Subcontract Auditing at Lawrence Livermore National Laboratory
Livermore's contract incorporated Department of Energy Acquisition Regulation clauses 970.5232-3 and 970.5244-1 that required Livermore to provide for periodic post-award audits of cost-reimbursement subcontractors and subcontracts where costs incurred are a factor in determining the amount payable. To ensure the integrity and reliability of contractor cost data, the Office of Inspector General (OIG), the Office of the Chief Financial Officer, the Office of Procurement and Assistance Management, and the Contractor Internal Audit Council, developed the Cooperative Audit Strategy (Strategy). The Strategy became a contractual requirement under Department of Energy Acquisition Regulation 970.5232-3, in November 2004, through Acquisition Letter 2005-04. Under the Strategy, contractors must provide an Implementation Design plan which includes identifying what auditing standards will be used and the plan for pre-award and post-award audits of subcontractors. As part of the Strategy, contractors may use their own internal auditor staff, engage contract auditors, or use the services of the Defense Contract Audit Agency (DCAA) to audit subcontractors. The Strategy also requires that internally performed audits must, at a minimum, meet The Institute of Internal Auditors (IIA) Standards for auditing that provide criteria for, among other things, measuring the quality of internal audits.
Management Controls over the Department of Energy's American Recovery and Reinvestment Act – Michigan State Energy Program
The Department of Energy's (Department) Office of Energy Efficiency and Renewable Energy
(EERE) provides grants to states, territories and the District of Columbia (states) to support their
energy priorities through the State Energy Program (SEP). Traditionally, SEP received $40 to
$50 million in annual appropriations. The American Recovery and Reinvestment Act of 2009
(Recovery Act) expanded the SEP by authorizing an additional $3.1 billion to states using the
existing distribution formula. EERE awarded the grants after reviewing state plans summarizing
activities for achieving SEP Recovery Act objectives, including preserving/creating jobs; saving
energy; increasing renewable energy sources; and, reducing greenhouse gas emissions. States
are encouraged to use these funds not only to support current energy projects but also to aid
sustainable programs that will provide lasting benefits. EERE program guidance emphasizes
that states are responsible for administering the SEP within each state, and requires each state to
implement sound internal controls over the use of Recovery Act funds.
(EERE) provides grants to states, territories and the District of Columbia (states) to support their
energy priorities through the State Energy Program (SEP). Traditionally, SEP received $40 to
$50 million in annual appropriations. The American Recovery and Reinvestment Act of 2009
(Recovery Act) expanded the SEP by authorizing an additional $3.1 billion to states using the
existing distribution formula. EERE awarded the grants after reviewing state plans summarizing
activities for achieving SEP Recovery Act objectives, including preserving/creating jobs; saving
energy; increasing renewable energy sources; and, reducing greenhouse gas emissions. States
are encouraged to use these funds not only to support current energy projects but also to aid
sustainable programs that will provide lasting benefits. EERE program guidance emphasizes
that states are responsible for administering the SEP within each state, and requires each state to
implement sound internal controls over the use of Recovery Act funds.
This is a summary of Inspection Letter Report S10IS013 dated September
22, 2010, pertaining to a “Review of Allegations Involving Potential
Retaliation” at a Department Site. The complete report is not available
for public disclosure. Public release is controlled pursuant to the
Freedom of Information Act.
22, 2010, pertaining to a “Review of Allegations Involving Potential
Retaliation” at a Department Site. The complete report is not available
for public disclosure. Public release is controlled pursuant to the
Freedom of Information Act.
In April 2010, the Office of Inspector General (OIG) began receiving multiple allegations concerning hiring and contracting practices within the Office of Energy Efficiency and Renewable Energy (EERE). These allegations included:
1. Improprieties in the hiring of a contract employee to a senior Federal career position, including concerns that the contract employee was pre-selected or otherwise had an unfair advantage; 2. Performance of inherently governmental duties, including the supervision of Federal
employees, by the same contract employee; and, 3. Award of work to a contractor without adequate competition.
1. Improprieties in the hiring of a contract employee to a senior Federal career position, including concerns that the contract employee was pre-selected or otherwise had an unfair advantage; 2. Performance of inherently governmental duties, including the supervision of Federal
employees, by the same contract employee; and, 3. Award of work to a contractor without adequate competition.
EERE Report, Special Inquiry: "Review of Allegations RegardingHiring and Contracting in the Office of Energy Efficiency andRenewable Energy" Report Number: OAS-SR- 10-04
The Department of Energy's Audit Resolution and Follow-up Process
The Department of Energy's audit resolution and follow-up process provides an important
mechanism for assisting management in improving the performance of the Department
and its programs. Over the last 5 years, the Office of Inspector General (OIG) has
completed over 350 audits, which included recommendations for corrective actions or
improvements in programs, operations, and management functions. Ensuring that these
recommendations are addressed and resolved timely is a critical component of the audit
process. With this goal in mind, Department Order 224.3, Audit Resolution and Followup
Program, generally requires that audit reports and all associated recommendations be
closed within one year and that management officials certify that corrective actions have
been completed and that they are effective prior to closure.
mechanism for assisting management in improving the performance of the Department
and its programs. Over the last 5 years, the Office of Inspector General (OIG) has
completed over 350 audits, which included recommendations for corrective actions or
improvements in programs, operations, and management functions. Ensuring that these
recommendations are addressed and resolved timely is a critical component of the audit
process. With this goal in mind, Department Order 224.3, Audit Resolution and Followup
Program, generally requires that audit reports and all associated recommendations be
closed within one year and that management officials certify that corrective actions have
been completed and that they are effective prior to closure.
Letter Report on Allegations of Retaliation at a Department Site