I' $#$$.. z NATIONAL OFFICE OF SCIENCE INSPECTOR FOUNDATION GENERAL OFFICE OF INVESTIGATIONS I' 1% /I I/ 4 CLOSEOUT MEMORANDUM ON o i' I! I/ Case Number: 1-04010002 Page 1 b f 1 1; II /I T h ~ sinvestigation was predicated upon receipt of information from an NSF contractor1that one of its subcontractors2 had reported accounting irregularities and as a result removed two employees from their positions w~ththe company. 11 NSF-OIG Aud~tawarded a contract to an Independent Public Accounting (IPA) firm to conduct an Audit I Survey and Internal Control Assessment Attestation Review of the subcontractor's billing records, (I specifically the reported accounting irregularities. The IPA firm's draft Notice of Findings confirmed earlier reports regarding the embezzlement, totaling $175,000 U.S. Dollars (USD). The IPA firm further reported that only $7,200 USD of the total loss was attributed to NSF funds. The IPA firm's report indicatedithat the embezzlement scheme, committed by the subcontractor's employees, occurred during the period January 2002-May 2003 and was uncovered when a vendor complained of receiving only partial payments.li The subcontractor responded to the complaint timely and appropriately by conducting a thorough 11 examination of various vendors related accounting records. Upon identifying the embezzlement arid determining culpability, the two employees were subsequently terminated from employment and referred to the government3authorities for prosecution. I I Both employees pled guilty to the embezzlement of funds and are pending sentencing where they are facing up to five years incarceration. All of the embezzled funds, to include the $7,200 USD of NSF funds, have been promptly restored to the appropriate accounts by the subcontractor. 11 I Accordingly, this case is closed. I /' < I' 11I/ Ii NSF OIG Form 2 (1 1/02) 11 /I
Published by the National Science Foundation, Office of Inspector General on 2006-03-14.
Below is a raw (and likely hideous) rendition of the original report. (PDF)