State of California: Review of Public Health Preparedness and Response for Bioterrorism Program Funds

EXECUTIVE SUMMARY:

This final report points out that the California Department of Health Services (DHS) did not account for bioterrorism program funds ($4.9 million received for the 2-year period ending August 30, 2001) by focus area as required by the cooperative agreement with the Centers for Disease Control and Prevention (CDC), nor could it adequately support program expenditures on financial reports submitted to CDC.  Specifically, DHS; 1) did not organize its accounting system to record, summarize, and report expenditures by program focus area, 2) relied on summary spreadsheets maintained outside the accounting system to prepare financial reports, 3) did not have adequate controls over the preparation and review of financial reports, and 4) did not adequately monitor sub-recipients.  In addition to recommendations to correct accounting and procedural weaknesses, we recommended that DHS determine, in coordination with the CDC, the amount of bioterrorism program funds that were expended in each focus area, identify unallowable costs, and make adjustments to current and future awards so that funds are rebalanced by focus area to provide appropriate levels of preparedness.  The DHS concurred with our findings and recommendations.