Federal Reports

What We Looked AtWe contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation's (DOT) closing package financial statements for fiscal year 2018, and to provide a report on internal control over the financial reporting process for closing package financial statements and compliance with the U.S. Treasury's Financial Manual Chapter 4700. The contract required that the audit be performed in accordance with U.S. generally accepted Government auditing standards and Office of Management and Budget audit guidance.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.RecommendationsKPMG did not include any recommendations in its report.

This report includes EAC OIG’s independent assessment of the top management challenges facing EAC in fiscal year 2018.

We contracted with the independent certified public accounting firm KPMG LLP (KPMG) to audit the U.S. Small Business Administration’s (SBA’s) consolidated financial statements for fiscal year (FY) 2018, ending September 30, 2018. The independent auditors’ report presents an unmodified opinion on SBA’s special-purpose financial statements for FY 2018. Specifically, KPMG reported that the statements present SBA’s financial position for FY 2018 fairly in all material respects. Also, the results of operations and the changes in net position for the period are in accordance with U.S. generally accepted accounting principles, and the presentation is in conformance with the requirements of the Office of Management and Budget Circular No. A-136, Financial Reporting Requirements, and the U.S. Department of the Treasury’s Treasury Financial Manual, Volume 1, Part 2, Chapter 4700 (TFM 2-4700).As requested, the following documents also were provided:1. GTAS Reclassified Financial Statements2. GF005G GTAS Closing Package Lines Loaded Report (Federal Trading Partner Data)3. Agency Financial Report to Closing Package Reconciliation Template4. GF006G FR Notes Report5. GF007F Other FR Data Report6. Closing Package Additional Notes7. Management Representation Letter on the Closing Package (no uncorrected misstatements)8. Management Representation Letter on the Audited Financial Statements (no uncorrected misstatements)This report does not include any recommendations.

The financial statements and accompanying notes contained in the closing package were prepared for the purpose of complying with the requirements of the U.S. Department of the Treasury's Financial Manual (TFM) Volume I, Part 2, Chapter 4700 for the purpose of providing financial information to the U.S. Department of the Treasury and U.S. Government Accountability Office to use in preparing and auditing the Financial Report of the U.S. Government, and are not intended to be a complete presentation of PBGC's financial statements.

Under a contract monitored by NCUA OIG, KPMG, an independent certified public accounting firm, performed an audit of NCUA’s closing package schedule as of September 30, 2018. The audit report for the FY 2017 Consolidated Financial Statements of the U. S. Government includes: (1) an opinion on the closing package schedule, (2) internal control over financial reporting specific to the closing package financial statements, and (3) compliance and other matters specific to the closing package schedule.

The OIG investigated allegations of mismanagement from students, faculty, and administrators at Haskell Indian Nations University (Haskell) against the Haskell President. The complaints included allegations that the Haskell President and other university officials mishandled misconduct complaints, and that the Haskell President bullied employees, committed nepotism for the benefit of a family member, and showed favoritism towards a subordinate employee. We also investigated allegations of an improper computer purchase using Title III funds.We found that university officials did not consistently follow Haskell’s guidelines for handling complaints of misconduct and that Haskell’s administration inaccurately reported crime statistics in 2014 and 2015. We also found that Haskell employees felt bullied and intimidated by the Haskell President, and we found that the President’s presence in a meeting influenced a family member’s appointment to a high-level position. We did not find evidence that the President showed favoritism or that computers were purchased improperly as alleged.During our investigation, we learned of allegations that a Haskell instructor sexually assaulted a student. We referred that matter to the Lawrence Police Department.

We have audited the accompanying Closing Package Financial Statements of the U.S. Postal Service which comprises the Government-wide Treasury Account Symbol Adjusted Trial Balance System (GTAS) Reconciliation Report – Reclassified Balance Sheet as of September 30, 2018, and the related GTAS Reconciliation Reports – Reclassified Statement of Net Cost and Reclassified Statement of Changes in Net Position, for the year then ended, and the related notes to the financial statements (hereinafter referred to as the “closing package financial statements”).

We conducted this audit to determine whether the Ascension Parish School Board (Board) accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The Board sustained an estimated $90.6 million in damages caused by severe storms and flooding that occurred in August 2016. We determined that the Board accounted for disaster-related costs correctly, as Federal regulations require. However, the Board did not follow all Federal procurement regulations in awarding $25.6 million in disaster-related contracts, resulting in $9.1 million in ineligible costs. Additionally, there were issues with direct administrative costs related to a Recovery Program and Grants Management services contract. This occurred because FEMA did not ensure the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness monitored the Board’s subgrant activities for compliance with Federal procurement requirements