Pursuant to requirements established by the Government Management Reform Act of 1994, the Office of Inspector General engaged the independent public accounting firm of KPMG LLP (KPMG) to perform the audit, The Department of Energy’s Fiscal Year 2025 Consolidated Financial Statements. During the audit, KPMG 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.
KPMG performed the audit in accordance with generally accepted government auditing standards.
During the audit, KPMG identified certain deficiencies in internal control that were considered to be a material weakness and a significant deficiency. KPMG communicated these concerns in the audit report, dated December 10, 2025. Specifically, KPMG identified a material weakness over the environmental management liability estimate driven by the inability 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. 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 findings that led to the significant deficiency will be included in a separate management letter covering The Department of Energy’s Unclassified Cybersecurity Program for Fiscal Year 2025.
The attached letter contains 9 new findings, 4 repeat findings, and a total of 27 recommendations that were issued during the audit, The Department of Energy’s Fiscal Year 2025 Consolidated Financial Statements. Except for three findings, management concurred with each of the recommendations included in the management letter and had taken or planned to take corrective actions. Management’s responses are included with each finding.
