ROHNERT PARK (BCN) -- The Sonoma County District Attorney's Office and the FBI searched the administrative offices of Sonoma State University Thursday morning as part of an investigation into allegations of misuse of federal grant money.
District Attorney Stephan Passalacqua said the alleged misuse of "tens of millions of dollars over a number of years" involves SSU's disbanded California Institute on Human Services.
The institute was created in 1979 and was responsible for obtaining state and federal grants for training and social service programs including Head Start, adoption services and domestic violence programs.
"This case was initiated based on a complaint filed with the U.S. Department of Health and Humans Services resulting from an internal 2007 audit of California Institute on Human Services," Passalacqua said.
Passalacqua said a task force of state and federal investigators is analyzing "the voluminous amounts of documents associated with the alleged misappropriation of as many as 20 separate state and federal grant funding sources administrated by SSU."
Investigators from the U.S. Department of Health and Human Services' Office of Inspector General served the warrants with the Sonoma County District Attorney's Office and FBI around 9 a.m. today in Salazar Hall. Some employees were sent home, an SSU employee said Thursday morning.
In a written statement, SSU President Ruben Arminana said the search warrant pertains to a warehouse, a California Institute of Human Services storage building and the administration and finances offices in Salazar Hall.
Arminana said the investigation is focused on 20 grants originally awarded to and administered by the CIHS.
"The university welcomes the investigation and is working in full cooperation with the task force," Arminana said.
"The investigation is the result of a university police department referral to the Sonoma County district attorney in 2008 surrounding issues related to CIHS," he said.
The results of a California State University audit released in October 2007 found nearly $2 million in un-reimbursable or questionable labor and contracting expenditures by the institute.
The audit also found $520,000 in administrative payroll expenses and $200,000 in contractual operating expenses that did not have identified funding sources.
Additionally, it found questionable financial practices including the award of $300,000 in federal grant money for three video programs without competitive bidding. Another $600,000 from the same grant was spent on improper labor costs, according to the audit.
The audit also disclosed that more than $280,000 in grant money was paid to a former SSU employee who worked at My Home Inc., a CIHS project, after that project concluded in 2000.
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