Audit of ASFR’s Oversight of HHS Awarding Agencies' Compliance with Federal Audit Requirements Applicable to For-Profit Grant Recipients

OBJECTIVE

HHS is the largest grant-making agency in the Federal Government, awarding $131.6 billion in FY 2025. The portion of this funding that is distributed to for-profit domestic recipients totaled $4.4 billion for FY 2025. For-profit grant recipients that expend HHS funds above specific financial thresholds in a fiscal year must comply with certain audit requirements, including the submission of annual audit reports. Our prior audit work on for-profit grant recipients has identified weaknesses with the annual audit report submissions and timely corrective action on audit findings. HHS awarding agencies are responsible for ensuring compliance with these requirements, while the Office of the Assistant Secretary for Financial Resources (ASFR) is tasked with departmentwide oversight of audit compliance. We will determine whether ASFR oversaw HHS awarding agencies’ compliance with Federal audit regulations applicable to for-profit domestic grant recipients.

TIMELINE

• May 12, 2026
  Announced
• Today
  Office of Audit Services In-Progress
• Est FY2028
  Estimated Fiscal Year for Project Completion

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