July 13, 2020
Assessment Report on “Audit Coverage of Cost Allowability for Nuclear Waste Partnership, LLC, from October 1, 2014, to September 30, 2017, under the Department of Energy Contract No. DE-EM0001971”
Nuclear Waste Partnership, LLC (NWP) has managed and operated the Waste Isolation Pilot Plant under a contract with the Department of Energy since October 1, 2012. WIPP is part of the Department’s Office of Environmental Management and was built to safely dispose of the Nation’s defense-related transuranic radioactive waste.
As an integrated management and operating contractor, NWP’s financial accounts were integrated with those of the Department, and the results of transactions were reported monthly according to a reciprocal set of accounts. NWP is required by its contract to account for all funds advanced by the Department annually on its Statement of Costs Incurred and Claimed, to safeguard assets in its care, and to claim only allowable costs. Allowable costs are incurred costs that are reasonable, allocable, and allowable in accordance with the terms of the contract and applicable cost principles, laws, and regulations.
During our assessment, nothing came to our attention to indicate that the allowable cost-related audit work performed by NWP’s Internal Audit from October 1, 2014 through September 30, 2017, could not be relied upon. We conducted our assessment as a review attestation. A review is substantially less in scope than an examination or audit. Our review was limited and would not necessarily have disclosed all internal control deficiencies that may have existed at the time of our review. Based on our limited sampling, we did not identify any material internal control weaknesses with allowable cost audits, which generally met the International Standards for the Professional Practice of Internal Auditing prescribed by the Institute of Internal Auditors.
During October 1, 2014, through September 30, 2017, NWP Internal Audit identified a total of $19,268,758 in questioned costs through various audits, of which $17,523,807 have not been resolved.
Topic: Management & Administration