Energy Management:

Types of Allowable and Unallowable Costs Incurred Under Two DOE Contracts

RCED-93-76FS: Published: Jan 29, 1993. Publicly Released: Feb 26, 1993.

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Pursuant to a congressional request, GAO provided information on facility operating costs incurred by the Department of Energy's (DOE) management and operating contractor, focusing on: (1) unallowable costs; and (2) the effectiveness of the contractor's internal audit staff.

GAO found that: (1) the amount of identified unallowable costs for membership fees, miscellaneous costs charged to contracts, recreational activities, and travel expenditures have decreased; (2) the contractor's internal audit staff had increased its oversight in detecting and refunding unallowable costs, including loan origination fees and relocation and meal expenses; and (3) operational costs which the contractor did not charge the government totalled $2.2 million and included payments for relocation, community relations, incentive compensation for executives, country club dues, and entertainment.

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