Tuesday, January 14, 2020

Grant Funds Used for Administrative Costs


By Walter F. Roche Jr.

Massachusetts officials have issued more detailed data on a $40 million grant earmarked for victims of the 2012 fungal meningitis outbreak and they shown a little over a half million dollars went to administrative costs.
The numbers from the Massachusetts Attorney General's Office show $508,324 went for such expenses as salaries of staffers, software and other office supplies.
According to aides to Attorney General Maura Healey, the agency could have used up to $2 million for administrative costs under general federal grant rules which cap administrative costs at five per cent of a grant total.
In addition the new data show a total of $23,975,000 went to 672 outbreak victims. That left a balance of $15,516,675 which had to be returned to the U.S. Justice Department. The new numbers are slightly higher than first reported. Initially the number of grant recipients was reported as 642.
The grant program ended in September.
The grants were awarded under a program that makes crime victims eligible for grants ranging from $25,000 to $50,000.
The criminal investigation of the 2012 outbreak resulted in the indictment of 14 persons connected with the New England Compounding Center, which produced the deadly drugs.
Three of the 14 were eventually cleared of the charges ranging from racketeering to conspiracy and violations of the Food Drug and Cosmetic Act.
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