Legal Questions Pertaining to AFMD's Review of Department of Energy (DOE) Financial Management Structure

B-247002.2: Dec 7, 1992

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Questions were addressed regarding the Department of Energy's (DOE) financial management structure. It was determined that: (1) DOE included the Bonneville Power Administration and the Federal Energy Regulatory Commission (FERC) in its DOE chief financial officer (CFO) structure, but FERC alone was not subject to DOE CFO financial oversight, since it had its own independent statutory authority regarding financial management; (2) DOE has never enforced its "obligation of funds" contract clause in order to maintain a cost or committment ceiling, and has always transferred sufficient funds to cover all contract costs; (3) the DOE Inspector General's (IG) noncertification of a contractor's financial systems could result in the disapproval of net expenditures accrued and loss of payment to the contractor; (4) DOE has always performed an IG audit after payment, but has never attempted to reclaim a payment if certification has been denied; and (5) the DOE CFO must concur in writing with all deviations from the standard DOE acquisition regulations' financial management clauses in management and operation contracts.