Evaluation of Administrative Procedures at the Synthetic Fuels Corporation

RCED-83-27: Published: Oct 18, 1982. Publicly Released: Oct 18, 1982.

Additional Materials:

Contact:

Daniel C. White
(301) 353-4761
contact@gao.gov

 

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

GAO reviewed the progress of the U.S. Synthetic Fuels Corporation in establishing contracting practices for professional support services as well as its controls over fund withdrawals from the Department of the Treasury and fund disbursement procedures. In addition, the report describes steps taken to establish a corporation salary structure and the activities of the Office of the Inspector General.

GAO found that the U.S. Synthetic Fuels Corporation has been criticized for not awarding contracts on a competitive basis and for not maintaining records on contract negotiations. GAO has identified some improvement in the contracting practices but noted that more needs to be done. Because more action is needed to improve documentation and control over corporation contracting practices, GAO believes it is essential that detailed guidelines to implement the corporation's contracting be issued. A GAO review of randomly selected check and cash disbursements indicated that they were made in accordance with interim accounting procedures. The Energy Security Act allows the corporation to establish a salary schedule which may exceed the highest level of the federal schedules. The Board has established salary levels for all but one senior executive position, that of Chairman. The positions of Inspector General and Deputy Inspector General were not filled until 19 months after the corporation began operations, and a small staff functioned as that office until those positions were filled.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Chairman of the U.S. Synthetic Fuels Corporation should issue guidelines for implementing the corporation's policy and procedure for administering contractual arrangements to all offices. Such guidelines should include guidance on the roles and responsibilities of the Office of Administration and program offices to ensure that: (1) the need for goods and services in each contract are adequately documented, and (2) if competition is limited by such factors as short response time or unique services needs, written justification is provided for the limitation.

    Agency Affected: United States Synthetic Fuels Corporation

  2. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Chairman of the Synthetic Fuels Corporation should ensure that access to assets are permitted only in accordance with management authorization by keeping cash and blank checks in a locked safe in a restricted area.

    Agency Affected: United States Synthetic Fuels Corporation

 

Explore the full database of GAO's Open Recommendations »

Sep 14, 2016

Sep 8, 2016

Aug 11, 2016

Aug 9, 2016

Aug 4, 2016

Jul 15, 2016

Jul 14, 2016

Jun 20, 2016

Mar 3, 2016

Looking for more? Browse all our products here