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Contractors managing the Oak Ridge National Lab know how to liven up even the dullest scientific conference — spend lots on money food and alcohol.
A new Energy Department Inspector General report shows that UT-Battelle, the contractor running the Oak Ridge lab, overspent on food and venues for conferences between 2005 and 2007. It also misspent funds on prohibited items, such as alcohol, cigars, entertainment and gifts for the events, the IG found.
At a four-day conference on advanced computing last year, the contractors spent $236,000 on food to feed 300 people and then billed the government for the expense. Battelle told auditors it has no written policies regarding conference meal costs and applied the government’s $61 a day meal rate to each meal served at the conference. The result: Battelle spent four times as much as it was allowed under federal rules.
For all conferences held between 2005 and 2007, the company overspent by $600,000 on meals alone, the IG said.
Battelle also misspent conference registration fees from non-government attendees for a linear accelerator conference on a $27,000 social event at a yacht club. It also misspent $13,700 on alcohol and food for the conference and another $650 on cigars and wine for gifts. The inappropriate use of the money could have driven up the government’s contribution to covering the conference’s allowable costs, auditors said.
At no time between 2005 and 2007 did Battelle or other lab managers at Oak Ridge seek the department’s approval to hold the events, in violation of the department’s regulations. Approvals could have helped ensure the conference locations and costs were appropriate, the report said.
Batelle told the auditors it will stop using registration fees to pay unallowable costs and would seek approvals for future conferences.
Auditors recommended Energy recover all unallowable costs associated with Battelle-managed conferences.
Oak Ridge falls under Energy’s Office of Science. The Office of Science held more than 900 conferences, symposia, workshops and meetings between 2005 and 2007, spending more than $38 million to share ideas and results between federal, academic and industry scientists and researchers.
The IG reviewed two other labs under the audit. It found no problems at the Argonne National Laboratory and only minor problems at the Thomas Jefferson National Accelerator Facility.
A new Energy Department Inspector General report shows that UT-Battelle, the contractor running the Oak Ridge lab, overspent on food and venues for conferences between 2005 and 2007. It also misspent funds on prohibited items, such as alcohol, cigars, entertainment and gifts for the events, the IG found.
At a four-day conference on advanced computing last year, the contractors spent $236,000 on food to feed 300 people and then billed the government for the expense. Battelle told auditors it has no written policies regarding conference meal costs and applied the government’s $61 a day meal rate to each meal served at the conference. The result: Battelle spent four times as much as it was allowed under federal rules.
For all conferences held between 2005 and 2007, the company overspent by $600,000 on meals alone, the IG said.
Battelle also misspent conference registration fees from non-government attendees for a linear accelerator conference on a $27,000 social event at a yacht club. It also misspent $13,700 on alcohol and food for the conference and another $650 on cigars and wine for gifts. The inappropriate use of the money could have driven up the government’s contribution to covering the conference’s allowable costs, auditors said.
At no time between 2005 and 2007 did Battelle or other lab managers at Oak Ridge seek the department’s approval to hold the events, in violation of the department’s regulations. Approvals could have helped ensure the conference locations and costs were appropriate, the report said.
Batelle told the auditors it will stop using registration fees to pay unallowable costs and would seek approvals for future conferences.
Auditors recommended Energy recover all unallowable costs associated with Battelle-managed conferences.
Oak Ridge falls under Energy’s Office of Science. The Office of Science held more than 900 conferences, symposia, workshops and meetings between 2005 and 2007, spending more than $38 million to share ideas and results between federal, academic and industry scientists and researchers.
The IG reviewed two other labs under the audit. It found no problems at the Argonne National Laboratory and only minor problems at the Thomas Jefferson National Accelerator Facility.
