Federal Reports

We are pleased to present our report for the period April 1, 2022, to September 30, 2022. The information in this report shows firsthand the dedication and professionalism of the TVA OIG team and our understanding of the importance of providing independent oversight of TVA. We will continue to focus on making TVA better by identifying potential risks to TVA’s ability to achieve its mission of providing reliable power at the lowest feasible rates, environmental stewardship, and economic development to the Tennessee Valley.In this semiannual period, our audit, evaluation, and investigative activities identified more than $145 million in questioned costs; funds put to better use; recoveries; civil and criminal forfeitures; and opportunities for TVA to improve its programs and operations.

The VA Office of Inspector General (OIG) conducted a review of Veterans Health Administration’s lethal means safety (LMS) training, firearms access and safe storage discussions within suicide risk assessments and safety plans, and clinicians’ perspectives on lethal means interventions.The OIG examined the electronic health records of 480 patients with firearm-related suicide behavior events. Among 15 patients with fatal firearm-related suicide behavior events, who required a comprehensive suicide risk evaluation (CSRE) prior to the event, three lacked required documentation. Six of the remaining 12 failed to assess firearms access and three of six CSREs that documented firearms access failed to include safe storage discussion. Among patients with a non-fatal firearm suicide behavior event, staff failed to include safe storage discussions in approximately 30 percent of CSREs and 21 percent of safety plans.One-third of Veterans Integrated Service Networks fell below an average of 90 percent compliance with one-time, mandatory LMS training completion. The OIG conducted a national survey of mental health, primary care, and emergency department clinicians. Among respondents who completed LMS training, 75 to 81 percent reported asking most or every patient about firearms access when assessing suicide risk and safety planning. However, only 50 to 56 percent of respondents who did not complete the LMS training reported asking most or every patient about firearms access. The same pattern emerged for safe storage discussions. Additionally, about 60 percent of clinicians who completed LMS training, and about a third of clinicians who did not complete the training, reported documenting firearms access and safe storage discussions. The OIG made seven recommendations to the Under Secretary for Health related to training compliance and oversight, one-time LMS training, CSRE and safety plan completion, and evaluation of staff barriers to conducting and documenting the suicide risk identification strategy, firearms access, and safe storage discussions.

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of HUD as of and for the fiscal years ended September 30, 2022 and 2021, and to provide reports on HUD’s 1) internal control over financial reporting; and 2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the Federal Financial ManagementImprovement Act of 1996 (FFMIA). Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of HUD, CLA reported:The financial statements as of and for the fiscal years ended September 30, 2022 and 2021, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.One material weakness for fiscal year 2022 in internal control over financial reporting, based on the limited procedures performed. The material weakness was related to (a) Federal Housing Administration’s (FHA) financial accounting and reporting controls over borrowing authority and loan receivables and (b) HUD’s financial reporting controls over grant accruals and Public and Indian Housing’s cash management process.Two reportable matters for fiscal year 2022 of noncompliance with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.Noncompliance with federal financial management system requirements, federal accounting standards, and the U.S. Standard General Ledger at the transaction level.Noncompliance with the Single Audit Act.In connection with the contract, we reviewed CLA’s reports and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on HUD’s financial statements or conclusions about 1) the effectiveness of HUD’s internal control over financial reporting; 2) HUD’s compliance with laws, regulations, contracts, grant agreements, or other matters; or 3) whether HUD’s financial management systems complied substantially with the three FFMIA requirements. CLA is responsible for the attached Independent Auditors’ Report, dated November 17, 2022, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.HUD’s Agency Financial Report, which includes HUD’s audited financial statements, can be found at afr2022.pdf (hud.gov).

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2022 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.

The Tennessee Valley Authority’s (TVA) Economic Development (ED) organization is primarily responsible for helping to maintain TVA’s industrial and manufacturing base, locate desirable companies to the Valley, and improve the competitiveness of Valley communities. TVA ED offers incentive programs and services to new and existing customers in the valley. TVA included information on jobs created and retained in the Tennessee Valley for which TVA has played a role in the recruitment or retention of the economic development project in their fiscal years 2019 through 2021 Securities and Exchange Commission reports and fiscal year 2020 Sustainability Report. Additionally, jobs created and/or retained are used as a metric in the corporate multiplier for the Winning Performance Team Incentive Plan and the Executive Annual Incentive Plan. Based on the reputational risk of disseminating inaccurate information to the public, we included an audit of TVA ED jobs reporting in our annual audit plan. Our audit objective was to determine if the job numbers reported externally by TVA ED are validated prior to being disseminated to the public in accordance with any best practices.We found TVA ED has a monthly process in place to review job number forecasts prior to reporting the numbers externally and that the number of jobs reported generally agreed with supporting documentation. However, we found the information presented to the public by TVA related to job creation and retention is not always clear, complete, or presented in the proper context as required by the TVA Information Quality Guidelines.

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of FHA as of and for the fiscal years ended September 30, 2022 and 2021, and to provide reports on FHA’s 1) internal control over financial reporting; and 2) compliance with laws, regulations, contracts, and grant agreements and other matters. Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of FHA, CLA reported:The financial statements as of and for the fiscal year ended September 30, 2022 and 2021, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.One material weakness for fiscal year 2022 in internal control over financial reporting, based on the limited procedures performed. The material weakness was related to FHA’s financial accounting and reporting controls over borrowing authority and loan receivables. No reportable noncompliance issues for fiscal year 2022 with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.In connection with the contract, we reviewed CLA’s reports and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on FHA’s financial statements or conclusions about 1) the effectiveness of FHA’s internal control over financial reporting and 2) FHA’s compliance with laws, regulations, contracts, grant agreements, or other matters. CLA is responsible for the attached Independent Auditors’ Report, dated November 16, 2022, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.FHA’s Annual Management Report, which contains the audited financial statements, can be found at https://www.hud.gov/sites/dfiles/Housing/documents/FHAFY2022ANNUALMGMNT…

As part of our annual audit plan, we performed an audit of costs billed to the Tennessee Valley Authority (TVA) by Slick Rollers, LLC (Slick Rollers) for coal and limestone handling system support materials and/or services at various TVA fossil plants under Contract No. 14457. Our audit objective was to determine if costs were billed in accordance with the terms and conditions of the contract. Our audit scope included about $10.3 million in costs billed to TVA from August 13, 2019, through December 16, 2021. In summary, we determined Slick Rollers overbilled TVA $139,132, including (1) $104,012 in ineligible and unsupported material and equipment costs, (2) $32,564 in ineligible and unsupported labor costs, and (3) $2,556 in unsupported per diem costs. We also noted several opportunities to improve contract administration by TVA. Specifically, we found <br> (1) the contract contained language requiring subcontractor approval that does not match TVA's intent, (2) Slick Rollers began work on two POs prior to approval by TVA, and (3) Slick Rollers did not provide a proper invoice to TVA as required by the contract.(Summary Only)

PDC Energy, Inc., drilled and then operated a well in Colorado that removed Federal minerals without first obtaining a Federal lease or drilling permit.

PDC Energy, Inc., drilled and then operated a well in Colorado that removed Federal minerals without first obtaining a Federal lease or drilling permit.

The attached report presents the results of an integrated audit of the Department of Homeland Security’s consolidated financial statements for fiscal years 2022 and 2021 and internal control over financial reporting as of September 30, 2022. This audit is required by the Chief Financial Officers Act of 1990, as amended by the Department of Homeland Security Financial Accountability Act (October 16, 2004).

Semiannual report to congress

Semiannual Report to Congress April 1, 2022 — September 30, 2022

The attached report presents the results of the independent certified public accountants’ audit of the Department of Energy’s consolidated financial statements as of September 30, 2022, and 2021, and the related consolidated statements of net cost, changes in net position, custodial activity, and combined statements of budgetary resources for the years then ended.To fulfill the Office of Inspector General’s (OIG) audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit, subject to our review. KPMG is responsible for expressing an opinion on the Department’s financial statements and reporting on applicable internal controls and compliance with laws and regulations. The OIG monitored audit progress and reviewed the audit report and related documentation. This review disclosed no instances where KPMG did not comply, in all material respects, with generally accepted government auditing standards. The OIG did not express an independent opinion on the Department’s financial statements.KPMG audited the consolidated financial statements of the Department as of September 30, 2022, and 2021, and the related consolidated statements of net cost, changes in net position, custodial activity, and combined statements of budgetary resources for the years then ended. KPMG concluded that these consolidated financial statements are presented fairly, in all material respects, in conformity with United States generally accepted accounting principles, and KPMG had issued an unmodified opinion based on its audits and the reports of other auditors for the years ended September 30, 2022, and 2021.As part of this audit, auditors also considered the Department’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the consolidated financial statements. The audit did not identify any deficiency in internal control over financial reporting that is considered a material weakness.

Tyler Deandre Johnson, a resident of Tampa, Florida, pleaded guilty on November 15, 2022, in the U.S. District Court, Middle District of Florida, to one count fraud and related activity in connection with access devices and one count aggravated identity theft. Johnson is a co-conspirator with Darius Lopez, another defendant in the case, who previously pleaded guilty to fraud and related activity in connection with access devices. This investigation is being conducted jointly with the GSA Office of Inspector General.

Results of the audit of the Commission’s financial statements forthe fiscal year ended September 30, 2022 and 2021

The Chief Financial Officers Act of 1990, as amended, requires an annual independent audit and report on the U.S. Small Business Administration’s (SBA’s) consolidated financial statements.SBA OIG contracted with the independent certified public accounting firm KPMG LLP to conduct an audit of SBA’s consolidated balance sheets as of September 30, 2022 and 2021, and the related notes to these statements. Our contract with KPMG required that the audit be performed in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 22-01, Audit Requirements for Federal Financial Statements.In the audit, KPMG reported significant matters for which they were unable to obtain sufficient and appropriate audit evidence to provide a basis for an audit opinion on SBA’s balance sheet as of September 30, 2022. Accordingly, KPMG issued a disclaimer of opinion on the consolidated balance sheets as of September 30, 2022 and 2021. The basis for the disclaimer was that due to inadequate processes and controls, SBA was unable to provide adequate evidential matter in support of a significant number of transactions and account balances related to the Paycheck Protection Program, Economic Injury Disaster Loan program, the Restaurant Revitalization Fund, and Shuttered Venue Operators Grant program. As a result, KPMG was unable to determine whether any adjustments might have been necessary with respect to the following:• Credit Program Receivables and Related Foreclosed Property, Net • Other than Intragovernmental Advances and Prepayments • Downward Reestimate Payable to Treasury • Loan Guarantee Liabilities For the period ended September 30, 2022, KPMG identified six material weaknesses and two significant deficiencies in internal control over financial reporting. Appendixes I and II of this report describe details of KPMG’s conclusions about the material weaknesses and significant deficiencies. Appendix III describes instances of noncompliance with applicable laws or other matters required to be reported under Government Auditing Standards or OMB Bulletin No. 22-01.

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm, Allmond & Company, LLC (Allmond & Company), to audit the Commission’s financial statements and related footnotes as of September 30, 2022, and for the year then ended.

Fiscal Year 2022 Financial Statement Opinion

Fiscal Year 2022 Independent Evaluation of the SEC’s Implementation of the Federal Information Security Modernization Act of 2014, Report No. 574

Results of the annual audit of FEC's FY 22 Financial Statements

We determined that FHEO could provide more guidance related to FHEO’s performance assessment process to improve its oversight of State and local fair housing enforcement agencies participating in FHAP.  The FHAP Division has provided guidance that FHEO regional staff responsible for monitoring and overseeing FHAP agency performance (HUD reviewers) does not consistently follow.  Additionally, although all HUD reviewers work from the same performance standards, individual reviewers sometimes apply the standards in different ways.  HUD reviewers expressed a desire for more definitive guidance as to what level of compliance was acceptable and concrete examples of what constituted compliance and noncompliance.Other opportunities exist for the FHAP Division to provide enhanced guidance and training.  Although FHEO provides training, nearly all HUD reviewers and regional directors we spoke with requested more training.  At the time of our fieldwork, HUD reviewers had not had access to refresher training on conducting PARs in more than year.  The most recent PAR-specific refresher training was in July 2020.  The FHAP Division held its most recent training for new reviewers in January 2021.Another area in which the FHAP Division can enhance guidance is through performance improvement plans (PIP).  FHEO can use PIPs to improve FHAP agencies’ performance after determining that the agency is not meeting a performance standard.  Regulation allows regional offices discretion in applying PIPs.  However, during our period of review, regional offices often did not place FHAP agencies with repeat deficiencies on PIPs.  The FHAP Division leaves the management of FHAP agency performance to the regions, and FHEO regional directors use different criteria when deciding to issue a PIP.  The FHAP Division can issue stricter guidance clarifying when regional directors are expected to place a FHAP agency on a PIP.

The attached report presents the results of the independent certified public accountants’ audit of the balance sheets of the Department of Energy Nuclear Waste Fund, as of September 30, 2022, and 2021, and the related statements of net cost, changes in net position, and statements of budgetary resources for the years then ended.To fulfill the Office of Inspector General’s audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit, subject to our review. KPMG is responsible for expressing an opinion on the Nuclear Waste Fund’s financial statements and reporting on applicable internal controls and compliance with laws and regulations. The Office of Inspector General monitored audit progress and reviewed the audit report and related documentation. This review disclosed no instances where KPMG did not comply, in all material respects, with generally accepted government auditing standards. The Office of Inspector General did not express an independent opinion on the Nuclear Waste Fund’s financial statements.KPMG concluded that the combined financial statements present fairly, in all material respects, the respective financial position of the Nuclear Waste Fund as of September 30, 2022, and 2021, and its net costs, changes in net position, and budgetary resources for the years then ended, in accordance with United States generally accepted accounting principles.As part of this review, auditors also considered the Nuclear Waste Fund’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the determination of financial statement amounts. The audit did not identify any deficiency in internal control over financial reporting that is considered a material weakness. Additionally, the results of the auditors’ review disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards or applicable Office of Management and Budget guidance.

OIG contracted RMA to audit DFC’s consolidated financial statements for the fiscal year ended September 30, 2022, report on internal control over financial reporting, and report on compliance with laws and other matters. The audit was performed in accordance with U.S. generally accepted auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual.

We rendered an unmodified opinion on the EPA’s consolidated financial statements for fiscal years 2022 and 2021, meaning that they were fairly presented and free of material misstatement.

Allmond & Company rendered an unmodified opinion on the CSB’s financial statements for the CSB’s financial fiscal years 2022 and 2021, meaning that the statements were fairly presented and free of material misstatements.

Allmond & Company rendered an unmodified opinion on the CSB’s financial statements for the CSB’s financial fiscal years 2022 and 2021, meaning that the statements were fairly presented and free of material misstatements.

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2022. TVA management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found: • The FY 2022 WP goals for the Enterprise measures were properly approved. There was one change form that affected one measure.• The FY 2022 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the Enterprise measures agreed with the underlying support, without exception.• The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception.• The FY 2022 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 9, 2022, was mathematically accurate and agreed with the OIG’s recalculation.

MEMORANDUM FOR DEPARTMENT OF DEFENSE LEAD INSPECTOR GENERAL

KPMG LLP conducted an audit of the U.S. Department of the Interior's financial statements for fiscal years 2022 and 2021. KPMG found the following:• The financial statements were fairly presented, in all material respects, in accordance with U.S. generally accepted accounting principles.• One material weakness on controls over construction in progress and one significant deficiency in entity-level controls. • No instances in which the DOI's financial management systems did not comply substantially with the requirements of FFMIA.• No reportable noncompliance with provisions of laws tested or other matters.We reviewed KPMG's work and found no instances where KPMG did not comply, in all material respects, with U.S. generally accepted government auditing standards.

What We Looked AtWe contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation's (DOT) consolidated financial statements as of and for the fiscal years ended September 30, 2022, and September 30, 2021. KPMG was required to provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract also required KPMG to perform the audit in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office's and Council of the Inspectors General on Integrity and Efficiency's Financial Audit Manual. We performed a quality control review of KPMG's report dated November 10, 2022, and related documentation, and inquired of its representatives.What We FoundOur quality control review disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.Our RecommendationsKPMG made no recommendations.

What We Looked AtIn accordance with the Government Corporation Control Act of 1945, we audited the financial statements of the Great Lakes St. Lawrence Seaway Development Corporation (GLS), a U.S. Government Corporation, as of and for the fiscal years ended September 30, 2022, and September 30, 2021. What We FoundIn our opinion, GLS’s financial statements present fairly, in all material respects, the Agency’s financial position as of September 30, 2022, and September 30, 2021, and its operations and changes in cumulative results of operations, cash flows, budgetary resources and actual expenses, and changes in equity of the U.S. Government for the years then ended, in accordance with U.S. generally accepted accounting principles. We found no material weaknesses in internal control over financial reporting based on the limited procedures we performed. We also found no reportable noncompliance for fiscal year 2022, with provisions of the applicable laws, regulations, and contracts we tested. RecommendationsWe are making no recommendations.

This audit report shows Kearney found that the financial statements were fairly presented in all material respects, in conformity with U.S. lly accepted accounting principles. However, Kearney identified several deficiencies in information technology (IT) controls forFCC and Universal Service Fund (USF). Kearney deemed the aggregate of the IT controldeficiencies to be a significant deficiency in internal controls over financial reporting.

The OIG identified the top management and performance challenges (TMPC) for FY 2022 facing the U.S. AbilityOne Commission as: 1) Implementation of the Strategic Plan a) Modernization and Enhancement of Oversight of NPA Compliance b) Implementation of new Cooperative Agreements with Central Nonprofit Agencies c) Successful Implementation of the Section 898 Panel Recommendations d) Use of an Enterprise-wide Risk Management (ERM) Framework 2) Enhancement of Program Compliance (as currently executed, before implementation of the new Strategic Plan, as well as new challenges as a result of the Strategic Plan) 3) Breakdowns in Internal Control over Financial Management and Reporting 4) Growing List of Unimplemented OIG Audit Recommendations. Appendices: - Appendix A Watch Item: Program Growth and Resulting Risk - Appendix B - Removal of Watch Items: Accessibility - Appendix C - Removal of Top Challenges: 1) Higher Level of Transparency Needed to Enhance Program Confidence 2) Implementation of Cooperative Agreements with CNAs (as they existed before the Commission issued its new Strategic Plan) 3) Program Erosion - Appendix D – 898 Panel Recommendations for Commission action. OIG provided a draft of the report to Commission management, whose comments on the new challenges and on the Commission’s progress in each challenge area have been considered for incorporation into the final version.

Our objective was to review the U.S. Department of Education’s (Department) decision - making process for terminating its private collection agency (PCA) contracts.The decision to terminate the PCA contracts is part of an ongoing, multiyear Departmental strategy to overhaul student loan servicing and default collections. In mid-2018, FSA made the decision for Business Process Operations (BPO) vendors to handle future default collections due to potential efficiencies and costs savings and the belief that doing so would improve customer service and the customer experience.As of September 2022, defaulted accounts are with FSA’s Default Resolution Group, which is handling any defaulted customer inquiries, and FSA intends for the BPO vendors to begin handling default collections in June 2023.

Transmittal of the Final Report Assessing the Federal Trade Commission’s Compliance with the Federal Information Security Management Act for Fiscal Year 2022 (Redacted for public release)

The Office of Inspector General (OIG) contracted with the independent certified public accountingfirm of Harper, Rains, Knight & Company, P.A. (HRK) to audit the financial statements of theU.S. Equal Employment Opportunity Commission (EEOC) for fiscal years ended September 30,2022 and 2021, and to report on EEOC's internal controls over financial reporting, and compliancewith laws, regulations, contracts, and other matters. The contract required that HRK conduct theaudit in accordance with U.S. generally accepted government auditing standards (GAGAS)contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) audit guidance, and U.S. Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency FinancialAudit Manual.

Independent Auditor’s Report and Financial Statements for the Fiscal Years Ended September 30, 2022 and 2021

Audit of the NLRB FY 2022 Financial Statements

OIG audited USDA’s consolidated financial statements for fiscal years 2022 and 2021.

Under a contract monitored by the OIG, KPMG, an independent certified public accounting firm, performed an audit of the NCUA’s schedule of contributed capital as of September 30, 2022.

The Office of Inspector General (OIG) contracted with the independent certified public accounting firm of Harper, Rains, Knight & Company, P.A. (HRK) to audit the financial statements of the U.S. Equal Employment Opportunity Commission (EEOC) for fiscal years ended September 30, 2022 and 2021, and to report on EEOC's internal controls over financial reporting, and compliance with laws, regulations, contracts, and other matters. The contract required that HRK conduct the audit in accordance with U.S. generally accepted government auditing standards (GAGAS) contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) audit guidance, and U.S. Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual.

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of Ginnie Mae as of and for the fiscal years ended September 30, 2022 and 2021, and to provide reports on Ginnie Mae’s 1) internal control over financial reporting; and 2) compliance with laws, regulations, contracts, and grant agreements and other matters. Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of theU.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of Ginnie Mae, CLA reported:Ginnie Mae’s financial statements as of and for the fiscal years ended September 30, 2022 and 2021, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles;No material weaknesses1 for fiscal year 2022 in internal control over financial reporting, based on limited procedures performed; and,No reportable noncompliance issues for fiscal year 2022 with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.In connection with the contract, we reviewed CLA’s reports and related documentation and inquired of its representatives. Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, opinions on Ginnie Mae’s financial statements or conclusions about 1) the effectiveness of Ginnie Mae’s internal control over financial reporting and 2) Ginnie Mae’s compliance with laws, regulations, contracts, grant agreements, or other matters. CLA is responsible for the attached Independent Auditors’ Report, dated November 14, 2022, and the conclusions expressed therein. Our review disclosed no instances in which CLA did not comply, in all material respects, with U.S. generally accepted government auditing standards.We will provide a replacement report for posting, once Ginnie Mae publishes its annual report, which will include the audited financial statements.

Each year, in compliance with Public Law 106-531, the Reports Consolidation Act of 2000, the Denali Commission Office of Inspector General issues a report summarizing what we consider the most serious management challenges facing the Commission.

EAC OIG, through the independent public accounting firm of Brown & Company CPAs and Management Consultants, PLLC, audited EAC’s financial statements for the fiscal years ended September 30, 2022, and September 30, 2021.

What We Looked AtWe contracted with the independent public accounting firm KPMG, LLP to audit the Federal Aviation Administration’s (FAA) consolidated financial statements as of and for the fiscal years ended September 30, 2022, and September 30, 2021. KPMG was required to provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract required the audit to be performed in accordance with U.S. generally accepted Government auditing standards; Office of Management and Budget audit guidance; and the Governmental Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review (QCR) of KPMG’s report dated November 9, 2022, and related documentation, and inquired of KPMG’s representatives. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsFAA concurred with KPMG’s two recommendations. We agree with KPMG’s recommendations and are not making any additional recommendations.

What We Looked AtWe contracted with the independent public accounting firm Allmond & Company, LLC (Allmond), to audit the Surface Transportation Board’s (STB) financial statements as of and for the fiscal years ended September 30, 2022, and September 30, 2021; provide an opinion on those financial statements; and report on internal control over financial reporting, compliance with laws, and other matters. The contract required the audit to be performed in accordance with U.S. generally accepted Government auditing standards; Office of Management and Budget audit guidance; and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review (QCR) of Allmond’s report, dated November 06, 2022, and related documentation, and inquired of Allmond’s representatives. What We FoundOur QCR disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsSTB concurred with Allmond’s seven recommendations. We agree with Allmond’s recommendations and are not making any additional recommendations.

Results of the Audit of the USNRC Financial Statements for FY22

In the audit of the Commission's financial statements for 2022 and 2021, we reported the following:- The Commission’s financial statements for fiscal years ending September 30, 2022 and 2021, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles;- Identified no material weaknesses in internal control over financial reporting and grant origination; and- Identified no instances of reportable noncompliance for fiscal year 2022 with provisions of applicable law, regulations, contracts, and grant agreements tested.

The U.S. Department of Agriculture (USDA) Office of Inspector General’s (OIG) Annual Plan for Fiscal Year 2023 describes how OIG will accomplish its mission of promoting economy, efficiency, effectiveness, and integrity in the delivery of USDA programs throughout the fiscal year (FY).