Calendar Year 2020

This is to inform you that the Department of Energy's (Department) Consolidated Financial Statements for Fiscal Year (FY) 2009 have received an unqualified 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 an audit of the Department's FY 2009 Consolidated Financial Statements. The audit was performed in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget Bulletin Number 07-04, Audit Requirements for Federal Financial Statements, as amended.

107_4 Combined report on financial statements (unqualified opinion), internal controls, and compliance and other matters in accordance with Government Auditing Standards – for FEDERAL ENTITIES (rev. 09/29/2009)

The Department of Energy’s Savannah River Operations Office and the National Nuclear
Security Administration (NNSA) are co-located on the Savannah River Site (Site) in
Aiken, South Carolina. Their primary missions include environmental management and
cleanup, national security, energy independence, and nuclear material disposition. The
prime management and operating contractors for the Site manage over 800
subcontractors, whose employees may be required to access the Site.

I am pleased to submit the Office ofInspector General's (OIG) Semiannual Report to
Congress. This report summarizes significant OIG activities and accomplishments during
the six month period ending September 30,2009. This report reflects our continuing
commitment to focus OIG efforts on the issues and concerns most critical to you, the
Administration, the Congress, and the taxpayer.xÒ

The Federal Energy Regulatory Commission (Commission) is tasked with regulating and overseeing important aspects of the U.S. energy industry. To help meet its goals and objectives, the Commission utilizes varying types of information technology resources. However, reliance on information technology, while certainly beneficial, often creates or increases various risks. For example, cyber attacks against government systems and assets continue to grow in frequency and have become increasingly sophisticated. The Commission expects to spend over $4 million during Fiscal Year (FY) 2009 to help mitigate this increasing threat and to secure its information technology assets.
The Federal Information Security Management Act of 2002 (FISMA) provides direction to agencies on the management and oversight of information security risks, including design and implementation of controls to protect Federal information and systems. As required by FISMA, the Office of Inspector General conducts an annual independent evaluation to determine whether the Commission's cyber security program adequately protects its information systems and data. This memorandum and the attached report present the results of our evaluation for FY 2009.