NATIONAL SCIENCE FOUNDATION
OFFICE OF INSPECTOR GENERAL
OFFICE OF INVESTIGATIONS
CLOSEOUT MEMORANDUM
11 Case Number: A03120078 Page 1 of 1
We reviewed 71 grants selected by a random sampling procedure from NSF Fiscal Year 2001
awards for conferences, workshops and symposia. As part of the review, we requested grant
records from each grantee. Where the records indicated possible issues, we opened inquiries to
resolve the issues.
In a grant that supported proposal development workshops for prospective PIS', our analysis
indicated certain cost-related issues, including participant support expenditures. We opened an
inquiry to resolve the issues and wrote to the grantee, a small non-profit organization. Our
subsequent discussions with the grantee's accountant indicated that significant participant
support funds were reallocated to other cost categories without prior written approval from NSF.
We also identified unallowable costs and credits that were not applied to the grant.
The grantee agreed with our analysis and refunded NSF for credits and a mischarge. The grantee
also provided NSF with justification for reallocation of participant support funds and requested
retroactive approval. In a strongly worded letter to the grantee, the NSF program officer approved
the request but emphasized the grantee's responsibilities to adhere to grant conditions and obtain
NSF approvals when required. Finally, the program officer asked that the grantee take certain
steps to avoid recurrence of this issue.
Because the grantee has a number of active awards involving significant participant support
funds, we have referred the matter to the Office of Audit for further review. Accordingly, this
NSF OIG Form 2 (1 1/02)
Grant Fraud
Published by the National Science Foundation, Office of Inspector General on 2004-11-02.
Below is a raw (and likely hideous) rendition of the original report. (PDF)