Federal Reports

This reports the results of the FEC's FY 25 Financial Statement Audit

The independent public accounting firm of McBride, Lock & Associates, LLC, under contract with the Office of Inspector General, audited Help America Vote Act (HAVA) grants administered by the Wyoming Secretary of State, totaling just under $12 million. This included federal funds, state matching funds, and interest income earned on the reissued Section 101 and Election Security grants.

The objective of this Federal Information Security Modernization Act of 2014 (FISMA) review was to determine the effectiveness of the Peace Corps’ information security program and practices based on the fiscal year (FY) 2025 Inspector General (IG) FISMA Reporting Metrics v2.0,1 which are categorized into 6 functional areas and 10 associated domains. The review also evaluated the Peace Corps’ efforts in addressing previously issued exceptions and recommendations.

The audit concluded that the Peace Corps’ financial statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP), and noted two significant deficiencies in the agency’s internal control over financial reporting, as well as one instance of reportable noncompliance related to provisions of applicable laws, regulations, contracts, and grant agreements.

VHA pharmacies cannot dispense drugs that are damaged or expired or will be expiring soon. To address this issue and to recover some costs, VA contracted with Pharma Logistics LLC to provide national reverse distribution services, where manufacturers accept returned drugs in exchange for credits toward future purchases. Pharma Logistics collected returned drugs, sorted them, returned them to the manufacturers, disposed of nonreturnable products, and coordinated the application of credits from manufacturers to VA accounts. The OIG’s objective was to determine whether Pharma Logistics complied, in all material respects, with its contract regarding drug return credits and billing. Of the about $114.4 million in manufacturer credits for drugs that VA facilities expected from reverse distribution services as of March 2024, VA received only about $110.3 million. Of the $4.1 million variance, over $3.6 million of the unapplied credits were related to Pharma Logistics improperly closing jobs and $526,520 was used for contract-prohibited processing fees. VA agreed with the OIG’s three recommendations for it to confer with VA’s Office of General Counsel regarding the potential recovery of credits.