Consolidated Financial Statements

Attached is the subject letter prepared by KPMG LLP, our contract auditors. The letter
contains 23 new findings (see letter, Exhibit A) and 4 repeat findings (see letter, Exhibit B)
that were issued during the course of the Fiscal Year 2010 audit of the Department of Energy's
(Department) Consolidated Financial Statements. Management generally concurred with and
provided planned corrective actions for most of the recommendations listed in the
Management Letter and management's comments are included in each finding.
No Departmental position is required for the findings in this report. However, the
recommendations are open and should be tracked in the Department's Audit Report Tracking
System.
We appreciate the cooperation of your staff during the review.

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.

Uranium Enrichment Decontamination and Decommissioning Fund's Fiscal Year 2008 and 2007 Financial Statement Audit

A.12a (Pre-SAS 115) Letter to communicate significant deficiencies and/or material weaknesses in internal control over financial reporting noted in an audit of financial statements of a nonpublic entity, excluding FDICIA engagements (Rev. 1/08)