University Pays for Mismanagement

October 18, 1996

University Pays for Mismanagement

The University of California has agreed to pay the U.S. government $2.7 million for mismanaging federal funds at Lawrence Livermore National Laboratory, Reuters reports today.

An investigation found that a division of Lawrence Livermore's Applied Technology program had charged more than $1 million in costs to the wrong project sponsors and had shifted funds between project accounts without authorization. Lawrence Livermore officials said that no employee had embezzled money.

The University of California, which ranks 11th among all federal contractors in Government Executive's latest Top 200 Federal Contractors rankings, manages Lawrence Livermore under a contract with the Energy Department. The laboratory is one of two in the United States that maintains nuclear weapons.

The university agreed to pay the $2.7 million to avoid a potential federal lawsuit. Lawrence Livermore said it has reviewed and strengthened its accounting practices and established additional oversight at the lab.

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