The Department of Energy inspector general has “potential concerns” about agency oversight of $500,000 in grant money awarded to a regional group that promotes economic development around the Los Alamos National Laboratory in New Mexico.
That is the assessment offered in a July 2 memorandum from Deputy Inspector General Michelle Anderson to DOE Undersecretary for Science Paul Dabbar on financial issues connected with the Regional Coalition of LANL Communities (RCLC).
“A separate inspection is in process to assess the use of grant funds by RCLC,” Anderson said in the memo made public Monday. The document did not offer details on DOE oversight concerns.
On Sept. 30, 2015, DOE’s Environmental Management Consolidated Business Center awarded the RCLC a five-year, $500,000 grant to “promote environmental protection, economic development, and regional planning,” according to the IG. The money also allowed the organization to study the impact of state and federal legislative and policy changes on its members.
The coalition is comprised of nine local government and tribal officials from areas around the DOE national laboratory. It typically gets half of its $200,000 annual budget from local members, with the rest coming from DOE.
The RCLC faces scrutiny over its travel reimbursement policy and record-keeping under former executive director Andrea Romero, who is now a state representative in New Mexico. The RCLC board did not renew her contract in February 2018 after she led the group for four years.
An August 2018 report from the New Mexico Office of the State Auditor criticized the RCLC and Romero over about $2,600 in reimbursements the executive director received for expensive meals, alcoholic beverages, and tickets to a Washington Nationals baseball game.
The New Mexico Attorney General’s Office says it continues to review RCLC for any potential criminal violations. An attorney general spokesperson did not comment on status of the investigation by press time.
Romero repaid the disputed travel expenses, although she said everything was approved in advance by the RCLC board.
Questions have also been raised as to whether any DOE grant money was improperly used for lobbying. The Albuquerque Journal reported last month the department’s grand funding has been suspended until the inspector general review is complete.
On Monday, current RCLC Executive Director Eric Vasquez said the suspension affects the final year of the five-year grant, but he feels confident the coalition will again receive DOE funding once the probes are complete.
“We believe we are in a good place” in the relationship with the agency’s Office of Environmental Management, Vasquez said by phone.
In the memo, Anderson said the inspector general found no evidence Energy Department employees improperly took gifts from RCLC.
The IG launched its probe in response to a hotline complaint alleging Energy Department employees violated gift rules. The review said, while a couple employees acknowledged accepting a meal at an RCLC event, it was valued at less than $20. Another federal employee repaid Romero for the cost of the meal in cash.
The meals did not violate rule on gift restrictions to federal employees, according to the IG.
RCLC Works to Get Fiscal House in Order
In a June 24 public meeting in Española, NM Vasquez outlined steps taken over the past year to address fiscal concerns raised in an August 2018 report from the state auditor.
The RCLC board has adopted controls that meet or exceed the state auditor’s recommendations, Vasquez said in the presentation. These include additional layers of review for travel and other expenditures, an expanded role for a third-party accountant, and plans to retain legal counsel.
Organization policy now prohibits staff from buying gifts, meals, or entertainment for federal employees. The coalition has also opened a separate bank account for its Energy Department grant funding that cannot be used for lobbying or advocacy efforts.
The RCLC promotes funding for nuclear cleanup and National Nuclear Security Administration (NNSA) operations at LANL, as well as regional economic opportunities connected to the lab.
Vasquez, who became executive director in August 2018, is directly employed by CPLC New Mexico, which is responsible for his travel expenses. The regional coalition contracts with CPLC for executive director services.
