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Inspector General Testifies Financial Weaknesses at Labor Department Are First in 10 Years
Counters Democrats’ Claim Financial Mismanagement Fault of Past Administration

Today, the Subcommittee on Health, Employment, Labor, and Pensions, chaired by Rep. Phil Roe, M.D. (R-TN), held a hearing to examine a recent financial audit of the Department of Labor. The independent audit identified four material weaknesses and two significant defeciencies in the department's financial management.
"The challenges plaguing the Department of Labor’s financial management still persist," said Chairman Roe. "The most recent audit found the same material weaknesses and significant deficiencies identified in last year’s report. The Department of Labor is the only executive agency to have multiple new material weaknesses in its financial management system."

KPMG, an independent auditing firm, conducted the evaluation of the department's finances. According to Heather Flanagan, a partner at KPMG, the audit identified four material weaknesses in the department's finances. The material weaknesses are:  

1. Lack of Sufficient Controls over Financial Reporting

2. Lack of Sufficient Controls over Budgetary Accounting

3. Improvements Needed in the Preparation and Review of Journal Entries

4. Lack of Adequate Controls over Access to Key Financial and Support Systems 

During an exchange with Congressman Martha Roby, the Department of Labor's Inspector General confirmed there had been no material weaknesses in the past 10 years and emphasized the serious nature of material weaknesses.

The exchange can be viewed below.


While Democrats attempt to downplay the audit's findings and pass the blame to previous administrations, Republicans believe each and every taxpayer dollar should be accounted for. This is especially true for an agency that spent more than $170 billion during the last fiscal year.

As Chairman Roe stated during his opening remarks, "The department oversees a number of federal efforts aimed at assisting the nation’s workforce, including unemployment insurance, workers’ compensation, and various job training programs. At a time when the national debt exceeds $14 trillion and more than 13 million individuals are searching for work, every dollar counts. Any misallocation of scarce resources is a disservice to taxpayers and workers."

To read testimony and view other documents and video from today’s hearing, visit