Federal Reports

VA OIG attorney-advisors conducted two related internal investigations following allegations that a then special agent in charge in the Office of Investigations engaged in inappropriate conduct or sexual harassment that his superiors ignored and that contributed to a hostile work environment. OIG disciplinary officials determined the special agent in charge engaged in “conduct unbecoming” and should be removed from federal service. The special agent in charge retired during the 30-day advance notice period that is required before completing a removal action. The evidence did not support a charge of sexual harassment, failure to act by senior leaders, or a hostile work environment. To enhance future reporting and a safe workplace, the OIG implemented and updated directives on romantic relationships involving coworkers and sexual misconduct in addition to other responsive actions.The OIG publishes summaries of internal investigations of alleged senior personnel misconduct to promote transparency and accountability. Summary information released is consistent with applicable privacy laws and regulations.

If water systems do not complete risk and resilience assessments or emergency response plans, they are more vulnerable to cyberattacks and other malevolent acts. The 19 percent of water systems that did not certify completion of these assessments and plans serve 40 million people.

AmeriCorps has been unable to produce auditable financial statements for the last six years. This year, independent auditors again issued a disclaimer of opinion, reporting 12 material weaknesses and two significant deficiencies. Ten of the material weaknesses are recurring, four of them since FY 2017, five since FY 2018, and one since FY 2021. The auditors reported two new material weaknesses: (1) Knowledge Gap throughout Financial Management Operations and (2) Advances from Others. Further, the financial statements and accompanying notes were not in accordance with U.S. Generally Accepted Accounting Principles and Office of Management and Budget Circular A-136 and contained mathematical errors and inconsistencies. The repeated audit opinion disclaimers reflect AmeriCorps’ lack of leadership with relevant Federal financial management knowledge and skills. In recognition of the pervasive weaknesses, AmeriCorps included in its Annual Management Report (AMR) a Statement of No Assurance, acknowledging that the agency could not provide reasonable assurance as to the effectiveness of internal control over financial reporting, operations, including programmatic operations, and compliance with laws. This is the third year that AmeriCorps has issued a No Assurance statement. Remedial actions by AmeriCorps have closed 12 of the 73 recommendations from prior financial statement audits. The remaining recommendations continue to be valid, three in modified form. The auditors also made 18 new recommendations, for a total of 76 outstanding. AmeriCorps’ response to the audit report did not address the findings and recommendations in detail but reiterated the agency’s commitment to strengthening financial management. The independent accounting firm RMA Associates LLC performed the audit of the AmeriCorps FY 2022 consolidated financial statements, under contract with AmeriCorps-OIG.

The National Service Trust holds the funds set aside to pay the education awards of national service members who successfully complete their service terms. Responsibility for the education awards that have been earned or will be earned in the near future is the largest liability on AmeriCorps’ financial statements at $340 million. AmeriCorps has been unable to produce auditable financial statements for the last six years. This year, independent auditors again issued a disclaimer of opinion, reporting six material weaknesses and one significant deficiency. Five of the material weaknesses are recurring, three of them since FY 2017, one since FY 2018, and one since FY 2021. The auditors reported a new material weakness, Knowledge Gap throughout Financial Management Operations. Further, the financial statements and accompanying notes were not in accordance with U.S. Generally Accepted Accounting Principles and Office of Management and Budget Circular A-136 and contained mathematical errors and inconsistencies. The repeated audit opinion disclaimers reflect AmeriCorps’ lack of leadership with relevant Federal financial management knowledge and skills. In recognition of the pervasive weaknesses, AmeriCorps included in its Annual Management Report (AMR) a Statement of No Assurance, acknowledging that the agency could not provide reasonable assurance as to the effectiveness of internal control over financial reporting, operations, including programmatic operations, and compliance with laws. This is the third year that AmeriCorps has issued a No Assurance statement. Remedial actions by AmeriCorps have closed six of the 37 prior year recommendations. The remaining 31 recommendations continue to be valid, one of them in modified form. The auditors also made 11 new recommendations, for a total of 42.AmeriCorps’ response to the audit report did not address the findings and recommendations in detail but reiterated the agency’s commitment to strengthening financial management. The independent accounting firm RMA Associates LLC performed the audit of the AmeriCorps FY 2022 National Service Trust Fund financial statements, under contract with AmeriCorps-OIG.

National Credit Union Administration (NCUA) Office of Inspector General (OIG) Semiannual Report to the NCUA Board and the Congress highlighting our accomplishments and ongoing work for the 6-month period ending September 30, 2022.