Review of Grants Issued to the National Latina/o Lesbian, Gay, Bisexual and Transgender Organization

EXECUTIVE SUMMARY:

The objective of our audit was to determine whether before declaring bankruptcy, the National Latina/o Lesbian, Gay, Bisexual and Transgender Organization (LLEG') used Centers for Disease Control and Prevention (CDC) grant funds in accordance with Federal guidelines for allowability.  Our analysis of available documentation showed that LLEG' incurred $703,181 in unallowable costs:  $379,022 in unallowable expenses and $324,159 in expenses that occurred in a prior cooperative agreement period.  This was contrary to Office of Management and Budget guidance, which states that Federal funds be used only for the purpose for which they were given.  We recommended that CDC follow-up with the U.S. Bankruptcy Court as to the repayment of cooperative agreement funds from the LLEG' bankruptcy as allowed by 11 U.S.C. chapter 5.