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Audit Report: OAS-L-14-03

March 12, 2014

Evaluation of Costs Charged to the Washington Savannah River Company Contract No. DE-AC09-96SR18500 during Fiscal Years 2010 and 2011

In August 1996, the Department of Energy's (Department) Savannah River Operations Office awarded the Savannah River Site (SRS) management and operating (M&O) contract to Washington Savannah River Company (WSRC).  Subsequent to completion of work in June 2009, Savannah River Operations Office authorized WSRC to obtain accounting, auditing, legal and other administrative services from Savannah River Remediation to support the formal closeout of its contract.  In December 2009, the Letter of Credit expired and Savannah River Operations Office required WSRC to provide invoices for reimbursement of the closeout costs.  Savannah River Operations Office requested the Office of Inspector General review the invoices and supporting documentation for costs reimbursed to WSRC during Fiscal Years (FYs) 2010 and 2011, including the closeout costs incurred by Savannah River Remediation.

During the course of our evaluation, nothing came to our attention to indicate that WSRC was reimbursed for costs that were not consistent with the terms of the contract.  During FYs 2010 and 2011, WSRC was reimbursed a total of $601,420 for costs incurred.  Detailed invoices, along with supporting documentation, were submitted to the Savannah River Operations Office Contracting Officer for review and approval prior to payment.  We did not make any recommendations in this report. 

Topic:  Management & Administration