This is to inform you that the audit of the Department of Energy's (Department) Fiscal Year (FY)
2010 Consolidated Financial Statements has resulted in an unqualified audit opinion. Pursuant to
requirements established by the Government Management Reform Act of 1994, the Office of
Inspector General (OIG) engaged the independent public accounting firm of KPMG LLP
(KPMG) to perform the audit. KPMG was responsible for expressing an opinion on the
Department's consolidated financial statements based on its audits and the reports of other
auditors for the year ended September 30, 2010.
2010 Consolidated Financial Statements has resulted in an unqualified audit opinion. Pursuant to
requirements established by the Government Management Reform Act of 1994, the Office of
Inspector General (OIG) engaged the independent public accounting firm of KPMG LLP
(KPMG) to perform the audit. KPMG was responsible for expressing an opinion on the
Department's consolidated financial statements based on its audits and the reports of other
auditors for the year ended September 30, 2010.
Management of the Plutonium Finishing Plant Closure Project
The Department of Energy's (Department) Richland Operations Office (Richland) awarded a contract, effective October 1, 2008, to CH2M HILL Plateau Remediation Company (CHPRC) to remediate the Hanford Site's Central Plateau. Part of the contract's scope includes completion of the Plutonium Finishing Plant (PFP) Closure Project – a major decontamination and demolition project of an industrial complex consisting of more than 60 buildings. CHPRC's contract included expectations to:
Provide safe and compliant storage of special nuclear material at PFP until it has been removed from the PFP complex;
Operate and maintain the PFP facilities and associated waste sites, structures, systems and equipment in a safe, compliant and energy-efficient manner;
Maintain radiological and access control to ensure personnel safety;
Remove special nuclear material from PFP and transport it to an assigned location;
Demolish PFP complex facilities to slab-on-grade condition; and,
Prepare, package, and disposition waste streams, as required.
Provide safe and compliant storage of special nuclear material at PFP until it has been removed from the PFP complex;
Operate and maintain the PFP facilities and associated waste sites, structures, systems and equipment in a safe, compliant and energy-efficient manner;
Maintain radiological and access control to ensure personnel safety;
Remove special nuclear material from PFP and transport it to an assigned location;
Demolish PFP complex facilities to slab-on-grade condition; and,
Prepare, package, and disposition waste streams, as required.
Federal Energy Regulary commission's Fiscal Year 2010 Financial Statement Audit
Questioned, Unresolved and Potentially Unallowable Costs Incurred by Sandia Corporation during Fiscal Years 2007 and 2008
Since 1993, Sandia Corporation, a Lockheed Martin company, has operated Sandia National Laboratories (Sandia) under contract with the Department of Energy (Department). Sandia is part of the Department's National Nuclear Security Administration (NNSA) and has critical national security responsibilities, including helping ensure the safety, security, and reliability of the Nation's nuclear weapons stockpile. During Fiscal Years (FY) 2007 and 2008, Sandia claimed costs totaling
$3.0 billion.
$3.0 billion.
Selected Aspects of the Commonwealth of Pennsylvania's Efforts to Implement the American Recovery and Reinvestment Act Weatherization Assistance Program
The Department of Energy's (Department) Weatherization Assistance Program (Weatherization
Program) received $5 billion under the American Recovery and Reinvestment Act of 2009
(Recovery Act) to improve the energy efficiency of residences owned or occupied by low
income persons. Subsequently, the Department awarded a 3 year Weatherization Program grant
of $252 million to the Commonwealth of Pennsylvania (Pennsylvania). This grant provided
about a 10 fold increase over the $25.4 million in funds available to Pennsylvania for
weatherization in Fiscal Year (FY) 2009.
Program) received $5 billion under the American Recovery and Reinvestment Act of 2009
(Recovery Act) to improve the energy efficiency of residences owned or occupied by low
income persons. Subsequently, the Department awarded a 3 year Weatherization Program grant
of $252 million to the Commonwealth of Pennsylvania (Pennsylvania). This grant provided
about a 10 fold increase over the $25.4 million in funds available to Pennsylvania for
weatherization in Fiscal Year (FY) 2009.
The Federal Energy Regulatory Commission's Unclassified Cyber Security Program – 2010
The Federal Energy Regulatory Commission (Commission) is responsible for regulating and
overseeing the interstate transmission of natural gas, oil and electricity in addition to numerous
other natural gas and hydroelectric projects. The regulations set forth by the Commission are
designed to meet the economic, environmental and safety interests of the Nation. The
Commission gathers and analyzes massive amounts of data regarding the energy markets, using a
wide range of information technology (IT) resources. As with other Federal agencies or private
institutions, the threat of a breach or loss of IT assets or information they contain continues to
increase as cyber attacks become more sophisticated and prevalent. To protect against such
threats, the Commission expected to spend over $3.5 million during Fiscal Year (FY) 2010 to
secure its IT assets.
The Federal Information Security Management Act of 2002 (FISMA) provides direction to
agencies on the management and oversight of information security risks. Under FISMA's
requirements, the Office of Inspector General conducts an annual independent evaluation to
determine if the Commission's unclassified cyber security program is properly aligned with
FISMA. This report presents the results of our evaluation for FY 2010.
overseeing the interstate transmission of natural gas, oil and electricity in addition to numerous
other natural gas and hydroelectric projects. The regulations set forth by the Commission are
designed to meet the economic, environmental and safety interests of the Nation. The
Commission gathers and analyzes massive amounts of data regarding the energy markets, using a
wide range of information technology (IT) resources. As with other Federal agencies or private
institutions, the threat of a breach or loss of IT assets or information they contain continues to
increase as cyber attacks become more sophisticated and prevalent. To protect against such
threats, the Commission expected to spend over $3.5 million during Fiscal Year (FY) 2010 to
secure its IT assets.
The Federal Information Security Management Act of 2002 (FISMA) provides direction to
agencies on the management and oversight of information security risks. Under FISMA's
requirements, the Office of Inspector General conducts an annual independent evaluation to
determine if the Commission's unclassified cyber security program is properly aligned with
FISMA. This report presents the results of our evaluation for FY 2010.