July 22, 2015

IG: DOE Allowed SRS Contractor to Improperly Distribute Money

By ExchangeMonitor

A Department of Energy office incorrectly allowed the managing contractor at the Savannah River Site to reallocate funds from one cleanup project to three others in violation of federal directives on use of the money, according to a DOE Inspector General’s report released on Wednesday. The report also found that contractor Savannah River Nuclear Solutions (SRNS) used about $155,000 in American Recovery and Reinvestment Act funds for entertainment and other “questionable costs.”

The report focuses on $17.8 million that was reallocated within the broader $1.4 billion directed to remediation work at the DOE nuclear reservation through the 2009 legislation intended to boost the U.S. economy. DOE and SRNS failed to follow Office of Management and Budget restrictions on use of the money, the IG found. “Failure to manage Recovery Act projects in accordance with funds control requirements resulted in the [DOE Savannah River] Operations Office allowing SRNS to perform work when there were insufficient project funds available,” the report states.

The DOE Office of Environmental Management disputed the finding that SRNS had breached OMB fund control restrictions in carrying out the Recovery Act-funded projects.

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