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Audit Report: OAS-M-14-04

April 7, 2014

Compliance with the Memorandum of Agreement Between the U.S. Department of Energy and the Energy Child Development Centers, Inc.

The Office of Inspector General contracted with an independent certified public accounting firm, Lopez and Company, LLP (Lopez), to determine whether the Energy Child Development Centers, Inc. (ECDC, Inc.) met the reporting and performance requirements of its December 16, 2002 Memorandum of Agreement (MOA) with the Department of Energy for the period of December 16, 2002 through December 31, 2011.

Lopez concluded that ECDC, Inc. did not meet the reporting and performance compliance requirements of the MOA. Due to a lack of documentation maintained by ECDC, Inc., Lopez was unable to make a determination of ECDC Inc.'s compliance with 8 of 13 major risk areas. For the remaining key processes, Lopez concluded that ECDC, Inc. did not materially comply with reporting and performance requirements. 

Management's corrective actions are responsive to our recommendations. Consistent with the MOA, our recommendation and the lack of compliance and transparency of the ECDC, Inc. Board, the Department will terminate the MOA with ECDC, Inc.
 

Topic: Management & Administration