The Government Management Reform Act and the Government Performance and Results Act both have the objective of ensuring that Federal government agencies are accountable to American taxpayers. This report provides a clear accounting of the return on the investment entrusted to the Department of Energy. Unlike previous annual reports prepared by the Department, this report is fashioned along the lines of a corporate report to the shareholders. Not only does this report contain audited financial statements for the fiscal year but it also describes what the shareholders, American taxpayers, received in the way of services and contributions to the important National goals this Administration and the Department have promised to provide. This report provides a progress report on how the Department is serving the country and how they are doing it for much lower cost.