Wheeling Jesuit University Authorizes Release of Special Counsel Report

By Andrea Lannom
State Journal
April 26, 2012

http://www.statejournal.com/story/17529659/wheeling-jesuit-university-authorizes-release-of-special-counsel-report

After allegations of fraud surfaced against Wheeling Jesuit University and its employee J. Davitt McAteer, the university's board of trustees has authorized the release of findings in an independent special counsel report that addressed its technology centers' cost-allocation methods.

The recently filed federal court documents were filed by a NASA special agent alleging the university and McAteer fraudulently diverted federal funds to maintain non-federal aspects of the university and McAteer's law firm.

"The university has always been, and always will be, completely transparent with regards to its cost-allocation methods of its technology centers," said Wheeling Jesuit University President Rick Beyer. "Once the affidavit was reviewed, the Board of Trustees decided to release a report of an independent investigation regarding the issue, which was originally addressed by the university in 2008."

According to a Wheeling Jesuit University news release, an independent special counsel conducted an investigation in 2008 of the university's audit committee. The news release stated special counsel determined the university's cost-allocation method to be permissible under federal regulations and found no improprieties.

"Wheeling Jesuit University is committed to openness in all dealings regarding the university, its sponsored programs and its communities," Beyer said in the letter. "We have enlisted the services of federal grant experts and a former United States attorney to aid us in full cooperation with this investigation."

In a letter from Beyer to the Wheeling Jesuit community, Beyer mentioned the release of the report's findings.

"Until the affidavit became available, we could only speculate as to the reason for the investigation," the letter stated. "From the affidavit, we understand the areas under investigation are specific to our sponsored programs and include the method the university previously used to allocate salary costs to federal grants."

Earlier this month, McAteer and Wheeling Jesuit University filed motions to unseal the affidavit. The court partially granted motions saying there is no compelling governmental interest to require affidavits to be completely sealed. The order directed the documents to be redacted where necessary.

The court recently granted the government's motion to extend the seal of the original affidavit for 60 days.

Documents state from 2000 to 2009, NASA gave more than $116 million to the university — $65 million of which was awarded since McAteer took office in the sponsored programs division.

The agent asserts the university through the sponsored programs office has "routinely and improperly" diverted funds intended for the National Technology Transfer Center and the Erma Ora Byrd Center for Educational Technology to pay administrative costs, such as reimbursements of payroll costs for McAteer.

The document notes the sponsored programs vice president received a nearly $100,000 increase in salary in a two-year period of time.

The document also asserts McAteer used his position in the sponsored programs office to allocate his law office's salaries and personal expenses as a direct expense to federal awards.