The New York State Museum in Albany has been accused of misusing $597, 624 in federal grant funds between 2020 and 2022, the Times-Union reported Wednesday.
The finding resulted from a recent investigation by the US Department of the Interior’s Office of Inspector General. The accompanying report, released in late May, found that the museum misused grants provided by the US Geological Survey, given for STATEMAP, its state geological mapping program. The grants were meant to be matched one to one by the museum. But OIG found that museum officials directed staffers to submit inflated time sheets for hours worked on STATEMAP; the institution also allegedly submitted the salaries of two employees not working on STATEMAP to the grant. In doing so, the museum was able to improperly withdraw federal grant funds.
Our investigation found that NYSM did not execute its STATEMAP projects in accordance with the approved proposals and revised budgets it certified to USGS and that it did not meet its State match requirements for STATEMAP projects for FYs 2020, 2021, and 2022. We found that NYSM officials instructed their employees to submit inaccurate timesheets reflecting inflated levels of involvement in STATEMAP programs. NYSM officials also charged the salaries of two employees who did not work under the grant, and they could not account for one employee’s Federally funded salary. In total, we found that NYSM improperly drew down $597,624 in USGS grant funds from FYs 2020 through 2022.
The report also found that NYSM “violated the terms and conditions of the grant” by changing personnel in the proposal and reallocating funds earmarked for field expenses to pay staff salaries.
The US Attorney’s Office for the Northern District of New York declined to prosecute NYSM for the fraud. However, the New York Education Department has acknowledged the OIG’s findings, and said that it is “full transparent and cooperative” and “prepared to reimburse” any grant money not supported by the state match.
The investigation was sparked by New York Times reporting in 2024 that found a former payroll employee at NYSM had accused a manager of directing him to file the inflated time sheets.
In January, Governor Kathy Hochul and Commissioner of Education Betty A. Rosa announced Phase One of a $150 million investment in NYSM, meant to support the renovation of public spaces, including a new Kids Zone, cafe, and gift shop, and new, expanded exhibitions.
