Department of Health and Human Services

Office of Inspector General -- AUDIT

"Nationwide Audit of State and Local Government Efforts to Record and Monitor Subrecipients' Use of Public Health Preparedness and Response for Bioterrorism Program Funds," (A-05-04-00027)

August 5, 2004

Complete Text of Report is available in PDF format (469 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objectives of this audit were to determine whether awardees: recorded, summarized, and reported bioterrorism program transactions by focus area in accordance with their cooperative agreements; established procedures to monitor subrecipient expenditures; and had unobligated fund balances as of August 30, 2003.  We determined that of the 17 audited awardees:  fourteen recorded, summarized, and reported bioterrorism program funds by focus area; six had developed adequate procedures to monitor subrecipient expenditures; and fifteen had unobligated balances of Federal bioterrorism funds as of August 30, 2003 totaling approximately $65 million, or 15 percent of the $428 million awarded.  We recommended that CDC: (1) continue to emphasize the requirement to account for funds by focus area; (2) identify awardees that have not accounted for their funds in accordance with the cooperative agreements and ensure that they revise their accounting procedures; (3) provide guidance to awardees on monitoring subrecipient expenditures and measuring subrecipient performance, including emphasizing the need for awardees to make site visits to directly review subrecipients’ expenditures and assess subrecipients’ progress in improving bioterrorism preparedness; and (4) identify the reasons for large unobligated balances and assist the awardees in overcoming barriers to a more timely use of funds.  In response, the CDC officials agreed with the findings and recommendations.