Semiannual Reports

The OIG conducted a review of Peace Corps operations in Peru from April 2024 through December 2025. Our objective in reviewing the Peace Corps/Peru post was to determine whether its financial and administrative operations were functioning effectively and in compliance with Peace Corps policies and Federal regulations. Following a site visit in June 2024, we found that the post needed to improve its operations in multiple areas. We discussed our initial findings with the Peace Corps/Peru team, who quickly took action to address these findings.As a result of the post management team’s actions to address our findings, we will not be making additional recommendations. However, we want to emphasize the importance of the areas we have identified and illustrate the proactive actions Peace Corps/Peru has taken, which could benefit other Peace Corps posts in managing their financial and administrative operations.

Peace Corps OIG'S Semiannual Report to Congress describes OIG's work in identifying significant findings relating to the Peace Corps' administration programs and operations at both headquarters and overseas posts during the semiannual reporting period from April 1, 2025, through September 30, 2025.

In accordance with the Reports Consolidation Act of 2000, OIG is submitting a statement on what it considers to be the most significant management and performance challenges facing the Peace Corps. At Peace Corps OIG, we base this statement on the following: our audit, evaluation, and investigative work; our knowledge of the Peace Corps’ activities and operations; and the insights of agency senior leaders who provide their perspectives and expertise. For fiscal year (FY) 2026, we identified the following challenge areas:  Volunteer Delivery System; Volunteer Health and Safety; Human Capital Management; and Information Technology Security Management. Addressing the issues related to these challenge and performance areas will enhance the agency’s operational efficiencies, minimize potential fraud, waste, and abuse, and improve mission effectiveness.

The objective of this Federal Information Security Modernization Act of 2014 (FISMA) review was to determine the effectiveness of the Peace Corps’ information security program and practices based on the fiscal year (FY) 2025 Inspector General (IG) FISMA Reporting Metrics v2.0,1 which are categorized into 6 functional areas and 10 associated domains. The review also evaluated the Peace Corps’ efforts in addressing previously issued exceptions and recommendations.

The audit concluded that the Peace Corps’ financial statements were fairly presented, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP), and noted two significant deficiencies in the agency’s internal control over financial reporting, as well as one instance of reportable noncompliance related to provisions of applicable laws, regulations, contracts, and grant agreements.

Established in February 1989, the Peace Corps Office of Inspector General (OIG) receivesits legal authority from the Inspector General Act of 1978, as amended (IG Act). The IG Actestablishes OIG as an independent entity within the Peace Corps. The law requires that the Inspector General keep the Peace Corps Director and the Congress fully and currently informed about problems and deficiencies relating to the administration of agency programsand operations. OIG is authorized by law to review all Peace Corps programs andoperations.OIG’s role is to:           • Promote integrity, efficiency, effectiveness, and economy.           • Prevent and detect waste, fraud, abuse, and mismanagement; and           • Identify risk and vulnerabilities and offer expert assistance to improve the PeaceCorps’ programs and operations. OIG accomplishes its mission through audits, evaluations, investigations, and other reviews. OIG’s work typically examines the agency’s financial stewardship, and compliance with Federal law, regulations, and agency policy.

OIG conducted an evaluation of the Volunteer Delivery System to assess the challenges Peace Corps has recently faced in recruiting, selecting, and placing Volunteers. To perform this evaluation, OIG reviewed the agency’s strategic planning and performance documents, recruiting and hiring data, and documentation related to various recruiting strategies. OIG also conducted in-person and virtual interviews with headquarters-based and regional recruitment staff. The evaluation also included an overseas staff survey and a review of relevant documentation. The report contains seven recommendations along with a summary of the effectiveness of Peace Corps’ recruitment strategies and approaches.

In September 2025, the OIG issued a special report on the Peace Corps’ Information Technology environment. OIG contracted with technical subject matter experts to conduct three cybersecurity tests from January 2025 to March 2025. The three tests included a simulated phishing campaign, a review of the agency’s internal vulnerability management practices, and penetration tests that targeted critical Peace Corps systems. While observing the agency’s security processes throughout the assessment, OIG found that the Peace Corps’ monitoring capabilities were able to identify the testing activities and demonstrate its incident response procedures. However, the cybersecurity tests also uncovered multiple vulnerabilities and misconfigurations, ranging from informational issues to critical severity risks that the Peace Corps needs to review and address.