Penn State to pay $151,000 to resolve federal investigation into grants and contracts
Penn State agreed to pay $151,000 to resolve a federal investigation into potentially improper charges to various grants and contracts, including those from the Navy, the Air Force and NASA.
The university, which did not admit any liability in the settlement announced Monday by the U.S. Middle District Court of Pennsylvania, cooperated with the investigation and implemented new policy changes, according to a news release.
The investigation resulted in “a fair settlement,” U.S Middle District Attorney David Freed said in a statement.
“We are fortunate in the Middle District of Pennsylvania to be the home of a major research university. Part of the important work that takes place at such institutions involves appropriate management of federal grants and contracts,” Freed said. “When mischarges occur, investigative arms of federal grant-making entities have a responsibility to act to on behalf of the taxpayers.”
The grants and contracts were awarded to Penn State from 2012-17, though the isolated, alleged mischarges occurred from 2013-16, the MDPA announced.
“Those who do business with the federal government must ensure they charge the U.S. taxpayer appropriately,” Special Agent in Charge Jason Hein said in a statement. “The Air Force Office of Special Investigations ... has, and always will, aggressively investigate and seek justice to protect the (United States Air Force) procurement process and ensure the trust of the American taxpayer.”
Penn State is “pleased to bring this matter to a close,” spokeswoman Lisa Powers said in a statement.
“We are committed to being careful stewards of government funding in managing our grants and contracts processes,” Powers said.