Federal investigators have determined that administrators at the New York State Museum in Albany directed a subordinate to falsify time sheets, resulting in the improper drawdown of nearly $600,000 in federal grant money between 2020 and 2022. The findings were released by the U.S. Department of Interior’s Office of Inspector General following an investigation triggered by allegations reported late last year.
The probe focused on whether state grant administrators coerced a museum employee to overreport hours worked on a U.S. Geological Survey mapping project to meet grant requirements. Investigators confirmed that museum officials instructed staff to submit inflated time records and improperly reallocated grant funds to cover employee salaries unrelated to the project, totaling $597,624. The report was submitted to the U.S. Geological Survey director for potential recovery of funds and further action.
The investigation was conducted jointly with the New York State comptroller’s office. Thomas P. DiNapoli’s office confirmed that the museum had billed nearly $600,000 for time spent by employees on activities outside of the federal grant’s scope. A spokesman for the comptroller’s office declined to elaborate on the possibility of recoupment, deferring to federal authorities.
The issue first came to light when Brian Slater, a former payroll worker at the museum, alleged that a manager had directed him to falsify time sheets as part of an effort to fraudulently obtain federal funds. Slater also claimed that some senior state officials were complicit in the scheme. He stated that while repaying the funds might address the financial shortfall, it would not remedy the pressure employees faced to participate under threat of job loss. Slater further expressed concern that those implicated may face no significant consequences, potentially harming staff morale and the museum’s credibility.
The New York State Education Department, which oversees the museum, had previously closed its own internal investigation nearly three years ago, concluding the fraud allegations were unsubstantiated. Since the federal findings, the department has acknowledged the inspector general’s report. Education Department spokesman JP O’Hare said the agency cooperated fully during the investigation and is prepared to reimburse any grant money found to lack proper state matching funds.
State Assemblyman John T. McDonald III, representing parts of Albany County, called for the Education Department to strengthen oversight to prevent similar issues in the future. He described the report as a reminder of longstanding mismanagement at the museum but expressed optimism about current efforts to reform. Governor Kathy Hochul and education officials are overseeing a $150 million renovation of the museum and surrounding downtown Albany, a project McDonald views as a turning point for the institution. He stressed the need for stronger internal accountability while noting positive feedback from both leaders and staff, characterizing the recent revelations as indicative of past challenges rather than the museum’s present trajectory.