Albuquerque Operations Office's Grant Administration
As of September 30, 1999, the Albuquerque Operations Office (Albuquerque) administered
grants with a total value of $509 million. These grants funded numerous activities such as
research and development, education, and state and local projects. Albuquerque personnel were
responsible for (1) ensuring that the activities were in accordance with the grant terms, and (2)
verifying the proper expenditure of funds. To a large extent, these administrative responsibilities
are accomplished through a review and analysis of various technical and financial reports
provided by the grant recipients. A Federal Assistance Reporting Checklist is included as part of
each grant. This checklist identifies the reporting requirements and frequency of required
reports for each project. For example, "Topical" reports present the technical results of work
performed on a specific phase of a project and "Final Technical" reports present a technical
accounting on the total work performed on a project. There are also several financial reports on
budgets, expense rates, and planned milestones, including a spending plan. The review by the
Department of these reports, referred to as "deliverables," is an important and necessary part of
the grant administration process.
The objective of the audit was to determine whether Albuquerque was receiving the deliverables
required in its grant instruments. Problems in obtaining deliverables relating to grants and
cooperative agreements have been highlighted in prior Office of Inspector General reports.
Currently, we are conducting a series of audits dealing with this subject.5Bu
grants with a total value of $509 million. These grants funded numerous activities such as
research and development, education, and state and local projects. Albuquerque personnel were
responsible for (1) ensuring that the activities were in accordance with the grant terms, and (2)
verifying the proper expenditure of funds. To a large extent, these administrative responsibilities
are accomplished through a review and analysis of various technical and financial reports
provided by the grant recipients. A Federal Assistance Reporting Checklist is included as part of
each grant. This checklist identifies the reporting requirements and frequency of required
reports for each project. For example, "Topical" reports present the technical results of work
performed on a specific phase of a project and "Final Technical" reports present a technical
accounting on the total work performed on a project. There are also several financial reports on
budgets, expense rates, and planned milestones, including a spending plan. The review by the
Department of these reports, referred to as "deliverables," is an important and necessary part of
the grant administration process.
The objective of the audit was to determine whether Albuquerque was receiving the deliverables
required in its grant instruments. Problems in obtaining deliverables relating to grants and
cooperative agreements have been highlighted in prior Office of Inspector General reports.
Currently, we are conducting a series of audits dealing with this subject.5Bu
Sandia National Laboratories Personal Property Accountability
The Department of Energy (Department) requires its contractors to track accountable property from
acquisition to final disposition. In this regard, Sandia National Laboratories (Sandia) is responsible for
significant quantities of Department-owned personal property. This personal property, which is defined as
property of any kind, excluding real estate and permanent fixtures, is located at various sites including
overseas locations. To track property, Sandia uses a Fixed Assets Database, which was designed to be a
management tool to account for Government property. A unique property control number is to be affixed to
each item and, once entered into the database, the property control number is the mechanism used to track
the location of each item through ultimate disposal. As of December 2000, the Sandia Database contained
about 53,000 items valued at approximately $1.1 billion.
acquisition to final disposition. In this regard, Sandia National Laboratories (Sandia) is responsible for
significant quantities of Department-owned personal property. This personal property, which is defined as
property of any kind, excluding real estate and permanent fixtures, is located at various sites including
overseas locations. To track property, Sandia uses a Fixed Assets Database, which was designed to be a
management tool to account for Government property. A unique property control number is to be affixed to
each item and, once entered into the database, the property control number is the mechanism used to track
the location of each item through ultimate disposal. As of December 2000, the Sandia Database contained
about 53,000 items valued at approximately $1.1 billion.
The Plutonium Immobilization Plant at the Savannah River Site
In September 2000, the United States and the Russian Federation entered into an
agreement stipulating that each country would irreversibly transform 34 metric tons of
weapons-grade plutonium into forms that cannot be used for weapons purposes. As part
of the United States' commitment, the Department of Energy has developed plans to
dispose of 8.4 metric tons of the plutonium and convert 25.6 metric tons into mixed oxide
reactor fuel. Both operations are to take place at the Savannah River Site (Site).
agreement stipulating that each country would irreversibly transform 34 metric tons of
weapons-grade plutonium into forms that cannot be used for weapons purposes. As part
of the United States' commitment, the Department of Energy has developed plans to
dispose of 8.4 metric tons of the plutonium and convert 25.6 metric tons into mixed oxide
reactor fuel. Both operations are to take place at the Savannah River Site (Site).
Administration of Small Business Innovation Research Phase II Grants
The Small Business Innovation Development Act of 1982 (P.L. 97-219) established the Small Business Innovation Research (SBIR) Program to assist small businesses in developing new ideas and technology. Under this Program, the Department of Energy sets aside 2.5 percent of its research and development budget for grants to small businesses, using a phased approach. Phase II SBIR grants, which were the focus of this audit, enable small businesses to evaluate commercial potential of new ideas and technology, often culminating in a prototype product or process that can be demonstrated to potential investors. Currently, the Department awards about $60 million annually in Phase II grants. Under the procedures for Phase II grants, small businesses can be reimbursed only for their actual costs incurred in accordance with the Federal Acquisition Regulation. Grant applicants can, at their discretion, propose to contribute a share of total project cost and, when doing
so, receive extra credit in the grant evaluation process. Historically, the Office of Inspector General has recognized grants administration as a significant
management challenge within the Department of Energy. Hence, the objective of the audit was to determine whether the Department obtained assurance that costs claimed by SBIR Phase II grantees were incurred in accordance with acquisition regulations and, where applicable, met cost sharing
requirements.
so, receive extra credit in the grant evaluation process. Historically, the Office of Inspector General has recognized grants administration as a significant
management challenge within the Department of Energy. Hence, the objective of the audit was to determine whether the Department obtained assurance that costs claimed by SBIR Phase II grantees were incurred in accordance with acquisition regulations and, where applicable, met cost sharing
requirements.
All information processed, transmitted, stored, or disseminated by or on behalf of the Department of Energy (Department) on automated information systems requires some level of protection. The loss or compromise of information entrusted to the Department or its contractors may affect the nation’s economic competitive position, the environment, national security, Department missions, or citizens of the United States. In response to the increasing threat to Federal information systems, the Government Information Security Reform Act (GISRA) was enacted in October 2000. GISRA specifically requires that national security or other classified information systems be evaluated annually by an independent organization designated by the Secretary of Energy. GISRA also requires that the Office of Inspector General perform an audit of this evaluation. The Department formally selected the Office of Independent Oversight
and Performance Assurance (OA) to perform the independent evaluation of its classified information systems security program. The objective of our audit was to determine whether the evaluation of classified information systems was performed in accordance with GISRA requirements.
and Performance Assurance (OA) to perform the independent evaluation of its classified information systems security program. The objective of our audit was to determine whether the evaluation of classified information systems was performed in accordance with GISRA requirements.
Peer-Reviewed Scientific Literature Generated at the Department's Light Sources