ABSTRACT

Special Report: Questioned, Unresolved and Potentially Unallowable Costs Incurred by Los Alamos National Laboratory During Fiscal Year 2010   [open pdf - 2MB]

"Since June 2006, Los Alamos National Security, LLC, has operated the National Nuclear Security Administration's Los Alamos National Laboratory (Los Alamos) for the Department of Energy. Los Alamos is a multi-program laboratory with critical national security responsibilities, including research and a limited production mission that help to ensure the safety, security and reliability of the nation's nuclear weapons stockpile. During Fiscal Year (FY) 2010, Los Alamos incurred and claimed costs of $2.2 billion. As an integrated management and operating contractor, Los Alamos' financial accounts are integrated with those of the Department, and the results of financial transactions are reported monthly according to a uniform set of accounts. Los Alamos is required by its contract to account for all funds advanced by the Department, safeguard assets in its care, and claim only allowable costs. Further, Los Alamos is required to account for costs incurred annually on its Statement of Costs Incurred and Claimed (SCIC). On November 19, 2012, we issued a separate contract report on the 'Assessment of Audit Coverage of Cost Allowability for Los Alamos National Laboratory during Fiscal Year 2010 under Department of Energy Contract No. DE-AC52-06NA25396' (OAS-V-13-01, November 2012). The objectives of the assessment were to determine whether questioned costs and internal control weaknesses impacting allowable costs identified in prior audits and reviews had been adequately resolved, and whether Los Alamos conducted or arranged for audits of its subcontractors when costs incurred were a factor in determining the amount payable to a subcontractor. Among other observations, the assessment identified specific costs and internal control issues that had yet to be resolved under the contract."

Report Number:
Department of Energy, Office of Inspector General, Report No. OAS-L-13-02
Publisher:
Date:
2012-11
Copyright:
Public Domain
Retrieved From:
U.S. Dept. of Energy: http://www.energy.gov/
Media Type:
application/pdf
URL:
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