Financial Statement Audit: DOE-OIG-26-03

December 11, 2025

The Department of Energy’s Fiscal Year 2025 Consolidated Financial Statements

This audit was performed by the independent public accounting firm KPMG LLP (KPMG) on behalf of the Department of Energy Office of Inspector General. KPMG audited the consolidated financial statements of the Department, which comprise the consolidated balance sheet as of September 30, 2025, and the related consolidated statements of net cost, changes in net position, and combined statement of budgetary resources for the year then ended, and the related notes to the consolidated financial statements.

The audit’s objective was to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that included an opinion.

KPMG performed the audit in accordance with generally accepted government auditing standards.

KPMG concluded that except for matters pertaining to the estimated environmental cleanup liabilities for the Portsmouth Paducah Project Office, Waste Isolation Pilot Plant, Savannah River Site, and Hanford Site, the consolidated financial statements are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles for the year ended September 30, 2025.

As part of this review, the auditors also considered the Department’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the consolidated financial statements. During the audit, KPMG identified a material weakness over the environmental management liability estimate. KPMG was unable to obtain sufficient appropriate audit evidence to support the liability and cost estimates for Portsmouth Paducah Project Office and Waste Isolation Pilot Plant, the contingency estimate for Savannah River Site, and the changes in liability and cost estimates for the Hanford Site as of and for the year ended September 30, 2025. Consequently, KPMG was unable to determine whether any adjustments to the amounts were necessary. Additionally, the audit identified certain deficiencies in internal control that KPMG considered to be a significant deficiency related to access controls over the Department’s various financial systems.

The Office of Inspector General issued notices of findings and recommendations to management throughout the audit. All findings and recommendations will be detailed in separate Management Letters that will be provided to the Department. There are no formal recommendations that need to be tracked in the Departmental Audit Report Tracking System; therefore, an additional response is not required.