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U.S. Department of Energy					   ORDER
	   Washington, D.C.				DOE O 224.2A

							Approved:  11-9-07

SUBJECT: AUDITING OF PROGRAMS AND OPERATIONS

1.	OBJECTIVE.  To set forth audit requirements and responsibilities 
	for the promotion of economy and efficiency in the administration
	of, or the prevention or detection of fraud, waste, and
	abuse in, programs and operations of the Department of
	Energy (DOE).
	
2.	CANCELLATIONS.  DOE O 224.2, Auditing of Programs and Operations,
	dated 3-22-01.
	
3.	APPLICABILITY.

	a.	All DOE Elements. This Order applies to all Departmental 
		elements, including those created after the Order is issued.  
		(Go to www.directives.doe.gov/pdfs/reftools/org-list.pdf 
		for the current listing of Departmental elements.)
		
		For purposes of this Order, the National Nuclear
		Security Administration (NNSA), a separately organized
		Agency within the Department answering to the
		Secretary, is included as a DOE element.
		
		The Administrator of the NNSA will assure that NNSA
		employees comply with their respective responsibilities
		under this Order.
		
	b.	DOE Contractors. This Order does not apply to contractors.

	c.	Exclusions.  None.
			
4.	REQUIREMENTS.

	a.	The Office of Inspector General (OIG) will perform all
		audits of the programs and operations of DOE as defined
		in paragraph 4b.  This is not intended to supplant the
		authority of DOE officials to make programmatic reviews
		of individual programs and enforce regulatory
		functions.
		
	b.	The OIG will conduct audits of the activities of DOE,
		its contractors and financial assistance recipients
		that may encompass the following functions (as
		described by the Government Auditing Standards):
		
		(1)	financial and compliance;
			
		(2)	economy and efficiency; and
			
		(3)	program results.
			
	c.	The OIG will conduct audits of contractors or financial
		assistance recipients as requested by other Federal
		agencies where DOE is the cognizant audit agency or for
		other reasons.
		
5.	RESPONSIBILITIES.
	
	a.	Office of Inspector General.

		(1)	Provides coordination and policy direction for
			auditing of programs and operations of the DOE and
			its contractors and financial assistance
			recipients.
			
		(2)	Carries out the responsibilities of cognizant
			Federal audit agencies for assigned entities with
			respect to Office of Management and Budget (OMB)
			Circular A-133, “Audits of States, Local
			Governments, and Non-Profit Organizations.”
			
		(3)	Develops the DOE-wide audit plan, considering,
			among other factors, requests and recommendations
			of officials of the DOE.  Coordinates with
			organizations having related functions to avoid
			unnecessary duplication, such as:
			
			(a)	the Government Accountability Office and
				
			(b)	internal audit organizations of DOE’s major
				facilities management contractors, through
				the responsible DOE field/site office.
				
		(4)	Authorizes contracting of, or other arrangements
			for, audits as defined in paragraph 4b.  Reasons
			for contracting or other arrangements may be
			objectives of the audits, urgency of need, and
			availability of auditor resources.
			
	b.	The DOE Director, Office of Procurement and Assistance
		Management provides for Defense Contractor Audit Agency 
		pre and post award audits to support the procurement 
		process.  This Order does not cover these procurement 
		audit activities.
		
	c.	Heads of all Field Elements and NNSA’s Associate
		Administrator for Management and Administration should 
		communicate, coordinate, and advise respective contractor
		internal audit managers as to areas of major audit
		concern, and they should recommend specific audits
		where risks are considered to be high.  Performance of
		these operations, in conjunction with the OIG’s audit
		effort, will provide an effective overall audit and
		review program for DOE.  Therefore, field elements
		must:
		
		(1)	Maintain a management review program and make
			evaluations of programs and projects under their
			cognizance to determine their status, improve
			operations, and determine the adequacy of the
			management of DOE resources.

		(2)	Provide for effective coordination among field
			elements management review programs, major
			facilities management contractors’ internal audit
			staffs, and the OIG.
			
		(3)	Provide support to the procurement process, as
			necessary, that includes conducting pre-award
			and/or making arrangements for both pre-award and
			post-award audits with other cognizant Federal
			audit agencies.
			
		(4)	Evaluate the adequacy of coverage, technical
			competence, objectivity, and independence of
			audits conducted by internal auditors of DOE major
			facilities management contractors.
			
6.	REFERENCES.

	a.	Public Law (P.L.) 95-452, the Inspector General Act of
		1978, as amended [Title 5 United States Code (U.S.C.),
		App. 3], which sets forth the authority and functions
		of the Inspector General.
		
	b.	U.S. Government Accountability Office (GAO) “Government
		Auditing Standards,” (GAO-07-162G), (for Audit of
		Governmental Organizations, Programs, Activities and
		Functions), January 2007 Revision, issued by the
		Comptroller General, which provides the standards for
		audits of governmental organizations.
		
	c.	Office of Management and Budget (OMB) Circular A-133,
		“Audits of States, Local Governments, and Non-Profit
		Organizations” (revised June 27, 2003), which
		establishes audit requirements for States, local
		governments, and non-profit organizations.
		
	d.	Title XXXII of P.L. 106-65, National Nuclear Security
		Administration Act, as amended, which established a
		separately organized agency within DOE.
		
7.	NECESSITY FINDING STATEMENT.  In compliance with Sec. 3174 
	of P.L. 104-201 (42 USC 7274k note), DOE hereby finds that 
	this Order is necessary for the protection of human health 
	and the environment or safety, fulfillment of current legal 
	requirements, and conduct of critical administrative 
	functions.
	
8.	CONTACT.  Questions concerning this Order should be addressed 
	to the Office of Inspector General at 202-586-4128.
	
BY ORDER OF THE SECRETARY OF ENERGY:
	
	
							 CLAY SELL
							 Deputy Secretary