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Audit Report: IG-FS-99-01

February 25, 1999

Audit Of The U.S Department Of Energy's Consolidated Financial Statements For Fiscal Year 1998

We have audited the accompanying consolidated balance sheets of the U.S. Department of Energy (Department) as of September 30, 1998 and 1997, and the related consolidated statements of net cost, changes in net position, budgetary resources, financing, and custodial activity for the years then ended. These financial statements are the responsibility of the Department’s management. Our responsibility is to express an opinion on these financial statements based on our audits.