ML25231A041

OIG-NRC-25-A-08- Status of Recommendations: Audit of the U.S. Nuclear Regulatory Commission’S Management and Oversight of Research and Development Grants, Dated, August 18, 2025

ML25231A041
Person / Time
Issue date:	08/18/2025
From:	Virkar H NRC/OIG/AIGA
To:	Mark King NRC/EDO
References
OIG-NRC-25-A-08
Download: ML25231A041 (1)

Text

NRC Headquarters l 11555 Rockville Pike l Rockville, Maryland 20852 l 301.415.5930 nrcoig.oversight.gov MEMORANDUM DATE:

August 18, 2025 TO:

Michael F. King Acting 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 MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS (OIG-NRC-25-A-08)

REFERENCE:

EXECUTIVE DIRECTOR FOR OPERATIONS, OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS MEMORANDUM DATED JULY 17, 2025 Attached is the Office of the Inspector Generals (OIG) analysis and status of recommendations as discussed in the agencys response dated July 17, 2025. Based on this response, recommendation 4.1 is now closed. Recommendations 1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 3.1, and 5.1 remain open and resolved. Please provide an updated status of the open, resolved recommendations by January 30, 2026.

If you have any questions or concerns, please call me at 301.415.1982 or Paul Rades, Team Leader, at 301.415.6228.

Attachment:

As stated cc: J. Martin ADO D. Lewis, DADO E. Deeds, OEDO OIG Liaison Resource EDO ACS Distribution

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 2 Recommendation 1.1:

Update Management Directive 11.6 to ensure roles and responsibilities are clearly defined.

Agency Response Dated July 17, 2025:

The U.S. Nuclear Regulatory Commission (NRC) staff agrees with this recommendation. The Office of Administration (ADM) will update Management Directive 11.6, Financial Assistance Program, dated July 28, 2017, to ensure roles and responsibilities are clearly defined.

Target Completion Date: October 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation upon review of the updated and implemented Directive 11.6, Financial Assistance Program. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 3 Recommendation 1.2:

Develop procedures to ensure all current NRC staff performing grant related functions have appropriate authority or delegation letters that fully cover their grant roles and responsibilities.

Agency Response Dated July 17, 2025:

The NRC staff agrees with this recommendation. ADM will update internal procedures to ensure all NRC staff performing grant-related functions have appropriate authority or delegation letters that fully cover their grant roles and responsibilities.

Target Completion Date: December 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation upon review of the updated internal procedures. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 4 Recommendation 2.1:

Develop relevant training and a plan to ensure grant staff know their roles and responsibilities.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. The Office of Nuclear Regulatory Research (RES) will provide yearly internal refresher training, along with the mandatory 2-year refresher grant certification training, to assist all grants officer requirements with their representatives.

Target Completion Date: December 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation after verifying that the training has been implemented. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 5 Recommendation 2.2:

Develop a process to ensure the timely deobligation of funds for grants past their period of performance.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. There is a current process in place for executing closeouts and deobligating funds. ADM and RES will provide training on the process for closeout of grants, including required timelines for action that will help to ensure timely closeout of grants and deobligation of funds.

Target Completion Date: December 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation after verifying the implemented training. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 6 Recommendation 2.3:

Validate the completeness of grant files past their period of performance and deobligate the more than $321,000 in funds specified in this report or provide documentation to the OIG to justify not deobligating these funds.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. From the list provided by OIG, RES has validated the completeness of all 11 research and development (R&D) grant files past their period of performance totaling $321,000. As of July 2, 2025, ADM has closed six of the eleven expired awards, totaling

$320,668.61 in deobligated funds. RES has submitted a request to ADM to close out an additional grant award, which will deobligate $1.10. The remaining four awards from the list are with RES, staff are actively working with the grantees to resolve outstanding issues so requests for closeout can be submitted to ADM. The total remaining deobligation amount for these four grants is $624.91.

Appendix 1 contains a detailed breakout and status of the grant award closeouts.

Target Completion Date: October 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation after verifying that the remaining four awards were deobligated. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 7 Recommendation 2.4:

Validate the completeness of grant files past their period of performance and deobligate the more than $920,000 in funds specified in this report or provide documentation to the OIG to justify not deobligating these funds.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. From the list provided by OIG, RES has validated the completeness of all 43 education grant files past their period of performance totaling $920,000. As of July 2, 2025, ADM has closed thirty-nine of the forty-three expired awards, totaling

$756,819.80 in deobligated funds. RES has submitted requests to ADM to close out an additional two grant awards, which will deobligate $2,588.55. The remaining two awards from the list are with RES, staff are actively working with the grantees to resolve outstanding issues so requests for closeout can be submitted to ADM. The total remaining deobligation amount for these two awards is $160,760.12. contains a detailed breakout and status of the grant award closeouts.

Target Completion Date: October 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation after verifying the deobligation of the remaining open awards. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 8 Recommendation 3.1:

Implement a policy that requires periodic reviews to ensure compliance with 2 CFR Part 200 requirements related to the allowability of costs.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. The NRC will develop and implement a process requiring grantees to submit supporting documentationsuch as receipts, invoices, or purchase recordsfor actual purchases of supplies and equipment.

In accordance with 2 CFR 200.1, Definitions, the NRC will establish a mandatory documentation threshold of $10,000 for equipment purchases. Additionally, the agency will set a separate threshold of $5,000 for mandatory documentation of supply purchases. The NRC will develop and implement internal desk procedures to formalize this process.

Target Completion Date: December 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation after reviewing the new internal procedures and verifying that they address compliance with 2 C.F.R. Part 200 requirements pertaining to allowability of costs. This recommendation remains open and resolved.

Status:

Open: Resolved

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 9 Recommendation 4.1:

Develop a method within existing agency resources to optimize public access to the results of research funded by NRC grants.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. The NRC grant staff has developed and implemented a standardized process to capture all publications resulting from research grants and upload them to the Agencywide Documents Access and Management System (ADAMS) as public documents. As part of the Research and Development (R&D) grant closeout procedure, the RES grant staff will now prepare a summary document listing all publications cited in the final report for each award. This document will serve as a publicly accessible record of the research outputs generated under each grant. As of April 8, 2025, all 11 R&D awards currently undergoing closeout have been updated accordingly. The associated publication summaries have been uploaded to ADAMS and are also available on the NRC grants public website, https://www.nrc.gov/aboutnrc/grants/awards/index.html, under the corresponding Notice of Funding Opportunity year. RES grant staff will apply this process to all future R&D awards.

Target Completion Date: Completed April 8, 2025 OIG Analysis:

The OIG reviewed and verified that research summaries and a list of final publications are available in the Agencywide Documents Access and Management System (ADAMS), and on the NRC grants public website for the closed research grants noted above. This recommendation is now closed.

Status:

Closed

AUDIT OF THE U.S. NUCLEAR REGULATORY COMMISSIONS MANAGEMENT AND OVERSIGHT OF RESEARCH AND DEVELOPMENT GRANTS STATUS OF RECOMMENDATIONS (OIG-NRC-25-A-08) 10 Recommendation 5.1:

Train the Office of Small Business and Civil Rights (SBCR) staff to ensure they are aware of the communication and documentation requirements related to grant periodic reviews.

Agency Response July 17, 2025:

The NRC staff agrees with this recommendation. SBCR will provide training to all SBCR staff involved in grant management that emphasizes requirements associated with communication and documentation for periodic grant reviews.

Target Completion Date: December 31, 2025 OIG Analysis:

The NRCs planned actions meet the intent of the recommendation. The OIG will close the recommendation upon review of training completion records. This recommendation remains open and resolved.

Status:

Open: Resolved