Statement of Facts Resulting From Audit of Internal Controls Over DOE Research Laboratories

Pursuant to a congressional request, GAO presented a statement of facts resulting from its audit of internal controls over selected functions of the Department of Energy's (DOE) research laboratories. GAO reviewed six DOE government-owned, contractor-operated research facilities and found numerous internal control problems over specific functions. The major problems were grouped into the following categories: (1) inappropriate procurement practices; and (2) weak controls over property, payroll-related activities, and foreign travel. GAO also reviewed four of the five DOE Energy Technology Centers and found numerous weaknesses in various aspects of their operations, mainly in the areas of: (1) personal property management; (2) procurement of goods and services costing less than $10,000; and (3) payments for goods and services received. GAO stated that, although government-owned, contractor-operated facilities and energy technology centers represent a significant portion of the DOE budget, they have received little audit coverage from the DOE Inspector General. The Inspector General has chosen to provide only minimal audit coverage of these facilities, since staff resources are limited and extensive coverage is provided by auditors assigned to the DOE field operations offices. However, because these auditors do not report to DOE top management, their audit independence is not ensured, audit results are not brought to the attention of top management, and in some cases no corrective action is taken on audit findings and recommendations.