Summary: GAO discussed the accounting and financial control systems in the Department of Energy (DOE). DOE has undergone major reorganizations and the existing accounting systems were inherited from various agencies, such as the Energy Research and Development Administration and several Department of the Interior agencies, which were incorporated into DOE. Some of the problems discussed are related to internal management weaknesses. Others can be related to weak accounting and internal control systems. Accounting systems that are not properly based or not effectively monitored contribute to these problems. The Secretary of Energy disclosed weaknesses in the internal financial and accounting controls of energy accounting stations, and these control weaknesses lead to duplicate payment problems. In its review of the DOE financial and accounting controls, GAO found that 90 percent of the offices visited did not record or adequately monitor their accounts receivable; one cause of this failure is the untimely closeout of grants. GAO has established a task force to conduct a broad-based review of the financial management problems at DOE.
