Energy Management: Contract Audit Problems Create the Potential for Fraud, Waste, and Abuse
RCED-92-41
Published: Oct 11, 1991. Publicly Released: Nov 08, 1991.
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Highlights
Pursuant to a congressional request, GAO examined the Department of Energy's (DOE) contracting practices, focusing on: (1) audit coverage of DOE management and operating (M&O) contractors and DOE contracts; (2) the problems that may occur when contract audits are not performed; and (3) factors that have impeded contract audit coverage.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | The Inspector General, DOE, should describe, in the next semi-annual report to Congress, the actions being taken by his office and those being taken by the Secretary of Energy to provide the Office of the Inspector General with the audit resources needed to reasonably assure DOE that the integrated M&O contractors are operating economically, efficiently, and in the federal government's best interest. |
Closed – Implemented
DOE used the semiannual report for the period ended March 31, 1992, to report that the Secretary requested 29 additional audit FTE to strengthen the audit program. Accomplishment report A-RCED-92-78 was approved on October 5, 1992.
|
| Department of Energy | To aid operations offices and M&O contractors in monitoring and following up on all contract audit activities, the Secretary of Energy should develop and implement guidance on establishing target dates for accomplishing all needed contract audit activities and a procedure for tracking progress against those target dates. |
Closed – Implemented
DOE developed a Contract Audit Tracking System Software Program and required it or a similar system to be used to track audits. A follow-up survey on the effectiveness of field activities' audit tracking programs was completed in the quarter ending September 30, 1993. DOE processed an assurance certificate, dated December 17, 1993, stating that the recommendations contained in the audit report and the necessary corrective actions have been completed. GAO plans to prepare an accomplishment report in the near future.
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Topics
Allowable costsContract costsContract oversightContractor paymentsFraudInternal auditorsInternal auditsManagement and operating contractsProcurement practicesQuestionable procurement chargesService contracts