Federal Reports

GPO FY 2025 Financial Statement Audit January 20, 2026. Independent Auditors' Report on GPO Fiscal Year 2025 Consolidated Financial Statements. GPO OIG contracted iwth the independent public acounting firm of KPMG LLP to audit the consolidated financial statements of GPO for FYs ended on September 30, 2025 and 2024.

GPO FY2025 Financial Statement Audit Management Letter January 20, 2026

Due to the importance of protecting the Tennessee Valley Authority (TVA) operations from external cyber events, we audited TVA’s protection mechanisms for a specific cyberattack.  Our objective was to determine if TVA’s protection mechanisms to prevent or protect against a specific type of cyberattack were adequately designed, properly implemented, and operating effectively.  Specifics are being withheld from public release due to their sensitive nature in relation to TVA’s cybersecurity.  We made two recommendations to TVA management. 

This report presents the results of our audit of Rural Development’s financial statements for the fiscal year ending September 30, 2025.

SUMMARY    The Inflation Reduction Act of 2022 allocated $8.8 billion to the Department of Energy for issuing grants to states, U.S. territories, and Indian Tribes for distribution to the public in the form of home energy rebates. The Department’s Office of State and Community Energy Programs is responsible for oversight and guidance of the $181.9 million of grants awarded to Indiana. The Indiana Office of Energy Development (OED) administers Indiana’s Home Energy Rebates programs.

We initiated this inspection to assess the OED’s internal controls to administer the Home Energy Rebates programs under the Inflation Reduction Act of 2022.

We determined that the OED did not establish an adequate internal controls system to administer the Home Energy Rebates programs under the Inflation Reduction Act of 2022, though it began accepting rebate applications in May 2025. Specifically, the OED did not: (1) document risk assessments that identified, analyzed, and responded to potential risks that could prevent the Home Energy Rebates programs from achieving their stated objectives; and (2) develop a program-specific policy for monitoring and assessing the implementing company’s performance.

A fully established internal controls system helps protect Department funds and meet program objectives.

To address the issues identified in this report, we made one recommendation that, if fully executed, should help strengthen the OED’s internal controls to implement the Home Energy Rebates programs.

Our Objective(s)To perform a quality control review (QCR) of KPMG LLP's audit of the Department of Transportation's consolidated financial statements as of and for the fiscal year ended September 30, 2025. We reviewed KPMG's report, dated January 14, 2026, and related documentation.
About This ReportWe contracted with the independent public accounting firm KPMG to audit DOT's consolidated financial statements, provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters.
What We FoundThe independent auditor, KPMG, found one significant deficiency in DOT's IT internal controls over financial reporting:

Weaknesses in General Information Technology Controls.

Our QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
RecommendationsWe agree with KPMG's three recommendations to help strengthen DOT's General Information Technology Controls.

Our Objective(s)To perform a quality control review (QCR) of KPMG, LLP's audit of the Federal Aviation Administration's (FAA) financial statements as of and for the fiscal year ended September 30, 2025. We reviewed KPMG's report, dated January 13, 2026, and related documentation.
About This ReportWe contracted with the independent public accounting firm KPMG, LLP to audit FAA's financial statements, provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters.
What We FoundThe independent auditor, KPMG, found two significant deficiencies in FAA's internal controls over financial reporting:

Weakness in the non-letter of intent grant accrual estimate methodology, and
Weakness in the accounting for Category C (future fiscal years) apportionments.

Our QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
RecommendationsWe agree with KPMG's four recommendations to help strengthen FAA's internal controls.