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Audit of the U.S. Nuclear Regulatory Commission’s Awards and Recognition Program

Report Information

Date Issued
Report Number
OIG-NRC-25-A-12
Report Type
Audit
Description
The Office of the Inspector General (OIG) found that the U.S. Nuclear Regulatory Commission (NRC) generally administered performance awards effectively; however, the OIG identified deficiencies in administering special act awards that require improvement. Specifically, the NRC granted special act awards frequently, often without sufficient justification, raising concerns about compliance with the policy criteria intended to recognize exceptional or superior achievements or contributions. In some cases, award justifications appeared to be duplicated, and some awards were miscoded in employee records, further highlighting weaknesses in award processing and documentation practices.The NRC can improve the accuracy and consistency of its performance award determinations. The issues identified by the OIG included overlapping appraisal periods and failure to prorate awards for some part-time employees, resulting in noncompliance with award limits. In addition, time off was granted in excess of the NRC policy limits, underscoring the need to enhance oversight of time-off awards to prevent future occurrences.The report makes nine recommendations to strengthen the documentation, justification, and oversight of awards to ensure compliance with applicable rules and agency policy.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

The OIG recommends that the Executive Director for Operations 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<br />
achievements, improving morale, encouraging<br />
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<br />
or up to 12 hours off), Tier 2: Moderate recognition ($1,001-$3,500 or up to 24 hours off), Tier 3: High recognition ($3,501-$7,000 or up to 32 hours off), Tier 4: Exceptional recognition (above $7,000 or up to 40 hours off). Per MD<br />
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<br />
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 hours.<br />
OIG Analysis: OCHCO’s plan to establish a tiered recognition process and an annual frequency limit for special act awards will address<br />
the recommendation. The recommendation will remain open until management provides evidence of established thresholds.

The OIG recommends that the Executive Director for Operations 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<br />
with agency policy. If documentation is incomplete or insufficient, OCHCO will return the submission with feedback<br />
OIG Analysis: OCHCO’s 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.

The OIG recommends that the Executive Director for Operations 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 an tracking of all award requests and ensure that award documentation is retained. Target completion date: October 1, 2026<br />
OIG Analysis: OCHCO’s 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

The OIG recommends that the Executive Director for Operations 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<br />
OIG Analysis: OCHCO’s 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.

The OIG recommends that the Executive Director for Operations 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 OPM’s Guide and internal procedures.<br />
Target completion date: March 31, 2026<br />
OIG Analysis: OCHCO’s proposed actions will address the recommendation. The recommendation will remain open until management provides the updated procedures and completion of training.