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

EXECUTIVE SUMMARY:

The objective of this review was to determine whether Health Research, Incorporated (HRI) 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 (HHS), Health Resources and Services Administration (HRSA).  HRI is the fiscal agent responsible for administering the Program grant on behalf of the New York City Department of Health and Mental Hygiene (DOHMH).  Our review found that HRI accounted for Program funds in accordance with the terms and conditions of the cooperative agreement with HRSA.  Specifically, HRI recorded, summarized and reported transactions in discrete accounts established to account for bio-terrorism funding.  We also found that, while HRI and DOHMH implemented controls and procedures to monitor sub-recipient's expenditures of HRSA funds, they are not currently performing on-site audits of sub-recipients.  However, HRI and DOHMH indicated that they plan to add an on-site audit component to their monitoring procedures with funding from the Program.  We recommended that HRI and DOHMH continue to implement plans to add an on-site audit component for monitoring sub-recipients and address problem areas, as they are identified.