Our audit of the Abandoned Mine Land Reclamation (AMLR) federal grant program, administered by the Department of Energy (Energy), for the fiscal year ended June 30, 2025, found:

 

• • proper recording and reporting of all transactions, in all material respects, in the Commonwealth’s accounting and reporting system; and

 

• • one matter involving internal control and its operation requiring management’s attention, that also represents an instance of material noncompliance with applicable laws and regulations that is required to be reported under Government Auditing Standards.  Because of the pervasiveness of this issue communicated to Energy’s management in the audit finding titled “Strengthen Controls Over Payroll Costs Charged to Federal Grants” in the section of our report titled “Internal Control and Compliance Finding and Recommendation,” this matter will result in a qualified opinion on compliance as it relates to the Allowable Costs/Cost Principles compliance requirement for the AMLR federal grant program in the Commonwealth’s Single Audit report for the year ended June 30, 2025.

 

In the section titled “Internal Control and Compliance Finding and Recommendation,” we have included our assessment of the conditions and causes resulting in the internal control and compliance finding identified through our audit as well as our recommendation for addressing this finding.  Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the finding and develop and appropriately implement adequate corrective actions to resolve the finding as required by the Department of Accounts in Topic 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures Manual.  Those corrective actions may include additional items beyond our recommendation.