Senior counsel with the U.S. Department of Education announced the investigation Tuesday, alleging the Ann Arbor institution didn't report millions in foreign finances in a timely manner.

The University of Michigan is under federal scrutiny after two Chinese scientists linked to the school were separately charged with smuggling biological materials into the United States.

The Department of Education (ED) announced on Tuesday that it opened an investigation into the University of Michigan’s (UM) “inaccurate and incomplete” foreign funding reports. ED’s announcement alleges UM falsely reported funds it received from foreign sources as “nongovernmental entities” despite the sources having a direct affiliation with their governments.