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University of Wisconsin to Pay $1.5 Million in False Claims Act Settlement
MADISON, WIS. – In a damning indictment of fiscal mismanagement, the Board of Regents of the University of Wisconsin System has agreed to pay $1.5 million to settle claims that it violated the False Claims Act by failing to properly account for rebates and credits to reduce costs allocable to federal grants and awards.
According to the settlement agreement, the University of Wisconsin-Madison, a public research institution, obtained significant federal grants and awards to conduct research in various fields, including science, healthcare, and engineering. However, the University failed to credit rebates and discounts associated with purchases to the federal awards, resulting in overcharging the government.
The investigation, conducted by the U.S. Attorney’s Office and several Offices of Inspectors General, revealed that the University’s accounting practices for service centers failed to comply with its own operative Cost Accounting Standards Board Disclosure Statement.
“The United States entrusts Federal Award recipients with federal dollars, but the funds are subject to regulation, oversight, and audit,” said U.S. Attorney Scott C. Blader. “It is incumbent on Award recipients, including public institutions, to provide the United States the benefit of credits or rebates it receives – failure to do so results in overcharging.”
The University’s failure to properly account for rebates and credits is a stark reminder of the importance of transparency and accountability in government contracting. The settlement agreement states allegations only; the University does not admit to the allegations.
The coordinated investigation was conducted by the U.S. Attorney’s Office and the Offices of Inspectors General for the U.S. Department of Health and Human Services, the National Science Foundation, the U.S. Department of Energy, the U.S. Department of Defense, and the Defense Contract Audit Agency, and the National Aeronautics and Space Administration. The prosecution of this matter has been handled by Assistant U.S. Attorney Leslie K. Herje.
The United States awards more than $500 billion in federal grants and awards annually, with the University of Wisconsin-Madison being a significant recipient. The University’s failure to properly account for rebates and credits is a serious breach of trust and highlights the need for greater oversight and accountability in government contracting.
Key Facts
- State: Wisconsin
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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