A University of California internal audit claims to have
resolved the majority of questionable national laboratory credit
card transactions at the UC-run facility in Los Alamos.
Out of $4.9 million in purchases reviewed, only $195,246 was
found illegitimate under the UC’s contract to manage the lab
for the U.S. Department of Energy.
UC officials could not determine whether these purchases were
illegal or just a case of missing documents.
Starting in November, reports surfaced describing missing lab
equipment and employees allegedly buying cars and barbeque
equipment with lab funds.
There are five federal investigations about the claims along
with allegations of a cover-up about the firing of two
whistle-blowers, who were later rehired.
This could cause the university to lose its contract to run the
lab, a contract it has held since World War II.
The UC only reviewed purchases that an outside audit led by
former DOE Inspector General John Laydon deemed questionable. A
majority of purchase card transactions were not sent to the
university for review.
Other types of lab transactions such as local vendor purchases
were not covered by this audit.
The university is currently reviewing these purchases as well as
claims of lost inventory, according to Bruce Darling, UC interim
vice president of laboratory management.
Meanwhile, the UC audit recommends repaying the federal
government for the nearly $200,000 in questionable purchases.
“The lab will determine the ultimate amount of
questionable costs and pay that amount back,” said UC auditor
Patrick Reed.
The DOE’s Office of Inspector General, which had
investigated improper purchases among various allegations, declined
to comment on the university’s findings.
Pete Nanos, interim director of Los Alamos, said the report
helps lab officials understand what is going on and improve on
their security practices.
“It’s never pleasant to be subject to be this kind
of audit, but I’m very pleased to see the level of
questionable purchases is down to a very low level,” Nanos
said.
He said he hasn’t seen definite evidence of more than
$3,000 of fraud, but that he’s not satisfied with that some
issues have remained unresolved.
Most of the purchases considered suspect by the university
““ totaling $147,263 ““ lacked full documentation. This
prevented the university from determining if the purchases were
valid.
Only $47,983 of the purchases had full documentation and were
still found invalid under the university’s contract with the
DOE.
The audit also described how lab officials exceeded their award
budget by $125,000. Lab and UC officials are still discussing who
should repay that money to the government.
It also recommended reducing the number of purchase cards in use
at the lab.