NATIONAL SCIENCE FOUNDATION OFFICE OF INSPECTOR GENERAL OFFICE OF INVESTIGATIONS CLOSEOUT MEMORANDUM Case Number: 1-05-10-0061 I Page 1 of 1 The Office of Inspector General received two complaints, through the Government Accounting Office's FraudNet, alleging that Michigan State University (MSU) improperly charged the costs of FICA taxes for visiting foreign scholars (who were exempt from such taxes) and healthlcare benefits for MSU retirees (which were charged as fringe benefits associated with current employees) to federal awards. Coordination with MSU7sOffice of Contract and Grant Administration, MSU7sOffice of Internal Audits, and Health and Human Service's (HHS)(cognizant agency) Division of Cost Allocation, disclosed that MSU has properly charged FICA to federal awards for foreign scholars, when allowable.' Coordination with these offices also disclosed that HHS approved MSU's methodology of paying retiree health care costs on a pay as you go basis and then allocating those costs to current employees as a form of h n g e benefit cost. HHS related that this is a relatively common way of managing such costs. In light of the above, no further investigative effort is necessary in this matter. - NSF OIG Fonn 2 (1 1/02)
Published by the National Science Foundation, Office of Inspector General on 2006-04-13.
Below is a raw (and likely hideous) rendition of the original report. (PDF)