Calendar Year 2020

The Oak Ridge Operations Office (Operations Office) awarded a contract to the Bechtel Jacobs
Company, LLC (Bechtel Jacobs) in December 1997. The terms of the contract require Bechtel Jacobs to
create new jobs in the Oak Ridge area with a cumulative payroll of $427 million through Fiscal Year (FY)
2003. In FY 1998, the contract required Bechtel Jacobs to create $11 million in new payroll. The
objective of the audit was to determine if Bechtel Jacobs met its commitment to create at least $11 million
in new payroll in the Oak Ridge, Tennessee area through September 30, 1998.

As the operator of the Department's Savannah River Site, Westinghouse Savannah River Company
(Westinghouse) receives three types of fees: (1) award fees commensurate with the overall performance
rating, (2) Performance Based Incentive (PBI) fees for achieving measurable goals or defined tasks as
specified in annual operating plans, and (3) Cost Reduction Incentive Program (CRIP) fees for making
improvements in site operations that reduce total contract costs. The Department's Contracting Officer
notifies Westinghouse when fees are earned, and Westinghouse withdraws the authorized amounts from
the Department's letter-of-credit account.
The audit objective was to determine whether Westinghouse withdrew the appropriate amount of fees
from the letter-of-credit account in Fiscal Years (FY) 1997 and 1998.

The Government Management Reform Act of 1994 requires that the Department of Energy (DOE) annually submit audited financial statements to the Office of Management and Budget (OMB). A DOE-wide audit was conducted to determine whether there was reasonable assurance that DOE's consolidated Fiscal Year (FY) 1998 financial statements were free of
material misstatements. We conducted a portion of the DOE-wide audit at the Albuquerque Operations Office (Albuquerque) and its management and operating contractors.
The audit at Albuquerque and its contractors disclosed deficiencies, as of September 30, 1998, in the property, liability, and receivable accounts. In addition, the audit disclosed unconfirmed unpaid obligations and differences with the amount of funds on hand reported by the Department of Treasury (Treasury). Finally, Albuquerque had not completed corrective actions
on prior findings related to nuclear materials, reimbursable work, delinquent receivables, and grant reconciliations.

In Fiscal Year 1998, the Federal Energy Technology Center (FETC) was responsible for managing about $723
million in budgetary resources. The objective of this audit was to determine if FETC had a funds distribution
and control system to ensure appropriated funds were managed in accordance with congressional intent and
applicable policies and procedures.

The Department of Energy (DOE), recognizing the need to maintain a strong science and engineering base at a time when enrollments in these disciplines were declining, implemented several educational programs. Among these were educational programs to provide faculty and students of United States (U.S.) colleges and universities with energy-related training and
research experience. Associated Western Universities (AWU), a nonprofit organization, administered post-secondary educational programs for DOE through grants and, occasionally, subcontracts. The objectives of the audit were to determine whether: (1) DOE was achieving its goal of enhancing U.S. science and engineering education and (2) AWU was appropriately
accumulating and classifying its costs.