Financial Statement Audit Report: DOE-OIG-19-19

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February 28, 2019

Western Federal Power System’s Fiscal Year 2018 Financial Statement Audit

This report presents the results of the independent certified public accountant’s audit of the Western Federal Power System’s combined balance sheets for fiscal year 2018.  To fulfill the Office of Inspector General’s audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP to conduct the audit.  KPMG LLP concluded that the combined financial statements present fairly, in all material respects, the respective financial position of the Western Federal Power System as of September 30, 2018, and 2017, and the results of its operations and its cash flow for the years then ended, in conformity with United States generally accepted accounting principles.

As part of this review, the auditors also considered the Western Federal Power System’s internal control 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 determination of financial statement amounts.  The audit revealed four deficiencies in internal controls over financial reporting that were considered to be either a material weakness or significant deficiency.  KPMG LLP made several recommendations to the Western Area Power Administration related to these identified deficiencies.

Topic: Management & Administration