Calendar Year 2020

As required by the Government Management Reform Act of 1994, we audited the
U.S. Department of Energy's (Department) consolidated financial statements as of and for
the years ended September 30, 1998 and 1997 to determine whether they presented fairly,
in all material respects, the Department's financial position, net cost, changes in net
position, budgetary resources, financing activities, and custodial activities in conformity
with Federal accounting standards. As part of this Departmentwide effort, we examined
internal controls, assessed compliance with applicable laws and regulations, and tested
selected account balances at Headquarters and at a number of field activities. The results of our audit are included in Audit Report No. IG-FS-99-01 issued February 25, 1999. Additional management-level reports addressing local issues are being issued to field elements.

Request to testify on the review conducted by the Office of Inspector General of the Department of Energy’s (Energy’s) export licensing process for dual-use and munitions commodities. Our review was part of an interagency effort involving the Inspectors General of the Departments of
Commerce, Defense, Energy, State, and Treasury and the Central Intelligence Agency. The interagency review was initiated following receipt of an August 26, 1998, letter from the Chairman, requesting that the Inspectors General update and expand on a 1993 interagency report
concerning the export licensing process for dual-use and munitions commodities.

On August 26, 1998, the Chairman of the Senate Committee on Governmental Affairs requested that the Inspectors General from the Departments of Commerce, Defense, Energy, State, and Treasury, and the Central Intelligence Agency, update and expand on a 1993 interagency review of the export licensing processes for dual-use and munitions commodities. After consideration of the Chairman's request, the Inspectors General initiated and interagency review to evaluate the export licensing process for dual-use commodities and munitions to determine whether current practices and procedures are consistent with established national security and foreign policy objectives. In a joint letter dated September 2, 1998, the Chairman and the Ranking Minority Member of the House Select Committe on U.S. National Security and Military/Commercial Concerns with the People's Republic of China requested the interagency review of the export licensing process be expedited.

The Government Management Reform Act of 1994 requires that audited financial statements covering all accounts and associated activities of the Department be submitted annually to the Office of Management and Budget. A Departmentwide audit of the consolidated Fiscal Year 1998 financial statements was conducted by examining internal controls, assessing compliance with laws and regulations, evaluating accounting transaction cycles, and testing selected account balances at various Department facilities. The objective of the Departmentwide audit was to determine whether the Department’s consolidated financial statements presented fairly, in all material respects, the financial position of the Department as of September 30, 1998 and 1997, and its consolidated net cost, changes in net position, budgetary resources, financing activities, and custodial activities for the fiscal years then ended in conformity with Federal accounting standards. Departmentwide issues are addressed in Audit Report No. IG-FS-99-01, issued February 25, 1999.

The Government Management Reform Act of 1994 requires that audited financial statements covering all accounts and associated activities of the Department be submitted annually to the Office of Management and Budget. A Departmentwide audit of the consolidated Fiscal Year 1998 financial statements was conducted by examining internal controls, assessing compliance with laws and regulations, evaluating accounting transaction cycles, and testing selected account balances at various Department facilities. The objective of the Departmentwide audit was to determine whether the Department’s
consolidated financial statements presented fairly, in all material respects, the financial position of the Department as of September 30, 1998 and 1997, and its consolidated net cost, changes in net position, budgetary resources, financing activities, and custodial activities for the fiscal years then ended in conformity with Federal accounting standards. Departmentwide issues are addressed in Audit Report No. IG-FS-99-01, issued February 25, 1999.