An audit of a cooperative agreement between Indiana University and the U.S. Agency for International Development shows thousands of dollars in ineligible travel costs, construction contracts and unsupported payroll costs. All told, nearly half a million dollars in costs associated with a health care program IU operates in Kenya were disallowed.
The audit examined more than $31 million in questioned costs related to a $65 million cooperative agreement IU managed. The Herald-Times obtained a copy of the audit from IU through a public records request.
The $65 million was for AMPATH, a partnership with Kenya’s Moi University, Moi Research and Teaching Hospital and a consortium of North American health centers led by IU.
The closeout audit disallowed a total of $438,589. Fred Cate, IU’s vice president for research, said subcontractors in Kenya the university partnered with to deliver services were responsible for the majority — about $387,000 — of the disallowances. IU was only directly responsible for about $51,000 related to travel costs, Cate said. According to the audit, about $42,000 in international travel costs for IU staff were incurred without the U.S. agency’s prior approval. Nearly $10,000 in international travel costs for IU staff were disallowed because they were not related to program objectives.
“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 bulk of the disallowances — nearly $330,000 — related to construction contracts that were entered into before the agreement with the U.S. agency was signed. Additionally, nearly $20,000 in penalties for late payment of construction costs were disallowed.