The Puerto Rico Department of Natural and Environmental Resources Needs to Fully Comply with Procurement Regulations When Executing NOAA Awards

Submitting OIG:

Department of Commerce OIG

Report Description:

The objectives of our audit were to determine whether the Puerto Rico Department of Natural and Environmental Resources (1) claimed allowable, allocable, and reasonable costs, and (2) met performance requirements of the grants. To address this objective, we reviewed $1,676,515.45 in claimed costs and 65 grant award performance progress reports that PRDNER submitted. Overall, we found the following: I. PRDNER claimed costs that were generally allowable, allocable, and reasonable but did not comply with internal and federal regulations. II. PRDNER continues to encounter challenges in meeting the performance requirements of operational awards.

Date Issued:

Thursday, June 20, 2024

Agency Reviewed / Investigated:

Department of Commerce

Submitting OIG-Specific Report Number:

OIG-24-028-A

Component, if applicable:

National Oceanic and Atmospheric Administration

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
OIG-24-028-SECURED.pdf	5.3 MB

Additional Details Link:

https://www.oig.doc.gov/Pages/The-Puerto-Rico-Department-of-Natural-and-Environm…

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
1. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator ensure OCM program staff document deviations from the cooperative agreement's budget and awards.
2	Open	Yes
2. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator implement a financial oversight process to ensure award recipients seek budget revision approvals for any changes to the approved budget categories.
3	Open	Yes
3. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator ensure PRDNER obtains and retains all required documentation, including (a) all procurement documentation including sole-souce justifications and award decisions from General Services Administration, (b) notifications to NOAA of costs not included in the budget, and (c) approvals from the NOAA Grants Officer, when required.
4	Open	Yes
4. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator collaborate with PRDNER, Puerto Rico's Office of Management and Budget, and the Office of the Administration and Transformation of Human Resources administrators to develop and implement a plan to hire sufficient staff, or consider subcontracting personnel, to resolve JBNERR's staffing challenges.
5	Open	Yes
5. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator consider options for a split-operations award with a supporting entity to assist JBNERR in meeting its performance requirements.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

1. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator ensure OCM program staff document deviations from the cooperative agreement's budget and awards.

Open

Yes

2. We recommend that the NOAA Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator implement a financial oversight process to ensure award recipients seek budget revision approvals for any changes to the approved budget categories.

Open

Yes