Indiana University partnership audit shows ineligible costs

BLOOMINGTON, Ind. (AP) - An audit of a cooperative agreement between Indiana University and the United States Agency for International Development shows nearly half a million dollars in ineligible travel expenses, construction contracts and unsupported payroll costs.

The audit examined more than $31 million in questioned costs related to a $65 million cooperative agreement the university managed for AMPATH, a partnership with Kenya's Moi University, Moi Research and Teaching Hospital, and a consortium of North American health centers led by Indiana University.

The audit disallowed nearly $439,000, The Herald-Times (http://bit.ly/29Y49CV ) reported.

Subcontractors in Kenya that the university partnered with to deliver services were responsible for about $387,000 of the disallowances, according to Fred Cate, Indiana University's vice president for research. Indiana University was responsible for about $51,000 travel-related costs.

"We do a lot of travel back and forth to Kenya," Cate said. "Some travel didn't seem related to the purposes of this grant."

The IU School of Medicine covered the entire cost of the refund, which was due May 13, Cate said.

"We were fairly pleased with the outcome of the audit," Cate said. "We'd rather have nothing, but that was a pretty modest outcome."

He said the audit and subsequent repayment aren't related to any illegal activity and that similar situations are common when dealing with money in large sums.

"This is a unique grant. We don't often get grants to do business in an African country," he said. "We want to make sure we're well positioned to provide as much oversight as possible."

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Information from: The Herald Times, http://www.heraldtimesonline.com