Federal Reports

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, 2017. KPMG’s audit report for the FY 2017 Consolidated Financial Statements of the U. S. Government includes an opinion on the closing package schedule, internal control over financial reporting specific to the closing package financial statements, and compliance and other matters specific to the closing package schedule.

This report transmits KPMG LLP’s report on its financial statement audit of the NCUA financial statements for the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), which comprise the balance sheets as of September 30, 2017 and December 31, 2016, and the related statements of net cost, changes in net position, and combined statements of budgetary resources for the periods then ended, and the related notes to the financial statements. On September 28, 2017, the NCUA Board voted unanimously to close the TCCUSF effective October 1, 2017, ahead of its sunset date of June 30, 2021.

Enclosed is our report on the Denali Commission’s Top Management and Performance Challenges for fiscal year (FY) 2018. According to a study by the United States Government Accountability Office (GAO), the Commission faces several challenges in fulfilling its statutory purpose of providing, among other things, infrastructure and economic development services to rural Alaskan villages. The Commission’s role, combined with continued budget reductions, poses a substantial challenge for the agency. In addition, the upcoming vacancy in the federal co-chair position presents a new challenge that has not been encountered since FY 2014.

SB & Company, LLC (SBC)—an independent public accounting firm—presented an unmodified opinion on the Denali Commission’s (the Commission’s) fiscal year (FY) 2017 financial statements.1 SBC performed the audit in accordance with U.S. generally accepted government auditing standards and Office of Management and Budget (OMB) Bulletin 17-03, Audit Requirements for Federal Financial Statements.In its audit of the Commission, SBC• identified no instances of deficiency or material weakness in internal control over financial reporting;• identified no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or OMB audit guidance; and• determined that the financial statements were fairly presented in all material respects and in conformity with U.S. generally accepted accounting principles. The Denali Commission OIG oversaw the audit performance, including the review of SBC’s report and related documentation and inquiries of its representatives. Our review disclosed no instances where SBC did not comply, in all material respects, with U.S. generally accepted government auditing standards. As differentiated from an audit in accordance with these standards, our review was not intended to enable us to express any opinion on the Commission’s financial statements. Therefore, we do not express any opinion on the Commission’s financial statements, conclusions about the effectiveness of internal control, or conclusions on compliance with laws, regulations, contracts, and grant agreements. SBC is solely responsible for the attached audit report, dated November 6, 2017, and the conclusions expressed in it.