+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 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 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 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 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 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. 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. all); judicial process or ~~roceedinsbj, tlie Uhll.l.ED S.I'A7'ES (or irs nge~icies)for any corlducr oilicl. lllari tlic COVERED CONDUC-I'; 5. ;illy liilbili~!~lo ~lleLJNI-I'ED STATES (or i~sagi.ricies) tbr ally collduct othcr tliari tlie COVEIII!D CON1)LJC'I'; and 6. all!. clair~iso1'1Ile UW1~1~~11S'I-ATES !~seilup011 s~rcli ol7Iig;11iorls ;IS ;Ire crcnred b!, Illis Agl.cc~ilcllr. VIII. M'AIVEII: A. 1.1-AA waiv~silr~d sliall rio1 tis~rflill ally crilnirial proscc~rrio~ior ;~d~~ii~iis~~.ati\!cactiori relating ro tlic C0VEIII:II CONDLIC-P. all). defenses that [nay bc based iri i\-lioleor ill part on a contenrion that, under tlic Do~rbIeJeopardy Clause of the Fifth Arneridnierir oF~lieColistirurion. or under rht. Lsccssi\:c. 1:ilics Clausc iri IIIC LIigli~liArric.ndriicri~ oi~llr Co~isrir~~tioi~. this AGliEE:\.lEh!'T bars a rcriiedy souplit iri such criiliilial proscc\lrio~ior ad11iinist1-ziti\e actio~i.Il.12:2 agrccs [Ii;i\ tliis AGIIEEh,ll;N~1' is rlor pu~ii~i\,eiri purpose 01.rt'fscr. Notlii~igiri ~liisParaprapli or any o~lierprovisiori of this AGREEh4EN7'corisrit~11esall agrerliieiit by tlic UNITED STATES conccrni~lgtlic clinrac~erizario~i of'llie SETTLEhI EN'T Ah~lOl.lN'1~for purposes oirlie Interlial lievc~iucI-a\w. 'l'i~le30 o1'tlic Uriited Staces Codc. IBeh/\ sll;tll. Iioi\,eve~..bc entitlcd to asser-t ally ant1 all rigli~s01. clcl.criscs ro CI-i~ni~ialor. ad~iii~iisr~.a~i\~eactior~s[lor es131-cssly 11;11-1-rcl i~i tliis ~)aragra~~h. B. BANKKLIP'I'CY EXCEP'f ION: If ITAA files for bankruptcy within nine^ (90) da!,s of this AGREEMENT. the UNITED STATES, on behalfof the NSF. is entitled to pursue the full amount of its claim of' Filiy-T~voThousa~id and One I-lundl-ed Fifty ~ollir.s($57.150.00) against ITAA. IX. COSTS: A. ITAA agrees thal all costs incurrcd by or on bchalf of ITAA. i~icludingits officers. directors, agents. and eniployces in connection with (I) ~nattcrscovered by this c\GREEbIENT: (2) the Govenlnle~~t'saudit and in\;cstigatior~of the matters covered by this AGREEhflENT: (3) I.I.AArs i~ivestigationrilld del'ense 01'1llc ~ilattcrscovcl.cd by this AGI coriiiection \\'it11 the hattcrs covercd b!. tliis AGREEMEN?': (5) [lie ~iegotin~ioliof rliis ;\GREEh.IENT iricl~~dilig.but nor limited to. inediatioli costs; and (6) thc pnyllicnts niadc to lie UNITED STATES pursuant lo ,his AGREE~VENI.. \viII be ~l~inIl.o\\:ablccosts Ibl. all), Gover.n~l~c~l[PII~POSCS alld \\.ill be scpnratcly accou1irc.d for by I.I'AA. 13. IIAII.I'ILS' COSTS: Tlie I'AlIl'lES shall cacl) bear rlleil. o\vn legal and orher- costs i~ic~lrredin conilc'crion \\.it11 this ~liatter.incl~lding tlic preparalion and pcrl'orrnal)ce of tl~is AGREEh.1 ENT. X. VOLUN'T.AHY :\G' liEEblENpI'. All Parties represell1 tllal tliis AGREEMENT is freely and \loluntarily cntered into \vi~lioutany tlegrcc of durcss or comp~rlsio~i\\ Iintsoe\>cl.. XI. (;OVtCIlY[SG'LAL\': Tliis AGKEE.\IEN*I' is go\,erned by the la\\*s of the Unitcd Stares. .l'lie PARTIES agree that cscIusi\.c ji~risdictiona11d \!cliue for any tlispute arising betwccll and alliollg tlie PARTIES ~lntlerthis AGREELIENT shall be tlie Urlited SI~ICS Ilistrict COLI~Ifor ~licEaster~i I>istrict of Virgiriia. XII. 1':IliTlES BOlINI): Tliis AGliEEbIENI' AND RELEASL: slial l apply lo i~lidbe billdilig upon tlie pill-ties. rlieir sLiccessors. assigns, and lieirs SELF-GOVERNANCE I'IIOGRAMS. No later than thirty (30) days aftcr this AGREEMENT has been signed by tlie par-tics, II'AA will iml>lenient and agreqs to mailllain a self-governance prograln that includes a Business L;thics Program that covers all employees. The Business Ethics Program sliall be maintained so as to ensurc that ITAA and each of its c~nployees.subgrantees, contractors, and subco~itractors~iiain[ai~i the biisinc.ss lionest!l and integrity recluired ol'an NSIy grantee and that 17'AA operares in strict compliance \villi all applicable laws. regulations. and the terms of any Government grant or contract. The period of future obligations assumed by ITAA under this Agreement shall be threc (3) ycars from tlie effective date of this Agrcen~cnt.The "effective date" shall be the date on which the Iinal signatory to this .4GREEMENT executes this AGFEEMENT. ITAA represents that the Business Ethics Program includes the follo\\.ing cornponents: 1. Central, I-Iigh Levcl Progranl h/lanagenient. ITAA has designated Joseph Taskcr to be an independent Ethics Ad\lisor-. reporting directly to the President' of lT.4.4. The Ethics Advisor is responsible for maiiaging all aspects of [lie Business Erllics I'rograni. including [lie development, iniplen~cntarion,operation. .and continuing ovcrsi_glit of the Business Ethics Program and the Inforniation ancl Edi~ca[ion1'1-ograiii. 2. 7'lie Ethics Advisor \\,ill ssn.s as tlie focal point for coml~lianceand inter~lalcontrol issues and \vill ensure rlic I'rc.sidc.111reiliains a\varc ol'the efficacy or the ITAA cfl'or~sro ensurc conipliance \c;itl~ federal la\\:s and regulations regarding the use and espenditirre of NSIT award funds. Such responsibility includes revie\\/ of'awards. dc\!clop~ne~itof training PI-ogr;-lmsarid conipiia~ice\vitl~ tliis Agrccmc~lt2nd ~IIIol~ligatioiis her-ciii1dc1-. iiicliiclin: tlie subinissiori oI'aII reports anii cc~~tilications. 7. 3. I'Iic I:tIii~s i\cI\~iso~-sli:111 iii\,cs[igat~all iiistr~ncesof'sirspccted i~iiscontlucta!~d sliall report iii \vr-iting 1.1ielindirigs to tlic 1'1-csiclcn~lor mailagement 1.espoiisc.. Saiil nianngcmelit response shall be ill \\.ritirig and sliall bc ~~soviclcclto [lie Etliics Advisor. NSF and NSI: 01G \vitliin rhirty (30) days of the receip~by mnnagcmcnt ol'rllt: Ethics Ad\isor's report. 4. l'lie Ethics Advisor sliall dc\:clop ivrittcn policies and procedures designed to ensure conipliance \\.it11 all applicable la\\,s.rcgirla~ions. and [ernis of NSF grants. including. but not limited to NSF general grant conditions, NSF special grant conditions. and ObIB Circulars. Such policies sliall address detection. response. and pre\!ention of recurrence of niisconduct. Copies oral1 policies and pr~ccdi~rcsdc\relopcd bj, rlic F;tliics AdLrisor and adopted b), [Tf'ii'i \\:ill be providcd to NSF and NSI- OIG \vitli rhi. Iil-st anni~alccrrilicd rcporr required 1iercundc.r. CO1)E OF DIISIYESS ETHICS. No later than thil-1:- (30) da!.s alier tliis AGREIMEN'I' has bee11 signed bj; the parties. lpr.4r'i \\fill adopt a \\.rirten Code of Busincss Ethics (Code). The Code will be circulated to each e~iiploycc. .4fter rcading the Code. each current eniployce \\fill sign. in a certilica~ionrcgistcr (Register) ro be maintained by ITAA and open to irispec[ion by NSF and NSF OlG, that he or she has read a~iclunderstands tlic. Code. At least oricc' in each calendar year. each then-current cniplo)lce sliall I.c.pent tlie procedure of reading the Cotlc and signing tlic licgistel.. M'itlii~itn.0 \\leeks of slni-ting c~iiploynicnt\\!it11 ITAA. new e~uploycesslinll scad the Code and sign tlie liegistcs, indicating that lie or she has read ancl uriderstands tlic Codc. Within sucli two-week per-iod rhe lie\\: cniploycc's i~iimecliatc supel.visor 01- other management pei.son shall discuss rhe conlcnt anil rccliiir-crlicnts ol'tlic Cloilc \\.it11 tlic lie\\/eml~loyec. INFOI~~IIYTIONAND .ISI)IICA'TION PIIOGIL-IkI. No latcr thari tliir-ry (30) days after this AGREEMENT Iias been signccl by Ilie partic's. IIAA will inslitiite and shall riiaintain an information and education program designed to assirre that all employees and subcontractors are aware of all applicable laws. regulations, written policies and procedures and standards of business conduct that , en~ployeesand subconrracIors are expected to follow and the consequellces both to [he en~ployee.the subcontractor. and to I'I'AA that will ensue Croln any violation of sucll mcasurcs. In addition. ITAA shall provicle training lo its e~iiployezsl.egarcling NSF awards ancl contracts. l'rnining consists of compliance training, plus at least one hour of live initial training in the Business Ethics I'rogram for every.e~nployee,plus. each year for each employee, not less than one liour of live cthics training. 1. Annual Training - 'l'his training shall be provided on an annual basis to all eniployees.. Certification that this training has been and will be accornplishcd in accordance \vith this AGREEMENT shall be pro\?ided by [TAP, to the NSF and NSF OlG. Thz certification shall describe the contents of tlie lrailiing and attach a copy of the latest training rosier. This training shall include, but nor be limited to: financial c.ont1icts of interest. "seeking eniployrnent" and post employnient restrictions. orpanizatiorlal co~~llictsof interest, protection of go\-erniiicnt and ~io~ip~~blici~iforniation. gifts to Go\'er~inient cmplo!.ec.s. use of Go\!emrnent resources. ITAA's u~ittenpolicies and procedures and la\\;s and rcgula[io~isapplicable ro Govcrnmcnt grants and oonrracrs. including NS[: general granl condi[io~~s. 2. I~OSICI- - l'l'i\i'\ ~lii~llnlaiiirain a rustcl., which shall be signed by all pcrsonl~el\\;lie undergo the tl-ailling. Tlie cei-rilicario~irosrcr s1i;ill conrain ttlc namc oC rhi. employee. Ilisihcr tirle or posirion and tlie date ol'tlie 11.iiit1i11g. 3. 1icco1-ds- I'I'A:\ sliall ~rclainrlic rccol-ds of [I-aini~ig~11lc1 11iaC;c tliclnl ;t\;:tilablc upo11 r.cques[ 10 thc NSF' a~clNSI: 01G Ibl- 1111-ec(3) ~C~II-S.17-AA agr-ces to ~iiakc[lie trai~ii~igrccords a\;ailnbli. for i~ispecrio~l~rpori I-~CILI~S[ by rlic NSI- a~iciNSF OIG. 4. 1,aneuaocs - /'\I1 \\-ritrrn niaterials and training related to llie B~isinessE~hics P~.ogram \vill bc pro\.idcd in I'nglisli arid in ally otlirtr la~iguagrnecessary ro assure that each c.tiiploj.se undersrands all elenicnts of any \vriUcn or oral presenrarion. 5. Reporting a~idIntOrri~arioil Resources - I'I'A4 will prominently posr it1 common work areas a notice thar provides the NSF OlG hotline relephone number- and the hotline Office of Inspector General tclepl~oiie111111ibcr 01' iili!. orller I:edel.;~l azeric! 'froni \\:hioh ir recci\.es Federal funds. -fhe purposc or rhis norice is ro enable c~iiploycesto make conlidenrial calls reporting suspected misconducr andlor ibr asking ijucsliori, rela[sd ro business etliics 01. busi11c.s~co~iducr. Irl addition. this notice \\.ill include a sratsnient rhar ITAA is coniniitted to complying wilh all applicable laws and re_eulations in the conducr of irs business. A copy of (lie norice is Exhibit 1 lo rliis AGREEMENT.. 6. Emplo,.lnc.n~ 01' S~ispc11dc.dOr Debarred Indi\riduals Or Indi\~idualsWith Conflicts Of Interest. I'TAA shall nor kno\+.ingly e~uploy,\villi or without pay, an individual who is under. indictnicnt. con\licrcd. or lis~cdby a I'ecleral Agency as debar-red, suspended. or otlie~wiscineligible for. l-'ederuI progsariis. In 01-clcl.ro carry out tlie policy. ITAA shall make reasonable inc1ui1-yinto tlie status of any porclirial cmplo!lee or consultanr. Such reasonable i~icli~irysliall incl~~dc.a[ a rninimuni, review of [Iic G~IICI.OISe~.viccs Adriiinistrarion's (GSA) Escl~~clcdI'arties Lisr System (EPLS) accessibla on [lie li1rc1-ncrat Ilr113:/l\\.\v\\;.i.pls.gc)\~. This policy cloes 1101. ~-ccl~~i:.clTAA ro rc~.lnir~aie the employment of incli\:icluals \\.lie arc indicted or becomc suslxnclcd or arc pt.ol)oscd for debarment during their e~iiplo!~~iie~it\villi ITAA. I1'AA. however. will renlo\,a such e~ilployecss tiom rcsponsibiliry f~11.or involvenie~ir\villi ITAA's business affairs until r lie 1.csolutio11oi' such suspension? proposed dcbarnlent or exclusion. In addi~ion,if any employee is charged with a criminal offense relating to business or otherwise relating to honesty and integrity. ITAA will remove thal enlployee immediately from responsibility for or involvement with ITAA's business affairs. If the employee is convicted 01. debarred, [he policy requires that the employee will be terminated from elnploynlent \\.it11 II'AA. ITAA slnall notify tlne NSI: and NSF OIG of cach sucli perso~uielaction taken arnd the reasons therefore, within 15 days of tllc action. ITAA's reasonable inquiry into the statils of any potential employee or consultant will also include an asscssmcnt of pcrsonal financial conflicts of interest. any pre-existing or potential organizational conflicts 01' interest. as well as any pre-existing post employmcnt restrictions \shich \vould preclude tlne individual's \{-orking on the instant Government contract. If an employee or consultant has or acqilircs a financial conflict of interest or an organizational conflict of inkrest, ITAA shall infornl the NSI: and NSF 01G and shall remove said employee or consultant fron~any aspect of the NSF grant and replace said employee or consultant will1 a person of equivalent skills and abilities. I~lsl,ection,Airtlit, sntl Kc\:ic~~-liigl~ts. In addition to any orhcs riglit rhal NSF OIG lias 13ilssuant to NSF alvarcl conditions, this agrcemenl, or any other autliority, NSF OIG may examine and copy I-I'AA's rccords. including audits and audit \vorkpapersl Ibr 1.11~purpose of \~erif!pins and c\,aluating: (a) ITAA's compliance \\:it11 tlne t~rrinsor this Agrsen~entand (b) I'I'AA's conipliaiice \vi\li any NSI: requirenients. lTAA shall make tlie records available ar an!; reasonable .time for inspection. audit, aindor rep~.oducrion. Funlncriniore, l'or purposes of this provision. NSF OIG may intc'rvie~vany relevanr IIAA emplo]l:ee a1 [he eniployc~'~place of business dur-ing normal business hours or ar sucli other place and rirne as may bc ~iiutuallyagreed upon ber\veen the employee and NSF OlG. Relevant cmployces arc. [hose individuals ivirh a rolc 01- respo~lsibiliry ill rlic application for, rcccipt or. 01- adi11i1ii~t1-iitiono1'NSF a\\;ards and (hose indivicluals ivlio coiiduc~(31-cijccts supponed by NSI: n\vards 1iepo1-tingliequircnicnts. In Iicu ol'a Ibrmal audit. ITAil \\.ill annu:illy provide NSF and NSI: OIG wit11 a ivritten report, ccrtitjed to by [lie Ethics Advisor, ~.ellcclingthat ITAA lias assessed the eflicacy or irs Business Ethics Program and irs Informatio~land Education Progr~iduring that year: idcntiiying thc srcps it has takc~nto pcrl'orrn such assessnnenr: and stating whether ITAA's Lvritten policies and procedures designed ro c'nsure compliancc \virli all applicable la\vs. regi~lationsand terms of NSF grants. including bur not limited ro NSF general grant condirions, NSF special granr condi~iolisand OhlB Circulars. lin\le been Solloived. Such report will identih any deliciences discovered as a result of this assessment: and shall idenril-y tins corrective actions lTAA has u1idcr.talit11to addl-css sucli deliciellcics. 71~lii:assessment sli~llli~iclude il I.CV~Z\V of II'AA's lillalicial sysrcms: an asscssnient 01' rlir irlrcs~ialcolirl.ols 011 s~lcllIlrlalicial s!srcni; aiid a revieiv ol'nny NSI: a\va~-ds.cs~l~nirii~lg tlie degl-ec to \\lllicll ex13~iidituresulldcr. SIICI~ ;I\\~LI.~sIiiiv~ bccn iii ;~ccor.da~ice bvitln all applicable laivs, regulations, ant1 this AGFEEh?ENT. Such reports shall be due one (I ) year after tlic effective dare of this AGRI!EivlI'NT and at each of tlic rwo (2 ) years thcrcnfter. The Ethics Advisor ccrtificarion shall include a stalement that all dcficicncics haw been reponed and addressed and. cscept Tor those matlers identilied in the report, ITAA is in coriipliance \\-ith all rcquise~ncntsof Federal law. regulations, and this i1GREEh;lENT. I. All nudir workpapers or. orllrr suppol-ting docu~iicnislor audits or reviews of compliance with this Agreement shall be rerailled by I'TAA for tlll~c:(3) yeiirs lbllowing tlne termination of this Agrccn~eiitand shall be made available to NSF OIG upon r.ccltlcsl. 2. Il\rc.ry niatrrial \,iolatiorn d~scoveredduring any audit o~ review shall be reported imnicdiately lo NSF and NSI- OIG ant1 remedied nithin sixty (GO) days of ITAA's kno\vlcdge of such nnaterial v~olation. A "marerial violation'. is one thal has a significant ad\.erse impact on the administrative, f nancial.'or programmatic aspects supported by NSF Awards. ITAA will report its findings concerning the material violation, its actions to correct such nlaterial violation. and any fiirther stcps ITAA plans to rakc lo address such material violation and prevent recurrence of the violation. 3. In the event of material breach of any terms of this Agreement. in addition LO actions undertalcen by the Dcpartnlcnt of lustic:. NSF OIG may rckr such breach to NSF for initiation of administrative actions including, but not limited to, the suspension or terminalion of any or all NSF awards and/or suspension of I-I'AA. INFOI Ethics Hotline The Int'ornlation Technology Association of Xrncrica ("ITAA") is commitled to compl~.ing\\it11 all applicable la\vs and regulatiol~sin the conduct of its business. As such, \vc need your assistance to enstlre that \i.e maintain the highest elhical standards possible at all times. Below are some important phone ntilnbers for you to be aware of. The purposc of thcse nun1bel.s is to pro\:ide you, tl~lTAA employee, ivith an opportunity to place confidential calls ro report SLIS~CCLC~I~~SCOI~~CIC[ aiid/ol. to asli cluestions related to husincss c~hicsor busint'ss condt~ct. h\;atior~ilIScicncc Found;ltio~l'sOl'lice 01' 111sl)ectoi-Gcr~cr.;rl: (703) 292-7100 NATIONAL SCIENCE FOUNDATION 32CI LAJILSONBOULEVARD ARLINGTON, VIRGINIA 22230 NOV 2 0 7nn7 OFFICE OF THE DEPUTY DIRECTOR CERTIFIED MAIL --RETURN RECEIPT REQUESTED Marjorie B~num 7505 Calderon Ct. Unit A Alexandria, VA 22306-2266 Re: Llebar-merit Dear Ms. By~~uni: On ,4ugust 22. 2007. the National Scie~lceFo~~ndation ("I\JSF") sent >.oil a Notice of Proposed Debarment in \vliicl~NSF proposed to debar >:oil fi-om directly or indirzctly obtaining the benellts of Federal grants for a period of five years. The Notice sets forth in detail the circumstances giving rise to NSF's decision to propose your debamlent. Ln that Notice, NSF provided you wit11 thirty days to I-espondto the proposed debamlent. Over thii-ty days have elapsed and NSF has llot 1-ecei~veda I-esponse. Accordingly, you are debarred until November 1, 2012. Debaiment precludes you from receiving Federal financial and non-financial assistance and benefits undei. non-procurement Federal programs arnd activities uilless an agency head or authorized designee makes a determination to grant an exception in accol-dance \\.ill1 ? CR$1 80.175. NOII-111-oci~i-emeiittransactio~is i~~cli~tle y.an(s> coopel.ali\-e agreements, scholarships, fello\vships, contl-ac~sof assistance, loans, loall guarantees, subsidies, insurance, payments for specified use, and donation agreements. I11 addition, you are prohibited from receiving Federal contracts or approved subcontracts under the Federal Acquisition Regulations ("FAR") at 48 CFR Subpart 9.4 for the period of this debarnlent. 2 CFR 5 620.1 15. During the debaimlent period, you may not have supei-visoly responsibility, prirllaly management, substantive control over, or critical influence on, a grant, contract, or cooperative agreement with any agency of the Executil~eBranch of the Federal Goveilment. If you have any questions regarding the foregoing, please contact , Assistant General Counsel, National Science Foundation, Office of the General Counsel, 4201 Wilson Boulevard, Room 1265, Arlington, Virginia, 22230. Sincerely, Kathie L. Olsen Deputy Director National Science Foundation Office of Inspector General Investigation Report Case Number A04120071 16 March 2007 --- I- 'J:'lnis Cc~nfidc~lllal1nvesc~g;ltjvll I NSF OIG For11122b (I 1/06) Summary The Office of Inspector General (OIG) has concluded that the Subject has willfully violated requirements related to the execution of an NSF award and has engaged in acts which are sufficiently compelliilg and serious that the Subject's present responsibility has been affected. The Subject's acts include: 1. her role in the 'filing of a Federal Cash Request misrepresenting the purpose for the draw down of NSF funds; 2. her role in the filing of a Federal Cash Transactioil Report (FCTR) rnisrepreseiltiiig when IVSF funds were spent; 3. her filing of a Final Project Repoi-l 1111srep1-esentingthe status of an NSF award: 4. hcr actions ossociatetl \villi preventing NSF and OIG fi-om clisco\.ering \\,hat liad occu~-sccland: 5. her role in the violation of rules and reg~~lationsgoverning NSF a~vards. I'ursuant to 45 CFIi 9630 ct seq . \\'e ~ecommentlthat NSF: Se~lcla !i~tic&t!I'l)~~;l)q~g~-~b,;l1-11~e11t~to~ ~ tl~cSubjgct informing hcl- Itllar she has been found to lia\le \villfi~llyi:iolated requirements relatecl to an NSF A\\:astl. and to have engaged in conduct so sel-ious and co~iipellingthat it affects her present responsibility; Debar tlie Sub!ecr foi. a pel-iotl of 3 years fi-0111ti~ial disposition of this case; w PI-oliibit tlii: Subject horn ser~~ingas a peel- I-eviewer: acl\;isor or co~lsult211it (;)I- il11.e~\.C;II-S ffi.0111filial tl isl~c.)sitio~ii~f this case; aricl Requil-e tlie Subject to submit a certification that she has co~m~~letcda profcssionall~~rccognizecl course covel-ing tlie proper administratiun of Federal awards. OIG's Investigation A. Background On September 1, 2001, NSF awarded $249,509.00 (the ward")' to an ~nstitution.~In 2004, during the course of a proactive inquiry, OIG received and reviewed documents related to the financial management of the Award. This review, which included an examination of the Institution's General Ledger and supporting documentation, revealed that the Institution appeared to have spent over $32,000 in Award funds afier the expiration date of the Award l'he initial te~mof the Award was fiom Septembes 1, 2001 to August 3 1, 2002. The 4 Subject, also the Principal Investigator, requested a First No-Cost Extension on the .4nrard, which extended the expiration date an additional year to August 3 1, 2003.' On :i\i~gi~st?_? i- 3003, t\vo (lays before expi[-ation, thc S~10jcctrcquestcti a Second No-Cost Exte~lsion. The NSF Progl-am Officer7 denied this retjuesl on September ll, 2003, via ~a:.;t~-:lne.'On September 15. 2003, the NSF Pr-{lg?-;lmOfkicer reitel-atcd I~crtlenial in a11 email sent to [he ~ubjcct.' On September 16, 2003, the iUSF Program Officer told thc Subject again, this time orally, that "no new costs incul-retl after the expil-ation of..the ;\\val-cl \vould be hdnol.ed hy NSF"" ant1 also cs!,licitl\. stntctl that NSF tincis cn~~ldnot be l~setlto co\,el- the tra\-cl costs of a staff ~~ncrnbc~-ihi.11 cin A\\-a~~d-sclaie~lti.a\:el (see Fi~ureI ). ;4ccortlins to tlie NSF Pro?~-amC1ffici.l-: "I sl:~ti'cl fi-ankl? that [[lie Inst~tutinu] \I-oulti11n\:c to absorb those costs."'.' I NSF :i\\~i-clI-IIUI 0128850 c~~titltcl'Tllc Digital C)~~CI~-~IIIII!!,I';II~II~I-s~I~\>: I-ir~ki~~gtllc Il' Irld~~str>,\\,it11 htinol-ity-Sel-vingInstitutio~ls." See TM3 1. This Award is a transaction covered by tlie NSF debarment regl~lntioil.See 45 CFR $620.970 (a) (1). The pnryose of the .-i\\.al-cl??.as "to iruprove the tecl~nological anJ ~~cdagogicalinf~-as(luctll~-e" of ~ninorriy-ses\;ing i~istitutjo~~s. ' 1nTo1-~~iationTechnology ~\ssoci;~liorlof illllcrica jthc lilsrirlit~cir~l.;I rll.~n-[?rolitir-ntlc. ns. s See FastLane clenial at TAB 4. ' Sce ;\flidavit of the Prograln Ofticel. and acconlpanying enla~ls:-I'.413 5 1 (1 Iil. NSF reiteAtes denial via. Iemail. I NSF reiterates de~ual I I via telephone. I I L Figure 1. 13. The lmpropet- Acts 1. Tl~eFctict.;~l C';lsh Request On September 17, 2003, the Institution's drew down fi-om NSF the '1.2-17.1 1 !-c~nai~li~igiil [hi. .-\\\.3rdi3(Figurc 2). Iil Jailig SO, illc \\ CI~ hllcr\\li~~gthe instriictioris gi\,en to herb). the Sub,]eclin n September 15, 2003 einail: I \\Ins i'ra~iticnlly lookins for ~OLIon hlonday nftemoo~i. [The NSF PI-ogr-a111Officer] at NSF (our program officer) rejectecl O~II-110-cost exteiisio~irecluest! Cnlz j70rlp~rll rr'o\~'ll V~OI~C\:AS.-ZP lo coi70-zr.r? (eml~l~asisndc~ed).['~] To "1,ull do\\:n3 the A\\-a~-df~~ncls after tlie espisalion date, the (Ira\\ iIo\\.11 \\-as clinracterized as a rcimbursel~ient." This characterization was false; tlie majority of the cash i-cr.cli1est.$27.572.16. \vas not for expenclitui-es ilicul~-ed111-e-expiration.I6 l~nsteail,the ma-iority of this $27>572.16collstituted an ac11;ance Cos expenses yet to be identi licil. IIc iiC)l..c~. ~IIC t111.c~';l~id ;I l~;~li11101~111s SII~ISC'IILIC'I~~ 111 (IIC c.~i(!01' III~ Ai\-ar-d?the $27,572.16 \\.as spent by the Institution on items such as salary, trayel and l22 I' Seple1nbe.r- 17, 2003. cash request is at TAf3 6. Allhougli tl~e is in\rol\iecl in thc maltel-s lierein. she \\:as acting at tlia dir-cciiciri or tile Subject 01- oli infoplovldedloher b) [lie 5'11bect anrl SIIC cooper-sled dill-ilig tlie ill\.estiga~io~i.See TAB 7 alld T.43 8. I-Io\\,ever,tile( actiolis may be inil~iitedto tl~cSubji.cl. See 45 CI'R 46?0.630(b). \\!e have not reconimelidetl hat NSF lakc an!. ai:Liorl ngnirisl tlie Sct hi01 of ~lle~illtCi-i.ie\~la[ I-;iB 7 a1ir1TAB 8 [or tile elllire text 01 (lie Subjrct's Scplelnlx~-15. 2003. eiilail to he This Sel?lemlx~-15. 2003. elilail nJns nl~t;~ilietlcIl~~.i~iv ili~: III.,.L,~I~~;IIIOI~!UIII!. ;I~'~L:I.tlit II)S[II~I[IOI~retz~i~ieci the \,'er~ableLLIJ l:i\\; lii-111. I' Sce 'f.-\L3 6. 16 - (1110ccohc1- 20, 200.7; tlic ~nslilution's-inel \\~ith@I(; 1nvestigato~-s.Dill-ing iliis iiiti~.li~atl~i~i~~erl tllal [lie filial C:ash Iiequcst ol'SepLember- 17,. 2003. i~icludeillirrlils thal siiniiltl nclt Iiave heell chnl-aclcrizetl as a rei~iibursenien(.Sce T!U3 7. copy expenses related to ~ward~urposes.'~Thesubject approved these expenses and signed many of the Expense Reports associated with the post-expiration spending.'8 NSF reiterates denial via email. NSF rejects the request via 'The Subject directs theql) -'pull down" the H remaulhe funds froru NSF. NSF reiterates tlenial 1.i~ Irlstilutiorl dl-ar\.s t1un11 $32,217.11 balance of ,\\rnr.d fro111 NSF, cnlling it 2. The Final FC'I'R -. On Novelllber 14, 2003, the Institution, via its submitted its final Fedel-a1 Cash Transaction Iiepol-t (FCTR)'"~~- tlie' quarter ending Septemhel- 30, 3003. This FCTR represented to NSF that all NSF f-u11cls I\:~il been spent as of Septc11ibe1-30, 2003,'"with the following certification: (A) That to the best of my knowledge and belief, this report ?I is t,n~c[; ill all I-csl~cctsant1 tll:it nll clisl~u~.sc\llc~ltsIla1.c bee11 made i'oi- the pilrpose anti conclitions jincluciing cost- sl~al-ingrccluirements as statcd in the NSF gra~ltpolicy manual) of the awards. [=I -- I ? See (iencl-al Ledgel- a( TIZB 2. IS See 'lAL3 9 for Expense lieports signed by tlne Subject. I" Each n\rn~-deeis scquiretl by NSF to subunit a Federal Casli TI-allsactionlieporl at tlie erid of eacli qllarter. The 1,lil~Joseof ~l~ewr.epol-!s is to tell NSF Ilo\\. mllcln of i!s f1111dshn\.e I3ec.11 spent or1 the prnirct dul-in? !lie ~.ele\:a~itcl~~al-le~. 20 See TAR 1 O for tlie 1'C:TIi [or illc qlras!ei- ended Sepknlhc~-30, 2003. ''Fn~tI~ane ~.c~inilids tlne ilicli\.idual filirig the FC:TR tlint filsc: cer-tilicntion oi'tl~ereport is a crime Set Ce~-tllicalic,npage, 'TAB I (!. 37 '-' See T.473 I 1 for a11 17C'fli'ssub~inittctl by tile Iristilutio~iatid :iccilrilpan);liig eel-tiiications. - -,' \ - , This statement was false, in that as of September 30, 2003, all the funds from the final draw down had not been spent.23 This false FCTR served to conceal the actions of the Subject, and prevented NSF from exercising its reversionary interest in the funds.24 3. The Final Project Report On November 17, 2003, the Subject filed the Final Project Report for the Award with NSF,~~thereby representing that work 011 the project had been completed. Yet according to the Institution's own General Ledger, NSF funds were still being spent. As noted above, the Subject approved expenditures of these funds.26 By filing the Final Project Report, the Subject concealed this post-expiratton spending and perpetuated the false picture that NSF funds had all been spent by the expiration date of the Award 4. Tlie Subject's Lack of Candor with O1G ;Yo u11 iiI11 Apl.il 2005, cluring a lneeting \t,il11 OIG ill\.esti~atoss,the Sublcct appeal-ecl to 1lal.e no kno\\!leclge that the Szco~~clNo-Cost ? r i!!stcll:;io~l Ilad bccn tlci~icil.- 011 hla). 1 1, 2005, Lilt l~lslit~ilion's reitesatecl tills in R lettei- ancl ~~rot~idedNSF OIG \\.it11 a A.Iemo~-anclumu.siLte~l by the Subjecl ciisavowing all knowledge of the denial. I . . . ilci no[ r~'ciiI1ever heal-in2 back in \\:~-ilingabout this rcclues~. I II:I\.c110 S~COI-CI of 0111. ~.i-il~~c:stI~eiilg ilenietl 11s- [Hie NS1: I'~.og~-:uniOfficel-1. Again if I liil~ikno\\.~l [hat our no-cost e.xte~~sionhacl been rejectetl, I \\!oulcl certainly 11;1\;e halted all \\:ark on the project imn~ediatel~~.Absent this notificatio~i,ho\ve\:er, [the Institution] conlinued its tvork on [lie lx~o.iecluntil Decembel- 2003.['" In i\ug~st2005, OIC; in\!estigators presented the Subject with evidence [hat she did intlccd ha\.e kno\vledge tl~atthe NSF Program Officer llad denied tile Seion(l No-Cost ? 0 Exlensioll of the A\\tarcl.- The Sub-ject did not pro\-icle a response n~henprcsentctl \\:ith tliis ~~~.i~lc~iccCIII~113s IIC\.CI- 1-~11-:1cLctl1le1. ~,\.siltc~~ S~;I~CIIICI~~. The \\.eight of the e\~icle~lcedoes not support the Subject's hllay 2005 dcnial of kno\\~letlgc.Specifically? [here is a September 15, 2003, email where the Sul~jectri:plies to the N S F Program Officer: 2 3 See T.-U? 2. -I'liz 2003 Geliel-al 1-eclgel- lists esl~e~~dilu~-esoccu~-~-iiig as ]ale as r)ecslilhci- of 2003. 2-1 ..\gain: illtlio~lghtlic -ertified this PC'I'II: tlie ti‘ltalit)' or the circ~~~iist:~iicesi~idicatc tli:it slic is [lot ~,si~na~.ilyrssl~o~isible for the ~nattel-sacldrcssed herei~i.and as n result, \ye havc not ~~eco~i~~ile~~tletl {lint NSF cake action ~regasdil~glier role in filing the false FC:lII. *'See .T.-\N 12 fill tllc Final P~niectliepnr(. hi,c I .\I3 9 I?)I. :lri ljsl~erlscI(el,n~-t signed ofl'on hy the Subject as late as 2 l Novc~~lbcr-2003. 7 9 -' Sic T.-41313 fol- A.101 oT.4p1-il2005 in(en:ie\v of the Subject. " Sc.c I':\U I3 fol- (lie leu1 o~~lieV-le(iel- to OIC; ant1 (lie acconll~all!i~ig h~Ie~ii,:~~~i~~ltl~~i~i1>r-el3al-etlI~ji tlie Stthjecr '!"Scc L.20 13 fill. A101 ofAugus( 2005 inte~-vic\vof tlle Subject. Thanks for your note but I do need to discuss your decision further. The remaining funding in our project is currently covering [the Institution ~rn~lo)~ee's'~]time (he's currentlj~ on a TCUP visit this week), and we have already scheduled campus visits until the end of the year. Without this funding, [the Institution] cannot cover its expenses and, thus, fulfill its remaining obligations to the project.[311 Fui-thernlore, the Subject's Septenlber 15, 2003, elnail to the-!instructing her to draw down the funds also contradicts the Subject's stateineilt that she had no knowledge of the NSF Prograin Officer's denial of the Second No-Cost Extension: I was frantically looking for you on Moilday afternoon. [The NSF Proqam Officer] at NSF (0111-progranl officer) I-c~ectedour no-cost estellsion I-~LI~S~!C:clil .you pllll tlo,~,rz 1nurIq. ,~S,.IP10 cuI..er 11s.;) [e~llpll;~si.';at~t~cc~~ '"1 Co1~fi~sio7.i01'cl- E.~piroiiu~~ L~CI~C. 111 11er exj!lit~latio~lof the tlraiv do\vn, thc Subject has stated that she was confilsetl \\;hethe~-the A\vd ended on August 31 or September 30, > 9 7003." 'Tliel-e is some e\-itlf~ice.;~~g,yrsling t!!n! t!!~Cl.~l>jc'ct mny hny.rc !?.:cn ccrlf'i~sctl 2.: about tl12 date of expil-atin~l.at ..;c~~~icpoi111 in li11ii': I-lo\i!e\:er: other e\zidence reti~tes tliis. The actual text of the I~lstitutioll'sFastLane sublliissio~inotifying NSF of tl~eFirst No- Cost Extension expl-essly identified :\ugust 3 1. 2003, as the Awal-d expil-ation (late. '' The Fil-st No-Cost Extension was sub~nittedby the Subject. In addition, the Second No-Cost Exte~lsion,filed by the Subject on Aupst 29. 2003. asks S(II-an extension of,/olc/-monlhs, witti the A\vard to expire at the "enel of 2003." '" If the Subject had a good-faith belief on August 29, 2003, that the Award expired at the end of September rather than the end of August? the Second-No Cost Extension n~ould]la\-e been for thee ~nontlis?not four. Ful-thern101-e,in an August 20, 2(.!03, elna~lto the NSF PI-ogram 0ffice1-;" the Subject .. 3s s(;I~ccI: "0111-pi.~j~ct is ~t:llcil~~lcil to cn~lat tllc i.11il ilf :\LI~LIS~. Finall!.. tlli: tc.;~O~~?IC Szp[enlbes 1.5, 2003, e~na~lto tlli: t1cmonst1-ates that the Subject had actual knowledge of the PI-ogsam Offices's tle~lialat the time the money \vas (11-a\vn do\i,n. The weight of thc ci-iclence does not suppo~.~that the Subject was confilsed as to the expiration date of the Awal.d at the time NSF fu~lcls\\!el-e clsa\vn do\vn. jnw I I Sec T.43 5 Tor (lie Sub~ecl'sSel~lc~i~ber 15. 2OiJ3, el~iailto [lie Program Oificel.. - -, lLSee 'I'M3 S for entire text of (lie St~bect'seninil. 'I See TAB 13 for the Subjec~'s~ne~nol.aniluln lo the C)IG. " See TAR 13 for the Jt11y 20?? emails lhet~~.cen1l1c St~liivclant1 \l!e A\valtl's exl~iralio~i. " See Tr\B 3. 36 See T!LB 4. 1- sccl"413 5. 3 6 I il OIG's Assessment NSF has the authority to debar an individual who "commits a violation of the terms of a public agreement or transaction so serious as to affect the integrity of an agency program . . ..,>39 Such a violation occurs when the individual commits a "willful violation of a statutory or regulatory provision or requirement applicable to a public agreement or ,740 transaction . . .. Furthermore, NSF has the authority to debar an individual for other causes, including when a cause is "of so serious or compelling a nature that it affects [the sub,ect of the debanllellt action's] present resPo~lsibility."" A. 'The Subiect's Actions Outlined L>elo\\r are the specific actions for \\~liicll this debamlent :ictic)li is being ~.ec~)lli~lleliclecl. As notecl abolx, the Subject directed the of the Institution to tlra\\: tlo\\rn I11!1c!- tl1:it the Sul~jcclk~--~' ,, .. tlic Ilistitution did not h:i\-c thc :i~lillo~~i[j-~c,~1)ciici. Tilt: 0111). \>,,a,\.lo ef'tkctuatc this \\.as to cliaracterize the &a\\: (lo\\-n as a "~-ci~nbu~.stn~c~~it'.fol- pre- L.XI.)II.:I~I~~IIexpe~iscs. Tliis cli;i~-:~~te~-izatio~~\\,:IS kilsc, Tlic II~:I~oI-~~.>.IIIC I~.II~c!x ;IL[LILIII!~ \\.ell( to\\.al-cl unkno\\!n and illiitle~ititiedfuture expenses unclcr the Su11ject's co~itrol 2. Filing a False I~cderalCash Transaction Report .4dditionall!;. the Subjcct. \\ill0 served as the Princip~~lI~i\.estigator, tlic Irl.;titution's :\~~tIioi-izetlOrganizational Repl-esentative and a \'ice 1'1-esicient,\\.as tlle i~ltli\~idu:il\\llo ovessa\v the programmatic and financial administration of the A\\rard and thus bears lx-irnnl-!. ~.espo~~sibilit!~for the submission of the false Federal <.'ash Trallsnclion l~e~~ort.~' 14s 11otecl abo\.e, by fili~iga Final Project Repol-[ on November 17: 2003: [lie Subject \Tins re111.cscuting to NSIT that the work on the A~vardhad come to a close. NSF's GI-ant Ge11el.al Conditiolls I-equ;l-ethat an a\vasdee file the Final Project licpor-t \\;i[hi1190 days of the co~l~ple~ionof tlle award.i3 By iiling the Final Project Rcpost \\:l~ilecontinuing to ivork 011 the A\\rard and spend NSF money, the Subject \\:as making a fiilsc I-i.111-esentation to NSF regal-cling the complctio~lof the project. "' 4i Cl;l< $ 62O.XOO (bj. .lil See -15 C'I3 $ 620.800(b)(l). I C; .' L,.. - 45 CFR i; 62(3.800(dl. " Sce i'oillni~[cs3 ant1 13. -I5 See TAU 15 fol- the sele\:anl GC:-I pl-(>\.ision111 effect at the time i-\ward made. r 4. Failure to Tell Truth to OIG Investigators The Subject's repsesentation to OIG ~nvestigatorsthat she was unaware of the denial of the Second No-Cost Extension or that she was confused when the Award actually expired is not supported by the weight of the evidence. 5. Violation of NSF Rules and Regulations The Subject's actions" violated the following sections of the NSF Grar~tPolicy Mar~ucrl (GPM), the NSF Gram PI-oposnl Gtride (GPG), and the Office of Ivlanagernent and Budget (OMB) Circular A- 110, all of which provide terms awardees must abide by when they receive a Federal a\\ia~cl. Section 25 l(b) of the NSF Gllh~I(NSF 95-26) states: EXI'III:\ 1'IC)h D.-I'fE is the clnte specitied in the g3nt lett~r:lf.!.<~. ~.l,.\l~<~~ c?:l)c~lc~it~lses I~I:I>. i1~1t clla~gcc];lgil~~l~i tlie gra~itmrzept to satisfy obligations to pay allo\\!able project costs comlnitted on or before Illat date. The expiration date is tlie last day ofthc ~nn~ltll,[A51 Ful-tllcr, Section 602.3of tllc NSF GIlh:l ]~~-o\:itlei;tll~~i NSF fii~idscnn~iiit Ilc usecl past lllc cs~ir:~tionil;itc of ilic il\\Lli.il LIII~CSStllcy al-e bci~i~sllc~it ti) liq~~idate\.slid expenses noc~-ued111-io1. to the espi~.ntionof the a\\.i~rd.~'Sectioi~ \'(A) of tlie GPG contains similar restrictions.'" NSF allows the ad\,ance~nent01' awasti f~~lltlsonly ill very limited situations. Such siluations can only occur \\:he11the awardee has an interest hearing bank account set up to receive the money, the inte~.eslfi-om which revel-ts to NSF.~' The Institution did not have permission from NSF to recei\?e an advancement of fi~~lding,did not place the filncls \vitliin an intel-est beiiri~lz;~c~o~~ni: ant1 did not return the interest fi~ntlsto NSF. Uhli; C11.culai ti-1 1O SLI~~LII'Li:,- ..25 pso\,ides ilia1 a re~~pie~ll]nay c1l;lrge all ;~\varclonly allo\1~al2lecosts I-esulting from obligations incurred during the award period 01-pre-aural-d costs aulhorizcd by the an.asiling agency.-I 0 4 4 Altl~ouglithe Instit~ltioilis the ;r\\-a~-dee.tile Institutioil's actltjns a1.e being irnl~~~tcdto the Subject as she \\Ins (lie PJ: the ,!'\~~tIiorized01-gailizatio~lal Rcpresentati\:e, a Vicc Presitlent, and the person tlirougli \~~lloni tlle Jllstitlrtio~iacted. 'j Scc 'T:\[3 15. TAU 16 COIII~~IISCSII-;IC~S Fir0111 (lie Gl'hl in efkct at (lie tilile the ,-\\~.ard\?:as ~iiatleand the ~iiisco~ltlt~ctoccurretl and f1.0111 tile curl.c~ltve~.sion. Tliese Il;~sbec~i no substanti\:e change. 4"l'..4~ 17, clyain. al(llougl1 lal-~ielyn~lcllnrlged. the 1-ele\:anl pro\.isioll in effrct at the ti~netlie !'\\~,al-il \\.as 111:1clc~\\.llc~l tlic :~ctOCCLIYI.C;~ ~111~1 III clicct IIC!~\,> a1.c ;ill ;lt 1 /'\I.; 17. I See I',kR 1 8 for all i-ele\.a~it1.~1-sioils o T l~e~.t~llr~l(section ol'the GPG. IY See 7'..\0 19 cc?iltai~~irlghlO1 iil~con\;e~-sation\~.itll sa ash h!Ianagenlellt al~tl B. The Subject's Intent The weight of the e~ridenceindicates that thc Subject knowingly and purposeli~llysough1 to retain wronghlly the remaining unspent portion of finding fiom the Award. Furthermore, the weight of the evidence indicates that the Subject intentionally sought to conceal and deceive the. NSF and OIG by continuing to mischaracterize the status of the Award and by failing to tell the truth to OIG investigators. ,As discussed above, there is direct evidence of both the Subject's knowledge that the Second No-Cost Extension had been and direct evidence that the Subject sought to conceal the truth from NSF and OIG." C:. Dr~rdel~of Proof [[I clebarnlent actions, the bul-den of pl-oof lies on the acting agency (NSF) to clzlllonstrate i,! a pcel~on~le~-anccof the evitlellce that cause t?~r debannenl exists." Hew, the prq~~?ndu-;i~lceoOftlie e\.idcrice indicates that [lie Suhjecl pnlposefillly and \\,illli~lly' \.ic)l;~[ciltile ICI-nisof' LL pi~bli~. agree~nent (diz d4\\..;isil! by \.iolaling thc czillilrtlnents I-elated to the esecutioll of it." In adtlition, the PI-zpo~itlcra~iceof tlie e\,itlence i~~dicates that tile Subject intended to co~ier-upher acts by 111-o\:idingNSF and OIG with misleacli~lg :?!:,:I f::lse ir?for-mnticl~i.'I'llc Sl.!bjtct h:ls cngagccl ill ::ct.; \!:l~iil~:ire suf'fiii~~:~I;;ic~lill~~llin~ :ind serious to suggest that her present responsibilit). to nl31iage Fedes:~l liinds has bcen c(.~~i~l~~-c~~i~ise~l.-i-1 I). Rele\.i111tFactors -. Ille debamlent regulation lists 19 factors that the debarring official ma!; considel-." Listed belo\\/ are the factors 11el:tinent to this case. 1. Harm causedj6 NSF has a re\:ersio~ia~-yinterest" ill fiincls unobligaled at Ihe espil.:ltioll of an a\\.a~-(I.'llie S l~I?jc.i.('i(ji-iIi.i- to the (0 cII-:\\\. CIO\,(,.I~ I.LIII~I.S IYL>I~~:III\II~!<:I[ II~c C~~I~~IKILIOII 01 the ,A\va~-dcaused NSF to lose $27,572.16. By i'~ilselycharacterizing the fund request as a rei~~ibur.scment,NSF \\!as left una\iial-e of its righthl i~itel-estill the 1.e111ainingf~~nds. FUI-thcrmol-e,NSF has a significa~ntinterest in cnsul-ing lllat the explicit instl-uctions of its 50 See T24r3S 5, 8. See T:\R 13. "<- .- 45 C'FR $ 620.850, allcl 45 CFIt $620.85. j3 45 CFR 6 600.800(b)(3). j" 45 CFR 3 600.800(d). ??? :I? (']:R '2 620.860, " Scc 45 CFIi jj h20.860 (a). j -1 Sec .Iy;\B 2 1 lor NSF's G-'~.anll'c?l~cy hlal~nal. Sectio~i 4-11 \?-liicli st;~tcs~lial NSI- Ilas a "l.c;.crsio~iai.y inte~.est"ill tlic uriobligated balancc orall a\r.artl ulxl~iexl~irnlioi~ or. con~l'lelin~lof [lie ]>~.c~,iect.Attnchecl are tlic \ci.sio~isai-Sectiori 441 In eflect \?.lieii [lit: :\i:.aitl \\.as ~ii;rtlr,\iIic~l (lie ;ICI clcc~~r.~.ec:l;~iiil ill crfec! ~io\?:. A11 tlisce are ~irtuallyidentical. program officers' are not ignored by awardees. Here, the Subject's actions were in blatant disregard of both NSF award conditions and direct instruction by the NSF Prograin Officer. 2. Frequency of 1ncidentsS8 The Subject's behavior included multiple wrongs during the period immediately following expiration of the Award, and later, in her interactions with OIG. 3. Pattern of Wrongdoings9 OIG has no knowledge of any instances of \vrongdoing coininitted by the Subject unl-elatecl to the .4\\ia1-ti..Also. there are no kno\.rrn issues nssociatecl with the ,4\\,ard othcr than thosc discussed herein. 4. Role in \P l-o~t~tloirl~"" The Subjcct pla>'cii 1hc kc:\-I-OIC in 1.I1e\\.i-ongli~l ai.ti\.it!; associated \\.i tll thc false Final Cash Request and the subsequo~~tco\.cl.-up. At the Subject's behest, the tlre~v do\\:n remaining A\\x~-tlfunds. The Sublect was clil-ectly respons.'i~1E76Txe s~~l~~il!ssio~ic~ftheh1:ic Fi;>,::! Pxjcct RC~JOI-tto hrSF. 'C~~I~~!ICI~~II~)I~S~LILC SLI~.JCLLcui11111i~i~cI thesc acts \\;it11 t'L11l k~lo\\.lcil:c of their impropl-iety ant1 after I-epeated explicit \i.arnings 131: t11s NSF PI.O~I-;IIIIc)fl<<:.:~- IIILI~ 1lic .!\~5\~:lr(l!lac1 c~.pi~.c(l:111d 110 ~~II-~IIcI-costs \YOLII~I l?c 5. ~cce~~tanceof' I~es~lousit~i~it)~ 6 1 The Subjecl has :jet to ;~ccept:~n>~ I-esponsihility fo~.her actions associatccl ittllir; nlatter. Sillce the inceptio~lol- tllis in\,estigation, thc Siibject has contendecl that shi: \\!as unaware that the Seconcl No-Cost Extension had been denied.62 -I'he Subject has not 1-epa~dNSF for the wrongfully acquired hinds. Ho\vevel., \\lithout admitting liability, the Iilstitution has seltled ivith the Depar-tment of Justice. Pul-suant to a settlement agreement, NSF will be macle financially '"ee 45 CFli $ 620.860 (b). '"ee 45 CFli 62U.860 (c). set <1i CFR 6 ~?n.sl;n(rr. 6 1 See 45 C:I-J< $ 620.560 (2). 62 See TAB 13 r01-the Sulsjcc['s ~i~c~nni;~~itlunilo OICi tljsa\~o\\-i~~gall knc~n;letlge of tlie :\\\,al-tl Iia\.~~ig expiretl: anti llie h;lC)Ts nillie Sul~.iecr'silile~-\;ie\\.s ,711 i4111.il19; 20O5 and .4~1gu.d4, 2005. 6.( See 45 C:I:R $ 620.860 (11). '' The settlemelit agseeuiell( is ;I( .[':I13 22. 7. Cooperation of the Thro~~ghoutthe in\cestigation, the Subject \vas uncooperative \vith 01G ~nvest~gators. The Subject first met with OIG investigators on April 19, 2005. In that meeting, she denied knowledge that the Award had expired on August 31, 2003. The Subject's subsequent written response confirmed her position. In August 2005, OIG investigators presented the Subject with evidence that the NSF Program Officer had denied the Second No-Cost Extension of the Award. Subject again failed to cooperate with OIG. 66 8. Position Held by At tlie time the \\/i-ongdoiiig \\,as com~iiitted, tlic Sul,Ject \\;as a \'ice Prcsidcnt of the Institution, the Principal In\lestigator on the A\va~.d alitl the institution's .hthonzed Organizational Representati~fc. 9. Organizational :Iction 68 I'LII-suantto tlie above-mentioned settle~nentagrecmel~t, the Institution has agreed to i~iiple~nenta varietv of col-rective measures! inclucli~lg bailling of its employees? the ::pi~ointmcntof an ethic; officcl-, :11ii1 tlie acloplion \:.rii~cri~)c)liiics 2nd l)~.<.li~tl~~~-~sto cnsul-t conlpliance \\:it11 all apl~licableFedel-a1 n~lcsnr~il 1~~~uln~ions.~'" 10. Other 17actors7" Phcl-c is 110 eviilence tliat tl~eSuhiect di\.erted :In!, of the 111isapprol11-iatedfil~~tls to\\.ards 1x1-o\\.n personal use or [lie pel.sonnl use of otliel-s, :Ill .4\\.nrcl ti111ds appe:11- to lla\.e lxen spc11t in the fill-therancc of the A\\~artl. The other considerations listed in the debarment regulation do not appear rele\!ant to this matter. Consistent nit11 the need to protect the inlerests 01' tlie ~~ublicand the NSF, we 1.ecommentl tliat NSF take the following actio~lsas a final disposition of this case: Send a notice of pr-oposed debamient to the Sul?iec( illforlning her that slie has been ibund to have \villfiilly violatecI reclu~l'ements relatetl to the NSF A\\!arcl, (1 < St::: 1i C'r:r< $ 6.:0 S60 [;) (!(' s rc .r,:\ I2 I 3 '" See 45 CFII 9 620.860(I<) " 5~c.e45 C:FR 4 620.860(1). ('? S .. .> CL I'.AI:I 22 Sor hefirll Lexl oPll~cscco~nl~linnce Ineasures. '" See35 CFR 620.860(s). and to have engaged in conduct so serious and cornpelling that it affects her present responsibility; * Dzb(11 111s Subjs~tfu~ d pe~iodof 3 years Goln final dispositton of thts case; Prohibit the Subject frotn serving as a peer reviewer, advisor or consultant for three years from final disposition of this case; and Require the Subject to submit a certification that she has completed a professionally recogized course covering the proper administration of Fedcral a~vards. The Suhicct's Response to Draft Il~~estieationReport \fie si.~!t-thc Sub,ject a dr;lfi cc,p), ofthe In\-estigation Repol-t and a11 Xpl~e~~liccs(h~i-cto in ol-del-to nffol-(1 Ilel. iln opl~ni-tullit~~to comment. Tllc S1111-jectchose not to t.~.';1)i)n~I.