Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2009
A.12a (Pre-SAS 115) Letter to communicate significant deficiencies and/or material weaknesses in internal control over financial reporting noted in an audit of financial statements of a nonpublic entity, excluding FDICIA engagements (Rev. 1/08)
Responsible for some of the Nation's most important and technically advanced missions, the Department of Energy faces an array of challenges that are more wide-ranging and complex than at any time in its history. While its origins can be largely traced to the Manhattan Project, the Department has evolved into a multi-faceted agency that encompasses a broad range of scientific, environmental, and national security activities. Since its creation under the Department of Energy Organization Act in 1977, the Department has shifted its emphasis and priorities over time as the energy and security needs of the Nation have changed. The Department has recently refocused these efforts, adding particular emphasis on the science and renewable energy components of its portfolio. In this regard, the Department has taken a lead role in the implementation and execution of the energy technology initiatives related to the American Recovery and Reinvestment Act of 2009 (Recovery Act).
Management Challenges at the Department of Energy
Selected Department of Energy Program Efforts to Implement the American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act of 2009 (Recovery Act) was enacted on
February 17, 2009, to jumpstart the economy by creating or saving millions of jobs, spurring technological advances in health and science, and investing in the Nation's energy future. The Department of Energy received over $32.7 billion in Recovery Act funding for various science, energy, and environmental programs and initiatives. As of November 2009, the Department had obligated $18.3 billion of the Recovery Act funding, but only $1.4 billion had been spent. The Department's Offices of Energy Efficiency and Renewable Energy, Fossil Energy, Environmental Management, Science, and Electricity Delivery and Energy Reliability received the majority of funding allocated to the Department, about $32.3 billion.
February 17, 2009, to jumpstart the economy by creating or saving millions of jobs, spurring technological advances in health and science, and investing in the Nation's energy future. The Department of Energy received over $32.7 billion in Recovery Act funding for various science, energy, and environmental programs and initiatives. As of November 2009, the Department had obligated $18.3 billion of the Recovery Act funding, but only $1.4 billion had been spent. The Department's Offices of Energy Efficiency and Renewable Energy, Fossil Energy, Environmental Management, Science, and Electricity Delivery and Energy Reliability received the majority of funding allocated to the Department, about $32.3 billion.
Management Alert on the Department's Monitoring of the Weatherization Assistance Program in the State of Illinois
Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the Department of Energy's Weatherization Assistance Program received $5 billion to improve the energy efficiency of homes owned or occupied by low income persons, reduce their total residential expenditures, and improve their health and safety. Since the Recovery Act was enacted in February 2009, the Department has awarded weatherization grants to every state, the District of Columbia and five territories. Because of the unprecedented level of funding and the risks associated with spending vast amounts of money in a relatively short period of time, the Office of Inspector General (OIG) initiated a series of audits designed to evaluate the Program's internal control structures at both the Federal and state levels. As part of our work, we are in the process of reviewing Weatherization Program internal controls for the State of Illinois. We are also currently performing identical audits in the States of North Carolina, Pennsylvania and Virginia.
The Office of Science's Management of Information Technology Resources
The Department of Energy's Office of Science (Science) and its facility contractors are
aggressive users of information technology (IT) to support fundamental research in areas
such as energy, environmental remediation and computational sciences. Of its $4 billion
Fiscal Year 2008 budget, Science spent about $287 million to manage its IT program.
This included cyber security activities, acquisition of hardware and software, and support
service costs used to maintain the operating environments necessary to support the
missions of the program.
aggressive users of information technology (IT) to support fundamental research in areas
such as energy, environmental remediation and computational sciences. Of its $4 billion
Fiscal Year 2008 budget, Science spent about $287 million to manage its IT program.
This included cyber security activities, acquisition of hardware and software, and support
service costs used to maintain the operating environments necessary to support the
missions of the program.