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RCED-84-186 1 (1984-08-31)

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                    UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20548

                                                     August 31, 1984
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     DIVISION                                  theO~ apner.,
            by tile                         C 'Pacific approval
       -215980             FELEASED



       The Honorable Richard L. Ottinger
       Chairman, Subcommittee on Energy
         Conservation and Power
       Committee on Energy and Commerce.
       House of Representatives                               125149

       Dear Mr. Chairman:

            Subject: The Funding of Generic Activities Within DOE's
                      Office of Assistant Secretary for Nuclear Energy
                      (GAO/RCED-84-186)

            Your letter of March 15, 1984, requested we respond to a
       number of questions concerning the Office of the Assistant Secre-
       tary for Nuclear Energy funding certain activities not previously
       identified in the Department of Energy's (DOE's) budget request.
       These activities are of a generic nature and, according to DOE
       officials, are intended to enhance the overall management and/or
       assist in accomplishing the common objectives of various nuclear
       energy programs.

            In subsequent meetings with your office, it was agreed this
       report would present the results of our examination of the
       practice of funding generic activities by determining (1) if it is
       in accordance with DOE internal regulations and congressional
       guidance regarding the execution of DOE's budget, (2) the impact
       it has on DOE's accounting records, and (3) the extent to which it
       should be disclosed in the budget. Additionally, as agreed with
       your office, we will brief your staff on the effectiveness of
       DOE's management controls over selected generic activities when
       that portion of our audit is complete.

            The Office of the Assistant Secretary for Nuclear Energy
       carries out eight different nuclear energy programs which vary
       from cleaning up uranium mining sites to developing new types of
       nuclear reactors. In fiscal year 1984, these programs were funded
       in the amount of $3.4 billion, of which about $8.4 million is
       expected to be used for funding generic activities. These
       activities include management tasks such as maintaining a computer
       for budget information, obtaining assistance in formulating

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