This audit was performed by CohnReznick LLP (CohnReznick) on behalf of the Department of Energy’s Office of Inspector General and examined Oak Ridge Associated Universities, Inc.’s (ORAU) costs incurred and claimed for fiscal years 2021 through 2023 under management and operating contract No. DE-SC0014664.
The audit’s objective was to determine if costs charged to Department contract No. DE-SC0014664 for fiscal years 2021 through 2023 were allowable, allocable, and reasonable in accordance with applicable laws, regulations, and contract terms.
CohnReznick performed the audit in accordance with generally accepted government auditing standards.
CohnReznick questioned approximately $590,349,965 in costs related to inadequately supported stipend costs claimed in other director costs. CohnReznick also identified one deficiency and two areas for improvement in ORAU’s internal control.
CohnReznick made one recommendation. Additionally, we recommend that the contractor coordinate with the contracting officer to address the questioned and unresolved costs identified in this report. If the issues identified are fully addressed, it should help ensure that costs charged to the Department are allowable, allocable, and reasonable in accordance with contract terms.
ORAU nonconcurred with the finding and the associated questioned costs. ORAU indicated that documentation will be provided to the contracting officer for a final determination.
