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Ernst & Young report
Fact sheet

FOR IMMEDIATE RELEASE
Thursday, June 5, 2003

Contacts:
University of California
Michael Reese
(510) 987-9179
Michael.Reese@ucop.edu

LLNL
Susan Houghton
(925) 422-9919
houghton3@llnl.gov

INDEPENDENT ASSESSMENT FINDS KEY BUSINESS CONTROLS IN PLACE AT LAWRENCE LIVERMORE NATIONAL LABORATORY

The University of California released today (Thursday, June 5, 2003) an independent assessment and operational analysis of select business processes at Lawrence Livermore National Laboratory (LLNL) that validates the existence of appropriate internal controls.

The report, which culminates two months of observation and operation analysis by a team of up to ten professionals from the Government Contract Services Group of Ernst & Young LLP, was conducted at the request of LLNL Director Michael Anastasio.

“The review of key business practices did not disclose any material weaknesses in Livermore’s system of internal controls,” said Anne Broome, UC vice president for financial management. “Rather, Ernst and Young did make recommendations for enhancing existing control systems. We appreciate such recommendations from an independent review.”

Broome congratulated Livermore’s business division employees for their work and cooperation with Ernst & Young LLP, but singled out in particular Director Anastasio. “Director Anastasio deserves credit for taking the initiative in asking the University of California to commission an independent look at a number of Livermore’s procurement and property management procedures,” said Broome.

“In light of the situation at Los Alamos,” Anastasio explained, “I felt it was important to get a third party, independent review. I am pleased that their report confirms the existence of key internal controls and appropriate business processes. I want to take this opportunity to thank all Livermore employees who worked closely with Ernst &Young on this project.”

The Ernst & Young LLP team conducted the review at Livermore specifically looking at such areas as procurement business process and application controls; interfaces between procurement and property management and between procurement and accounts payable; property management and property accounting; accounts payable-disbursements and Oracle interfaces and cash receipts controls.

The completion of the Ernst & Young LLP review at Livermore is the second such analysis undertaken by UC. The first, an assessment of Los Alamos business practices, was completed in April 2003.

A copy of the complete E&Y report can be found at http://www.ucop.edu/news/archives/2003/jun05E&Y.pdf. A summary of key recommendations from the report is at http://www.ucop.edu/news/archives/2003/jun03factsheet.htm.

Lawrence Livermore National Laboratory is operated by the University of California for the National Nuclear Security Administration (NNSA) of the U.S. Department of Energy and works in partnership with NNSA's Sandia and Los Alamos national laboratories to support NNSA in its mission.

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