Audit of the petroleum pricing violation escrow account
An audit was conducted to determine whether (1) internal accounting and administrative controls over the escrow account were adequate to ensure that payments due into the account were collected and properly accounted for, and (2) detailed written plans exist to expedite proper distribution of escrow account funds. Violations were noted where ERA had (1) not accrued or collected interest on installment payments as required in some consent orders; (2) not provided for explicit interest on installment account balances and on some negotiated orders; and (3) not charged or collected interest on delinquent payments. A statistical estimate indicated that the account was understated by $3.7 million in unaccrued interest due on installment account balances and an additional $543,000 in unaccrued interest on the balances of delinquent accounts. Implementation of a proposed plan for distribution of funds in the escrow account should prove satisfactory for proper disbursement of escrow funds. Recommendations were that the deficient interest be identified and procedures be implemented to assure proper future collection; that interest be explicitly identified in all future consent orders allowing payment through installment. Administrator comments are included. (PSB)
- Research Organization:
- Department of Energy, Washington, DC (USA). Office of Inspector General
- OSTI ID:
- 5413406
- Report Number(s):
- DOE/IG-0201; ON: DE84004829
- Resource Relation:
- Other Information: Report to the Secretary
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
ECONOMIC REGULATORY ADMINISTRATION
PROGRAM MANAGEMENT
PETROLEUM
PRICES
PRICING REGULATIONS
COMPLIANCE
ENFORCEMENT
ACCOUNTABILITY
ADMINISTRATIVE PROCEDURES
AUDITS
INTEREST RATE
INVESTMENT
RECOMMENDATIONS
VIOLATIONS
ENERGY SOURCES
FOSSIL FUELS
FUELS
MANAGEMENT
NATIONAL ORGANIZATIONS
REGULATIONS
US DOE
US ORGANIZATIONS
020700* - Petroleum- Economics
Industrial
& Business Aspects
290000 - Energy Planning & Policy
294002 - Energy Planning & Policy- Petroleum
021000 - Petroleum- Legislation & Regulations