Financial Statement Audit Report: DOE-OIG-18-30

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May 21, 2018

The Department of Energy’s Fiscal Year 2017 Consolidated Financial Statements

Pursuant to requirements established by the Government Management Reform Act of 1994, the Office of Inspector General engaged the independent public accounting firm of KPMG LLP (KPMG) to perform the audit of the Department of Energy’s Fiscal Year 2017 Consolidated Financial Statements.

KPMG audited the consolidated financial statements of the Department as of September 30, 2017, and 2016, and the related consolidated statements of net cost, changes in net position, custodial activity, and combined statement of budgetary resources for the years then ended.  KPMG concluded that these consolidated financial statements are presented fairly, in all material respects, in conformity with United States generally accepted accounting principles and has issued an unmodified opinion based on its audits and the reports of other auditors for the years ended September 30, 2017, and 2016.

As part of this audit, auditors also considered the Department’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the consolidated financial statements.  The audit revealed a certain deficiency in internal controls related to the accounting of environmental liabilities.  The audit also identified one potential instance of non-compliance that is required to be reported under applicable audit standards and requirements.  

The Office of Inspector General issued numerous notices of findings and recommendations to management during the course of the audit.  In nearly all instances, management concurred with the findings and recommendations.  KPMG is responsible for the attached auditors’ report and the opinions and conclusions expressed therein.  

Topic: Management and Administration