{"338431":{"#nid":"338431","#data":{"type":"news","title":"Audit Reveals Misconduct in Research Lab","body":[{"value":"\u003Cp\u003EGeorgia Tech has taken corrective action following the conclusion of an internal investigation into allegations of questionable purchasing practices and undisclosed conflicts of interest for several employees in one of its research labs.\u003C\/p\u003E\u003Cp\u003EInvestigators have totaled approximately $475,000 in unallowable purchases and salary costs on contracts in the Georgia Tech Research Institute\u2019s (GTRI) Advanced Concepts Laboratory (ACL) between 2009-2013. Subsequent personnel actions include the termination of four lab members as a result of the investigation. Three additional employees resigned during the course of the investigation. The unallowable expenditures are in the process of being repaid to the funding sponsors.\u003C\/p\u003E\u003Cp\u003ESteve Cross, executive vice president for Research, said the concerns originating out of ACL represent a serious and unacceptable ethical breach, and that processes have been implemented to prevent any future occurrences.\u003C\/p\u003E\u003Cp\u003E\u201cThe rules for allowable and unallowable purchasing are complex, and misunderstandings can occur as a result,\u201d Cross said. \u201cIn this case, we had individuals who are suspected of defrauding Georgia Tech and its sponsors. Our system of financial controls and accountability identified the irregularities, and we have engaged in an aggressive and proactive approach to improve processes related to how we manage sponsored work.\u003C\/p\u003E\u003Cp\u003E\u201cWhenever these kinds of charges are alleged, it is something to be taken very seriously,\u201d he said. \u201cWe have appointed new leadership for ACL, individuals known both for their research expertise and personal integrity. We have been in close communication with the affected sponsors regarding our investigation and course of action, and they have expressed appreciation for our transparency and thoroughness.\u201d\u003C\/p\u003E\u003Cp\u003ETo assist in reviewing the allegations, Georgia Tech engaged an external consultant \u2013 specializing in the investigation of improprieties in government grants and contracts \u2013 who collaborated with Tech\u2019s \u003Ca href=\u0022http:\/\/audit.gatech.edu\u0022\u003EDepartment of Internal Auditing\u003C\/a\u003E. Their findings identified several ACL employees who colluded to misuse Institute funds for personal gain, manipulated Tech\u2019s system of financial controls, and participated in the misappropriation of funds.\u003C\/p\u003E\u003Cp\u003EIn particular, the review suggests the purchases could have been for the benefit of previously undisclosed, outside business activities, and to specific vendors with whom researchers had a non-professional relationship.\u003C\/p\u003E\u003Cp\u003EInternal Auditing subsequently set forth a series of observations and recommendations to mitigate future risk.\u003C\/p\u003E\u003Cp\u003EAmong the changes, GTRI staff in finance and accounting, research security, and ethics and compliance will be more closely aligned to central administration. Spending limits on procurement cards (\u003Ca href=\u0022http:\/\/www.procurement.gatech.edu\/pcard\u0022\u003EPCards\u003C\/a\u003E) will be reduced; increased use of the SciQuest (known on campus as \u003Ca href=\u0022http:\/\/www.procurement.gatech.edu\/buzzmart\u0022\u003EBuzzMart\u003C\/a\u003E) e-procurement system will be encouraged; electronic equipment purchases will be reviewed and approved by information technology staff; and mandatory training in project management implemented. A greater emphasis on tracking research expenses, and certifying those transactions by project directors and principal investigators, is also anticipated.\u003C\/p\u003E\u003Cp\u003EThe results of the investigation have been turned over to law enforcement authorities to determine whether criminal charges will be brought against any of the former employees.\u003C\/p\u003E\u003Cp\u003E\u201cIn keeping with the goals of Georgia Tech\u2019s \u003Ca href=\u0022http:\/\/www.strategicvision.gatech.edu\u0022\u003Estrategic plan\u003C\/a\u003E, our intent is to continuously streamline and improve business practices,\u201d Cross said. \u201cThe lessons learned from the improvements under way at GTRI will serve as a template for the entire Institute.\u003C\/p\u003E\u003Cp\u003E\u201cThis is a very disappointing discovery, because any breach of the public trust impacts everyone affiliated with Georgia Tech,\u201d he said. \u201cAs a community, we know the vast majority of faculty and staff represent the Institute admirably, in an ethical and transparent manner. Any behavior designed to take advantage of that trust is unacceptable and reprehensible.\u201d\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EGeorgia Tech has taken corrective action following the conclusion of an internal investigation into allegations of questionable purchasing practices and undisclosed conflicts of interest for several employees in one of its research labs.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":[{"value":"Corrective action taken following the conclusion of an internal investigation"}],"uid":"27299","created_gmt":"2014-10-30 09:07:17","changed_gmt":"2016-10-08 03:17:23","author":"Michael Hagearty","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2014-10-30T00:00:00-04:00","iso_date":"2014-10-30T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"related_links":[{"url":"http:\/\/www.research.gatech.edu\/","title":"Research @ Georgia Tech"},{"url":"http:\/\/coi.research.gatech.edu\/","title":"Conflict of Interest Management"}],"groups":[{"id":"1214","name":"News Room"}],"categories":[{"id":"129","name":"Institute and Campus"}],"keywords":[],"core_research_areas":[],"news_room_topics":[{"id":"71871","name":"Campus and Community"}],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Cstrong\u003EGeorgia Tech Media Relations\u003C\/strong\u003E\u003Cbr \/\u003ELaura Diamond\u003Cbr \/\u003E\u003Ca href=\u0022mailto:laura.diamond@comm.gatech.edu\u0022\u003Elaura.diamond@comm.gatech.edu\u003C\/a\u003E\u003Cbr \/\u003E404-894-6016\u003Cbr \/\u003EJason Maderer\u003Cbr \/\u003E\u003Ca href=\u0022mailto:maderer@gatech.edu\u0022\u003Emaderer@gatech.edu\u003C\/a\u003E\u003Cbr \/\u003E404-660-2926\u003C\/p\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}