KPMG Selected to Conduct Federal DOL Financial Audit Under OIG Oversight

The Department of Labor's Office of Inspector General selected KPMG LLP to conduct the consolidated fiscal year 2026 financial statement audit, with the engagement operating under OIG oversight and governed by generally accepted Government auditing standards and the Office of Management and Budget's Bulletin 24-02.

The OIG published a formal notification memorandum announcing the engagement and scheduled an entrance conference for February 19, 2026, the standard procedural kickoff that marks the official start of auditor-agency coordination. KPMG was set to begin fieldwork in the weeks following that conference, with work conducted at DOL headquarters in Washington, DC, and selected field offices across the country.

The audit report carries a hard external deadline: delivery to the Office of Management and Budget, the Department of the Treasury, and the Government Accountability Office by November 16, 2026. That timeline is consistent with the federal financial reporting calendar and mirrors the deadline structure the DOT OIG set for its own FY2026 consolidated audit, where the same standards framework and the same auditor apply.

The model here is well-established across federal agencies. Under it, KPMG LLP performs the audit and issues the independent auditors' opinion, while the OIG provides oversight and reviews KPMG's work rather than expressing its own opinion on the financial statements. The DHS OIG used identical language in its January 2026 final report, stating explicitly that it does not express opinions on the department's financial statements, with KPMG LLP responsible for the attached independent auditors' report and its conclusions. In that DHS engagement, KPMG LLP produced 20 recommendations aimed at improving the department's internal controls.

The legal basis for these audits runs through the Chief Financial Officers Act of 1990, which requires annual consolidated financial statement audits across major federal agencies. OMB Bulletin 24-02 sets the specific audit requirements KPMG must follow for federal financial statements, and the Government Auditing Standards, commonly called the Yellow Book, govern how fieldwork is conducted and documented.

For KPMG's federal audit practice, the DOL engagement adds to a substantial portfolio of concurrent federal work. The DoD OIG separately contracted KPMG LLC to audit the Army Working Capital Fund financial statements for the fiscal year ending September 30, 2026, with the DoD OIG serving as principal auditor on that engagement. The DOT OIG engagement, announced February 13, 2026, by Dormayne "Dory" Dillard-Christian, the assistant inspector general for financial, IT, and procurement audits, has KPMG LLP auditing DOT's consolidated financial statements for both fiscal years 2026 and 2025, with Ingrid Harris serving as program director for that work.

The November 16 report deadline gives KPMG's engagement teams roughly nine months of active fieldwork, testing, and reporting cycles before deliverables reach OMB, Treasury, and the GAO simultaneously.