The purpose of this memorandum is to inform you of our planned oversight that will begin immediately. The Chief Financial Officers Act of 1990, as amended, requires this audit. In accordance with the Act, the DoD Office of Inspector General is the principal auditor for the U.S. Army Corps of Engineers–Civil Works Financial Statements. We contracted with the independent public accounting firm of Kearney & Company, P.C. (Kearney) to audit the U.S. Army Corps of Engineers–Civil Works Financial Statements as of and for the fiscal year ending September 30, 2026. The objective of Kearney’s audit is to determine whether the FY 2026 U.S. Army Corps of Engineers–Civil Works Financial Statements and related notes are presented fairly and in conformity with accounting principles generally accepted in the United States of America. The objective of our project is to provide contract oversight of Kearney’s audit and determine whether Kearney complied with the contract and generally accepted government auditing standards.
We will rely on the Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency, “Financial Audit Manual,” Volume 2, June 2024, Section 670, “IG Oversight of Audits Performed by Contracted Independent Public Accounting (IPA) Firms,” to design and perform oversight procedures to review Kearney’s audit work and, if applicable, disclose instances in which Kearney did not comply, in all material respects, with generally accepted government auditing standards. Our review will not enable us to express an opinion on the U.S. Army Corps of Engineers–Civil Works Financial Statements or draw conclusions about the effectiveness of internal control, whether the financial management systems substantially complied with the Federal Financial Management Improvement Act of 1996, or on the U.S. Army Corps of Engineers–Civil Works’s compliance with laws and regulations. We will provide oversight and review Kearney’s audit work, but Kearney will be responsible for expressing the opinion on the financial statements and related notes.