The US Department of Justice (DOJ) [official website] on Thursday announced [press release] that Big Brothers Big Sisters of America (Big Brothers) [official website] will pay $1.6 million as a result of accusations of false claims for Federal grants awarded from 2009-2011. The DOJ contends that Big Brothers failed to follow guidelines associated with these grants because they did not maintain separate accounting of the grant funds to ensure they are used properly. The DOJ Office of the Inspector General audited the corporation in 2013. Following the audit, Big Brothers has implemented new management procedures. As part of the settlement, Big Brothers also agreed to a number of remediation measures including the establishment of a compliance team, the implementation of new disciplinary procedures, the performance of regular audits, and employee training related to the management of funds.

Big Brothers is a non-profit organization and the country’s largest volunteer mentoring network with offices in cities throughout the United States. It began operating [Big Brothers backgrounder] in 1904 and was chartered by Congress in 1954. Last year, Big Brothers relocated its headquarters from Philadelphia to Tampa, selling the old building [The Philadelphia Inquirer report] for a little more than $1.6 million dollars. The settlement will reportedly be paid from the proceeds of that sale.