Hearing to Discuss Audits of NSF Program Proves Untimely and Unproductive

(Washington, DC) –Today the Committee on Science, Space, and Technology held a hearing to discuss two audits of the National Science Foundation’s (NSF) National Ecological Observatory Network (NEON). Testifying before the Committee were the Honorable Allison Lerner, Inspector General of NSF and the Honorable Anita Bales, Director of the Defense Contract Audit Agency (DCAA).

Due to the timing the witnesses were only able to speak on preliminary observations regarding management fee policies at NSF and the Committee was unable to hear from the agency itself to provide insight into NSF operations. This poor timing prevented Committee members from conducting tangible oversight of current NSF policies.

Ranking Member Eddie Bernice Johnson (D-TX) said in her opening statement, “I have to confess that I am baffled by today’s full committee hearing. There may be legitimate policy and management issues for this Committee to consider, but this particular hearing, at this time, is in my opinion premature, incomplete, and lacks balance. Therefore it is impossible to have a full discussion on any of the legitimate oversight issues that we could examine.”

She continued, “If we had postponed this hearing until next year, as my staff urged your staff to do, we might have included NSF on this panel to present their own findings and plans with respect to management fees.”

Other Democratic Members also highlighted the need for continued oversight of NSF's policies and management practices for large facilities. However, they also raised significant concerns about the quality and reliability of DCAA audit findings for NSF projects and tried to seek more clarity about the basis for the IG's concerns and recommendations.

Ranking Member Johnson said, “I am concerned that they simply do not have sufficient staff with the expertise or experience to appropriately audit NSF’s grants and cooperative agreements. Unfortunately, problems with DCAA’s audits have caused significant and ongoing tension between the IG and NSF management for several years, and have put credible NSF awardees unnecessarily at risk. These problems also color today’s hearing.”