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U.S. Will Investigate Med School Finances

Indirect Costs are 'Hard to Believe,' Investigators Say

The Medical School originally sought a rate of 114 percent, according to one of the investigators, but has now lowered its request to 104 percent. If the school receives the new increased rate, it will mark the highest rate of any university, medical school or research hospital.

Scott said he does not expect "a tremendous change" in the indirect cost rate.

Stanford's Costs

During the probe at Stanford launched by the subcommittee in October, investigators found that the university had been allotting hundreds of thousands of dollars of indirect cost funds to cover the depreciation on a 72-foot yacht, floral arrangements at the home of President Donald Kennedy '52, and the refurbishment of a grand piano at the President's home, according to a report published last month by The Boston Globe.

"Neither I nor the taxpayers financing these costs consider [these charges] proper," Rep. John D. Dingell (D--Mich.), chair of the subcommittee wrote, The Globe reported. Dingell is also chair of the House Committee on Energy and Commerce, which formed the team of investigators.

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Stanford officials have admitted that they made a mistake in billing for the yacht and some other items, and the university recently agreed to repay the government $184,286. However, the investigation at Stanford is not yet complete.

Joshua A. Gerstein contributed to the reporting of this story.

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