Office of Inspector General audit report on ``The U.S. Department of Energy`s Working Capital Fund``
The Department established the Working Capital Fund (Fund) in January 1996 as a financial management tool for charging the costs of common services provided at Headquarters to Departmental program offices. Prior to establishing the Fund, the Office of Human Resources and Administration (HR) paid most of the costs of these services from the Departmental Administration account without attempting to allocate the costs back of the programs using the services. Since the Fund`s implementation, Department program offices have made periodic advance payments to the Fund from their program direction accounts and are then charged for the services they consume. The Department`s objectives in establishing the Fund were to increase efficiency of the Department`s operations, improve management of administrative services through the use of flexible and business-like finance methods, and provide an accurate full cost budget for programs and activities. The costs of the services administered by the Fund are expected to total about $80 million in Fiscal Year 1998, which excludes Federal salaries and some other indirect charges incurred by HR. Although the Fund is making progress in meeting its objectives, additional management attention could result in further cost reductions to the Department. Despite these achievements, the author identified three areas that require additional management attention to facilitate further cost reductions in the Department`s operations. First, HR incurred a disproportionate share of the Fund`s costs. Second, the operation of the Department`s supply business has posed persistent financial and management problems. The Board had not developed procedures to assess whether Fund business lines are competitive with outside vendors, correct inefficient operations, and shut down those unable to compete. Third, the Fund`s financial management system (FMS) did not efficiently provide timely and accurate information. Management concurred with the findings and recommendations and agreed to take corrective actions.
|Year of publication:||
|Subject:||mathematics, computers, information science, management, law, miscellaneous | US DOE | PROGRAM MANAGEMENT | FINANCING | AUDITS | EFFICIENCY | BUDGETS | RECOMMENDATIONS|
|Type of publication:||Other|
Persistent link: https://www.econbiz.de/10009436698
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