Larch had faked Homer's medical record to keep him out of the war, and later made fake credentials for Homer in order to convince the board overseeing the orphanage to appoint him as the next director.
Larch had faked Homer's medical record. This was to keep him out of the war. Larch had made fake credentials for Homer. This was to convince the board overseeing the orphanage to appoint him as the next director. Homer learns this. This is at the end of the film.