Audit of the internal control structure of the Department of Energy`s Working Capital Fund Page: 4 of 16
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U.S. DEPARTMENT OF ENERGY
OFFICE OF INSPECTOR GENERAL
OFFICE OF AUDIT SERVICES
AUDIT OF THE INTERNAL CONTROL STRUCTURE
OF THE DEPARTMENT OF ENERGY'S
WORKING CAPITAL FUND
Audit Report Number: CR-B-98-01
SUMMARY
The Subcommittee on Energy and Water Development of the Committee on
Appropriations, in its report dated July 16, 1996, approved the implementation of a
Working Capital Fund (Fund) at the U.S. Department of Energy. The Subcommittee also
directed the Office of Inspector General to conduct periodic audits of the Fund. This
audit was conducted to determine if the Department established an effective system of
controls over the Fund. Our specific objectives were to determine if internal controls were
sufficient to ensure that appropriate costs were allocated in a reasonable and unbiased
manner and in a way that was consistent with the expectations established by the
Congress.
The Department completed a significant amount of work in a relatively short period
of time to implement the Working Capital Fund. Additionally, the Fund may already be
realizing benefits by making administrative costs more visible to program offices.
However, Fund management needs to strengthen controls in the following areas. First,
policies and procedures should be implemented to periodically compare actual costs to
estimates used as a basis for customer billings. The Fund also needs to establish formal
policies and operating procedures addressing funding excesses and shortages, and
management roles, responsibilities, and authorities. Additionally, the contract audits
pricing policy needs a simpler cost allocation process that facilitates the verification of
customer billings. Finally, the Department needs information on the full cost of Fund
services in order to make management decisions.
Management generally concurred with the findings and recommendations and is
planning corrective actions.
tn o Geral
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Audit of the internal control structure of the Department of Energy`s Working Capital Fund, report, October 8, 1997; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc696118/m1/4/: accessed March 28, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.