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Brought to you by the Council of the Inspectors General on Integrity and Efficiency
U.S. International Boundary and Water Commission, United States and Mexico, U.S. Section
Management Letter Related to the Audit of the International Boundary and Water Commission, United States and Mexico, U.S. Section, FY 2025 Financial Statements
RMA Associates, LLC (RMA), under the oversight of the United States International Development Finance Corporation’s (DFC) Office of Inspector General (OIG), reviewed DFC’s compliance with the Payment Integrity Information Act of 2019 (PIIA) (Public Law 116-117) for the fiscal year (FY) ending September 30, 2025 in accordance with 1) the Office of Management and Budget (OMB) Memorandum M-21-19, Transmittal of Appendix C to OMB Circular A-123, Requirements for Payment Integrity Improvement, 2) OMB Circular A-136, Financial Reporting Requirements, July 14, 2025; 3) Council of the Inspectors General on Integrity and Efficiency (CIGIE) Guidance for Payment Integrity Information Act Compliance Reviews, November 2025; and 4) the Government Accountability Office (GAO) Generally Accepted Government Auditing Standards (GAGAS). We conducted this review in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the review to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our objectives.
In addition to the compliance criteria, we also reviewed DFC’s risk assessment process and efforts to prevent and reduce improper payments (IPs) and unknown payments (UPs). Our review was conducted from February 2026 through April 2026.
What We Concluded RMA concluded that DFC complied with PIIA for FY 2025 (Table 1). DFC was compliant with requirements applicable to the agency for FY 2025. We noted that DFC performed risk assessments in FY 2025 using criteria defined by OMB Circular A-123 and conformed to this guidance for preventing and reducing IPs and UPs. We found DFC had completely and accurately reported payment recapture reporting information on PaymentAccuracy.gov.
The VA Office of Inspector General (OIG) reviewed whether the Veterans Benefits Administration’s (VBA) automated Pension and Fiduciary Service decisions correctly granted survivors’ entitlement to service-connected death benefits from September 2023 through August 2024. The OIG found legal and procedural deficiencies in automated rating decisions and notification letters. At least 8,000 decisions or letters omitted favorable findings and had issues such as incomplete evidence summaries and incorrect formatting. At least 2 percent of decisions had legal errors, resulting in an estimated $2.7 million in improper payments. A review of additional cases through November 2025 confirmed similar errors. The quality review process for automated claims was less rigorous than for traditional claims, and VA’s modernization plan to Congress did not fully explain how some claims were completely processed from beginning to end by automation.
Deficiencies stemmed from flaws in automation rules and processes that, if not addressed, will recur because the system applies predefined rules without human involvement. Oversight tools were inadequate, and procedural guidance changes did not fully address risks.
The OIG made three recommendations to the under secretary for benefits to strengthen automation processes and oversight. These include improving legal compliance in automated decisions, enhancing quality review standards, and ensuring transparency in reporting automation practices to Congress. VBA concurred in part with the first recommendation, concurred with the second, and concurred in principle with the third.
Financial Audit of the MCC Resources Managed by the Millennium Challenge Account - Indonesia II Under the Compact Agreement Between the MCC and the Government of Indonesia, February 4, 2021, to September 30, 2024
This report was issued in conjunction with the Office of Inspector General for the Railroad Retirement Board's Semiannual Report to the Congress. It was incorporated by reference in the corresponding Semiannual Report which is available at the link below.
