Sometimes, not-for-profits and governments can be tempted to not take their grant applications and reporting seriously. However, entities which choose this path do so at their own peril. For example, in March 2019, Duke University agreed to pay the federal government $112,500,000 to resolve claims that it violated the False Claims Act by submitting applications and progress reports that contained falsified research in 30 grants from the National Institutes of Health and Environmental Protection Agency.

“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said the United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.” The Duke case is a timely reminder that the federal government expects recipients of federal awards to walk the straight and narrow path.

Interested in learning more? Sign up for The Essential Course for Performing Single Audits Under the Uniform Guidance for Federal Awards.

Charlie Blanton, CPA is the Senior Director of Governmental and Nonprofit Content for Surgent CPE, where he authors Surgent’s government and not-for-profit CPE courses and is a frequent webinar instructor.