Have any of you in institutions which are either state agencies or
instrumentalities of your state governments had the following experience?

A principle investigator received a private-funded fixed price contract for a
medium five-figure amount. He completes the project and charges about 10% of
the value of the award to the project account. He insists that the project was
completed to the satisfaction of the sponsor and demands that 90% of the
remaining award be transfered to a departmental (slush fund) account.

My questions are:

1.  Has anyone had this kind of experience discovered institutional or
State auditors?
2.  Have Federal auditors from the cognizant agency or some other agency
discovered such an occurance?
3.  Has your institution taken a position or made a policy against this kind
of practice?
4.  When discovered, what have been the consequenses to the institution,
the department, and the principle investigator?
5.  If you take a position against this practice, does your institution
support your stand?

Eric Carter
Contract & Grant Accounting, UMCP
Tel. 1-301-405-2614
Fax  1-301-314-9889