NATIONAL SCIENCE FOUNDATION OFFICE OF INSPECTOR GENERAL

OFFICE OF INVESTIGATIONS

CLOSEOUT MEMORANDUM

Case Number: I03020007 111 P a g e l o f 3 (11

In February 2003 an NSF awardee1 notified NSF OIG (OIG) that an internal audit had determined a university employee2 had embezzled funds fiom the university that included funds fiom an NSF award3. After conducting a preliminary investigation and in conjunction with the local law enforcement agency, OIG referred this matter to the Department of Justice @OJ) for possible prosecution. After conferring with the various agencies involved, DOJ elected to allow the State Attorney's Office to prosecute the subject in state Superior Court. The subject was subsequently indicted4, and entered into a plea agreement5 resulting in him pleading guilty to four of the nineteen counts identified in the initial indictment. The subject received a sentence6 that included four years incarceration, to be followed by four years of parole and he was ordered to make restitution to the university for the amount of his embezzlement7.

upon completion of the court proceedings against the subject, OIG recommended to NSF that he , be debarred for a period of five years. After considering this recommendation, NSF issued a

debarment letter8 advising the subject of his debarment.

In response to the university's internal investigation into the embezzlement, the university returned to NSF the portion of the embezzled funds9 that it determined was embezzled fiom the NSF award account. As OIG was attempting to verify the amount of NSF funds involved in the embezzlement, it was determined that the university had significantly drawn down funds in excess of what it had actually expended to date. Based on these findings, the university returned to the award the excess funds1° it had obtained.

OIG also identified that the university had submitted multiple cost sharing certifications each year containing inconsistent amounts that failed to match the cost sharing figures they initially submitted to OIG in response to this investigation. When OIG requested documentation to

1 San Francisco State University Falafasa Tagaloa $487,425 was embezzled, including $4 15,500 in NSF Award hnds fiom NSF warda and - 4

See Tab #1: Copy of Superior Court of the State of California Indictment of Tagaloa, dated June 13,2003 See Tab #2: Copy of the transcript fiom Tagaloa7s Change of Plea Hearing held on December 29,2003 See Tab #3: Copy of the transcript fiom Tagaloa7s Sentencing Hearing held on March 12,2004 $480,383.56

8 See Tab #4: Copy of the debarment letter sent to Tagaloa $4 15,000

'O SFSU returned $656,181 to the award through the FCTR in September 2003

NATIONAL SCIENCE FOUNDATiON OFFICE OF INSPECTOR GENERAL

OFFICE OF INVESTIGATIONS

CLOSEOUT MEMORANDUM

111 Case Number: I03020007 111 Page 2 of 3

support the figures submitted, the university could not produce documentation for all of the expenses claimed1'.

Additionally, during this investigation the university submitted a request to NSF to transfer the remaining open award12 and remaining funds to another ~niversity'~. The university identified the amount of un-obligated funds remaining in the award and NSF subsequently transferred the remaining award14. However, during this investigation OIG determined that a large amount of un-obligated funds remained in the award's original account at the university1'. OIG reported this finding to NSF and recommended they de-obligate the remaining fundsl6.

Based on OIG's findings the matter was referred to Civil Division of the United States Attorney's office1' (USAO). The USAO and OIG then began to negotiate with the university to resolve the remaining issues that included excessive draw downs, inadequate documentation to support expenses claimed, the indirect costs associated with funds previously returned, the costs incurred by OIG during the investigation and concerns about the university's remaining active awards18. The university expressed its desire to resolve all of the remaining issues in one settlement agrekment that would cover not only the award associated with this investigation but also resolve any similar covered conduct occurring previously on the university's active awards. '

The university entered into a settlement agreementlg with the United States that resolved the remaining issues to both the Government and OIG's satisfaction. This settlement agreement required the university to make a paymen?' to the Government and enter into a 3 year compliance plan. This plan requires the university to implement a program to ensure its

l 1 SFSU admitted that they had overstated their expenses by $267,623 that they could not produce adequate documentation for. l2 NSF Award #- 1

l4 NSF transferred award # t h e August 2004 based on SFSU's accounting of the h d s it had drawn down to date l5 In September 2005 SFSU attempted to request a no-cost extension for the award that had been transferred, indicating they h a d un-obligated funds remaining in the award account even though they had transferred the l6 111 December 2005, NSF de-obligated the- award l7 Eastern District of Virginia l8 These remaining f m c i a l issues included: $267,623- the difference between what SFSU drew down from the award and the amount identified by SFSU as allowable costs by their contracted audit; $21,150- the indirect costs associated with h d s previously returned; $1 75,000- investigative costs l9 See Tab #5: Copy of the Settlement Agreement between SFSU and the United States 20 $809,477.63 ,

NATIONAL SCIENCE FOUNDATION OFFICE OF INSPECTOR G E N E W

OFFICE OF INVESTIGATIONS

CLOSEOUT MEMORANDUM

Case Number: I03020007 111 Page 3 of 3

compliance with the terms and conditions of all of its NSF awards, relevant laws and regulations, and to prevent fraud, false statements, and misspending of funds relating to awards it receives from NSF. The agreement requires the university to submit annual reports to OIG disclosing its progress in fulfilling the agreement.

A proactive review file was opened to monitor the university's future compliance with the settlement agreement21.

Accordingly, this case is closed.

II

THE ANNEXED Ih. RUMLNT IS A 1 CORRECT COPY OQ ,'HE ORIGINAL .I

ON FILE IN MY OFFICE. . ATTEST: CERTIFIED I

I

JUN 2 7 2003 )I :I ~i '

IN THE SUPERIOR COURT OF

. IN AND: FOR THE CITY AND COUNTY OF SAN FRANC1

. PEOPLE OF THE STATE OF CALIFORNIA, ) NOS. . .

Plaintiff,

. . vs. '

FALAFASA TAGALOA and also known as '

.- p~

. . Defendants. .. ---.-____ -., , - _--'

INDICTMENT .FOR TO WIT': . .

i) 424. PC/Fel. (1 hount) 470 (a) PC/Fel. i(l count) 475s PCIFe1. (1 count)

FWASA .TAGALOA and (( *A . defendants, are accused by the Grand J b i y of phe City and. County of San ~rancisco, State of California, by thip ~~dictment, of the crime of felony, to wit: VIOLATION OF'~SECTION 424 OF THE CALIFORNIA PENAL CODE, committed as follows~ be said defendants, FALAFASA TAGALOA and (-1 between the 1st day of January, 1998,l through the 31st day of December, 1998, both dates inclusive, atsthe city and County of San Francisco, State of California,, beins persons charged with the receipt, trans.fer or disbursement of bublic monies, did

I 1. without authority of law, appropriate the same or any portion

thereof to their own use or use of another,' or I

People vs. Falafasa Tagaloa and

I1 3. knowingly keep a false account or make a false entry in an

account relating to said public monies, or I - 11 4. fraudulently alter or falsify any account of public monies,

COUNT 2: il I1

FALAFASA TAOALOA and defendants, are further accused by the Grand h y of the

City and County of San Francisco, State of California,\by this Indictment, of the crime of felony, to wit: VIOLATION SECTION 470(a) OF THE CALIFORNIA PENAL CODE, committed as follows. The said defendants, FALAFASA TAGALOA and - -- ( between the 1st day of January, 1998, through the 31st day of December, 1998, both dates inclusive, at 'the City and County of San Francisco, State of California, did.llwith intent to defraud, sign the name of another person, kn&wing that they had no authority to do so, and did falsely make, alter and

, forge any check, draft or due bill for the payment of Aoney, or request for payment of money, or who did utter, publisA or pass as true and genuine any of the above named false, alteled or forged it-. knowing the same to be false, altered and forged, with the intent to defraud San Francisco State University, the State of California and the United States of America.

COUNT 3:

I FALAFASA TAGALOA and - defendants, are further accused by the Grand qury of the City and County of San Francisco, State of California, jby this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 475a OF THE CALIFORNIA PENAL CODE, committed as follolos(: , The

. said defendants, FALAFASA TAOALOA and - (-1 between the 1st day of January, 1998, through the 31st day of December, 1998, both dates inclusive, ay 1 and County of San Francisco, State of California, did dave in their possession a completed check with intent to utter] and pass the same or to permit, cause 6r procure the same to be kttered or passed to defraud San Francisco State university, the state of California and the United States of America,

I I

I

.People vs. Falafasa Tagaloa.

. . SECTION '12022.6(a) (1) AS TO COUNTS 1 THROUGH 3

xt is further blleged that in th; commission offenses, the said defendants, FALAFASA TAGALOA and

with the took funds and property of a value exceeding property of San Francisco State University, the State 8f

I1 the United States of '~merica, w i t h . the meaning Section 12022.6 (a) (1) .

I

FALAFASA TAGALOA, defe'ndant, is further accused of the City and County of San ~rancisco, State of this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 424 OF THE CAlrIFORNI2l PENAL CODE, c d t t e d as (follows: The said defendant, FALAFASA TAGAtOA, between the 1st January, 1999, through the 31st day of December, 1999, inclusive, at the City and County of San Francisco, St

1 California, being a person charged with the receipt, txaxisfer or disbursement of public monies, did I

il 1. without authority of law, appropriate the same or dnY portion- '

thereof to his own use'or use of.another, or I , i , 3. knowingly keep a false account oi:make a false'ent

account relating to said public monies, or

4. fraudulently alter or falsify any account of public! honies.

People vs. Falafasa Tagaloa and

COUNT 5: . . , .

0 (c) falselyziake, utter and pass as. t'-e and genuine a request for payment of money, writing obligatory or due bkll for

/I payment of money, knowing the same to be false, forged or counterfeit. 1 ;

COUNT 6: I I

FALAFASA TAGALOA, defendant, is further accused by the'! Grand jury of the City and County of San Francisco, State of calikornia, by this Indictment, of the crime of felony, to wit: VIOWlTION OF SECTION 470(a) OF THE CALIFORNIA PENAL CODE, committed as 1 follows: The said defendant, FALAF'ASA TAGAMIA, betweeh the 1st day of January, 1999, through the 31st day of December1 1999, i both dates inclusive, at tpe City and County of San Francisco, State of California, did, with intent to defraud,

- I (a) and knowing he had no authority to do so, sign th!? name or

II another or fictitious person to a reguest for payment of

FALAFASA TAGALOA, defendant, is further accused by the Grand Jury I of the City and County of San Francisco, State of California, by this ~ndictment, of the crime of felony, to wit: VIOLATION OF SECTION 475(a) OF THE CALIFORNIA PENAL CODE, codtted! as I follows: The said defendant, FALAFASA TAGALOA, betwe& the 1st day of January, 1999, through the 31st day of ~ecember! 1999. .both dates inclusive, at the City and County of Sam ~rbcisco. State ~f California, did have in his possession, with intent to pass, a forged and altered item with intent to defraudl lpmwing said item to be forged or altered.

mopey, writing obligatory or due bill for of money.

(b) counterfeit or forge the. seal or handwriting of another.

. .

People vs. Falafasa,Tagaloa and

SECTION '12022.6(a) (1)' AS TO COVNTS 4 THROUGH 6 - . 1 ' t . .

J ~t is further alleged that in the commission of the above offenses, the said defendant, FALAFASA TAGALOA, with tie intent so to do, took funds and property of a value exceeding $50,000, I the property of San Francisco State University, the State of california and the United States of America, within of Penal Code Section 12022.6(a)(l).

o m 7 :

defendant, is further accused by of the City and Couhty of San Francisco, State of this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 19705 (a) (1) OF THE CALIFORNIA REVENUE AND TAXATION CODE, camirted as follows: The said defendant, FAIAFASA T A ~ A , between the 1st day of January, 2000, through the 31st Iday of December, 2000, both dates Inclusive, at the City and Saa Fxancisco, State of California, did willfully make subscribe under penalty of perjury a false or California personal income tax return for the year 1999, which he

11 did not believe to be true and correct as to every material matter. I

FALAFASA TAGALOA, defendant, is further accused by the larand Jury of the City and County of San Francisco, State of California, by this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 424 OF THE CALIFORNIA PENAL CODE, committed as 11 follows: The said defendant, FALAFASA TAGALOA, between the 1st day of January, 2000, through the 31st day of December, 2000, llboth dates

I1 inclusive, at the City-and County of San Francisco, State of J ~alifornia, being a person charged with the receipt, transfer or

disbursement of public monies, did I II 1. without authority of law, appropriate the same or any portion

thereof to his own use or use of another, or 1 ; I

People vs . Falaf asa Tagaloa and

j : 3. knowingly keep,a false account or make a false ent-xy in an

. a c c o ~ t relating to said public monies, or . I 4. .fraudulently alter or falsify any account of public monies.

COUNT 9 : 'i I

FALAFASA TAGALOA, defendant, is further accused by the' Grand Jury of the City and County of San Francisco, State of ~ a l d ornia, by 1 this ~ndictment, of the crime of felony, to wit: VIOLA?ION OF SECTION 470 (a) OF THE CALIFORNIA PENAL CODE, committed as follows : The said defendant, FALAFASA TAGALOA, betwe& the 1st day of Januazy, 2000, through the 31st day of ~ecembe=' 2000, I' both dates inclusive, at the City and County of San Francisco, State of California, did, with intent to defraud, I

!I (a) and knowing h e had no authority to do. so, sign tfi'e name or

11 another or f ictztious person to a request for of - honey, writing obligatory or due bill for of money. :I

(b) counterfeit or forge the seal or handwriting of all other.

I (c) falsely make, utter and pass as true and genuine a request for payment of money. writing obligatory or due bill for

'I payment of money, knowing the same to be false, forged or counterfeit. i

COUNT 10: I I FALAFASA' TAGALOA, defendant, is further accused by the, Grand Jury

of the City and County of San Francisco, State of ~alffornia, by this Indictment, of the crime of felony, to wit: VIOLA~ION OF .

SECTION 475 (a) OF !l?HE CALIFORNIA PENAL CODE, committed as I follows: The said defendant, FALAFASA TAGALOA, between the 1st day of January, 2000, through the 311s day of ~ecemberl 2000, both dates ificlusive, at the City and County of San ~rkncisco, State of California, did have in his possession, with intent to pass, a forged and altered item with intent to def raudl knowing said item to be forged or altered.

People vs. Falafasa Tagaloa . . .

and . .

I ~t is further alleged that i n the co2pmission of the *-re .offenses, the said defendant, FALAFASA TAGALOA, .with the intent so to do, took funds and property of a-value exceeding. $50,000, I the property of San Francisco State University, the s t b e of California and the United states of America, within the meaning of Penal Code Sectson 12022.6(a) (1). 11 :. ' . ~. -

F p COUNT 11:

II

. AN^

California, being a person charged with the receipt, tkansfer or disbursement of public monies, did

thereof to his own use or use of another, or

I 1. without authority of law, appropriate the same or any portion

I : ! I

I

F-ASA TAGALOAA defendant, i s fu=ther accusgd by the1 ~r&d JUN of the City and County of San ~rancisco, State of California, by this, Indictment; of the crime of felony, to wit: VIOLATION OF .

S E ~ I O N 19706 OF THE :CALIFORNIA REVENUE AND TAXATION C ~ D E , .committed as follows:. ~he'said defendant, FALAF'ASA .TAGALOA, between the 1st day of January, 2001. through the .3lstl day of .

December, 2001, both dates inclusive, at the City a n d . & o ~ t y of San ~r&ncisco, State of California, did, within the t d e :required by law and with intent to evade tax, willfully fail to! file a

personal income tax return for the 'year. 200b,. . .

i COUNT I

FALAFASA TAGALOA, defendant, is further accused by.the Grand ~ u r y of the City and County of San Francisco, State of ~alibornia, by this Indictment, of the . crime 'of 'felony, to wit: VIOLATION OF SECTION 424 OF TEE CALIFORNIA PENAL CODE. committed as;) f~llovs: The said defendant, FALAFASA TAGALOA, between the 1st day of

' I

January, 2001, through the 31st day of December, 200l,/ both dates inclusive, at the City and County of San Francisco, state of

People vs. ~alafasa Tagaloa and

/I 3.. knowingly keep a false account or make a .false entry in an

account relatlng to said public modes, or J

I 4 . fraudulently alter or falsify any account of publiclmonies.

F W A S A TAGALOA, defendant, of the City and County of San this ~ndictment, of the crime of felony, to wit: SECTION 470(a) OF THE ~ I F O R N I A PENAL CODE, follows: The said defendant, FALAFASA day of January, 2001, through the 31st day ot ~ecembtrrj 2001, both dates inclu'sive, at the City and County of San ~rahcisco, state of California, did, with intent to defraud, I (a) and knowing he had no authority to do so, sign the name or

. another or fictit5ous person to .a request' for of .money, writing obligatory or due bill for

II (b) counterfeit or forge the seal or handwriting of another. u . ' !I : .

(c) falsely make, utter and pass as true and genuine a request for payment'of money, writing obligatory or due b3l l for

I1 payment of money, knowing the same to be false,; forged or 1 : counterfeit.

COUNT 14:

FALAFASA TAOAIOA, defendant, is further accused by the 11 Grand Jury of the City and County of Pan Francisco. State of ~alifornia. by this Indictment, of the crime of felony, to wit: VTOLATION OF SECTION 475(a) OF THZ CALIFORNIA PEN^ CODE, committed follows: The said defendant, FALAFASA TAGALOA, day of January, 2001. through the 31st day of ~ecember 2001, :: both dates inclusive, at the City and County of San Fr~cisco, State of California, did have in his possession, with intent to pars, a forged and altered item with intent to defraudj knowing said item to be forged or altered. 11

I

. . People vs. Falafasa Tagaloa

and

EXCESSIVE TAKING OF' FUNDS A&LEGA!PTON PURSUANT To P-( C(IDE SECTION 12022.6ta) (1) AS TO COUNTS 12 THROUGH 14 I

FALAFASA TAGALOA, defendant, is further accused by the 1- rand mry of the City and County of San Francisco, State of Cali i o d a , by this Indictment, of the crime of felony, to wit: VIOLATXON OF SECTION 424 OF THE CALZFORNIA PENAL CODE, committed an / follows: The said defendant, FALAFASA TAGALOA, between the 1st day of January, 2002, through the 31st day of December, 2002, both dates I inclusive, at the City and County of San Francisco, State of

11 California, being a person charged with the receipt, transfer or

11 . disbursement of public monies, did

II ~t is further alleged that in the commission of the above offenses, the said defendant, F W A S A TAOALOA, with tlke intent so to do, took funds and property of a value exceeding 11 $50,000, the property of San Francisco State University, the State of

I ~alifornia and the United States of America, within the meaning -

!I 1. without authority of law, appropriate the same or any portion

thereof to his own use or use of another, or I s

of Penal Code .Section 12022.6 (a) (1) . I COUNT 15: I FALAFASA TAGALOA, defendant, is further accused by the &and jury of the City ahd County of San Francisco, State of ~alifornia, by this ~ndictment, of the crime of felony, to wit: VIOLATION OF SECTION 19705 (a) (1) OF THE CAIJIFORNIA REVENUE AND T-+ON CODE, committed as follows: The said defendant, FALAFASA T A W A , between the 1st day of January, 2002, through the 3lstlday of December, 2002, both dates inclusive, at the City and dounty of San Francisco, State of Califor~iia, did willfully make and I subscribe under penalty of perjury a false or fraudulent California personal income tax return for the year 2001, which he did not believe to be true and correct as to every mat&rial matter.

People vs . ~alaf asa Tagaloa, and

3.. knowingly keep a false account' or make a false account relating to' said public monies, or

!I 4 . fraudulently alter or falsify any account of public monies.

'I

COUNT 17: . . I

FALAFASA TAGALOA. defendant, is further accused by the 1 rand ~ u r y of the City and County of San Francisco, State of California, by this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 470 (a) OF THE CALIFORNIA PENAL CODE, committed as I follows: The said defendant, FALAFASA TAGALOA, between the 1st day of January, 2002, through the 31st day of December) 2002, both dates inclusive. at the City and County of San Prhcisco, State of California, did, with intent to defraud,

II (a) and knowing he had no authority to do so, sign the name or JI another or fictitious person to a request for payment of

money, writing obligatory or due bill for payment of money. I I (b) counterfeit or forge the seal or handwriting of another, I

1 (c) falsely make, utter and pass as true and genuine a request

for payment of money, writing obligatory or due bill for payment of money, knowing the same to be false, counterfeit.

FALAFASA TAGALOA, defendant, is further accused by the1 Grand Jury of the City and County of San Francisco, State of California, by this Indictment, of the crime of felony, to wit: VIOLA~ION OF SECTION 475 (a) OF THE CALIFORNU PENAL CODE, committed( ad follows: The said defendant, FALAFASA TAGALOA, betweek the 1st day of January, 2002, through the 31st day of ~ecember! 2002, both dates inclusive, at the City and County of San Fr+ncisco, State of California, did have in his possession, with intent to pass, a forged and altered item with intent to defraud1 .knowing said item to be forged or altered. I

People vs . -Falafasa Tagaloa and

COUNT 19: . . ,

FALAFASA TAGALOA. defendant, is further accused by the 11 GraM Jury of the City and County of San Francisco, State of California, by this Indictment, of the crime of felony, to wit: VIOLATION OF SECTION 19705 (a) (1) OF THE CALIFORNIA REYENLIE AND TAXATION CODE, committed as follows: The said defendant, FALAFASA T A W A , between the 1st day of January, 2003, through the 30thll day of April, 2003, both dates inclusive, at tbe City and County of San Francisco, State of California, did willfully make and' srfbscribe u under penalty of perjury a false or fraudulent California personal income tax return for the year 2002, which he did not 1 believe to be true and correct as to every material matter,

I1 \

~t is filrther alleged that in the commission of thbcdve offenses, and pursuant 'to a pattern 0.f related felonious conduct.

or more separate victims or against the same victim on:/l two or more separate occasions, gnd that aaid pattern of relayed felony conduct involves the taking of more than one hundred thousand dollars ($100,000) . I ' .

il ALLEGATION PURSUANT TO PENAL CODE SECTIONS 7 9 9 AND 8 0 3 k C ) (1 )

1 (I

During or near late October, 2001, while sorting out disbursement checks, San ~rancisco State University ( became suspicious about a $6? 500.00 "stipendX check issued in the name of ( k c h check was picked up by Falafasa '~agaloa, the Director of San Francisco I State university's Office of Research and Special Projects (ORSP). When, on a subsequent occasion, about 'one month later, he noticed a similar incident involving the same parties,* m c k e d the registration status of Ad determined that w a s not in fact a registered ktudent nor an employee at San Francisco State University (SFSU),

I I

People vs. Falafasa Tagaloa '

and - advised SFSU 11 of his

concern and provided w i t h the reported social Security number of w h i c h information -placed in his "to do" file. I(

1 , Within a few weeks, -was 'nade aware of other1 circumstances relating to Falafasa Tagaloa lpbich caused - and to research the stipend payments made to -and the related docubents. 1 determined that numerous University checks, drawn against

.- --. - accounts funded by-publiE-monies, had been negotiated for face value. The checks were the product of requisitions in various I forms, which forms and requisitions were verified by Falazasa ~agaloa-in his official capacity and which forms also bore the - - -

forged signature of I II After the audit, on or aboue April

10, 2002, first contacted the SFSU Police Department to report their findings. An official police investigation was initiated. The invest lgation revealed that, among other findings, ( Falaf asa

- Tagaloa shared a common address with w a n d that he had opened an account at an SFSU campus branch of the stat& Employees Credit Mion in his name and the name of It w&s subsequently determined by o n or about October 23, 2002, that almost all of the suspect checks were negotiated through that account and have e n d o r s e m e n t s actually written by Falafasa ~a~alba.

1

CERTIFICATION OF COUNTY CLERK

STATE OF CALIFORNIA 1 ss.

. City and County 0.f .Sari '~rancisco 1

i /I

f, GORDON PARK-LI, Clerk of the Court of the City and1 County of San ~rancisco, State of California, do hereby certify that dhe within 5s an original indictment found by the Grand Jury of the ~ i t b and County of San Francisco, which was this day presentea, in oden court by the foreananlforeperscn of, and in the presence of, the said! rand Jury, and that the said indictment was thereafter on this with me as a record of said court. ,

IN WITNESS WHEREOF, I have hereunto set'my hand and the seal of the said court. I

ORDER ASSIGNING CAUSE A N I ~ FIXING BIECL

. I . .

' ~ t is hereby ordered that a bench warrant issue for thel'arrdst of each of the within named defendants and that bail as to &ch defendant be fixed in the sum of: 1 .

DATED : CORDON PARK-LT, Clerk I

DEFENDANT FALH-%~~ *w&

. .

In the event that bail be posted by PROPERTY BOND8 tab amount thereof shall be twice the amount hereinbefore fixed. ' 1 1 . ..

It is further ordered that the within names indictm&& and cause be assigned to Department NO. &&. 1

! . I

By.:

'People vs. Falafasa Tagaloa and

It is further alleged that if convicted of the above offenses, the court may order the defendants to pay restitution to the victim(s) of the offenses, and to the Restitution Fund, pursuant to Penal Code Section 1202.4.

A True Bill TERENCE HALLINAN Distrfct Attorney

I / &ERT K. MURRAY : ,

Foreperson of the f rand Sury Assistant District

Names of witnesses examined before the Grand Jury on finding the foregoing Indictment:

. . . . NATIONALSCIENCE FOUNDATION . . > ', 4201 W,ILSON BOULEVARD

ARLINGTON, VIRGINIA 22230 . .

i

. . . . I ! . I

OFFICE OF THE DEPUTY DIRECTOR

I

I

. . . .

. .

. .

' , Falafasa Tagaloa V-30023 I

I . . . Mule Creek State Prison , I .. .

, . . P.0 Box 409099 .. Iones, CA 95640

I

I ., , . . Rei. Notice of ~ebarment . .

. . ! . . . .

Dear Mr. Tagaloa:

On August 24,2004, the National Science Foundation (NSF) sent you a Notice of Proposed ~ebarment in which NSF proposed to debar you fiom directly or indirectly obtaining the benefits of Federal grants for a period of three years. The Notice sets forth in detail the circumstances giving rise to your debarment. NSF's deb'arment action is based upon the agency's administrative record indicating that you pleaded guilty'to multiple charges relating to the theft of NSF funds over a five-year period. You were sentenced to four years in California State prison and were ordered to pay restitution in the amount of $480,383.56.

In that Notice, NSF provided you with thirty days to respond to the proposed debarment. Over thirty days have elapsed since you received the Notice and NSF has not received a response. Accordingly, you are debarred until August 24, 2007. Debarment precludes you fiom receiving Federal financial and non- financial assistance and benefits under non-procurement Federal programs and activities unless an agency head or authorized designee makes a determination to grant an exception in accordance with 45 CFR Section 620.2 15. Non-procurement transactions include grants, cooperative ageements,' scholarships, fellowships, cantracts of assistance, loans, loan guarantees, subsidies, insurance, payments for specified use, and donation agreements.

. . . . I n addition, you are prohibited fiom receiving Federal contracts or *roved subcontracts under the

. . Federal Acquisition Regulations (FAR) at 48 CFR Subpart 9.4 for the period o f this debarment. 45 CFR Section 620.1 10(c). During the debarment period, you may not have supervisory responsibility, primary management, substantive control over, or critical influence on,.a grant, contract, or cooperative agreement with any agency of the Executive Branch of the Federal Government . .

If you have any questions regarding the foregoing, you may contact Lawrence Rudolph, General Counsel, National Science Fouirdation, 4201 Wilson Boulevard, Room 1265, Arlington, Virginia 22230.

Sincerely,

u . Joseph Bordogna Deputy Director

Settlement Agreement Between

The United States of America And I

The San Francisco State University .

1. This Settlement Agreement (the 'Settlement Agreement") is entered into between the United States of America (the United States) and the San Francisco State University (SFSU). The United States and SFSU may be referred to individually as 'Party" or collectively as 'the Parties." I

i I. The Covered Conduct

- . 2. .The National Science ~oundation (NSF) solicited proposals for awards under th-

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3. The solicitation fbi the award indicated thattheawardwas to be administered in compliance with award conditions, including a requirement that award recipients maintain financial systems to meet cea in minimum standards. SFSU applied for the award, rep~sentmg thereby that its financial systems met these minimum standards. SFSU was a selected awardee and entered into- w i t h NSF. The -incorporated by reference awa @ conditions, including a requirement that recipients maintain financial systems to meet certain minimum standards.

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4. The award committed NSF to provide up to- funds. SFSU has rdceived funds in the amount o f from NSF. SFSU committed to provide cost sharing in the amount of -

5. The united States contends that SFSU provided misleading representations to NSF : concerning its appro~riate use of award funcls and the amount SFSU contributed as mt-share durina the

SFSU submitteda total of 28 Federal Cash Transaction R ~ ~ ~ ~ ( F C T R S ) and that on a number of such '

FCTRS SFSU fabelycertified that disbursements had been made in accordance with the award's purpose and conditions and cost-share obligations had been met Finally, the United States contends that SFSU drew down amounts in excess of the allowable costs associated with the -

6. The conduct deswibed in paragraphs 2 5 is the 'Covered Conduct." '

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7. The United States contends that SFSU may have provided false certifications to NSF

pertaining to its appropriate use of award funds and its cost share contributions and may have misspent . riod of 15 0ctober r o u g h 30 ~ a n u a r y under B

8. SFSU acknowledges, based on the findings of a subsequent review of expenditures under the award, that it drew down amounts in excess of the allowable costs associated with th-

SFSU contends that at the times the drawdowns were made SFSU believed the costs on which they were based to be valid, and denies that any misrepresentations were made by SFSU or its representatives in mnnection with the award.

: 9. WHEREAS, the Parties desire to settle their disputes regarding the allegations covered by , ,

. . . the investigation to avoid further expense and theunchainties of litigation. The Parties desire also to settle any possible dispute regarding conduct identical to the covered conduct herein, which may have occurred. prior to 31 August 2006 and which may be discovered i n the future, regarding. administratioh of the following NSF awards: ' . .

i 10. NOW THEREFORE, in furtherance of such desire, the Parties have negotiated a settJement

of all allegations covered by this investigation, and have,negotiated a settlement of all possible disputes that might arise in the fbture as a result of conduct identi41 to the covered conduct, descibed herein, that may have occurred prior to 31 August 2006, in the administration of the NSF awards identified in paragraph 9 above. This settlement is neither $in admission of liability by SFSU nor a concession by the United States.

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. . 1 1. In reliance upon the representationsdained herein arid in co"siderati6n. of the mutual promises, covenants, and obligations in this Agreementand the resolution of the claims set forth below, and' for good and valuable consideration, receipt of which is set forth in .this document, the Parties agree as follows:' . .

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II. ~errns and Conditions. . . . ,

, 12. SFSU shall pay a total sum of $809,477.63 ("the total Settlement Amount") to the United

States.

13. SFSU agrees to pay the total Sefflement Amount within ten (10) calendar days after execution of this Settlement Agreement by all Parties. The total sl.lrn of payment shall be made by means of electronic funds transfer in accordance with instructions to be provided to SFSU by the Financial Litigation Unit of the United States Attorney's Office for the Eastern District of Virginia, in Norfolk, Virginia. Such instructions may be obtained by telephoning Ms. Ginger ~wamvdrth at (7'57) 441-3179. !

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14. Subject to the exceptions in Paragraph 18, below, in considemtion of the obligations of SFSU set forth in this Agreement and conditioned upon SFSU's full payment of the Settlement Amount, the United States (on behalf of itself, its officers, agents, agencies, and departments) agrees to release SFSU, its present and former officers, directors, and employees (collectively the 'Rejeased Parties") from any civil or administrative monetary claim the United States has or may have under common law theories including payment by mistake of fact, unjust enrichment, disgorgement, restitution, breach of contract, and breach of fiduciary duty for the Covered Conduct, and under the Program Fraud Civil Remedies Act, as such relate to the covered conduct..

15. SFSU agrees to release the United States and its officers, agents, employees and contractors and their employees for any and all claims, causes of action, adjustments and set-offs of any kind arising out of or pertaining to the Covered Conduct, including the investigation of the Covered Conduct under this Settlement Agreement,

16. The Parties agree that the "Compliance Commitmentsn (attached hereto and incorporated by reference) are to be fully implemented by SFSU to ensure SFSU compliance with all relevant laws and regulations governing NSF awards and to prevent fraud, false statements, and misspending of funds related to NSF awards, contracts, and cooperative agreements by SFSU, its officers, faculty, other relevant employees, and relevant sub-recipients and subcontractors. The Pam'es agree that SFSU shall comply with the terms of the attached Compliance Commitments and that NSF OIG will act as the agent for the United States in ensuring such compliance. However, notwithstanding any failure of SFSU to fulfill one or more of the Compliance Commitments, or any other subsequent act or omission by SFSU, the release granted in Paragraph 14 shall remain in full force and effect.

17. Subject to the exceptions noted in Paragraph 18, below, in consideration of the obligations -

of SFSW as set forth in this Agreement, and at such time as full payment of the total Settlement Amount is made by SFSU, the United States shall terminate its NSF 01G investigation into the covered conduct as set out in paragraphs 2-5, above.

18. The Parties agree that s~ecificallv excluded froni the scope and terms of this Agreement are:

(a) any disputes or claims arising under the Civil False Claims Act, Title 31 U.S.Code Sections 3729-3733.

(b) any disputes or claims arising under the Internal Revenue Code, Title 26 U.S. Code; (c) any issues of criminal liability of any individual or entity; (d) any disputes or claims for the enforcenient of the terms of ,this Agreement;

(e) any claims or administrative actions arising from a breach of this Settlement Agreement.

Ill. Breach and Default Provisions !

19. NSF OIG shall monitor compliance issues on behalf of the United States Attorney's Office for the Eastern District of Virginia (USAO-EDVA). In the event that NSF OIG believes' SFSU has breached any of its obligations underthis Settlement Agreement or has breached any of its compliance Commitments (attached hereto). NSF OIG will immediately notify NSF and will provide relevant and necessary information to USAO-EDVA concerning the alleged breach.

20. In the event that NSF believes SFSU has breached any of its obligations under this Settlement Agreement, NSF will immediately notify NSF 01G and NSF OIG will provide relevant and necessary information to the USAO-EDVA concerning the alleged breach.

21. Within 24 hours of identification or notice of a suspected breach of obligations under this Settlement Agreement or the attached Compliance Commitments, SFSU shall be notified of the alleged breach by written notice, by email and by certified mail (return receipt requested) to SFSU's Authorized Organizational Representative (AOR), specifying the nature and extent of the alleged breach. SFSU will have sixty (60) days from receipt of the notice to (a) cure said breach or (b) otherwise satisfy NSF and NSF OIG, on behalf of the USAO-EDVA, that it is in full compliance with this Agreement and the attached Compliance Commitments or that the breach cannot reasonably be cured withh sixty (60) days, but that SFSU has taken action to cure the breach and is pursuing such action with diligence. NSF OIG shall thereafter keep the USAO-EDVA informed of attempts at resolution of any suspected breach. I

22. If, at the end of the sixty (60) day period described above, NSF determines that SFSU continues to be in breach of any of its obligations under this Agreement or the attached Compliance Commitments, NSF will notify NSF OIG of such determination and may initiate proceedings to undertake appropriate administrative action, including but not limited to the suspension or termination of any or all NSF awards and/or suspension or debarment of SFSU. NSF OIG shall notify USAO-EDVA of such action.

23. If, at the end of the socty (60) day period described above, NSF OIG determines that SFSU continues to be in breach of any of its obligations under this Agreement or the attached Compliance

Commitments, NSF OIG shall notify SFSU by email and by certified mail (return receipt requested) to SFSU's AOR, of this determination and shall refer the matter to the USAO-EDVA. NSF 01G may also refer the matter to NSF to initiate proceedings to undertake appropriate administrative action, including but not limited to the suspension or termination of any or all NSF awards and/or suspension or debarment of SFSU. I I

24. Sho~~ld any action to enforce or interpret this Settlement Agreement or to resolve any dispute hereunder be required, the Parties acknowledge and agree that the appropriate jurisdiction for any such matter is the U.S. District Court in the Eastern District of Virginia.

N. Costs

25. The ~ar(ies further agree that each Party to this Settlement Agreement shall bear its own costs, expenses, and fees (including attorney fees), except as otherwise provided in paragraph 12 herein. I

I (a) SFSU agrees that all costs incurred by or on behalf of SFSU in axlnedibn wlh the

following are, except as specifically noted, unallowable costs to United States Government awards under the cost principles applicable to such awards:

1. NSF's investigation of the Covered Conduct, 2. SFSU's investigation, defense, and corrective actions undertaken in response to NSF's investigation in connection with the Covered Conduct (including attorney fees), except that actions by SFSU to implement the Compliance Commitments shall be allowable F&A (indirect) costs togovernment awards to the extent that they areotherwise allowable under the applicable cost principles; 1 3. the negotiation of this Settlement Agreement, and I

4. the payment made pursuant to this Settlement Agreement, I

(b) These unallowable costs will be separately estimated and accounted for by SFSU and SFSU will not charge such ~lnallowable costs to any Federal award(@, including, but not limited to awards, contracts and cooperative agreements.

V, Integration Clause

26. This Agreement, incorporating herein the attached Compliance commitments: embodies the entire agreement and understanding of the Parties with respect to the subject matter contained herein. There are no restrictions, promises, representations, warranties, covenants, or undertakings other than those expressly set forth or referred to in this Settlement Agreement and the aforementioned

Compliance Commitments. This Agreement may not be amended except by written agreement of the Parties.

27. This Settlement Agreement, together with the provisions of the attached Compliance Commitments herein incorporated by reference, supersedes any and all prior agreements and understandings between the Parties with respect to this subject matter. I

28. SFSU represents that this Agreement is freely and voluntarily entered into without any degree of duress or compulsion whatsoever.

29. Each person who signs this Agreement in a representative capacity warrants that he or she is duly authorized to do so.

THE UNITED STATES OF AMERICA I

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Chuck Rosenberg I United States Attorney

Paula P. Newett Assistant United States Attorney 21 00 Jamieson Ave. Alexandria, VA 22314 703-299-37600 I

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Robert 3. Kenney, Esquire Counsel for SFSU

TY (SFSU)

Date: . +if+& Date: ?// d l 6

Hogan & Hartson, LLP 555 13' Street, N.W. i

Washington, D.C. 20004-1 109 202-637-5707

COMPLIANCE COMMITMENTS

Preamble San Francisco State University (SFSU) is committed to implementing a Compliance Program to ensure compliance with the terms and conditions applicable to any NSF grants and awards; to ensure compliance with all relevant laws and regulations governing NSF awards; and to prevent fraud, false statements, and misspending of funds related to NSF grants, contracts, and cooperative agreements by SFSU, its officers, faculty, other relevant employees, and relevant su brecipients and subcontractors.

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Scope of Comniitments I

SFSU is fully committed to achieving the compliance objectives set forth in the body of this document. While this document reflects SFSU's commitments regarding the application for, receipt of, and administration of NSF funds, SFSW recognizes that this is only the beginning of a successful research compliance program. SFSU's goal is to establish a culture of compliance at SFSU that is self-sustaining and continuous.

Responsible Compliance Official The President has designated the Provost as the President's representative and the SFSU official ultimately responsible to tlie President for achieving the compliance objectives set forth in the body of this document. The Provost shall oversee SFSU's sponsored research Compliance Program, including, where appropriate, the review of awards, the development of training programs, and the submission of comprehensive written annual reports to the President, to NSF OIG, and to NSF on the status of compliance at SFSU. The Provost is a member of senior management of SFSU and reports directly to the President.

Compliance Committee The Provost shall chair a Compliance Committee that shall oversee the Compliance Program throughout SFSU. The responsibilities of the Compliance Committee will include, without limitation,. the review and approval of significant compliance policies and procedures and any modifications to existing procedures; the review and consideration of reports from the Compliance Officer and Internal Auditor on the state of compliance in sponsored research programs; and any information relating to a material deviation from SFSU policy with respect to sponsored research. In addition to the Provost, the members of the Compliance Committee shall include the following SFSU officers: Compliance Officer; Canipus Counsel; CFONice President for Administration and Finance; Associate Vice President for Research, and Associate Vice President for Academic Affairs. The Compliance Committee shall meet quarterly. The Provost shall immediately act upon compliance-related matters as they may arise and will notify the Compliance Committee at a time and in a manner he may deem appropriate.

Compliance Officer The Compliance Officer manages the daily operation of the sponsored research Compliance Program at the University. The Compliance Officer's chief responsibility is to monitor internal controls to ensure compliance with all federal laws and regulations regarding the use and expenditure of NSF and other federal and non-federal sponsored award funds. The Compliance Officer will report to the Provost, a member of the President's cabinet, through theAssociate Vice PresidentforAcademic Affiirs. 'The Compliance Officerwill report directly to the Provost any compliance issues that need immediate attention. I

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Compliance Program I #

SFSU will identify positions throughout the University that have roles and responsibilities in the application for, receipt of, and administration of NSF awards. All individuals in such positions will be provided with (or have electronic access to) written policies andlor procedures applicable to their positions for (1) a Code of Conduct holding SFSU personnel to high ethical standards of professional conduct and integrity in the conduct of NSF

research; (2) accurate time and effort repolling under NSF awards to meet the standards of the L s t principles specified in OMB Circular A-21 and the Federal administrative requirements contained in OMB Circi~lar A-1 10; (3) accurate charging of costs under NSF awards; (4) accurate monitoring, managing, and reporting of cost sharing; (5) accurate monitoring of subrecipients, consultants, and subrecipient charges; (6) accurate relconciliation of accounting records; and (7) document management and retention. I

! Reports 1

l r At six (6) months from the date of the Settlement Agreement, SFSU will provide to NSF and NSF, OIG an initial report setting forth SFSU's immediate progress with respect to these Compliance Commitments. This initial report will describe the composition, role, and progress of the Compliance Committee; will address the roles and responsibilities of those involved in grant administration; and will include copies of all policies and procedures currently in place and newly implemented to address compliance, a training calendar and copies of training materials, copies of confidential disclosure mechanisms, and an implementation plan for further Compliance Commitments.

I At twelve (12) months after delivery of the initial report, and annually thereafter, for three (3) years, SFSU mmmits to providing NSF and NSF OIG a written report addressing the status of the development, implementation, and documentation relating to the Compliance Program. SFSU also commits to identifying deficiencies hiscov'ered by any means, including internal audits or any other audit or review, in such reports and will identify ithe corrective actions undertaken to address such deficiencies. Finally, SFSU shall attach the most recent A-133 audit and any other financial review of its federal awards. With approval of NSF OIG, this twelve-month reporting date may be adjusted forward to coincide with SFSU's annual alldit and reporting cycle. . I SFSU furthercommits to reporting every materiai violation discovered during any audit or review immddiatel~ to NSF and NSF OIG and remedying such within sixty (60) days of SFSUJs knowledge of such material violation. A 'material violation' is one that has a siginificant adverse impact on the administrative, financial, or'programmalc aspects supported by NSF Awards. If SFSU cannot cure any such material violation within sixty (60) days, SFSU will inform NSF and NSF OIG of such determination within the sixty (60) days following SFSU's knowledge of such violation and, with approval of NSF and NSF OIG, provide an agreed upon timeframe to cure theviolation. The final report addressing the material violation shall include notice of action taken to prevent recurrence of the violation.

These reports on SFSU1s corrective actions shall include a certification by SFSU1s Compliance h c e r that all deficiencies have been identified and addressed to ensure SFSU1s compliance with all requirements of ~edeml law, regulations, and these Compliance Commitments. '1

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Records I

SFSU commits to retaining for three years from the date of the final annual report all record4 generated in connection with these Compliance Commitments, including reports to NSF OIG and NSF and documents reflecting the policies and procedures referenced in the report or amendments to those policies and procedures. SFSU further commits to making such records available to NSF OIG and NSF, upon request This commitment b over and above the obligations to which SFSU will continue to be subject under the record retention requirements of its NSF awards. 1

I ' Training I SFSU shall institute and maintain a comprehensive training program designed to ensure that kach relevant employee, subcontractor, or subrecipient, is aware of all applicable laws, regulations, and standards of conduct that such individual is expected to follow in order to comply with all rules and regulations applicable to NSF awards and the consequences, both to the indi,vidual and to SFSU, that will ensue from any violation of such kquirements. Relevant employees, subcontractors, and subrecipients are defined as those individuals with a role oiresponsibility in the application for, receipt of, or administration of NSF awards and those individuals who conduct projects

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supported by NSF awards.

Each relevant employee shall receive at least one (1) hour of initial training that shall include a discussion of the contents of these Compliance Commitments as well as the relevant award requirements and shall receive additional training of at least one (1) hour on an annual basis. A training schedule and information on percentage of personnel trained shall be included in the annual report submitted to NSF and NSF OIG.

SFSU will develop a package of guidance materials setting forth SFSU's expectations for compliance with NSF rules and regulations and SFSU policies by subrecipients and subcontractors. The packageof materials will bedistributed to every subrecipient and subcontractor, and it will include, among other materials as applicable, information on: preparing invoices to SFSU, accounting forcosts, documenting expenditures and cost matching expenditures, and audit requirements.

SFSU anb'cipates that plans, policies, and materials necessary for the following short-term milestones for the implementation of the training program will be accomplished and approved by the Provost to allow completion by the dates indicated below:

. Description

1. The Compliance Officer will lead and conduct special training sessions for all ORSP grant administratrve staff regarding the documentation of 'in-kindbstshare commitments, effort reporting, and reimbursed released lime processing timelines.

2, The Compliance Officer will lead a discussion on compliance principles and requirements with all new faculty attending the SFSU New Faculty Orlentation Weel(.

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3. SFSU will hire a Training Specialist who will lead the process of designing haining materials and will work with the Compliance Officer and the Associate Mce President for Academic Affairs to implement pmfessional training programs.

4. The Compliance Officer willconduct atraining program forthe Deans Council (comprised of every Dean from each college) to inMuce compliance principles and requirements.

5 The Trainlng Specialist will design a training calendar for ongoing compliance training and w~ll develop a comprehensive outline of training materials to be used for training programs.

6. The Compliance Officer will conduct a training program for Department Chairs to introduce compliance principles and requirements.

7. The Compliance Officer and the Training Specialist will jointly conduct a pilot training for facully in order to gauge the eWveness of training materials.

8. The CMlp~ance Ofticer and the Train~ng Specialist will hold training pmgrams for groups of Pl's and faculk to address the rules and regulations applicable to federal awards and the consequences, both to the individual and to SFSU, that will ensue from any violation of such requirements.

Completed By

August 31,2006

August 31,2006

September 30,2006

October 31,2006

November 30,2006

~ovehber 30,2006 I

November 30,2006 I I

~ebru!ary 2007 to April 2007

Confidential Disclosure Program 1 c

SFSU will continue to implement and abide by the confidential disclos~~re and whistleblower procedures currently established by the State of California and existing within the University. The confidential discloshe mechanism enables employees, sub-recipients, and subcontractors to disclose anonymously any practicesces, procid~~res, or acts deemed by the individual to be inappropriate. SFSU is committed to ensuring that the confidential disclosure mechanism is known to each individual. I

Debarred and Suspended Persons I SFSU will comply with 45 C.F.R. part 620 in dealing with debarred or suspended persons. As itq persons or contractors who become excluded while they are employed by or under contract with SFSU, SFSU,WIII notify NSF in accordance with the requirements set forth in the aforementioned regulation. 1

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Audit, Annual Review, and Inspection 1 In addition to the single audit requirements contained in OMB Circular A-133 and any State of California audit requirements, and in conjunction with the aforementioned annual written reports to NSF on SFSU:s Compliance Program, SFSU shall arrange for an independent review, based upon agreed procedures, of SFSU's Compliance ,

Program, to be annually conducted in accordance with a Statement of Work (SOW) designed.l(l) to ensure compliance with the terms and conditions applicable to any NSF grants and awards and (2) to assess the efficacy of SFSU's Compliance Program relative to (a) establishment of a code of conduct; (b) effectiveness'of senior level oversight and provision of resources to SFSU's Compliance Program; (c) effectiveness ofthe screening of personnel; (d) effectiveness of SFSU's training program; (e) SFSU's confidential disclosure (whistle blower) procedures; (f) establishment of a system of appropriate encouragement of compliance and appropriate disciplinad measures for engaging in criminal conduct or failing to take reasonable steps to prevent or detect such conduct; and (g) SFSU's ongoing risk assessments and responses taken thereto. SFSU will provide a copy of the SOW to NSF OIG 30days prior to the initiation of the review. NSF OIG will have the right to require additional procedures if it detemiines, within ten (1 0) workng days after receiving the advance copy of the SOW, that the SOW lacks sufficient detail to ensure accomplishments (1) and (2) above. SFSU will submit to NSF and NSF OIG a copy of the independent reviewer's written report and findings as a supplement to the annual written reports required elsewhere in the+ Compliance Commitments. The review referred to in this section may be conducted in whole or in part by SFSU's internal auditors, provided that SFSU provides NSF OIG with adequate assurance of their independence in dnnecfion with the SOW. I

SFSU commits providing NSF 010, in addition to any other right that NSF OIG has pursuant /o NSF award conditions or other authoriG, the right to examine and copy SFSU1s records, including audits and audit workpapers, for the purpose of verifying and evaluating (a) SFSU's performance of these Compliance Commitinents and (b) SFSU's compliance with any NSF requirements. SFSU agrees to niake records available at any reasonable time for inspection, audit, andlor reproduction. I

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