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Budget and Spending: DOE's Three Restricted Reserves of Unobligated Funds

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Report Type Reports and Testimonies
Report Date Aug. 8, 1996
Report No. RCED-96-208R
Subject
Summary:

GAO reviewed the Department of Energy's (DOE) three restricted reserves of unobligated funds. GAO noted that: (1) DOE established the reserves to respond to unforeseen departmental funding requirements; (2) these reserves include the Prior-Year Deobligation Reserve, the Prior-Year Cost Adjustment Reserve, and the Project Overrun Reserve; (3) the reserves are composed of deobligated funds that no longer have a defined need and are unavailable for use unless released by DOE; (4) DOE has not consistently followed its own criteria for placing funds in or using funds from the reserves; (5) funds have been allocated from the reserves without proper documentation and for purposes that do not meet the DOE criteria; and (6) reserve guidelines need to be revised to better reflect departmental needs.

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