Information on Repayment of the Government's Uranium Enrichment Program Costs and Audits of That Program's Financial Statements

Pursuant to a congressional request, GAO obtained information concerning the Department of Energy's (DOE) repayment of Uranium Enrichment Program costs and audits of the program's financial statements. Authorizing program legislation requires DOE to price uranium enrichment services so that the government's costs will be recovered over a reasonable period of time.

GAO found that, to satisfy its cost recovery requirement, DOE has reflected both appropriated program costs and interest in its price for enrichment services. The program's fiscal year (FY) 1983 financial statements reflect total recovered costs of $12 billion with an unrecovered balance of $6 billion. The program's operating expenses and capital investments continue to be funded with appropriations. While DOE has not made specific repayments to the Treasury, government costs are being recovered and have been designated as part of actual appropriations or to offset appropriations. Annual financial statements for the program have been prepared since FY 1971 as suggested by GAO during its initial review of the program's accounting methods, and annual audits have been performed since FY 1972 by three different audit groups. GAO stated that, to enhance the stature and quality of its financial statements, they should be audited by independent auditors in accordance with generally accepted government auditing standards. GAO noted that, although it has not audited the program's financial statements in the past, it plans to audit the FY 1984 statements.