Internal Control Weaknesses Identified During the Western Area Power Administration’s Fiscal Year 2025 Financial Statements Audit
March 4, 2026
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March 3, 2026
Internal Control Weaknesses Identified During the Western Area Power Administration’s Fiscal Year 2025 Financial Statements Audit
The Office of Inspector General engaged the independent public accounting firm of KPMG LLP (KPMG) to conduct the fiscal year 2025 financial statements audit of the Western Area Power Administration (WAPA), subject to our review. As part of this audit, KPMG considered WAPA’s internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing its opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of WAPA’s internal control.
KPMG performed the audit in accordance with generally accepted government auditing standards.
During the audit, KPMG identified certain deficiencies in WAPA’s internal control related to the recording of operation and maintenance expenses, purchased power expense, and accounts payable that are included in the management letter.
The management letter contains two findings and five recommendations that were issued to WAPA during The Western Area Power Administration’s Fiscal Year 2025 Financial Statements Audit. Management concurred with the findings and recommendations and had taken or planned to take corrective actions. Management’s responses are included with each finding.