Report | Oct. 22, 2013

Independent Auditor's Reportof Department of State GlobalHealth and Child SurvivalFunds Transferred to DoD forHuman ImmunodeficiencyVirus / Acquired ImmuneDeficiency Syndrome Prevention


Public Law 111-117, “The Consolidated 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 Memorandums of Agreement (MOAs) with DoD to transfer Global Health and Child Survival (GHCS)* funds appropriated under the DoS Foreign Operations and Related Programs Appropriations Act. The purpose of these MOAs 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 $47,513,442 (77.0 percent) of the $61,702,518 in DoD GHCS disbursements made over a 7-month period. We nonstatistically selected $20,111,632 (67.9 percent) of the $29,626,435 in DHAPP disbursements from May 24, 2012, to January 2, 2013, and $27,401,809 (85.4 percent) of the $32,076,082 in MHRP disbursements from June 1, 2012, to December 31, 2012. See the table for a summary of DHAPP and MHRP GHCS disbursements.

Table. Summary of DHAPP and MHRP GHCS Disbursements and DoD OIG Sample Selection


Total Disbursements*

DoD OIG Sample Selection

Percentage of Disbursements













*Navy disbursements from May 24, 2012, to January 2, 2013, and Army disbursements from June 1, 2012, to December 31, 2012.

Based on our review of DHAPP and MHRP disbursements, nothing came to our attention that caused us to believe that GHCS 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.

We coordinated a discussion draft of this report with officials from Assistant Secretary of Defense (Health Affairs) (ASD [Health Affairs]), U.S. Army Medical Command, U.S. Army Medical Research Materiel Command, Walter Reed Army Institute of Research (WRAIR), and the Naval Health Research Center (NHRC). We considered management comments when preparing the final report.

This report is intended solely for the information and use of the ASD (Health Affairs), WRAIR, and NHRC and is not intended to be and should not be used by anyone else. However, this report is a matter of public record, and its distribution is not limited.