Management Controls over the Department's WinSAGA System for Energy Grants Management Under the Recovery Act
The attached report presents the results of our external quality control review of the
Department of Energy, Office of Inspector General, Office of Audit Services. Your
response to the draft report is included as Appendix B.
Department of Energy, Office of Inspector General, Office of Audit Services. Your
response to the draft report is included as Appendix B.
Progress in Implementing the Department of Energy's Weatherization Assistance Program Under the American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was enacted to stimulate
the U.S. economy, create jobs and make infrastructure investments in energy and other areas.
The Department of Energy's (Department) Weatherization Assistance Program received about
$5 billion under the Recovery Act to improve the energy efficiency of nearly 590,000 residences
of low income citizens -- a dramatic increase over the $450 million appropriated for this Program
in Fiscal Year 2009. The Department awarded $4.73 billion of the Recovery Act funding in the
form of grants to all 50 states, 5 territories, the District of Columbia and 2 Native American
Tribes (the remaining $270 million was retained by the Department to administer the grants). It
was anticipated that the expenditure of these funds would result in the almost immediate creation
of jobs because they were to rely on the existing Weatherization Program infrastructure,
recognizing that many homes of low income citizens were in need of energy usage
improvements. As of December 2009, grantees had been authorized to spend up to 50 percent of
awarded funds, with additional monies to be provided based on performance. Corresponding to
funding increases, weatherization production goals increased significantly, rising from 104,000
in 2009 to 586,015 units over the 3 year life of the Recovery Act.
the U.S. economy, create jobs and make infrastructure investments in energy and other areas.
The Department of Energy's (Department) Weatherization Assistance Program received about
$5 billion under the Recovery Act to improve the energy efficiency of nearly 590,000 residences
of low income citizens -- a dramatic increase over the $450 million appropriated for this Program
in Fiscal Year 2009. The Department awarded $4.73 billion of the Recovery Act funding in the
form of grants to all 50 states, 5 territories, the District of Columbia and 2 Native American
Tribes (the remaining $270 million was retained by the Department to administer the grants). It
was anticipated that the expenditure of these funds would result in the almost immediate creation
of jobs because they were to rely on the existing Weatherization Program infrastructure,
recognizing that many homes of low income citizens were in need of energy usage
improvements. As of December 2009, grantees had been authorized to spend up to 50 percent of
awarded funds, with additional monies to be provided based on performance. Corresponding to
funding increases, weatherization production goals increased significantly, rising from 104,000
in 2009 to 586,015 units over the 3 year life of the Recovery Act.
Uranium Enrichment Decontamination and Decommissioning Fund's Fiscal Year 2008 and 2007 Financial Statement Audit
Uranium Enrichment Decontamination and Decommissioning Fund's Fiscal Year 2008 and 2007 Financial Statement Audit
Uranium Enrichment Decontamination and Decommissioning Fund's Fiscal Year 2008 and 2007 Financial Statement Audit
Uranium Enrichment Decontamination and Decommissioning Fund's Fiscal Year 2008 and 2007 Financial Statement Audit
The Disposition of Uranium-233 at Oak Ridge National Laboratory
As a result of the Department of Energy's nuclear weapons program legacy, its Oak
Ridge National Laboratory (ORNL) stores about 1.4 metric tons of uranium containing
450 kilograms of uranium-233 (U-233). The material is currently stored in a
deteriorating facility at ORNL that is over 60 years old. Because of its highly radioactive
and dangerous properties, the U-233 is stored in a shielded storage location and must be
handled in hot cells to protect workers from exposure. Since there were no
programmatic uses for the material, the Department initiated efforts to dispose of it in
2001. In 2003, however, the conferees to the Fiscal Year 2003 Omnibus Appropriations
Act authorized the extraction of thorium-229, a material that is useful in medical and
research isotope production, prior to disposal of the U-233.
In response, the Office of Nuclear Energy (NE) developed a three-phased approach for
the thorium extraction process. In October 2003, NE awarded a contract to Isotek
Systems, LLC (Isotek), to plan and design the facilities needed to extract the thorium and
process the U-233 into a stable form for storage. In November 2005, however, the
conferees to the Fiscal Year 2006 Energy and Water Appropriations Act directed the
Department to terminate thorium extraction and to transfer responsibility for management
and disposition of the U-233 to the Office of Environmental Management (EM),
effectively ending any potential for obtaining medical research isotopes from this
process. EM began managing the project and the Isotek contract, focusing on the
processing and subsequent disposal of the U-233 at the Department's Waste Isolation
Pilot Plant (WIPP). EM approved the project's $384 million performance baseline on
May 25, 2007, and authorized long-lead procurements and dismantlement activities in
preparation for facility construction. Due to the risk associated with this disposition
effort, we initiated this audit to determine whether the Department had adequately
managed the U-233 disposition project.
Ridge National Laboratory (ORNL) stores about 1.4 metric tons of uranium containing
450 kilograms of uranium-233 (U-233). The material is currently stored in a
deteriorating facility at ORNL that is over 60 years old. Because of its highly radioactive
and dangerous properties, the U-233 is stored in a shielded storage location and must be
handled in hot cells to protect workers from exposure. Since there were no
programmatic uses for the material, the Department initiated efforts to dispose of it in
2001. In 2003, however, the conferees to the Fiscal Year 2003 Omnibus Appropriations
Act authorized the extraction of thorium-229, a material that is useful in medical and
research isotope production, prior to disposal of the U-233.
In response, the Office of Nuclear Energy (NE) developed a three-phased approach for
the thorium extraction process. In October 2003, NE awarded a contract to Isotek
Systems, LLC (Isotek), to plan and design the facilities needed to extract the thorium and
process the U-233 into a stable form for storage. In November 2005, however, the
conferees to the Fiscal Year 2006 Energy and Water Appropriations Act directed the
Department to terminate thorium extraction and to transfer responsibility for management
and disposition of the U-233 to the Office of Environmental Management (EM),
effectively ending any potential for obtaining medical research isotopes from this
process. EM began managing the project and the Isotek contract, focusing on the
processing and subsequent disposal of the U-233 at the Department's Waste Isolation
Pilot Plant (WIPP). EM approved the project's $384 million performance baseline on
May 25, 2007, and authorized long-lead procurements and dismantlement activities in
preparation for facility construction. Due to the risk associated with this disposition
effort, we initiated this audit to determine whether the Department had adequately
managed the U-233 disposition project.