Federal Reports

We engaged an independent public accounting (IPA) firm to audit the Defense Intelligence Agency’s Fiscal Year 2025 financial statements.  We evaluated the reliability of data supporting the financial statements, determined the reasonableness of the statements produced, and examined disclosures in accordance with applicable guidance.  We issued the results of our evaluation in a final report dated November 14, 2025.

Under a contract monitored by the OIG, KPMG, an independent certified public accounting firm, performed an audit of the NCUA’s schedule of accounts receivable, net (other than intragovernmental) and other taxes and receipts as of and for the period ended September 30, 2025. KPMG conducted the audit in accordance with auditing standards generally accepted in the United States of America, in accordance with the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and in accordance with OMB Bulletin No. 24-02, Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin No. 24-02, require that KPMG plan and perform the audit to obtain reasonable assurance about whether the schedule is free from material misstatement. 

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Kiewit Power Constructors Company (Kiewit) under Contract No. 13156 for work performed in support of TVA’s coal combustion residual conversion program.  Our audit objective was to determine if the costs billed to TVA were in accordance with the contract’s terms.  Our audit scope included approximately $133.7 million in costs billed to TVA between January 1, 2023, and September 30, 2024.

In summary, we determined Kiewit overbilled TVA $51,251, including (1) $24,192 in ineligible fee and general and administrative costs, of which $8,097 was due in part to contradictory language in the contract, (2) $15,957 in a duplicate materials cost, and (3) $11,102 in incorrect craft labor costs. We also determined Kiewit billed TVA for reimbursement of temporary living allowance (TLA) costs that were not supported.  Specifically, Kiewit billed TVA an average of $4,396 per month per employee for TLA.  However, Kiewit only provided documentation supporting an average of $2,310 per month per employee in TLA costs incurred. Based on our analysis and Kiewit’s inability to provide documentation supporting the full amount of TLA costs it incurred, we have referred this matter to the Office of the Inspector General Investigations for further review.  In addition, we noted opportunities to improve contract administration by TVA related to (1) tax exemption requests, (2) craft labor rate schedules that did not match the Project Labor Agreement, and (3) TLA employee certification forms that were not notarized as required by the contract. 

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority management solely to assist management in determining the validity of the Winning Performance (WP)/Executive Annual Incentive Plan measures for fiscal year (FY) ending September 30, 2025.  Tennessee Valley Authority management is responsible for the WP measures data provided. In summary, procedures applied by the OIG found the:

• FY 2025 WP goals for the enterprise measures were properly approved.
• Actual FY to-date results for the enterprise measures agreed with the underlying support, without exception.
• FY 2025 WP, Executive Annual Incentive Plan, and Chief Executive Officer payout percentages provided by the Enterprise Financial and Performance Reporting organization on October 31, 2025, were mathematically accurate and agreed with the OIG’s recalculation.