Energy Management: Additional Uncosted Balances Could Be Used to Meet
Future Budget Needs (Letter Report, 10/26/93, GAO/RCED-94-26).

In congressional testimony last year (GAO/T-RCED-92-41), GAO recommended
that the Department of Energy (DOE) develop a system to ensure that
uncosted obligations--commitments that DOE has made to contractors for
goods and services that have yet to be delivered--are analyzed as part
of its budget formation process.  Since then, DOE has made significant
strides towards effective evaluation of its uncosted balances as part of
its budget preparation process. The absence of supporting accounting
systems and unfamiliarity with the new definitions, however, have
produced inaccuracies in the data included in DOE's first uncosted
balances report.  These inaccuracies limit the information's usefulness
in making budget decisions. Developing the systems to accumulate the
information in the format needed for this report would improve the
reliability of the information reported.  In addition, revising the
definition of what should be reported as approved work scope could help
spot delayed projects that have accumulated more funding than can be
used effectively during the following fiscal year.  DOE proposed using
about $1 billion of the uncosted balances to meet fiscal year 1993 and
1994 budget needs.  GAO believes, however, that the additional amounts
of the uncosted balances could be used to reduce the budget amount
needed for fiscal year 1994.  In addition, procedures requiring the
prompt release of encumbered amounts not needed to settle completed and
terminated purchase orders and contracts would help ensure that such
amounts are not reported as encumbrances in the future.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-94-26
     TITLE:  Energy Management: Additional Uncosted Balances Could Be 
             Used to Meet Future Budget Needs
      DATE:  10/26/93
   SUBJECT:  Budget obligations
             Unobligated budget balances
             Contract administration
             Management information systems
             Financial management
             Cost analysis
             Future budget projections
             Budget administration
             Forward funding
             Federal agency accounting systems
IDENTIFIER:  DOD Environmental Restoration and Waste Management Program
             DOE Material Support Program
             DOE Stockpile Support Program
             DOE Weapons Activities Research and Development Program
             DOE Basic Energy Science Program
             DOE Uncosted Balances Reporting System
             
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