Review of Texas Department of State Health Services' Bioterrorism and Emergency Preparedness Program [open pdf - 162KB]
"In accordance with sections 301, 317, and 319 of the Public Health Service Act, the Centers for Disease Control and Prevention (CDC) provides funds to State and major local health departments to improve preparedness and response capabilities for bioterrorism and other public health emergencies. From August 31, 1999, to August 30, 2005, CDC provided this funding through the Public Health Preparedness and Response for Bioterrorism Program. Since August 31, 2005, CDC has provided funding through the Public Health Emergency Preparedness Program. We refer to these two programs collectively as 'the program.' In Texas, the Department of State Health Services (the State agency) administers the program and distributes funds to subrecipients to carry out program objectives. For the period August 31, 2004, through August 30, 2006, the State agency claimed program reimbursement totaling $125.5 million. Our objective was to determine whether the costs that the State agency claimed for reimbursement under the program for the period August 31, 2004, through August 30, 2006, were allowable, allocable, and reasonable. Of the $3.1 million in program expenditures that we reviewed for the 2-year period ending August 30, 2006, the State agency claimed $16,158 in unallowable direct program expenditures. In addition, we found that the State agency claimed $3,918 in unallowable indirect program costs. Because the State agency credited the program for the $16,158 in unallowable direct program expenditures, we are questioning only the $3,918 in unallowable indirect program costs. These deficiencies occurred because the State agency did not follow its policies and procedures to ensure that all costs claimed for program reimbursement comply with applicable laws, regulations, and program guidance and because of human error. We recommend that the State agency: refund $3,918 to CDC; strengthen its review process to detect future unallowable costs; and monitor grant-supported activities to ensure compliance with applicable Federal requirements."
United States Department of Health and Human Services Office of Inspector General: http://oig.hhs.gov/