In an effort to keep the campus informed about recent developments and
issues related to the management and administration of research, I am
forwarding this news summary from the Report on Research Compliance,
which briefly describes recently audit findings and actions of the
Health and Human Services (HHS) Office of the Inspector General (OIG).
HHS is the parent agency of the National Institutes of Health (NIH) and
the HHS OIG is the independent office (reporting to Congress) charged
with auditing and investigating (as appropriate and necessary) the HHS

The section of the report most applicable to UCI’s research enterprise
is Part IV. Below the news summary, I’ve included the opening statement
from the Grant Fraud section of Part IV. Also, for those interested in
learning more about the audits, reviews and investigations that HHS OIG
plans to undertake during this fiscal year (October 2011 – September
2012), you may access their Work Plans at
Plan-2012.pdf. The section most applicable to UCI’s research enterprise
is Part V, Public Health Reviews. In particular, the NIH portion lists
several issues that will examined, including: University compliance
with federal cost principles, Recharge centers at colleges and
universities, Use of data safety monitoring boards in clinical trials,
and Cost sharing by universities just to list a few.

HHS OIG Semiannual Report Highlights Recent Actions

The HHS OIG’s newest semiannual report to Congress has been posted on
the OIG website. The report, which covers the period from Oct. 1, 2011,
to March 31, 2012, includes summaries and links to previously issued OIG
findings, including a December report calling for better monitoring of
grantees by the NIH clinical and translational science awards program.
During the time period covered by the report, OIG also reviewed close to
2,000 audits of recipients of federal funding, finding that 156 required
minor and eight required major changes, according to the report. The
semiannual update also recaps the case of Cheng Yi Liang, a former Food
and Drug Administration chemist who was guilty of securities fraud and
making false statements and was sentenced to five years in prison and
forfeited nearly $4 million he made using information he gained from
internal FDA data systems.

Grant Fraud

HHS is the largest grant-making organization in the Federal Government,
and its funding of health and human services programs touches the lives
of almost all Americans. Increased concerns by Congress and the
Administration regarding transparency of and accountability for agency
expenditures is creating heightened scrutiny over the administration of
grant and contract dollars.

I encourage all listserv subscribers to broadly share this information
within their units.

Bruce Morgan

Assistant Vice Chancellor for Research Administration

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