UW-Madison settles federal research dispute for $1.5 million

MADISON, Wis. (AP) — University of Wisconsin-Madison officials have decided to settle allegations they overcharged the federal government for research projects for $1.5 million.

According to U.S. Office of Management and Budget principles, universities that receive federal research dollars must agree to credit savings from discounts and rebates on purchases for their projects against the awards.

According to federal prosecutors in Madison, the university generated rebates and discounts with supply and equipment vendors but didn't credit the savings to the federal awards, amounting to overcharging the federal government. Investigators also discovered that UW-Madison's accounting of the savings failed to comply with the university's own purchasing practices.

UW-Madison spokesman John Lucas told the Wisconsin State Journal tha the matter was a "technical accounting issue."

The U.S. attorney's office in Madison announced the settlement Thursday.

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