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Thursday, April 30, 2015

UC Berkeley Misused $1.8 Million in Taxpayer Funding


APRIL 29, 2015 9:55 AM 
Audit of National Science Foundation grants shows unallowable salaries, alcohol purchases
(CNS News) – The University of California, Berkeley, misused nearly $2 million in taxpayer funding from the National Science Foundation (NSF) on unallowable salaries for researchers and alcohol purchases.
According to an audit by the NSF Office of Inspector General (OIG), the university “did not always comply with applicable Federal and NSF award requirements.”
“The auditors questioned $1,863,351 of costs claimed on 97 NSF awards,” the OIG said. “Specifically, the auditors noted $1,608,944 in senior personnel salary that exceeded NSF’s two-month limit; in unreasonable equipment charges; in unallowable transactions; $15,451 in unallowable meal expenditures; $9,904 in unreasonable travel; $6,997 in unsupportable and unallocable immigration fees; and $3,891 in purchases before the award effective date.”
NSF policy limits the amount of its grants that can be spent on a senior researcher’s salary to two months out of the year. The agency considers research to be “one of the normal functions” of a university staff member’s profession, and believes that the University itself should therefore pay for it.
However, the audit found that UC Berkeley repeatedly used NSF funding for researchers salaries beyond the two-month limit. In three instances, $227,267 in salary was paid for more than five months.
“These overcharges were due to a lack of effective monitoring caused by an over-reliance on rebudgeting authority,” the OIG said. “As a result, $1,608,944 in salary, fringe benefits and overhead on 79 NSF awards is questioned. Had UC Berkeley effectively monitored their senior personnel salary costs, these overcharges would not have occurred.”
“Without a process in place to ensure that senior personnel do not exceed the NSF two-month limit, there is the increased risk that funds may not be spent in accordance with NSF requirements,” they added.
The OIG also found $15,451 worth of meal and alcohol expenses that were improperly charged to federal government, because they were “not necessary or reasonable.”
“NSF funds are not to be spent for meals or coffee breaks for intramural meetings of an organization or any of its components, including, but not limited to, laboratories, departments and centers,” the OIG said.
Of the total misspent, two projects spent $10,418 on alcohol. Another project spent $2,204 for four catered meals, and another spent $2,088 for a holiday dinner, in violation of NSF rules.
The audit also found that UC Berkeley made “unreasonable” equipment purchases with NSF funding, including a laser system for one project that was never mentioned as necessary in the grant application.
“Specifically, because this purchase represents a significant reduction in the funds necessary to complete the proposed research tasks, we question whether a prudent person would have spent more than 33 percent of the total funding approved for the project on additional equipment,” the OIG said.
Researchers purchased the equipment on Dec. 21, 2012, using a grant that expired on Dec. 31. “The laser system was only available for 2 [percent] of the grant life (10 out of 548 days),” the audit said.
The OIG found many instances in which purchases “appeared to be an attempt to use the remaining award funds prior to expiration.”
In another case, the OIG rules a $22,317 purchase of a computer unallowable since it was purchased six months before funding expired on a five-year award, making it only useful for the research for 211 out of 1,825 days of the grant life.
An undisclosed amount of funding was also misused on office supplies, hotel stays, and gifts.
The OIG said that UC Berkeley blamed the misuse of taxpayer funding on unclear rules from the NSF.
“UC Berkeley, in its response dated March 2, 2015, agreed with some of the findings and questioned costs,” the OIG said. “However, UC Berkeley disagreed with the salary overcharges that were due to a lack of effective monitoring caused by an over-reliance on rebudgeting authority, and, does not believe NSF policies and subsequent guidance from NSF are clear concerning the charging of senior salary.”
http://freebeacon.com/issues/uc-berkeley-misused-1-8-million-in-taxpayer-funding/
- See more at: http://www.teaparty.org/uc-berkeley-misused-1-8-million-taxpayer-funding-96541/?utm_source=rss&utm_medium=rss&utm_campaign=uc-berkeley-misused-1-8-million-taxpayer-funding#sthash.mLKj3bAY.dpuf

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