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 9 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1.1	Yes	$0	$0
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
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
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
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
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
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
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.
4.1	Yes	$0	$0
The OIG recommends that the Executive Director for Operations develop a method within existing agency resources to optimize public access, in compliance with all relevant laws and policies, to the results of research funded by NRC grants.
5.1	Yes	$0	$0
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.