Northeastern University Returns $600,000+ to National Science Foundation After Financial Audit: What You Need to Know

A recent federal audit by the National Science Foundation (NSF) has uncovered serious financial issues at Northeastern University. The audit, published on February 6, found mismanagement in several federally funded research projects. As a result, the university will reimburse the NSF a total of $616,695.

The audit examined how Northeastern used over $1.7 million in NSF grants between 2019 and 2023, revealing that 59.4% of the reviewed costs raised concerns. This amounts to approximately $1,049,082 in questioned expenses. Northeastern Provost David Madigan mentioned that the university has around 900 federally funded projects.

This is not the first time the NSF has raised concerns about Northeastern’s funding practices. Back in 2015, the NSF took legal action against the university for misallocation of research funds, which ended with a repayment of $2.7 million due to fraudulent documentation from earlier research.

In the current audit, experts flagged a significant portion of costs as unallowable—most notably, $936,125 related to travel, meals, and hotel expenses that violate NSF guidelines. These expenses lead to serious doubts about Northeastern’s financial oversight.

The audit also raised issues regarding poorly documented expenses, with $104,093 lacking proper support. Critics, such as Michael Budkie of Stop Animal Exploitation NOW!, argue that the university should refund the entire questioned amount unless they can provide clear justification for the expenses.

The audit pinpointed additional issues like inaccurately applied salary expenses and mismanaged indirect costs totaling $8,865. Moreover, there were reports of non-compliance with federal regulations and institutional policies.

Northeastern’s response included acknowledging the errors and committing to corrective action. Alexandria Hui, the university’s executive director of research finance operations, stated that they have already reimbursed the NSF a significant portion and plan to address all findings.

To avoid similar problems in the future, the university is also developing a “subrecipient support toolkit” to assist with NSF grants, ensuring these resources are accessible to prevent future mistakes.