NATIONAL SCIENCE FOUNDATION OFFICE OF INSPECTOR GENERAL OFFICE OF INVESTIGATIONS CLOSEOUT MEMORANDUM Case Number: 109040019 Page 1 of 1 We conducted a joint investigation with the OIGs of the National Endowment for the Arts and the National Endowment for the Humanities, involving WGBH, a public broadcasting company in Boston, Massachusetts for allegedly failing to properly track or account for the expenditure of federal grant funds. Our investigation resulted in a settlement agreement requiring WGBH to reimburse the federal government over $300,000 and to enter into a five-year compliance plan. The settlement agreement, compliance plan and associated press release are attached. Accordingly, this case is closed. NSF OIG Form 2 (11102) United States Attorney Carmen M. Ortiz District of Massachusetts FOR IMMEDIATE RELEASE CONTACT: CHRISTINA DiIORIO-STERLING December 20, 2012 PHONE: (617)748-3356 WWW.USDOJ.GOV/USAO/MA E-MAIL: USAMA.MEDIA@USDOJ.GOV WGBH PAYS $300,170 TO SETTLE CLAIMS THAT ITS ACCOUNTING SYSTEMS DID NOT PROPERLY ACCOUNT FOR FEDERAL GRANT MONEY Boston - The United States announced today that it has reached a civil settlement with WGBH, under which WGBH will pay $300,170 to resolve allegations that it failed to properly track and account for federal grant monies from the National Science Foundation, the National Endowment for the Humanities, and the National Endowment for the Arts. WGBH will also enter into a five-year Compliance Agreement in order to settle the allegations against it. The United States contended that during the period from 2005 to 2008, WGBH, in violation of the terms of its grants and regulatory requirements, maintained an inadequate accounting system for tracking grant expenditures. As a result, WGBH could not adequately ensure and demonstrate that project costs charged to federal grants from the three agencies were reasonable, allowable, and allocable to the grants. Today’s settlement will recover for damages incurred by the affected federal programs, as well as providing substantial future oversight to prevent future deficiencies. “This settlement underscores that recipients of federal grant money must be scrupulous in their accounting for how those funds are spent, and in making accurate reports to federal grantors,” said United States Attorney Carmen M. Ortiz. U.S. Attorney Ortiz announced the settlement today along with Allison C. Lerner, Inspector General of the National Science Foundation, Laura M.H. Davis, Acting Inspector General for the National Endowment for the Humanities, and Tonie Jones, Inspector General for the National Endowment for the Arts. The case was handled by Assistant U.S. Attorney Barbara Healy Smith of Ortiz’s Civil Division. ###
Admin. Financial Violations (PI/PS)
Published by the National Science Foundation, Office of Inspector General on 2014-01-10.
Below is a raw (and likely hideous) rendition of the original report. (PDF)