Financial Statement Audit: DOE-OIG-26-16

March 2, 2026

The Western Area Power Administration's Fiscal Year 2025 Financial Statements Audit

This audit was performed by the independent public accounting firm of KPMG LLP (KPMG) on behalf of the Department of Energy's Office of Inspector General. KPMG audited the balance sheet of the Department's Western Area Power Administration (WAPA), as of September 30, 2025, and the related consolidated statement of net cost, changes in net position, combined statement of budgetary resources, and custodial activity for the year then ended.

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 the financial statements present fairly, in all material respects, the financial position of WAPA as of September 30, 2025, and its net cost, changes in net position, budgetary resources, and custodial activity for the year then ended in accordance with U.S. generally accepted accounting principles. KPMG also considered WAPA's internal control over financial reporting as part of its review and did not identify any deficiency in internal control over financial reporting that was considered a material weakness. KPMG tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct material effect on the financial statements. The results of the auditors' review disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards, applicable Office of Management and Budget guidance, or the Federal Financial Management Improvement Act of 1996.

The Office of Inspector General issued Notices of Findings and Recommendations to management throughout the audit. All findings and recommendations will be detailed in a separate management letter that will be provided to WAPA.

• DOE-OIG-26-16.pdf (21.2 MB)