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University to Pay $19.8M to Settle Fraud Case

(CN) - The University of Florida will pay $19.8 million to settle claims it improperly charged the a federal agency for salary and administrative costs on hundreds of federal grants, the Justice Department announced Friday.

The grants were administered from the university's Gainesville and Jacksonville campuses between 2005 and 2010, and the alleged improper costs charged to the U.S. Dept. of Health and Human Services.

The agency said the University of Florida overcharged hundreds of grants for the salary costs of its employees, where it did not have documentation to support the level of effort claimed on the grants for those employees University to Pay $19.8M to Settle Fraud Claims.

It also claimed the university charged some of these grants for administrative costs for equipment and supplies when those items should not have been directly charged to the grants under federal regulations.

Finally, the agency said the university inflated costs charged to Health and Human Services grants awarded at its Jacksonville campus for services performed by an affiliated entity, Jacksonville Healthcare Inc.

The Justice Department emphasized that the claims against the university were allegations only, and that there has been no determination of liability.

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