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

Report Information

Date Issued
Report Number
OIG-NRC-25-A-08
Report Type
Audit
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. 
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$1241000
View report on Oversight.gov

Recommendations

The OIG recommends that the Executive Director for Operations update Management Directive 11.6 to ensure roles and responsibilities are clearly defined.

Agency Response Dated January 29, 2026: The Nuclear Regulatory Commission (NRC) issued interim guidance YA-26-0011 on January 23, 2026, to implement updates to Management Directive 11.6 to ensure roles and responsibilities are clearly defined and properly delegated. The update clarifies authorities for grants management communications and actions, requires a written delegation when a staff member acts as a Grants Officer Representative (GOR), and ensures the official grant file contains the applicable delegation.<br />
OIG Analysis: The OIG reviewed interim guidance YA-26-0011 and determined that it met the intent of the recommendation. This recommendation is closed.<br />
<br />
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<br />
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<br />
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.

Agency Response Dated January 29, 2026: The NRC issued interim guidance YA-26-0011 on January 23, 2026, to implement updates to Management Directive 11.6 and clarify the role and authority of the Grant Program Manager and other certified grant program staff, establish the role of the GOR and require written delegation of authority, specify the scope of recipient-facing actions, and define the responsibilities for the Grants Officer (GO), including the ability to delegate limited duties to the Grant Program Manager (PM), GOR, and other certified grant program staff.<br />
OIG Analysis: The OIG reviewed interim guidance YA-26-0011 and determined that it met the intent of the recommendation. This recommendation is closed.<br />
<br />
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<br />
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 relevant training and a plan to ensure grant staff know their roles and responsibilities.

Agency Response Dated January 29, 2026: RES offered a training session to GOs, GORs, and their branch chiefs on December 2, 2025, to review the University Nuclear Leadership Program (UNLP) grant program and GOR responsibilities under the program. The GORs received a guide providing detailed information about the program and explaining their responsibilities. To meet the intent of this recommendation, the Office of Nuclear Regulatory Research (RES) will host this training each year. <br />
OIG Analysis: The OIG reviewed the training provided and determined that it met the intent of the recommendation. This<br />
recommendation is closed. <br />
<br />
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<br />
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 a process to ensure the timely deobligation of funds for grants past their period of performance.

Agency Response Dated January 29, 2026: A process is currently in place for executing closeouts and deobligation of funds for all NRC grants. The Office of Administration (ADM) and RES grants staff held a training session on December 9, 2025, to review the current process and ensure timely closeouts and deobligation of funds. The yearly GOR training now includes a section reviewing closeout procedures and expectations. The process aligns with the Uniform Guidance at Title 2 of the Code of Federal Regulations (2 CFR) 200.343, “Effects of suspension and termination,” which requires grantees to submit final reports and liquidate obligations within 120 calendar days after the period of performance. NRC guidance specifies that the closeout process for the agency begins after the grantee’s 120-day period has passed. The NRC is expected to complete the full closeout no later than 1 year after receiving all required final reports.<br />
OIG Analysis: The OIG determined that the actions taken met the intent of the recommendation. This recommendation is closed.<br />
<br />
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.<br />
Target Completion Date: December 31, 2025<br />
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 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.

Agency Response Dated January 29, 2026: The 11 expired Research and Development grant awards identified in the audit have been formally closed. A total of $320,668.61 in unspent funds has been successfully deobligated.<br />
OIG Analysis: The OIG confirmed the research and development grant awards identified in the audit have been formally closed and funds deobligated. This recommendation is closed.<br />
<br />
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&amp;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<br />
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<br />
resolved.