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NSF Accused of Misuse of Funds In Giant Ecological Project

An anonymous reader writes: The National Science Foundation (NSF) and a contractor have been accused by both an audit and by Congress of a significant misuse of funds in a major ecological monitoring project costing almost a half a billion dollars. From the article: "With a construction budget of $433.7 million, NEON is planned to consist of 106 sites across the United States. Arrays of sensors at each site will monitor climate change and human impacts for 30 years, building an unprecedented continental-scale data set. Although some initially doubted its merits, the allure of big-data ecology eventually won over most scientists.

But a 2011 audit of the project's proposed construction budget stalled three times when, according to the independent Defense Contract Audit Agency, NEON's accounting proved so poor that the review could not be completed. Eventually, DCAA issued an adverse ruling, concluding that nearly 36% of NEON's budget proposal was questionable or undocumented.

When the NSF green-lit the project, the agency's inspector-general ordered the audit released on 24 November, which found unallowable expenses including a $25,000 winter holiday party, $11,000 to provide coffee for employees, $3,000 for board-of-directors dinners that included alcohol, $3,000 for t-shirts and other clothes, $83,000 for "business development" and $112,000 for lobbying."

20 of 116 comments (clear)

  1. Loss of context and common sense by gweihir · · Score: 5, Insightful

    In a project worth half a billion, all the cited "unallowable" expenses are utterly and completely meaningless. Somebody has lost all perspective and all reason and is playing politics here.

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    1. Re:Loss of context and common sense by radarskiy · · Score: 4, Informative

      My department gets $25 per head for a *quarterly* event, and we have about 1,000 people.

    2. Re:Loss of context and common sense by Rei · · Score: 5, Insightful

      Yeah, compared to the size of this project, these costs don't seem disproportional at all.

      Let's say that salaries + equipment + overhead amounts to 100k per employee per year, and let's estimate that around 1/3rd of the budget, say $150m, was spent in the audit year. Then there'd be around 1500 employees. Thus we have a per-head cost of:

      Winter holiday party: $17
      Coffee: $7
      Shirts and other clothes: $2

      For a project of that scale, whatever business development covers, 83k is chump change and I wouldn't be surprised if the expenses are reasonable. $3k on board of directors dinners sounds abnormally *low*, so kudos to them for keeping the costs down. The only one that sounds off is lobbying - but then again, that's a tiny fraction of what a company that size would probably spend on lobbying, and I don't know what they classify as "lobbying".

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    3. Re:Loss of context and common sense by Sarten-X · · Score: 2

      (With the exception the lobbying, i can not think of an excuse for it in a data collection operation)

      You're not thinking very hard.

      "Gee, Mr. Mayor, it's really a shame that particular legislation is going to disrupt our construction. That means even more delays bringing in those new jobs and that economic boost we've been working towards. You know, with just a few small changes, that law wouldn't affect us. When's a good time to talk about that? Booked all week, huh? How about Saturday? Over a game of golf and a nice dinner? Fantastic! Glad that will work out. I'll see you then..."

      --
      You do not have a moral or legal right to do absolutely anything you want.
  2. Republican business as usual... by mspohr · · Score: 5, Insightful

    This is just the usual Republican FUD trying to kill something that might give us some actual numbers about climate change.
    Among the bombshells:
    - $11,000 for coffee for a $433 Million project... OMG!
    - $3,000 for t-shirts... oh, the corruption! what is the world coming to???

    Really... is this the best they can come up with???

    After the hearing, DCAA director Bales said she was not impressed by the scale of the alleged misconduct. “In the contract world, we do a lot of reports that disallow this kind of thing. So, you know, people do it,” she said. “But then we identify it.”

    Also significant was that the project managers were not invited to the hearing, thus insuring that this would be a true kangaroo court.

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    1. Re:Republican business as usual... by PPalmgren · · Score: 3, Interesting

      Our company pays for employee coffee. We have coffee machines in every breakroom with coffee and cream and sugar available. It has been found to increase productivity and reduce the number of coffee breaks that employees take. $11,000 for coffee seems awfully low, honestly.

    2. Re:Republican business as usual... by phantomfive · · Score: 5, Interesting

      Really... is this the best they can come up with???

      Wow, at least read the summary, quote:

      [the auditor] DCAA issued an adverse ruling, concluding that nearly 36% of NEON's budget proposal was questionable or undocumented

      You somehow ignored the problem of 36% and somehow focused on $11,000. You should think long and hard about how that happened, because a cognitive bias like that can cause serious problems in the future.

      One thing that can help is, when you see an article, if you agree with it, focus on trying to find problems with it. If you disagree with it, focus on things that might be true in the article. Taking the role of an adversary is a technique to help you see more clearly (and you really need help, and I'm saying that based on everything you missed in the summary).

      --
      "First they came for the slanderers and i said nothing."
    3. Re:Republican business as usual... by mspohr · · Score: 3, Informative

      The complete paragraph is:
      "But a 2011 audit of the project’s proposed construction budget stalled three times when, according to the independent Defense Contract Audit Agency (DCAA), NEON’s accounting proved so poor that the review could not be completed. Eventually, DCAA issued an adverse ruling, concluding that nearly 36% of NEON’s budget proposal was questionable or undocumented."

      They had poor accounting. They have not been given a chance to explain or improve their accounting. This is a lot different than fraud. My cognitive bias is against the Republican climate deniers. If the worst thing they can come up with is coffee and t-shirts, this is just theater.

      --
      I don't read your sig. Why are you reading mine?
    4. Re:Republican business as usual... by phantomfive · · Score: 2

      They had poor accounting. They have not been given a chance to explain or improve their accounting

      If you have poor accounting on a $200 million budget...........

      --
      "First they came for the slanderers and i said nothing."
    5. Re:Republican business as usual... by wbr1 · · Score: 2

      Questionable or untraceable != wasteful. It is anloos way of making things sou d worse than they likely are. Specific numbers are much less. Let's throw the FUD around boys.

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      Silence is a state of mime.
  3. Politics, plain and simple by wbr1 · · Score: 2

    I wonder how this stacks up against waste in huge projects at Boeing or blackwater? The waste is bad but no surprise and seems to be a very small percentage. I wonder how much pressure to generate bad press has been applied by vested interests who do not want data like that made available?

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    Silence is a state of mime.
    1. Re:Politics, plain and simple by damn_registrars · · Score: 4, Insightful

      There is more at play here than just people afraid of actual scientific data ever being generated in regards to climate change. Remember that most of the GOP is strongly anti-science in virtually every aspect - and even more so when it is science funded by the federal government. The GOP will be spending untold millions the next couple years to try to uncover loose change like this to try to slow down science as much as possible. This first hearing alone likely cost the taxpayer more than the total sum of the wasteful spending.

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  4. Agreed, this is not news by tomhath · · Score: 5, Insightful

    These are normal things a company would spend it's own money on. They shouldn't be charging it back to the government.

    That said, I have to question why the /. editors think this is newsworthy. I suppose they want to keep stirring the Republican anti-science pot to generate page hits.

    1. Re:Agreed, this is not news by Hussman32 · · Score: 2

      You can serve wine and beer at conferences as long as it is in reasonable (i.e. a drink or two per attendee), it's not against the law (just look at the White House Correspondents Dinner).

      Personally, I don't expense alcohol, if I have a beer, I pay for it myself. Too many instances lately of click-hungry journalists looking for corruption, and they'll look back as far as they can go.

      --
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  5. Question is, were they spending NSF money? by slagell · · Score: 5, Interesting

    Every University, business and organization that receives grants has overhead rates. These vary from reasonable to ridiculous based on the organization.

    These overhead funds then typically go into a larger, not grant specific, fund that is fungible. The spending out of that fund is then restricted not by grant guidelines, but by the general rules of the institution. Usually that is still somewhat restricted at a University, for example, that usually won't allow alcohol. However, businesses receiving grants generally have fewer restrictions.

    If you want to look at how overhead is used out of those general funds, I'm certain you will find this at any recipient organization. I am in fact surprised this is all they found. The fact that they are only looking at NSF and focusing on politically controversial topics for their specific party is very suspect. Should we start looking at how defense contractors spend all of their overhead for DARPA awards? Would they even share that information like NEON did?

  6. Re:Just the US by Hognoxious · · Score: 2

    Silly me. I thought that temperature measurements in just one country were "weather" not "climate"

    100% correct.

    About being silly.

    The difference between weather and climate is temporal, not spatial.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  7. Re:Tracking spending is not easy by PPH · · Score: 2

    Making sure that all the billing goes through correctly is not trivial.

    No. But it has been done (successfully) by numerous entities in the past. Everything from suppliers who handle gov't, DoD and commercial contracts simultaneously to law offices who have to allocate billable hours to the proper clients, there are well established processes out there. And off the shelf accounting s/w.

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    Have gnu, will travel.
  8. Nothing of value by PopeRatzo · · Score: 5, Insightful

    So, a Texas Republican who is a climate change and evolution skeptic that's been put in charge of the House Committee on Science, Space and Technology, has a problem with an ecological project by the NSF. I'm shocked.

    You might want to look at this Science article for a little clarification.

    http://news.sciencemag.org/pol...

    Meanwhile, the defense budget...

    --
    You are welcome on my lawn.
  9. Re:Sensors can't monitor climate change by Idarubicin · · Score: 5, Insightful

    Sensors can monitor only weather. They can monitor neither climate nor change. Both must be calculated from series of data points.

    That's sort of like saying you can't measure the area of a room using a tape measure,. After all, you have to perform a calculation based on the measurements you collect; the tape measure doesn't have an "area" reading. By one sufficiently pedantic, narrow, arrogant, obnoxious measure, you could argue that you were correct--and you probably would get punched by a lot of tradespeople who recognized you were just being an insufferable prick instead of making a useful contribution.

    The sensors - or the tape measure - are necessary tools for the process, even though they don't directly output the final processed result.

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    ~Idarubicin
  10. Re:Denial much ? by PopeRatzo · · Score: 2

    It's pretty hard to take climate change alarmists seriously when y'all

    Who are you talking to? Do you have some internal argument going on in your head?

    We're talking about a guy, a congressman with actual power, who chairs the House Science & Technology Committee, who believes the earth is 6000 years old, that someone named "Adam & Eve" were the first humans (one of which was fashioned out of the other's spare rib). And who then flips out over an ecology project that costs less than 1/2 that of a single failed fighter/bomber (one that's built in his district by the way). Oh, and that fighter/bomber? It'll never be used and the military says they don't want or need it. He does this of course, after taking shitloads of money from the defense industry.

    Now THAT'S integrity.

    He's crying about waste in government, while he works exactly 70 four-hour days, drawing a taxpayer-funded salary of $174,000, not to mention a full pension for life, all his expenses paid (a household in DC for those 70 days) and one at home, health care for life and even free postage he can use to write letters asking his constituents for more money.

    It's hard to take rightwing, science-hating Bible-humpers seriously when y'all defend such an obvious fraud, not to mention an obvious shitlord who believes governing is basically the publicly-funded version of gamergate. Oh, by the way this fraud supported no less than nine separate House inquiries into Benghazi, even after the first eight found no wrongdoing. Each one of those investigations had a multi-million dollar pricetag.

    So you can just walk that climate change denying ass right out of here with that bullshit, parson. Your ass is showing.

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    You are welcome on my lawn.