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A04120071 Page 1 of 1 +PC * S NATIONU SCIENCE FOUNDATION OFFICEOFFICE OF OF INSPECTOR INVESTIGATIONS GENERAL z4 .q$$@!0 CLOSEOUT MEMORANDUM D~~~~ \o Case Number: A04120071 Page 1 of 1 In connection with a proactive review, we reviewed an awardee's ' General Ledger. This review revealed that the awardee had spent the last $32,000 of NSF funds on post-award expenditures. Further iilvestigation revealed that the PI had requested an extension of tiine to complete work beyond the award's expiration, but NSF denied this request. In addition, investigation revealed that despite NSF's denial of the second-no-cost extension, the PI engineered the draw down of the $32,000 by falsely characteriziilg the draw down as a reimbursement. However, the ~najorityof the funds, approxi~nately$27,000, were used to fund newly incurred, ongoing, post-award expenses. Thereafter, the awardee filed a false final Federal Cash Transaction Report certifying that all award funds had been spent. Then, the PI filed a Final Report that falsely represented that all work on the award was complete. When asked about this by OIG investigators, the PI said she didn't know the second no-cost extension had been denied by NSF. The weight of the evidence refuted this assertion. Without adinitting liability, the awardee settled a civil false claims case with the Department of Justice for $52,150 and agreed to enter into a self-governance programdesigned to ensure that it will operate with honestly and integrity and in compliance with applicable law. In a separate and unrelated ad~ni~listrativeaction, the PI was debarred by NSF for 5 years. The Settlelnent Agreeinent between the awardee and the Department of Justice, the Report of Investigatioil pertaining to the PI, and NSF's Deba~~nentletter are attached hereto and incorporated herein by reference. Accordingly, this case is closed. I Inforrnatiollal Tecllnology Association of America; HRD 0128850 2 Marjorie B ynum NSFOIG FOI-1122 (1 1/02) AGKEERIENT AND RELEASE I. lN'1'IIODUC'TION This Agsecmcnt and Kclcase ("AGREEMENT") is entered into bet\veen the United Sri~[esof America ("UN17'ED STATES"), acting for and through tlic United States National Science Foulidation ("NSF") and rlic I~iforma~ionI'echnology Association of America ("ITAA") to resol\e a dispute regarding NSF Grant numbcr O 128850 entilled "The Digital Opporturiity Partncrsliip: Lirihi~igtlic IT I~~d~istr?\villi hlir~ority-Set-vii~gIiis~it~i~io~is" ("tlic Gra~ir" or "NSI: Grant"). 11. l'.-lItTlk:S A. Tlie UNI'TED STAI'ES is [lie proposed pl;iiririfTii~tliis AGIIISEh,lENT, acring tor and ~lirougli11ic NSI-. B. I-I'AA is [IIC ~~rol~oscddekiid;l~lt ill ail action ~,~~rsua~irto CQII~IIIVII !:I\\. a~itlrl~c I::~lsc Clailiii ACI. -l.i[lc 3 1 U.S.C. 9 3729. er secj. as aiiie~ided,ill this AGIIEENII~NI-.'fogcrllc~. [lir UNI-I'EI) S'I'ATES and I'I'AA i11.c rcfl.r.red ro as tlie PAR7'IES. Ill. l3~tCK(~l<Ol'Ni) I'I'AA is a doiiics~ic.1101-I'or-profit Nu\: York Corporati011registered ill [lie Co~li~iiori\\~eaI~liof Virginia \\ ill1 ~Kficcsat I 401 Wilson Bol~lcvard.Suile 1100. Arlington, Virgi~iia72209. 011 Septrt~nbrrI. 2i)U 1: l'['.j\A \\-as a\\ilrdcd rlic NSI- Gralit ill rl~eaillourit of $249.509. '1-lic NSF Gi.anr c.pil.ed oil A~lg~isr 3 I. 300;. 1 hLLI:G.+~I'IOI\;S A. 'Tlic UNITED S'IT'ITES al legzs tliar ITAA on or about Scptc~iibcr17, 7003. dw\\ do\\ n $32,247.1 I ill g1.a1111'[11iOs al'lcr Iiil\li~lgbeell ;id\.ised rliat the NSF \vould )lor reiiilburse I'T'AA Ibr cos~s ~IICIII-I.CCI:jl'tel. tllc csl~i~.;ltiulidarc oFtlic graiir. 'Tlic dra\v do\\.n \\,as ~-epl.eseritcd;IS a "I~~~I~I~~I~SCI~ICIII." lio\vever, \lie NSi- t~sscrls[hat $27.572. 16 of'tlie $32,247.1 1 d~.a\\;tlo\vi~ \v;~s 1101 ;I ~.ci~irhul~scnicli~.;IS cosls iii tliis aiiioLllil ol'X77.572. I6 Iiird 11oL bccii incun.e(l by I'I'AA as ol'tlic espira!io~iol'llie gi.;~irI. ITAA strbn~irteda Fedcral Cash Transaction Repon ("FCTR") to NSF on November 14.2003, for the quarler erlding Sepre~nbe~30. 2003. in wliich ITAA cel-rified "to the best of [its] k~iowledgeand belief. t(~[e]rcport [\\.as] truc in all respects a~id[hat all clisburse~ncnts[I~ad] bee11 rilade tbr the purpose and conditions ... of the award[]." The NSF asserts that this rcpon was not accurate. ITAA filed its Filial I'lvject Repon wit11 tlie NSI: on Noveriiber 17,2003 representing to the NSF that its \vork on [lie NSF Grant award was co~iiplere.The NSF asserts [ha[ this representation by ITAA \\(as inaccurate because ITAA continued to spcnd NSF funds fro111the Gran~through November and I>ece~nbe~-2003. I1'AA assens that all riio~iiesrect.i\.ed boll1 before and al'rcr Aug~~st3 1. 3003 \\ere for \\;ark acrtral ly perfor~ncdand espcliscs ac~i~allyirict~rrctl by ITAA ill co~incction ivitli till filling [lie purposes of 1.11eNSF Gra~it, Tlic asserrions in part IV. A. arc. ri.l.crrc.d to Ilerei~ialieras tlie COVEl<El) CONDUCT. V. RICASON FOR SLS'1"I'LI?MEi\i'l' AND I'ENALTI 1,:s In ordcl- ro a\roid ~lic~rlice~tainty. ~iriic, delay: riccdlc.ss burderl. a~itlexpense 01' PI-otracretl lirigation. and beca~rsethe U~ii~edSrates rcg;~rdsrlial ir is ir? rl~cpublic intercsr to sstrle an). strcl~dispirres villi ~.espectro i~sclairlls, tlie I'/\Rl'I ES. repr.c.se~iredby colrrisel. Iiave aprccd to settle all clairus asserted by the h:SIr against IT.AA tlirotrgh this AGI<EE~v~EYT.Ir is cxpressl!- agreed arid understood rhar this AGIIEEX.II~N1' irl~ol\res llic sct~le~ile~l~01' dis~ured clniins :III~ tlii~r tllc execution. dclivcr!; and acccplnlici: ill rliis i'iGl<LIEX~ll~Nl~2nd II;I!~II~~I~IoI';l~i!: riioliej, I~c.rci~ililc~..do 1101 colistitutc an ad~niss~oll ol' liabilit!. or responsibility on tlir par1 of oily oirl~cpaflies Ilc.~-r~o. NO\!', 71't-11CREliOliI<.ill collsidel.atiorl ol'tl~ernarre1.s set iortl~ahovc aid the follo\;;irig niurual covrliarlts, TI IL UNITED S'IA-rI'S and ITAA Ilcr.cby agrcc ns Iollo\vs: V1. OBLIGATIONS OF ITAA A. l';lylnerll to 111.c United Sklks. ITAA agrees to pay lo tile United Slates the sun) of irifr),- 'l'wo '1-housa~idand Onc I-lundred and I'iliy Dollars and zero Cents ($52.150.00) \\:illiin live (5) business days after the date ot'tlic escculio~~of this agreelnerlt by ITAA. 0. Manner :uid blc~liodof Pavment. The payment of Fifty--1'wo Thousand and Ol~e Hundred Fifty Dollars (%j?.lj0.00) provided for in subpaiagrapli Vi. A. shall be by electronic funds transfer ("EFT"). payablc to the U.S. Depal-trnent of Justice. upon illstructio~lspro\,ided by the United States Attorllcy's Ol'licc's Finrillcia1 Litigalion Unit and transferred 110 la1c.r rlia~i~lircc busincss days iron1 lie darc tliis AG11ELhl13NT is; signed b\, tlie UNITED STATES and ITA.4's rcprcsentnrives. EFT instr.uctio~is\\.ill be PI-o\,idedto I.I'AA b!! ci1lli119Ginser S\\.art\vortli at telepllollc 757.44 l .3 l 17 or b!. fas a1 I-AX 1it111iOri.757.44 1 .33S6. C:. Scll'(;ii\~cl.alicc I'~oL?I.~II~I.1'1-.AA itsI-i'eS ~lli~tit \\,ill i~ii~~le~iic~~(illid ~ii;~i~i~ai~i ;I Sell' Govcl-aricc I'~-ogr.a~i~;is si.1 l'o~.tllill A~I;IC~IIIICIII A lo ~liisAGl1l:EivlEN~T- illid i~icol-pornrctlby referelicc. VII. I<I.:LlC:\SE A. ON BEI-lA1-1: 01: -I-I-IEUNITED STPITES - In cunsideri~~ioliof~liis AGliEE%IEN?' and tlie pn>.mellts scr Ibrlli Iicrei~l.and escept fbr sucll obligations as are created b!. tliis AGKEEh.lEN*r. the U1VI.l-ED S-l-/\TES liereby \\:ai\,cs, releases a~idpro~iiise to refrain from ilistituti~lg.or lilaintainillg aliv ci\,il claitii. sciio~i.or suil ulidcr an!. I.cdcral starutcs. la\\:s. ~.cgulatiollsor- a1 corl~~iio~lla\\-agai~isl II'IZA arisi~igoirr vf rllc cir.i~i~~l~t;~~lccjl.or rle COVEIED CONDUC'I'. 13. ON RI'I 1AI.F 01- ITAA - 111 co~isiderationof tliis ~\(;l<I~I~h.ll~N~I'.a~idexcepr lor sucli obligations crealed by tliis :IGliL'.EMENT, I'I'AA Iiereby \\;aives, releases and pro~iliscsto refrail) from i~lstitutilig01- ~iiaillt:~irlillg ally civil clni~ii.nctio~i, or. suit, ulider ally li.de1.;11s~;~~u~cs, 1;1\\ s, rcpi~la~iolis or at colnillorl la\\ ;I~;I~IISI the UNI~I'I~IIS'I'A'I'IiS i~t.isirlgout of tlie cir-curnsta~lccsol'tlic 11laILcrsat issue regar-tli~igtile COVI-;liI-;Ij CON IIUC'I C. EXC1I''I'IONS '1'0 RELEASE: N~n\~itlistandingally lerrn or tliis AGIIEEMENI', specifically reserved ant1 cxcltrdctl li.0111 tlie scope arid terlns of this AGIIELMENl' as to any entity or persori are \lie Vollowi~ig: I. any civil. cl.iminal. or adniinistrative liability to rhe UNITED STATES arising under l'itlc' 26. U.S. Code (Internal Reverii~eCode), and related regularions: 2. any crililinal liabilih; 3. ally adiiiinis~rativeprocess or proceeding by [he UNITED STATES (or its agencies): 4.
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