Federal audit questions +$2M paid to subcontractors at Richland lab
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- DOE Office of Inspector General audit looked at PNNL’s management of certain subcontracts
- It found issues with professional and consultant services agreement
- It questioned some payments and lack of conflict-of-interest disclosures
More than $2.2 million in invoices paid to subcontractors at the Department of Energy national laboratory in Richland were questioned in a recent audit by the DOE Office of Inspector General.
It found that Pacific Northwest National Laboratory, which spends nearly $1.7 billion a year, needs to tighten its management of professional and consultant services subcontracts.
An audit found that 70 of 462 invoices from those subcontractors that were reviewed by the IG’s office did not contain details to support charges.
PNNL is required to have documentation to show each invoice was for allowable costs and the price paid.
The audit also raised questioned about why in some cases the same person requested a consultant, monitored their performance and approved payment of invoices.
That increases the risk of fraudulent subcontracts and is contrary to best practices on segregation of duties, the audit found.
The audit’s third finding was that PNNL did not always obtain conflict-of-interest disclosures from subcontracted consultants.
The national lab is required to use those disclosures to determine if there is a conflict of interest and then take appropriate action to avoid the conflict.
Part of the problem appeared to be conflicting standards on whether the requirement applies to subcontracts of $150,000 or more or just those for $250,000 or more.
“PNNL is aware of the issues,” it said in a statement about the audit. “We have already taken action on several of the recommendations and are working with DOE’s Pacific Northwest Site Office to implement the rest.”
Recommendations included making sure requirements are consistent, insuring invoices contain sufficient detail and separating duties for subcontracts.
The DOE Office of Inspector General also recommended a look at whether the $2.2 million in invoice costs should have been allowed
The Pacific Northwest Site Office — the DOE office in Richland providing oversight on the national lab — agreed with recommendations for improvement.
Suggested improvements would be completed by the end of June, other than the review of the $2.2 million. A final report on those costs will be issued in spring 2027, it said.