Report | Nov. 9, 2012

Independent Auditor's Report of FY 2011 Department of State Funds Transferred to DoD for Human Immunodeficiency Virus / Acquired Immune Deficiency Syndrome Prevention

DODIG-2013-020

Public Law 111-117, "The Continuing Appropriations Act, 2010," under Division F, "Department of State, Foreign Operations, and Related Programs Appropriations Act of 2010," December 16, 2009, appropriated funds to the Department of State (DoS) for the purpose of Human Immunodeficiency Virus (HIV)/Acquired Immune Deficiency Syndrome (AIDS) prevention, treatment, control, and research (to include development of programs and assisting communities).  Further, this public law requires the inspector general of each agency receiving funds to perform periodic program and financial audits of the use of such funds.

The DoS Office of the U.S. Global AIDS Coordinator (OGAC) entered into a Memorandum of Agreement (MOA) with DoD to transfer FY 2011 funds appropriated under the DoS Foreign Operations and Related Programs Appropriations Act.  The purpose of the MOA is to fund efforts to achieve the HIV/AIDS prevention, care, and treatment goals of the U.S. Leadership Act and the President’s Emergency Plan for AIDS Relief (PEPFAR).  Two DoD programs—the DoD HIV/AIDS Prevention Program (DHAPP) and the Military HIV Research Program (MHRP)—receive PEPFAR funds provided from DoS.  See the Attachment for additional background and MOA information.

We performed this review-level attestation in accordance with attestation standards established by the American Institute of Certified Public Accountants and in compliance with generally accepted government auditing standards.  Those standards require that we plan and perform the attestation to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our attestation objective.  We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our attestation objective.  A review-level attestation is substantially less in scope than an examination done to express an opinion on the subject matter. Accordingly, we do not express such an opinion.

We reviewed $1,919,749 (99.7 percent) of the $1,926,037 in DoD disbursements, as of May 30, 2012.  We non-statistically selected $504,584 (98.8 percent) of the $510,872 in DHAPP disbursements and all $1,415,165 (100 percent) of the MHRP disbursements. See the table below for a summary of DHAPP and MHRP funding, disbursements, and DoD Office of Inspector General (OIG) sample selection.

Table.  Summary of DHAPP and MHRP FY 2011 Funding, Disbursements, and DoD OIG Sample Selection

Program Total Funding Total Disbursements* DoD OIG Sample Selection

DHAPP

$54,764,348

$510,872

$504,584

MHRP

$83,737,405

$1,415,165

$1,415,165

Total

$138,501,753

$1,926,037

$1,919,749

*As of May 30, 2012.

Based on our review of DHAPP and MHRP disbursements, nothing came to our attention that caused us to believe that FY 2011 funds transferred from DoS to DoD for HIV and AIDS prevention, care, and treatment were not disbursed in accordance with the goals set forth in the U.S. Leadership Act and PEPFAR.