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July 29, 2015

Justice Dept. Faults Auditing Firm on Big Brothers Big Sisters Assessment

The U.S. Justice Department's internal watchdog is seeking an ethics review of PricewaterhouseCoopers over what the agency termed "extensive deficiencies" in the auditing firm's assessment of grant compliance by Big Brothers Big Sisters of America, reports Reuters.

In a report issued Tuesday, the Office of the Inspector General said it found multiple omissions in PwC's audit of more than $23 million in federal grants to the youth charity between 2009 and 2011. The office referred the matter to a professional ethics body.

PwC's fiscal 2011 Big Brothers audit found that the nonprofit complied "in all material respects" with grant requirements, but the inspector general's own review two years later raised questions about the charity's funding and recommended that $3.8 million granted but not yet disbursed be put to different use. PwC issued a revised report earlier this year. Big Brothers officials were not immediately available for comment.