The Environmental Protection Agency (EPA) Inspector General recommends that the agency should recoup $9 million in Recovery funds from Cascade Sierra Solutions and that EPA should consider suspending/debarring the organization from doing business with the federal government. The nonprofit had been awarded a Recovery grant intended to support emission reductions of diesel truck engines.
In a report issued September 4, the EPA IG stated that costs claimed by Cascade Sierra Solutions (CSS), based in Eugene, Oregon, were not “reasonable, allocable, and allowable” per the terms and conditions of the Recovery grant. For example, the IG found that CSS’ financial management system pertaining to cash draws, revolving fund accounting, project costs, and progress reporting failed to meet federal requirements, and that procurements did not meet federal competition or cost/price analysis requirements.
In a written response to the report, EPA said it had “initiated corrective actions to address some of the weaknesses identified…. The agency has placed CSS on reimbursement status for the active assistance agreements to restrict access to available federal funds.”
EPA also issued a stop-work order “until CSS can demonstrate that their financial system can effectively record and report the source and application of funds associated with the grant project.”
While disagreeing with some of the IG’s findings, CSS “planned to document compliance with EPA procurement regulations,” the IG report said.
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