Review of New Jersey's Efforts to Account for and Monitor Sub-Recipients' Use of Bio-terrorism Hospital Preparedness Program Funds

EXECUTIVE SUMMARY:

The objectives of our review were to determine whether the State of New Jersey's Department of Health and Senior Services (DHSS) properly recorded, summarized and reported bio-terrorism preparedness transactions in accordance with the terms and conditions of the cooperative agreement with the Department of Health and Human Services (DHHS), Health Resources and Services Administration (HRSA) and whether DHSS established controls and procedures to monitor sub-recipients' expenditures of HRSA funds.  We found that DHSS accounted for Program funds in accordance with the terms and conditions of the cooperative agreement with HRSA.  Specifically, DHSS recorded, summarized and reported transactions in discrete accounts established to account for bio-terrorism funding.  DHSS officials stated that HRSA funding had not been used to supplant existing State or local programs.  DHSS did not perform site visits to its sub-recipients.  We recommended that DHSS consider implementing a site visit component to its procedures for monitoring sub-recipients and address problem areas, as they are identified.  New Jersey Officials concurred with our recommendation.