Federal Reports

The Office of the Inspector General contracted with the independent certified public accounting firm Ernst & Young LLP to audit: (1) the Social Security Administration’s (SSA) consolidated financial statements as of September 30, 2023 and the related notes to the consolidated financial statements; (2) the sustainability financial statements, including the statements of social insurance as of January 1, 2023 and the related notes to the sustainability financial statements; and (3) the statements of changes in social insurance amounts for the periods January 1, 2022 to January 1, 2023. The OIG also contracted with Ernst & Young to provide an opinion on internal control over financial reporting and report on compliance with laws, regulations, contracts, grant agreements, and other matters and to report on whether SSA’s financial management systems did not comply substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA). The contract requires that the audit be conducted in accordance with auditing standards generally accepted in the United States; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirements for Federal Financial Statements. Those Standards and Bulletin require that Ernst & Young plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement and whether effective internal control over financial reporting was maintained in all material respects.

This report identifies three management challenges confronting AmeriCorps in fiscal year (FY) 2024 and beyond:· Improving financial management;· Prioritizing grant fraud prevention and detection in its programs; and· Modernizing and securing information technology.While it does not rise to the significance of a management challenge, we believe that AmeriCorps will be challenged in the future if American Rescue Plan (ARP) funding is not effectively used during FY 2024. We identified Effective Use of American Rescue Plan Funding as an emerging challenge, which is discussed later in this report.

In the audit of the Commission's financial statements for 2023 and 2022, we reported the following: - The Commission’s financial statements for fiscal years ending September 30, 2023 and 2022, 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 2023 with provisions of applicable law, regulations, contracts, and grant agreements tested.

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.

Under a contract monitored by the National Credit Union Administration (NCUA) Office of Inspector General (OIG), KPMG, an independent certified public accounting firm, performed an audit of the NCUA’s schedule of investments and other taxes and receipts as of September 30, 2023. KPMG conducted the audit in accordance with auditing standards generally accepted in the United States of America, in accordance with the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and in accordance with the Office of Management and Budget (OMB) Bulletin No. 24-01, Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin No. 24-01, require that KPMG plan and perform the audit to obtain reasonable assurance about whether the schedule is free from material misstatement.KPMG prepared the audit report for the purpose of providing financial information to the U.S. Department of Treasury and the U.S. Government Accountability Office to use in preparing and auditing the Financial Report of the U.S. Government. The report includes: (1) an opinion on the schedule, (2) internal control over financial reporting specific to the schedule, and (3) compliance and other matters specific to the schedule. In its audit, KPMG found:• The schedule presents fairly, in all material respects, the investments and other taxes and receipts of the NCUA as of September 30, 2023, in accordance with U.S. generally accepted accounting principles.• There were no internal control deficiencies identified for the schedule considered to be material weaknesses; and• There were no instances of noncompliance or other matters required to be reported under Government Auditing Standards or OMB Bulletin No. 24-01.

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, 2023, and September 30, 2022. 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, 2023, 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 recommendation. We agree with KPMG’s recommendation 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, 2023, and September 30, 2022; 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 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 6, 2023, and related documentation, and inquired of its 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. Our RecommendationsSTB concurred with Allmond’s ten recommendations. We agree with Allmond’s recommendations and are not making any additional recommendations.