Wheeling Jesuit University has agreed to pay $2.3 million after allegedly misusing grant funds given to them by NASA, the United States Department of Labor, and the National Science Foundation.
The University will pay back the money over the next five years. Allegations over the use of funds surfaced after an audit conducted by NASA in February of 2012. United States Attorney William Ihlenfeld released the following statement after the agreement was reached today.
“Wheeling Jesuit University applied to the federal government and received many millions of dollars in funding but failed to follow the rules that came with the resources,” says U.S. Attorney Ihlenfeld.
University Executive Director of Communications Kelly Klubert issued the following statement:
“Wheeling Jesuit University reached a settlement with NASA and the Department of Justice, under which the University will pay $2.3 million over the next five years.
The settlement resolves all civil and administrative claims related to the University’s federal grants from 2003 to 2010 and provides for the transfer of ownership of the National Technology Transfer Center campus building to the University.
The allegations leading to the settlement arose from highly complex and divergent provisions of the federal regulations governing the cost principles applicable to federal grants. In good faith and with complete and steadfast disclosure to the federal government, the University had used the same costing practices in its financial management of federal grants since 1998. The regulations at issue have since been replaced in their entirety by simplified rules.
Operating capital will be used to remit the amount stipulated in the settlement, excluding any federal funds or private donations. The settlement will have no bearing on other federally funded programs at the University.”