ML26030A241
| ML26030A241 | |
| Person / Time | |
|---|---|
| Issue date: | 01/30/2026 |
| From: | Virkar H NRC/OIG/AIGA |
| To: | Mark King NRC/EDO |
| References | |
| OIG-NRC-25-A-12 | |
| Download: ML26030A241 (0) | |
Text
NRC Headquarters l 11555 Rockville Pike l Rockville, Maryland 20852 l 301.415.5930 nrcoig.oversight.gov MEMORANDUM DATE:
January 30, 2026 TO:
Michael F. King Executive Director for Operations FROM:
Hruta Virkar, CPA /RA/
Assistant Inspector General for Audits & Evaluations
SUBJECT:
STATUS OF RECOMMENDATIONS: AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM (OIG-NRC-25-A-12)
REFERENCE:
DEPUTY EXECUTIVE DIRECTOR FOR NUCLEAR MATERIALS, ADMINISTRATIVE, AND CORPORATE PROGRAMS, OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS, MEMORANDUM DATED JANUARY 16, 2026 Attached is the Office of the Inspector Generals (OIG) analysis and status of recommendation as discussed in the agencys response dated January 16, 2026. Based on this response, recommendations 1.1 through 6.1 remain open and resolved. Please provide an updated status of the open, resolved recommendation by July 31, 2026.
If you have any questions or concerns, please call me at 301.415.1982 or Danielle Mahal, Team Leader, at 301.415.5965.
Attachment:
As stated cc: J. Martin, ADO D. Lewis, DADO E. Deeds, OEDO OIG Liaison Resource EDO ACS Distribution
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 2 Recommendation 1.1:
Establish thresholds for special act awards based on award value and frequency.
Agency Response Dated January 16, 2026: Similar to agency-wide group awards with established criteria and thresholds, the EDO will align special act awards limits with organizational objectives (e.g., recognizing high-impact achievements, improving morale, encouraging teamwork). The Office of the Chief Human Capital Officer (OCHCO) will create tiers that correspond to the significance of the achievement: Tier 1: Small recognition ($500-$1,000 or up to 12 hours1.388889e-4 days <br />0.00333 hours <br />1.984127e-5 weeks <br />4.566e-6 months <br /> off), Tier 2: Moderate recognition ($1,001-
$3,500 or up to 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> off), Tier 3: High recognition
($3,501-$7,000 or up to 32 hours3.703704e-4 days <br />0.00889 hours <br />5.291005e-5 weeks <br />1.2176e-5 months <br /> off), Tier 4: Exceptional recognition (above $7,000 or up to 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br /> off). Per MD 10.72, General Grade cash awards exceeding $7,000 up to
$10,000 require Chairman, Inspector General (IG),
Commissioner, or EDO approval. Cash awards exceeding
$10,000 up to and including $25,000 are approved by the Chairman or IG with the U.S. Office of Personnel Management (OPM) concurrence. Cash awards exceeding
$25,000 are approved by the Chairman or IG with Presidential approval. Annual frequency limits may be established for special act awards an employee receives (e.g., 4-6 awards per year or an annual cap on the award amount per employee). Time-off awards limitation for GG employees during any leave year is 80 hours9.259259e-4 days <br />0.0222 hours <br />1.322751e-4 weeks <br />3.044e-5 months <br />.
OIG Analysis:
OCHCOs plan to establish a tiered recognition process and an annual frequency limit for special act awards will address the recommendation. The recommendation will remain open until management provides evidence of established thresholds.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 3 Recommendation 1.2:
Enforce documentation requirements for special act awards to ensure the awards are properly justified and comply with agency policy.
Agency Response Dated January 16, 2026: An online awards submission system is being assessed for implementation for all agency awards. OCHCO will conduct training or provide guidance on what constitutes sufficient documentation requirements for special act awards aligning with agency policy. If documentation is incomplete or insufficient, OCHCO will return the submission with feedback OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management implements the awards submission system and provides the updated guidance on documentation standards.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 4 Recommendation 1.3:
Enforce retention guidelines for award justifications to support third-party reviews and for reconstruction purposes.
Agency Response Dated January 16, 2026: OCHCO will create a standardized template for office use.
An online awards submission tool is being assessed for implementation for all agency awards. The online awards submission tool will streamline the management and tracking of all award requests and ensure that award documentation is retained.
Target completion date: October 1, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management provides evidence of the standardized template and implementation of the award submission tool.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 5 Recommendation 2.1:
Develop a formal process to prevent the duplication of awards for the same contribution or achievement.
Agency Response Dated January 16, 2026: An online awards submission tool is being assessed for implementation for all agency awards. Part of the system assessment includes a flag or alert for duplicates. Before any award is approved and processed, offices and Human Resources (HR) personnel will check to confirm the employee has not already received recognition for the same effort and confirm the award should proceed through the approval process. In accordance with MD 10.72, an employee can receive a combination of time off and cash, however the overall value of the award in its combined form should not exceed the established thresholds.
Target completion date: October 1, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management implements the awards submission tool and establishes procedures to identify and prevent duplicate awards.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 6 Recommendation 3.1:
Establish procedures to validate the accuracy of award processing and ensure compliance with the OPM Operating Manual.
Agency Response Dated January 16, 2026: OCHCO will update current standard operating procedures (SOP) for processing awards to ensure alignment with the OPM Operating Manual, The Guide to Processing Personnel Actions, and reiterate guidance on eligibility criteria, award tiers, approvals, and documentation requirements. OCHCO will provide training to all personnel involved in award processing on OPMs Guide and internal procedures.
Target completion date: March 31, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management provides the updated procedures and completion of training.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 7 Recommendation 4.1:
Implement reconciliation and validation procedures for any office not using the performance award tool to prevent duplicate awards or overlapping appraisal periods.
Agency Response Dated January 16, 2026: Effective immediately, OCHCO will require each office to submit a standardized award log for all performance awards (template or spreadsheet for all offices to report awards).
Upon implementation, the online awards submission tool will provide the capability to run reports to flag duplicate entries. Managers and HR personnel will be required to compare review submissions against validation reports before processing new awards.
Target completion date: October 1, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management implements the standardized award log and establishes procedures to identify and prevent duplicate awards.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 8 Recommendation 5.1:
Provide guidance for prorating awards based on an employees work schedule and duration of employment during the appraisal period.
Agency Response Dated January 16, 2026: OCHCO will establish award eligibility thresholds for different durations of employment (part-time) during the appraisal period and prorate the award accordingly. OCHCO will provide management sample calculations demonstrating how awards are prorated based on work schedule and employment duration.
Target completion date: October 1, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management provides the established award eligibility thresholds and related guidance.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 9 Recommendation 5.2:
Implement validation controls within the performance award tool to ensure that cash awards fall within the policy-defined limits for each performance rating.
Agency Response Dated January 16, 2026: OCHCO will configure the online awards submission tool to flag entries that exceed or fall below the defined limits (exceptions approved by the EDO). The tool will include automatic calculations for award proration based on employment duration or work schedules. OCHCO will train managers and HR personnel on eligibility thresholds and validation rules. OCHCO will periodically review the system configuration to ensure it reflects policy updates or changes in award ranges.
Target completion date: October 1, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management implements the performance award validation controls.
Status:
Open: Resolved
Audit Report AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS AWARDS AND RECOGNITION PROGRAM Status of Recommendations (OIG-NRC-25-A-12) 10 Recommendation 6.1:
Track time-off awards to maintain compliance with the leave-year limit and monitor their impact on productivity.
Agency Response Dated January 16, 2026: The awards submission tool will include both monetary and non-monetary awards within its use scope. Before any award is approved and processed, offices and HR personnel will check the database to confirm the employee has not exceeded agency policy limits for time-off awards and confirm the award should proceed through the approval process in accordance with MD 10.72. OCHCO will train managers and HR personnel on tracking procedures, leave-year limits, and compliance requirements.
Target completion date: March 31, 2026 OIG Analysis:
OCHCOs proposed actions will address the recommendation. The recommendation will remain open until management implements the award limit validation procedures.
Status:
Open: Resolved