Federal Reports

The attached report presents the results of the independent certified public accountants’ audit of the balance sheets of the Department of Energy Nuclear Waste Fund, as of September 30, 2022, and 2021, and the related statements of net cost, changes in net position, and statements of budgetary resources for the years then ended.To fulfill the Office of Inspector General’s audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit, subject to our review. KPMG is responsible for expressing an opinion on the Nuclear Waste Fund’s financial statements and reporting on applicable internal controls and compliance with laws and regulations. The Office of Inspector General monitored audit progress and reviewed the audit report and related documentation. This review disclosed no instances where KPMG did not comply, in all material respects, with generally accepted government auditing standards. The Office of Inspector General did not express an independent opinion on the Nuclear Waste Fund’s financial statements.KPMG concluded that the combined financial statements present fairly, in all material respects, the respective financial position of the Nuclear Waste Fund as of September 30, 2022, and 2021, and its net costs, changes in net position, and budgetary resources for the years then ended, in accordance with United States generally accepted accounting principles.As part of this review, auditors also considered the Nuclear Waste Fund’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the determination of financial statement amounts. The audit did not identify any deficiency in internal control over financial reporting that is considered a material weakness. Additionally, the results of the auditors’ review disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards or applicable Office of Management and Budget guidance.

OIG contracted RMA to audit DFC’s consolidated financial statements for the fiscal year ended September 30, 2022, report on internal control over financial reporting, and report on compliance with laws and other matters. The audit was performed in accordance with U.S. generally accepted auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual.

We rendered an unmodified opinion on the EPA’s consolidated financial statements for fiscal years 2022 and 2021, meaning that they were fairly presented and free of material misstatement.

Allmond & Company rendered an unmodified opinion on the CSB’s financial statements for the CSB’s financial fiscal years 2022 and 2021, meaning that the statements were fairly presented and free of material misstatements.

Allmond & Company rendered an unmodified opinion on the CSB’s financial statements for the CSB’s financial fiscal years 2022 and 2021, meaning that the statements were fairly presented and free of material misstatements.

The Office of the Inspector General (OIG) performed the procedures, which were requested and agreed to by Tennessee Valley Authority (TVA) management solely to assist management in determining the validity of the Winning Performance/Executive Annual Incentive Plan (WP) Measures for fiscal year (FY) ending September 30, 2022. TVA management is responsible for the WP Measures data provided. In summary, procedures applied by the OIG found: • The FY 2022 WP goals for the Enterprise measures were properly approved. There was one change form that affected one measure.• The FY 2022 goals (target) for the corporate multiplier measures were properly approved. • The actual FY to-date results for the Enterprise measures agreed with the underlying support, without exception.• The actual FY to-date results for the corporate multiplier measures agreed with the underlying support, without exception.• The FY 2022 WP payout percentage provided by the Benchmarking and Enterprise Performance organization on November 9, 2022, was mathematically accurate and agreed with the OIG’s recalculation.

MEMORANDUM FOR DEPARTMENT OF DEFENSE LEAD INSPECTOR GENERAL

KPMG LLP conducted an audit of the U.S. Department of the Interior's financial statements for fiscal years 2022 and 2021. KPMG found the following:• The financial statements were fairly presented, in all material respects, in accordance with U.S. generally accepted accounting principles.• One material weakness on controls over construction in progress and one significant deficiency in entity-level controls. • No instances in which the DOI's financial management systems did not comply substantially with the requirements of FFMIA.• No reportable noncompliance with provisions of laws tested or other matters.We reviewed KPMG's work and found no instances where KPMG did not comply, in all material respects, with U.S. generally accepted government auditing standards.