Federal Reports

This audit was performed by the independent public accounting firm KPMG LLP (KPMG) on behalf of the Department of Energy Office of Inspector General. KPMG audited the balance sheet of the Department Nuclear Waste Fund (NWF), as of September 30, 2025, and the related statements of net cost, changes in net position, and budgetary resources for the year then ended.

The audit’s objective was to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that included an opinion.

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

KPMG concluded that the financial statements present fairly, in all material respects, the financial position of the NWF as of September 30, 2025, and its net costs, changes in net position, and budgetary resources for the year ended, in accordance with U.S. generally accepted accounting principles.

As part of its review, KPMG also considered the NWF’s internal control over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct material effect on the financial statements. The review identified certain deficiencies in internal control that KPMG considered to be a significant deficiency as it related to internal controls over information technology systems. During testing of the NWF’s various financial systems, KPMG identified access control deficiencies associated with controls over provisioning of new or modified user access, recertification of existing user access, and terminating of user access. Furthermore, control deficiencies were identified over providing least privileged access and segregation of duties.

There were no formal recommendations for this particular review. As such, there was no formal response required.

This audit was performed by the independent public accounting firm of KPMG LLP (KPMG) on behalf of the Department of Energy Office of Inspector General. KPMG audited the balance sheet of the Department’s Federal Energy Regulatory Commission, as of September 30, 2025, and the related statement of net cost, changes in net position, custodial activity, and statement of budgetary resources for the year then ended.

The audit’s objective was to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that included an opinion.

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

KPMG concluded that the financial statements present fairly, in all material respects, the financial position of the Federal Energy Regulatory Commission as of September 30, 2025, and its net cost, changes in net position, custodial activity, and budgetary resources for the year then ended, in accordance with U.S. generally accepted accounting principles. KPMG also considered the Federal Energy Regulatory Commission’s internal control over financial reporting as part of their review and did not identify any deficiency in internal control over financial reporting that is considered a material weakness. KPMG tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct material effect on the financial statements. The results of the auditors’ review disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards, applicable Office of Management and Budget guidance, or the Federal Financial Management Improvement Act of 1996.

There were no formal recommendations for this particular review. As such, there was no formal response required.

DFC is at a pivotal juncture. The Trump administration has established government-wide priorities centered on making America safer, stronger, and more prosperous. To help advance these goals, DFC has been tasked with significant new responsibilities. These responsibilities include partnering with Ukraine on the United States–Ukraine Reconstruction Investment Fund and focusing investments in new sectors, such as nuclear energy technology, artificial intelligence, and drone technology. Further, DFC faces reauthorization and current proposals call for dramatically increasing the Corporation’s contingent liability and expanding the use of equity, among other changes.

In addition to new responsibilities, DFC has experienced leadership turnover. DFC did not have a permanent CEO for most of 2025, 3 and its public sector board members and politically appointed leadership are new to DFC. DFC also experienced a 25 percent workforce reduction with many employees retiring or taking the administration’s deferred resignation program. Thus, the Corporation must position itself to take on new responsibilities and prioritize investments in new sectors with fewer staff. This year’s Top Management Challenges identifies three key items DFC should consider: (1) Updating the Strategic Plan Due to Changes in Priorities and Leadership; (2) Developing a Strategic Workforce Plan; and (3) Streamlining the Origination Process. Addressing these challenges will help DFC achieve its mission.

This Office of Inspector General (OIG) Healthcare Facility Inspection program report describes the results of a focused evaluation of the care provided at the VA Tennessee Valley Healthcare System in Nashville. 

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

The OIG issued two recommendations for VA to correct identified deficiencies in one domain:
   1.    Environment of care
     •    Preventive maintenance
     •    Permanent biomedical engineering chief and repeat environment of care findings

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

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

The OIG issued three recommendations for VA to correct identified deficiencies in one domain:
   1.    Environment of care
     •    Feminine hygiene products
     •    Secure medications
     •    Equipment inspection dates