U.S. Consolidated Financial Statements: Key Issues for the Department of Energy

What GAO Found

The Department of Energy's (DOE) strong and sustained commitment is critical to addressing key issues that affect the U.S. government's consolidated financial statements. These include addressing the issues that caused the qualified opinion on DOE's fiscal year 2024 financial statements, providing reliable intragovernmental activity and balances data, accurately preparing budget and accrual reconciliation information, providing more detailed information for Fund Balance with Treasury activity, and effectively implementing new processes related to treaties and other international agreements.

For example, according to DOE's auditor, the DOE Office of Environmental Management was unable to adequately support $39.1 billion of its environmental liability balance as of September 30, 2024, with valid cost estimates, schedules, and assumptions. This qualification contributed to GAO being unable to express an opinion on the consolidated financial statements.

Why GAO Did This Study

GAO is responsible for conducting the annual audit of the U.S. government's consolidated financial statements. On January 16, 2025, GAO issued a disclaimer of opinion on these statements for fiscal years 2024 and 2023. The consolidated financial statements are compiled from federal entity financial statements and other federal entity information. As such, federal entities, including DOE, have a key role in supporting financial reporting at the government-wide level.

For more information, contact Dawn Simpson at simpsondb@gao.gov.