NASA OIG on Wheeling Jesuit University

Final Memorandum on Review of Wheeling Jesuit University Cost Proposals

"We found that NASA inappropriately approved, obligated, and partially expended more than $4 million of facility and administrative (F&A) costs because NASA grant officers in charge of the WJU agreements did not adequately review WJU's cost proposals. Specifically, the grant officers failed to note that WJU had included F&A costs as direct costs in its cost proposals to NASA. During our interviews with NASA grant officers assigned to review the WJU agreements, they stated that they were not sufficiently familiar with the definitions and allocation of direct and F&A costs to adequately exercise due diligence to ensure proposal costs were allowable, allocable, and reasonable under the Office of Management and Budget (OMB) Circular A-21, "Cost Principles for Educational Institutions" (Revised August 8, 2000) (Circular A-21)."