CLEVELAND — The Cleveland Clinic Foundation is paying $7,600,000 in order to “settle allegations of undisclosed foreign sources of funding on (National Institutes of Health) grant applications and reports,” according to a press release from the U.S. Attorney's Office, Northern District of Ohio.

What You Need To Know

  • The Cleveland Clinic Foundation is paying $7,600,000 in order to “settle allegations of undisclosed foreign sources of funding on (National Institutes of Health) grant applications and reports” according to a press release from the U.S. Attorney's Office, Northern District of Ohio

  • It is required that applicants state any and all “sources of research support” when it comes to grants from NIH, the release states

  • It also notes allegations the foundation had been violating the NIH’s password policies, as employees were sharing their passwords, and that this settlement also resolves those allegations

  • NIH is also placing “specific award conditions” on all CCF grants for a year

The release states that the foundation is paying “to resolve allegations that it violated the False Claims Act” when it submitted applications and reports without disclosing an involved employee was receiving research support from elsewhere.

“The settlement resolves allegations that CCF made false statements to NIH, a component of the Department of Health and Human Services (HHS), in connection with three federal grant awards,” the release reads. “Despite NIH requirements to do so, CCF repeatedly failed to disclose that the employee who it designated as the Principal Investigator on each grant had pending and/or active grants from foreign institutions that provided financial assistance to support the employee’s research and already obligated that employee’s research time. CCF falsely certified that the grants submissions were true and accurate.”

It is required that applicants state any and all “sources of research support” when it comes to grants from NIH.

It also notes allegations the foundation had been violating the NIH’s password policies, as employees were sharing their passwords, and that this settlement also resolves those allegations.

“Each year, NIH awards federal grants to support research to improve public health, but those funds are limited and the grant process is competitive,” Rebecca C. Lutzko, U.S. Attorney for the Northern District of Ohio, said in the release. “Every entity or person who seeks such grant money must strictly play by the rules. As stewards of taxpayer dollars, our Office takes seriously its responsibility of ensuring that grant recipients fully and accurately report all required information to NIH so that it may properly award its limited funds to deserving institutions. Today’s settlement illustrates the importance of being truthful at every stage of the grants process.”

NIH is also placing “specific award conditions” on all CCF grants for a year. This begins on Oct. 1.

“In this case, NIH is requiring a high-level CCF employee to personally attest to the truth, completeness, and accuracy of all ‘other grant support’ information CCF provides to NIH,” the release reads.

Additionally, the foundation needs to come up with a corrective action plan. That plan must include:

  • An internal controls assessment
  • A mandatory training program and
  • An improvement plan for internal controls

“The accuracy of information reported in applications and other documentation related to federal grants is critical to ensuring that these limited funds are utilized in the most efficient and effective manner and that the integrity of the application process is upheld,” said Special Agent in Charge Mario M. Pinto, of the United States Department of Health and Human Services Office of Inspector General, in the release. “Our agency is committed to ensuring that those who submit false statements in grant applications are identified and investigated, in cooperation with our federal law enforcement partners.”