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Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
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#Fast Facts
The Congressional Award Foundation is a privately funded charity that Congress established. It recognizes American youth for excellence in public service, personal development, physical fitness, and exploring other cultures or the wilderness.
The Foundation's financial statements must have an independent audit each year, and we're required to review those audits.
For FY 2025, the independent
... Show Full Article
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
*
#Fast Facts
The Congressional Award Foundation is a privately funded charity that Congress established. It recognizes American youth for excellence in public service, personal development, physical fitness, and exploring other cultures or the wilderness.
The Foundation's financial statements must have an independent audit each year, and we're required to review those audits.
For FY 2025, the independentauditor concluded that the Foundation's financial statements fairly presented its financial position and activities. We reviewed certain aspects of this financial audit and found no significant issues with how it was performed.
Several Congressional Award medals with striped ribbons.
#Highlights
#What GAO Found
Based on the limited procedures GAO performed to review the performance of the independent public accountant's (IPA) audit of the Congressional Award Foundation's financial statements for fiscal year 2025, GAO did not identify any significant issues it believes require attention. Had GAO performed additional procedures, other matters related to the performance of the audit might have come to its attention that it would have reported.
The IPA provided an unmodified audit opinion on the Foundation's financial statements for fiscal years 2025 and 2024. Specifically, the IPA found that the Foundation's financial statements were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. For fiscal year 2025, the IPA did not identify any (1) deficiencies it considered to be material weaknesses in the Foundation's internal control over financial reporting or (2) instances of noncompliance or other matters that are required to be reported under U.S. generally accepted government auditing standards. The Foundation concurred with the IPA's conclusions.
GAO's review of the Foundation's fiscal year 2025 financial statement audit, as differentiated from an audit of the financial statements, was not intended to enable GAO to express-and it does not express-an opinion on the Foundation's financial statements or a conclusion on the effectiveness of its internal control over financial reporting. Furthermore, GAO does not express an opinion on the Foundation's compliance with provisions of applicable laws, regulations, contracts, and grant agreements. The IPA is responsible for its reports on the Foundation and the conclusions expressed therein.
GAO provided a draft of this report to the Foundation and the IPA for review and comment. The Foundation's National Director and the Foundation's Audit Committee Chair responded in an email that the Foundation continues to work on improving operations and internal controls over financial reporting on an ongoing basis. The IPA's Audit Principal responded in an email that the IPA had no comments regarding GAO's report.
#Why GAO Did This Study
This report presents the results of GAO's review of the Foundation's financial statement audit for fiscal year 2025. The Congressional Award Act established the Congressional Award Board to carry out a program to promote excellence among the nation's youth in the areas of public service, personal development, physical fitness, and expedition or exploration. The Board created the Foundation as a nonprofit corporation to help it carry out this program. The Congressional Award Act, as amended by the Government Reports Elimination Act of 2014, requires the Foundation to obtain an annual financial statement audit from an IPA. The act also includes a provision for GAO to review the audit and report the results to the Congress annually.
GAO's objective was to review the Foundation's fiscal year 2025 financial statement audit to identify any significant issues it believes require attention. To satisfy this objective, GAO (1) read and considered various documents with respect to the IPA's independence, objectivity, and qualifications; (2) analyzed key IPA audit documentation; (3) read the Foundation's financial statements for fiscal years 2025 and 2024, the IPA's audit report on the these statements, and the IPA's report on internal control over financial reporting and on compliance and other matters based on its audit; and (4) discussed matters pertinent to its objective with IPA representatives and Foundation management officials.
For more information, contact Cheryl E. Clark at clarkce@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-109196 (TNSmrp)
Native American Issues: Preliminary Observations on Housing and Homelessness
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Native American Issues: Preliminary Observations on Housing and Homelessness
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#Fast Facts
We testified about housing and homelessness issues affecting Native American communities.
Our testimony, given before the Senate Committee on Indian Affairs, is based on ongoing work.
So far, we've found that federal support for Native American housing is offered across 30 federal programs-but funding isn't keeping pace with rising costs. We're also looking at Tribes' experiences with homelessness
... Show Full Article
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Native American Issues: Preliminary Observations on Housing and Homelessness
*
#Fast Facts
We testified about housing and homelessness issues affecting Native American communities.
Our testimony, given before the Senate Committee on Indian Affairs, is based on ongoing work.
So far, we've found that federal support for Native American housing is offered across 30 federal programs-but funding isn't keeping pace with rising costs. We're also looking at Tribes' experiences with homelessness(including temporarily staying with others, or, "doubling up") and how Tribes use Department of Housing and Urban Development programs to address it.
Photo of the U.S. Capitol building, with the text "GAO Testimony to Congress"
#Highlights
#What GAO Found
GAO's preliminary observations indicate that 30 federal programs can provide housing support targeted to Native American communities, including those that are American Indian and Alaska Native (AI/AN) and Native Hawaiian. These include grant programs-of which the largest is the Indian Housing Block Grant program-and mortgage assistance programs. Tribes, tribal organizations, and Native Hawaiian organizations that GAO contacted indicated that they use federal programs primarily to maintain existing housing and, to a lesser extent, to construct new housing. They also identified limitations in the reach of these programs, including limited funding that had not kept pace with rising construction costs and certain program restrictions.
While tribal communities experience both sheltered and unsheltered homelessness, doubling up (or temporarily staying with others) is also widespread, according to GAO's preliminary analysis of its interviews and prior HUD and GAO research. Tribes and tribal organizations that GAO contacted for its ongoing work on homelessness described a variety of strategies they use to address homelessness, including operating emergency shelters or transitional housing and providing supportive services.
Tribal Emergency Shelter in Alaska and Transitional Housing Facilities in Minnesota
GAO's preliminary observations indicate that many of the Tribes and tribal organizations GAO contacted had used Department of Housing and Urban Development (HUD) programs to support their homelessness strategies. However, several challenges may limit broader use of these programs. For example, some Tribes and tribal organizations described using a portion of their Indian Housing Block Grant funding to address homelessness but noted that the need to fund operation and maintenance costs for existing housing left little funding for homelessness-related efforts, such as providing shelters or emergency housing assistance. They also described requirements of the Continuum of Care program-HUD's largest homelessness assistance program-that may limit tribal participation. For example, some Tribes and tribal organizations raised concerns that Tribes may be less competitive for funding because forms of homelessness more common in their communities, such as doubling up, do not align with the program's definition of homelessness.
#Why GAO Did This Study
Native American communities have faced longstanding housing challenges, including poor housing conditions, overcrowding, and homelessness.
This statement is based on preliminary observations and discusses (1) federal programs providing targeted housing support to Native American communities and views on program uses and limitations; (2) tribal strategies for addressing homelessness among AI/AN people; and (3) challenges associated with Tribes' use of HUD programs to support these strategies.
GAO analyzed agency documentation on federal programs supporting Native American housing and interviewed a nongeneralizable sample of 12 Tribes and tribal organizations and one Native Hawaiian organization to obtain their views on those programs. In addition, GAO interviewed a nongeneralizable sample of 19 Tribes and tribal organizations regarding homelessness strategies and challenges. GAO selected Tribes to reflect factors such as regional variation, use of federal housing funds, and approaches to addressing homelessness.
For more information, contact Alicia Puente Cackley at CackleyA@gao.gov or Jill Naamane at NaamaneJ@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-109173
Federal Personal Property: GSA Can Better Assess the Effectiveness of Its Disposal Efforts
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Federal Personal Property: GSA Can Better Assess the Effectiveness of Its Disposal Efforts
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#Fast Facts
Each year, federal agencies dispose of tens of millions of "personal property" items they no longer need, such as office supplies and furniture. The General Services Administration facilitates and manages the disposal of these items-a process that aims to reuse as much as possible.
GSA does this through:
* Online platforms
* Educational resources, such as guidance and on-demand
... Show Full Article
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Federal Personal Property: GSA Can Better Assess the Effectiveness of Its Disposal Efforts
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#Fast Facts
Each year, federal agencies dispose of tens of millions of "personal property" items they no longer need, such as office supplies and furniture. The General Services Administration facilitates and manages the disposal of these items-a process that aims to reuse as much as possible.
GSA does this through:
* Online platforms
* Educational resources, such as guidance and on-demandtraining
* Direct assistance to agencies
However, GSA hasn't fully evaluated whether these efforts are effectively and efficiently disposing of these items. We recommended it do so.
Unneeded personal property items at a General Services Administration warehouse
A warehouse full of cardboard boxes and computer equipment wrapped in plastic on pallets.
#Highlights
#What GAO Found
Federal agencies disposed of over $10 billion of unneeded personal property from July 2023 through fiscal year 2025. Generally, when a federal agency determines it no longer needs an item of personal property to fulfill its mission, the agency must report the item to the General Services Administration (GSA) to be disposed of through GSA's online Personal Property Management System (PPMS). The unneeded property reported within this study's time frame varied across a range of characteristics, from new bandages originally worth under $1, to airplanes in usable condition originally worth over $20 million.
GAO found that about 9 percent of this property was reused, meaning it was transferred to another federal agency, donated for use by state or local governments, or was sold to the public. Certain factors may have affected whether this property was reused. For example, items with a higher original acquisition cost and those that were reported along with online photographs were more likely to be reused.
Unneeded Federal Personal Property Items in GSA's Northern Virginia Warehouse
GSA has three core efforts to help agencies dispose of unneeded property but has not fully assessed their effectiveness consistent with key performance management practices. These efforts include (1) online platforms to help facilitate unneeded property disposal; (2) educational resources, such as guidance and on-demand training; and (3) direct assistance to agencies to help dispose of unneeded personal property. GSA has developed a scorecard to help measure performance, but the measures it includes are not aligned with GSA's desired outcomes, such as timely disposals and providing a return on investment to taxpayers. The scorecard also excludes measures related to GSA's core efforts of providing educational resources and direct assistance. Due to these gaps, GSA may not be collecting or using information that could help the agency fully assess those efforts' effectiveness. As GSA aims to optimize the federal building portfolio, the amount of unneeded personal property is likely to grow. Assessing the effectiveness of its efforts can help GSA make decisions that improve its management of the personal property disposal process and stewardship of taxpayer dollars.
#Why GAO Did This Study
GSA facilitates and manages the disposal of tens of millions of federal personal property items annually-a process that aims to reuse as much of that property as possible.
GAO was asked to review the outcomes of the federal personal property disposal process and GSA's role in ensuring the effectiveness of the process. This report (1) examines the amount of personal property federal agencies disposed of through GSA, and the factors that may affect their reuse; and (2) evaluates the extent to which GSA has assessed the effectiveness of its property disposal efforts consistent with key performance management practices.
GAO analyzed GSA data on federal personal property disposals from July 2023-when GSA's PPMS began-through fiscal year 2025 (the most recent data available at the time of GAO's request); reviewed GSA guidance documents, training materials, and outreach efforts to educate agencies on the disposal process; evaluated GSA's performance information related to the disposal process; compared GSA's efforts to key performance management practices; conducted interviews with GSA officials; and conducted a site visit to a GSA warehouse in Virgina.
#Recommendations
GAO is making two recommendations that GSA (1) develop and incorporate into its scorecard performance measures that are aligned with its core efforts and (2) identify, collect, and use the data it needs to assess the effectiveness of its personal property disposal efforts. GSA agreed with the recommendations.
#Recommendations for Executive Action
Agency Affected Recommendation Status
General Services Administration The Administrator of the General Services Administration should develop and incorporate performance measures into the Office of Personal Property Management's scorecard that are aligned with its desired outcomes and its core personal property disposal efforts. These performance measures should include quantifiable targets and time frames. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
General Services Administration The Administrator of the General Services Administration should identify, collect, and use performance data that GSA needs to fully assess the effectiveness of its core personal property disposal efforts. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-108521 (TNSmrp)
Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
*
#Fast Facts
The Congressional Award Foundation is a privately funded charity that Congress established. It recognizes American youth for excellence in public service, personal development, physical fitness, and exploring other cultures or the wilderness.
The Foundation's financial statements must have an independent audit each year, and we're required to review those audits.
For FY 2025, the independent
... Show Full Article
WASHINGTON, Sept. 16 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
Congressional Award Foundation: Review of the FY 2025 Financial Statement Audit
*
#Fast Facts
The Congressional Award Foundation is a privately funded charity that Congress established. It recognizes American youth for excellence in public service, personal development, physical fitness, and exploring other cultures or the wilderness.
The Foundation's financial statements must have an independent audit each year, and we're required to review those audits.
For FY 2025, the independentauditor concluded that the Foundation's financial statements fairly presented its financial position and activities. We reviewed certain aspects of this financial audit and found no significant issues with how it was performed.
Several Congressional Award medals with striped ribbons.
#Highlights
#What GAO Found
Based on the limited procedures GAO performed to review the performance of the independent public accountant's (IPA) audit of the Congressional Award Foundation's financial statements for fiscal year 2025, GAO did not identify any significant issues it believes require attention. Had GAO performed additional procedures, other matters related to the performance of the audit might have come to its attention that it would have reported.
The IPA provided an unmodified audit opinion on the Foundation's financial statements for fiscal years 2025 and 2024. Specifically, the IPA found that the Foundation's financial statements were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. For fiscal year 2025, the IPA did not identify any (1) deficiencies it considered to be material weaknesses in the Foundation's internal control over financial reporting or (2) instances of noncompliance or other matters that are required to be reported under U.S. generally accepted government auditing standards. The Foundation concurred with the IPA's conclusions.
GAO's review of the Foundation's fiscal year 2025 financial statement audit, as differentiated from an audit of the financial statements, was not intended to enable GAO to express-and it does not express-an opinion on the Foundation's financial statements or a conclusion on the effectiveness of its internal control over financial reporting. Furthermore, GAO does not express an opinion on the Foundation's compliance with provisions of applicable laws, regulations, contracts, and grant agreements. The IPA is responsible for its reports on the Foundation and the conclusions expressed therein.
GAO provided a draft of this report to the Foundation and the IPA for review and comment. The Foundation's National Director and the Foundation's Audit Committee Chair responded in an email that the Foundation continues to work on improving operations and internal controls over financial reporting on an ongoing basis. The IPA's Audit Principal responded in an email that the IPA had no comments regarding GAO's report.
#Why GAO Did This Study
This report presents the results of GAO's review of the Foundation's financial statement audit for fiscal year 2025. The Congressional Award Act established the Congressional Award Board to carry out a program to promote excellence among the nation's youth in the areas of public service, personal development, physical fitness, and expedition or exploration. The Board created the Foundation as a nonprofit corporation to help it carry out this program. The Congressional Award Act, as amended by the Government Reports Elimination Act of 2014, requires the Foundation to obtain an annual financial statement audit from an IPA. The act also includes a provision for GAO to review the audit and report the results to the Congress annually.
GAO's objective was to review the Foundation's fiscal year 2025 financial statement audit to identify any significant issues it believes require attention. To satisfy this objective, GAO (1) read and considered various documents with respect to the IPA's independence, objectivity, and qualifications; (2) analyzed key IPA audit documentation; (3) read the Foundation's financial statements for fiscal years 2025 and 2024, the IPA's audit report on the these statements, and the IPA's report on internal control over financial reporting and on compliance and other matters based on its audit; and (4) discussed matters pertinent to its objective with IPA representatives and Foundation management officials.
For more information, contact Cheryl E. Clark at clarkce@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-109196 (TNSmrp)
Health Insurance Exchanges: Coverage of Non-Excepted Abortion Services by Qualified Health Plans in 2026
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Health Insurance Exchanges: Coverage of Non-Excepted Abortion Services by Qualified Health Plans in 2026
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#Fast Facts
Insurance plans offered in health insurance exchanges-known as qualified health plans-may cover abortion services.
Federal law prohibits the use of federal funds to pay for abortion services except in limited circumstances, such as if the pregnancy is the result of rape or incest. Plans may cover abortion services that don't meet that exception-non-excepted abortion services-if
... Show Full Article
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Health Insurance Exchanges: Coverage of Non-Excepted Abortion Services by Qualified Health Plans in 2026
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#Fast Facts
Insurance plans offered in health insurance exchanges-known as qualified health plans-may cover abortion services.
Federal law prohibits the use of federal funds to pay for abortion services except in limited circumstances, such as if the pregnancy is the result of rape or incest. Plans may cover abortion services that don't meet that exception-non-excepted abortion services-ifconsistent with federal and state laws.
For 2026, 26% of plans covered non-excepted abortion services. Among 15 selected plan issuers, all complied with federal requirements to estimate the cost of this coverage, but there may be inconsistencies with other requirements.
A blank form titled Health Insurance encircled by a stethoscope.
#Highlights
#What GAO Found
Under federal law, insurance plans offered in health insurance exchanges-known as qualified health plans (QHP)-may cover abortion services consistent with federal and state laws. Based on federal law applicable in 2026, QHPs are prohibited from using federal funds, such as income-based tax credits, to help pay for abortion services except where the pregnancy is the result of rape or incest, or the life of the pregnant woman would be endangered unless an abortion is performed. GAO refers to services that do not meet that exception as "non-excepted abortion services."
In 2026, federal data show 26 percent of QHPs (1,719 of 6,655) in the 50 states and District of Columbia covered non-excepted abortion services. Coverage of these services varied across states, mostly due to state laws restricting or requiring QHP coverage of non-excepted abortion services.
State Laws and Coverage of Non-Excepted Abortion Services by Qualified Health Plans (QHP), 2026
State law related to non-excepted abortion services
Number of states
Number of QHPs providing coverage in those states
Coverage prohibited
14
0 (of 2,109 plans)
Coverage permitted in limited circumstances
11
0 (of 2,235 plans)
Coverage generally required
13
1,609 (of 1,620 plans)
No laws regarding coverage
13
110 (of 691 plans)
Source: GAO analysis of state laws and Centers for Medicare & Medicaid Services data. | GAO-26-108995
Federal law places requirements on the provision of non-excepted abortion services coverage, including requiring issuers to estimate the costs of this coverage at no less than $1 per enrollee, per month. All 15 selected issuers in 10 selected states from which GAO obtained information reported that the average estimated cost of this coverage was less than $1 per enrollee, per month, and that premium amounts were set to $1 to comply with federal requirements. Eleven selected issuers indicate on bills to enrollees or in plan materials that part of the premium is for non-excepted abortion services coverage. All 15 issuers reported that information about this coverage is in publicly available documents.
According to GAO's review of documents and interviews with Centers for Medicare & Medicaid Services (CMS) officials, the agency provides general guidance to states and issuers on how to comply with federal regulations on coverage of non-excepted abortion services. For example, CMS provides issuers templates for submitting information on coverage of these and other services on standardized benefits and coverage documents. CMS officials told GAO that the oversight of this coverage also differs based on the type of exchange. States with state-based exchanges, according to CMS officials, retain the role of regulating insurance, and as a result, maintain a prominent role in QHP certification.
GAO identified instances where issuers' practices may have been inconsistent with federal requirements related to non-excepted abortion services coverage. In August 2026, CMS officials stated that they would determine what actions to take, depending upon the facts of the situation.
#Why GAO Did This Study
In 2026, about 19 million people enrolled in QHPs through federal and state-based exchanges. Federal law requires these plans to cover a package of essential health benefits. While this package does not include abortion services, QHPs may cover such services, consistent with federal and state laws.
GAO was asked to review QHPs that do and do not cover abortion services, and to describe other aspects of that coverage. This report describes whether QHPs offered on exchanges cover non-excepted abortion services in 2026, and provides additional information-such as information on the scope and the cost of non-excepted abortion services coverage-for selected QHPs that covered such services. It also describes the role CMS plays in ensuring compliance with applicable federal requirements.
GAO analyzed CMS data for 2026, and federal and state laws related to abortion services coverage. GAO also reviewed documents and interviewed representatives from 15 selected issuers offering QHPs that cover non-excepted abortion services across 10 selected states. States and issuers were selected based on geographic variance, 2025 insurance marketplace enrollment, and the number of QHPs covering non-excepted abortion services in each state, among other things.
For more information, contact John E. Dicken at DickenJ@gao.gov.
#Additional Data
Workbook file with data definitions
Comma-separated values file
***
Original text here: https://www.gao.gov/products/gao-26-108995 (TNSmrp)
Economy Act: An Overview
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Economy Act: An Overview
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#Fast Facts
We testified about the Economy Act before the House Committee on Appropriations, Subcommittee on Financial Services and General Government.
Congress enacted this law in 1932. It authorizes transactions for goods and services between agencies across all three branches of government.
We testified about the law's requirements for these transactions. For example, agencies can only make transactions under the Act to accomplish work they are already authorized
... Show Full Article
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
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Economy Act: An Overview
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#Fast Facts
We testified about the Economy Act before the House Committee on Appropriations, Subcommittee on Financial Services and General Government.
Congress enacted this law in 1932. It authorizes transactions for goods and services between agencies across all three branches of government.
We testified about the law's requirements for these transactions. For example, agencies can only make transactions under the Act to accomplish work they are already authorizedto do. They can't use it to create programs or to make up for a budget shortfall.
We also testified about our work and legal decisions involving the Act.
A photo of the Capitol and the words GAO Testimony to Congress
#Highlights
This product is also designated as B-338717, Sept 15, 2026.
The Economy Act provides authority for intra- and interagency transactions between agencies and major organizational units of agencies. The Act broadly applies to federal entities for the procurement of a wide variety of goods and services. However, the Economy Act does not authorize an agency to circumvent statutory limitations on its use of appropriated funds. An agency may only procure goods and services under the Economy Act that it is already authorized to procure, and Economy Act transactions must comply with the Act's requirements, as well as general appropriations law principles, such as the purpose statute, the bona fide needs rule, the Antideficiency Act, and the rule against augmentation.
GAO's engagement work on agency financial operations has touched on Economy Act transactions in a variety of contexts and we have issued numerous legal decisions applying the Economy Act, many of which are cited in the testimony.
For more information, contact Shirley A. Jones at jonessa@gao.gov.
***
Original text here: https://www.gao.gov/products/gao-26-900743
U.S. Consolidated Financial Statements: Improvements Needed in Controls over Treasury Preparation Processes
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
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U.S. Consolidated Financial Statements: Improvements Needed in Controls over Treasury Preparation Processes
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#Fast Facts
We audit the U.S. government's consolidated financial statements annually. Ongoing problems prevent us from determining whether the statements fairly present the government's finances.
Our new recommendations address issues we found with Treasury's processes for preparing the financial statements. This includes how it discloses certain information, such as potential
... Show Full Article
WASHINGTON, Sept. 15 (TNSLrpt) -- The Government Accountability Office issued the following report:
* * *
U.S. Consolidated Financial Statements: Improvements Needed in Controls over Treasury Preparation Processes
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#Fast Facts
We audit the U.S. government's consolidated financial statements annually. Ongoing problems prevent us from determining whether the statements fairly present the government's finances.
Our new recommendations address issues we found with Treasury's processes for preparing the financial statements. This includes how it discloses certain information, such as potentiallosses from litigation, claims, and assessments.
Treasury has addressed some of our previously reported issues-including by enhancing procedures to identify and consider the effect of uncorrected misstatements. But it needs to do more to address our other open recommendations.
The outside of a stone building that says The Department of the Treasury.
#Highlights
#What GAO Found
GAO's audit of the fiscal year 2025 consolidated financial statements of the U.S. government (CFS) identified control deficiencies in the processes the Department of the Treasury used to prepare the CFS. These control deficiencies contributed to material weaknesses in internal control that involve the federal government's inability to
* adequately account for intragovernmental activity and balances between federal entities;
* reasonably assure that the consolidated financial statements are (1) consistent with the underlying audited entities' financial statements, (2) properly balanced, and (3) in accordance with U.S. generally accepted accounting principles (U.S. GAAP); and
* reasonably assure that the information in the (1) Reconciliations of Net Operating Cost and Budget Deficit and (2) Statements of Changes in Cash Balance from Budget and Other Activities is complete, properly supported, and consistent with the underlying information in the audited entities' financial statements and other financial data.
GAO identified three new control deficiencies in the processes Treasury used to prepare the fiscal year 2025 CFS.
1. Treasury did not properly report legal contingencies in the draft CFS note disclosure.
2. Treasury did not consistently prepare accurate and complete note disclosures in the draft CFS.
3. The reports used to annually recertify access to Planning Analytics, a system used to prepare the CFS, were not adequate to determine whether the access granted was appropriate.
As of the completion of GAO's fiscal year 2024 audit, nine recommendations were open from prior reports related to control deficiencies in the processes used to prepare the CFS. During the fiscal year 2025 CFS audit, GAO found that Treasury implemented corrective actions that resolved three recommendations from prior reports, and GAO closed these recommendations.
These new and continuing deficiencies increase the risk that material amounts and disclosures may not be presented in the CFS in accordance with U.S. GAAP. GAO will continue to monitor the status of Treasury's corrective actions to address the nine open recommendations-six remaining from prior reports and three new recommendations GAO is making in this report-as part of the fiscal year 2026 CFS audit.
#Why GAO Did This Study
The Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, prepares the Financial Report of the United States Government, which includes the CFS. Since GAO's first audit of the CFS, for fiscal year 1997, certain material weaknesses in internal control over financial reporting and other limitations on the scope of its work have prevented GAO from expressing an opinion on the federal government's accrual-based consolidated financial statements. As part of the fiscal year 2025 CFS audit, GAO identified continuing material weaknesses and other control deficiencies in the processes used to prepare the CFS.
The objective of this report is to provide (1) detailed information on new control deficiencies GAO identified related to the processes Treasury used to prepare the CFS, along with related recommendations, and (2) the status of Treasury's corrective actions to address recommendations from GAO's prior reports related to the processes used to prepare the CFS that remained open as of the completion of GAO's audit of the fiscal year 2024 CFS.
#Recommendations
GAO is making three new recommendations to Treasury to address the control deficiencies identified during the fiscal year 2025 CFS audit. In commenting on GAO's draft report, Treasury concurred with the three new recommendations and stated its ongoing commitment to improving federal financial reporting.
#Recommendations for Executive Action
Agency Affected Recommendation Status
Department of the Treasury The Fiscal Assistant Secretary of the Treasury should improve and implement procedures to properly report legal contingencies in the CFS in accordance with U.S. GAAP. (Recommendation 1)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Treasury The Fiscal Assistant Secretary of the Treasury should improve and implement procedures to reasonably assure that CFS note disclosures are accurate and complete. (Recommendation 2)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Treasury The Fiscal Assistant Secretary of the Treasury should improve and implement procedures to provide managers with the specific roles granted to users for use in annually recertifying access to Planning Analytics. (Recommendation 3)
Open Actions to satisfy the intent of the recommendation have not been taken or are being planned.
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
***
Original text here: https://www.gao.gov/products/gao-26-109081 (TNSmrp)
