Audit of the U.S. Nuclear Regulatory Commission’s Management and Oversight of Research and Development Grants

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Date Issued

Tuesday, June 17, 2025

Submitting OIG

Nuclear Regulatory Commission OIG

Agencies Reviewed/Investigated

Nuclear Regulatory Commission

Report Number

OIG-NRC-25-A-08

Report Description

The audit objective was to determine if the U.S. Nuclear Regulatory Commission (NRC) is effectively managing and monitoring selected research and development grants in accordance with applicable federal requirements, agency policies and guidance, and award terms and conditions.

The OIG found that the NRC was not effectively managing or monitoring selected research and development grants. Specifically, the OIG found that staff in the Office of Nuclear Regulatory Research assumed grants officer responsibilities without a grants officer appointment or through a delegation as a grants officer representative. We also found that NRC staff did not request or review source documents to support equipment purchased using grant funds. Additionally, we found that the NRC does not have a public repository for final performance reports or other means to share the results of federally funded research grants.

The OIG further determined that the grants officer had not ensured that all relevant documents were contained in the official grant files; 11 grants were not closed out within one year of the performance end date and the NRC had not deobligated more than $321,000 in funds that could have been put to better use; and, grants awarded through the Integrated University Program (the predecessor to the University Nuclear Leadership Program) with periods of performance ending in 2021 and 2022 had more than $920,000 of funds that were not deobligated and could be put to better use. The report contains nine recommendations to improve management and monitoring of research and development grants.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

$1,241,000

Report updated under NDAA 5274

Open Recommendations

This report has 8 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use	Additional Details
1.1	Yes	$0	$0	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations update Management Directive 11.6 to ensure roles and responsibilities are clearly defined.
1.2	Yes	$0	$0	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations 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.
2.1	Yes	$0	$0	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations develop relevant training and a plan to ensure grant staff know their roles and responsibilities.
2.2	Yes	$0	$0	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations develop a process to ensure the timely deobligation of funds for grants past their period of performance.
2.3	Yes	$0	$321,000	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations 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 the funds.
2.4	Yes	$0	$920,000	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. Enclosure 2 contains a detailed breakout and status of the grant award closeouts. Target Completion Date: October 31, 2025 OIG Analysis: The NRC’s 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.
The OIG recommends that the Executive Director for Operations validate the completeness of grant files past their period of performance and deobligate the more than $920,000 specified in this report, or provide documentation to the OIG to justify not deobligating the funds.
3.1	Yes	$0	$0	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 documentation—such as receipts, invoices, or purchase records—for 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 NRC’s 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.
The OIG recommends that the Executive Director for Operations implement a policy that requires periodic reviews to ensure compliance with 2 C.F.R. Part 200 requirements related to the allowability of costs.
5.1	Yes	$0	$0	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 NRC’s 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.
The OIG recommends that the Executive Director for Operations train SBCR staff to ensure they are aware of the communication and documentation requirements related to grant periodic reviews.