Received 1099 incorrectly for income I didn't keep

My wife does some consulting work for a friend, who pays her. In the past she used to keep the money, but in 2016 she started giving all the income to her employer (a huge university). The checks were written to both my wife and the University. Unfortunately there was some confusion and the woman's accountant sent my wife a 1099-MISC. Clearly a pain in the butt, but who needs to do the work to fix this?