Financial Statement Audit Report - DOE-OIG-20-54

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September 16, 2020

Southwestern Federal Power System’s Fiscal Year 2019 Financial Statement Audit

The attached report presents the results of the independent certified public accountant’s audit of the Southwestern Federal Power System’s combined balance sheets, as of September 30, 2019, and 2018, and the related combined statements of revenues and expenses, changes in capitalization, and cash flows for the years then ended.

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, subject to our review.  KPMG LLP is responsible for expressing an opinion on the Southwestern Federal Power System’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 LLP 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 Southwestern Federal Power System’s financial statements.

KPMG LLP concluded that the combined financial statements present fairly, in all material respects, the respective financial position of the Southwestern Federal Power System as of September 30, 2019, and 2018, 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 Southwestern 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 did not identify any deficiency in internal control over financial reporting that is considered a material weakness. 

The results of the auditors’ review of the Southwestern Federal Power System’s compliance with provisions of laws and regulations disclosed no instances of noncompliance or other matters that are required to be reported herein under Government Auditing Standards, issued by the Comptroller General of the United States. 

Topic: Management & Administration