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Penn State To Pay $151,000 To Settle Dispute Over Federal Research ‘Mischarges’

Penn State has agreed to pay approximately $151,000 to the federal government to resolve a potential liability regarding a dispute over federal research projects, U.S. Attorney David J. Freed announced on May 11.

A joint investigation conducted by several government agencies found the university potentially made false claims to receive grant money and contracts, including those from the Navy, Air Force, and NASA, between 2013 and 2016. Broader grants and contracts were awarded to Penn State from 2012 to 2017.

“We are fortunate in the Middle District of Pennsylvania to be the home of a major research university,” Freed wrote in a release.  “Part of the important work that takes place at such institutions involves appropriate management of federal grants and contracts.  When mischarges occur, investigative arms of federal grant-making entities have a responsibility to act to on behalf of the taxpayers.  In this matter, a cooperative investigation among all parties has resulted in a fair settlement and appropriate policy changes to prevent a reoccurrence of such mischarges.”

Penn State did not admit any liability in the settlement, cooperated with the investigation, and implemented new policy changes, according to a release.

The university is “pleased to bring this matter to a close,” Penn State 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.

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About the Author

Matt DiSanto

Matt proudly served as Onward State’s managing editor for two years until graduating from Penn State with distinction in May 2022. Now, he’s off in the real world doing real things. Send him an email ([email protected]) or follow him on Twitter (@mattdisanto_) to stay in touch.

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