Audit Report: OAS-FS-12-03

November 2, 2011

The Department of Energy's Nuclear Waste Fund's Fiscal Year 2011 Financial Statements

The attached report presents the results of the independent certified public accountants' audit of the Department of Energy's Nuclear Waste Fund's (Fund) Fiscal Year 2011 balance sheet and the related statements of net cost, changes in net position, and budgetary resources.To fulfill the Office of Inspector General's audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit, subject to our review. KPMG is responsible for expressing an opinion on the Fund's financial statements and reporting on applicable internal controls and compliance with laws and regulations. The Office of Inspector General monitored audit progress and reviewed the audit report and related documentation. This review disclosed no instances where KPMG did not comply, in all material respects, with generally accepted Government auditing standards. The Office of Inspector General did not express an independent opinion on the Fund's financial statements. KPMG concluded that the financial statements present fairly, in all material respects, the Fund's financial position as of September 30, 2011, its net costs, changes in net position, and budgetary resources in conformity with United States generally accepted accounting principles. The auditors'review of the Fund's internal control structure and compliance with certain laws and regulations disclosed no material weaknesses or instances of noncompliance required to be reported under generally accepted Government auditing standards or applicable Office of Management and Budget guidance.