Audit Report: IG-0435

On October 19, 1998, you asked that the Office of Inspector General (OIG) undertake a review
of the Department of Energy’s aircraft activities. You also requested that I report back to you
within 90 days. We have gathered information concerning the number of aircraft, the level of
utilization, and the cost of the Department’s aircraft operations. We have also briefly summarized
four issues that, in our judgment, may require management attention.
Prior to your request, the OIG had initiated a separate audit of aircraft and air service
management programs at the Albuquerque Operations Office, which accounts for the largest
percentage of the Department’s total expenditures on aircraft activities. Based on this audit, we
concluded that Albuquerque could reduce the overall cost of its aircraft activities. We also found
that the Operations Office could discontinue air service between Albuquerque and Amarillo,
Texas, if it relied on currently available commercial air services. We issued the draft report to the
Albuquerque Operations Office on December 4, 1998. Although taking exception to some of the
tentative audit conclusions, Albuquerque agreed to take aggressive actions to reduce the cost of
aviation services and to cancel the shuttle service between Albuquerque and Amarillo.
Discussions are proceeding to resolve any substantive differences between this office and
Albuquerque.