionally broad access to sensitive acquisition information, presenting widespread risk of unnecessary access.

This risk occurred, in part, because iFAMS access controls were too broad. Additionally, quality reviews did not capture all access granted to a user. Finally, the electronic tool that is available for supervisors and information owners to routinely see user roles and accesses does not show all accesses the users have been granted.

Unnecessary access could compromise sensitive acquisition data in iFAMS. With every additional user who can access sensitive information, the risk of misuse increases. VA concurred with the OIG’s three recommendations to improve iFAMS access controls before the system is implemented further.

KPMG LLP’s (KPMG) report on its financial statement audit of the National Credit Union Administration’s (NCUA) financial statements, which includes the Share Insurance Fund, the Operating Fund, the Central Liquidity Facility, and the Community Development Revolving Loan Fund, as of and for the year ended December 31, 2025. The NCUA prepared financial statements in accordance with the Office of Management and Budget (OMB) Circular No. A-136 Revised, Financial Reporting Requirements, and subjected them to audit. Under a contract monitored by the NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s financial statements as of December 31, 2025. The contract required that the audit be performed in accordance with generally accepted government auditing standards issued by the Comptroller General of the United States, OMB audit guidance, and the Government Accountability Office/President's Council on Integrity and Efficiency Financial Audit Manual. KPMG’s audit report for 2025 includes: (1) an opinion on the financial statements, (2) conclusions on internal control over financial reporting, and (3) a section addressing compliance and other matters. In its audit of the NCUA, KPMG found:• The financial statements were fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles,• There were no deficiencies in internal control identified as material weaknesses or significant deficiencies and• No instances of reportable noncompliance with laws and regulations it tested or other matters that are required to be reported under Government Auditing Standards or OMB guidance.

This audit was performed by the Defense Contract Audit Agency (DCAA) on behalf of the Department of Energy’s Office of Inspector General and examined Fluor Federal Petroleum Operations, LLC’s (FFPO) costs incurred and claimed for fiscal years 2022 and 2023 under management and operating contract No. DE-FE0011020.

The audit’s objective was to determine if costs charged to Department Contract No. DE-FE0011010 for fiscal years 2022 and 2023 were allowable, allocable, and reasonable in accordance with applicable laws, regulations, and contract terms.

The DCAA performed the audit in accordance with generally accepted government auditing standards.

The DCAA identified three audit findings and questioned over $2.5 million in: (1) direct labor costs associated with unallowable recruitment costs for a seconded employee, unreasonable labor costs, and overtime premiums unallowable per contract terms; (2) travel costs associated with relocation and per diem expenses; and (3) other direct costs associated with home office expenses that were unallowable per contract terms. In addition to the questioned costs noted, the DCAA reported two scope limitations, which prevented it from determining whether certain subcontract costs were fair and reasonable.  

If the issues identified by the DCAA are fully addressed, it should help ensure that costs charged to the Department are allowable, allocable, and reasonable in accordance with applicable laws, regulations, and contract terms.

FFPO responded to the audit findings during an exit conference and provided a written response that is included in the DCAA’s audit report. FFPO concurred with the portion of the questioned direct labor costs pertaining to a retention bonus but did not concur with the other questioned costs related to direct labor, direct travel, and other direct costs.

This Office of Inspector General (OIG) Healthcare Facility Inspection program report describes the results of a focused evaluation of the care provided at the Healthcare Facility Inspection of the VA Central California Health Care System in Fresno. 

This evaluation focused on five key content domains:
     •    Culture
     •    Environment of care
     •    Patient safety
     •    Primary care
     •    Veteran-centered safety net

The OIG issued seven recommendations for VA to correct identified deficiencies in three domains:
   1.    Environment of care
     •    Badge holder responsibilities
     •    Signs
     •    Privacy curtains, preventive equipment maintenance, splash resistant bottom shelves
     •    Expired, damaged, and contaminated medications
     •    Pharmaceutical grade medication refrigerators
   2.    Primary care
     •    Staffing
   3.    Veteran-centered safety net
     •    Housing and Urban Development–Veterans Affairs Supportive Housing program staffing

The objective of this audit was to determine the extent to which the National Collections Program had effective controls over the processes to award monies from the Collections Care and Preservation Fund (CCPF) and ensure that these funds were spent in accordance with their intended purposes.

We made nine recommendations for Smithsonian management to strengthen controls over the awarding and monitoring of CCPF funds, ensure that recipient units timely submit interim and final reports on project results, and require that units follow proper procedures in administering the Pan-Smithsonian Cryo Initiative. Management concurred with all nine recommendations.