Federal auditor says FSU needs to repay $2.9M

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The news that a FAMU employee was arrested for alleged incidents of fraud totaling $1,821 has spread like wildfire across the Florida and national wires. But there is still much less attention to the financial problems at other State University System of Florida schools.

The Office of the Inspector General of U.S. Department of Health and Human Services (HHS) has recommended that Florida State University return $2,977,548 in grant dollars.

“Based on our sample results, we estimated that, of approximately $10.6 million in transactions, the University charged approximately $3 million in unallowable transactions to HHS awards during fiscal years 2009 and 2010,” the HHS inspector general’s office wrote in a report. “These unallowable transactions occurred because the University did not provide adequate oversight to ensure consistent compliance with Federal regulations.”

FSU is appealing the decision. The story was carried by the Chronicle of Higher Education, Tallahassee Democrat, and WCTV-6. But it wasn’t picked up by a large number of media organizations that are reporting the alleged $1,821 in misdemeanors at FAMU.

Read the full audit report here.

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