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Title: Review of TESS internal controls over financial management and procurement activities

Technical Report ·
OSTI ID:10111412

The Department of Energy`s (DOE) civilian radioactive waste program is responsible for the safe disposal of highly radioactive nuclear waste. In February 1991, TRW Environmental Safety Systems (TESS) became the Management and operating contractor for this program. The value of the TESS contract was placed at $1 billion over a 10-year period. In October 1991, we made a review of financial controls in place at TESS. This audit was limited to an evaluation of the internal controls for financial management and procurement. We found that although TESS had made progress in establishing the necessary financial management structure, more effective controls were needed in certain areas. Specifically, TESS used a method for computing business license taxes that resulted in overpayment; they put into effect a policy to reimburse employees the maximum allowable rate for lodging rather than the actual costs; they did not always obtain the most economical airfares for travel; and, they did not utilize the most effective procurement methods. The Headquarters Procurement Office agreed with our findings and developed an action plan which addresses our recommendations.

Research Organization:
USDOE Office of Inspector General, Washington, DC (United States). Capital Regional Audit Office
Sponsoring Organization:
USDOE, Washington, DC (United States)
OSTI ID:
10111412
Report Number(s):
CR-B-93-1; ON: TI93004215; NC: NONE
Resource Relation:
Other Information: PBD: 25 Nov 1992
Country of Publication:
United States
Language:
English