Calendar Year 2020

The Department of Energy’s Office of Inspector General is pleased to submit its Semiannual Report to Congress for the period ending September 30, 2010.
This report highlights key accomplishments of the Office, particularly pertaining to our efforts to work with agency management to ensure the economy, efficiency, and effectiveness of Department of Energy operations.

The attached report presents the results of an agreed-upon procedures review of the Department
of Energy's (Department) Weatherization Assistance Program in the City of Phoenix, Arizona,
under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The Office of
Inspector General (OIG) engaged an independent certified public accounting firm, Lopez and
Company, to perform the agreed-upon procedures for Phoenix, a sub-recipient of the
Department's Recovery Act Weatherization funding for the State of Arizona.
The Recovery Act was enacted to promote economic prosperity through job creation and
encourage investment in the Nation's energy future. As part of the Recovery Act, the
Weatherization Assistance Program was implemented to reduce energy consumption for lowincome
households through energy efficient upgrades. The State of Arizona received $57
million in Weatherization Assistance Recovery Act grant funding, of which $7.2 million was
allocated to the City of Phoenix. The Arizona Department of Commerce was responsible for
administering Weatherization grants, including sub-grants provided to the City of Phoenix. This
grant provided more than a fifteen-fold increase in funds available to Arizona for weatherization
over the amount authorized in Fiscal Year 2009.

The Office of Inspector General received a series of allegations concerning violations of the Human Reliability Program (HRP) and alcohol abuse within the Office of Secure Transportation (OST). Specifically, it was alleged that incidents involving violations of the HRP were not reported as required, and that the HRP was not administered in a fair and consistent manner. It was also alleged that alcohol abuse was a problem within OST and that alcohol-related incidents involving current Agents assigned to various locations and Agent Candidates at the OST training facility in Fort Chaffee, Arkansas, were some of the biggest problems facing OST.

On an annual basis, the Office of Inspector General (OIG) identifies what it considers to be the most significant management challenges facing the Department of Energy. This effort is designed to assess the agency's progress in addressing previously identified challenges and to consider emerging issues. The identified challenges represent risks inherent in the Department's wide ranging and complex operations as well as those related to specific management processes.
Since its creation in 1977, the Department's priorities have evolved, reflecting current energy and security needs of the Nation. Most recently, the implementation and execution of programs supported by the American Recovery and Reinvestment Act of 2009 (Recovery Act) have been at the forefront of Departmental operations. Signed into law by the President on February 17, 2009, the Recovery Act provided the Department with $36.7 billion in funding for the acceleration of a number of efforts, including investments in energy efficiency, renewable energy, transportation, carbon capture and storage, and a "smart" electric grid. In addition, Recovery Act funding was to be used to accelerate the cleanup of Cold War legacy nuclear sites and to support Departmental technological and scientific innovation efforts.

The attached report presents the results of the independent certified public accountants'
audit of the Office of Civilian Radioactive Waste Management's (OCRWM) Fiscal
Year 2010 balance sheet and the related statements of net cost, changes in net position,
and budgetary resources.