Report | Sept. 15, 2021

Independent Auditor’s Report of Department of State Funds Transferred to DoD for Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome Prevention (DODIG-2021-124)


Publicly Released: September 16, 2021

Public Law 116-94, “Further Consolidated Appropriations Act, 2020,” under Division G, “Department of State, Foreign Operations, and Related Programs Appropriations Act, 2020,” December 20, 2019, appropriates Global Health Program (GHP) funds to the Department of State (DoS) for the prevention, treatment, control of, and research on, Human Immunodeficiency Virus (HIV)/Acquired Immune Deficiency Syndrome (AIDS). Pursuant to Section 632(a) of the Foreign Assistance Act of 1961, for FY 2016 through 2020, the DoS entered into a memorandum of agreement (MOA) with the DoD to transfer GHP funds to the DoD. Public Law 116-94 also requires the Inspector General for the agency receiving the transfer or allocation of funds from the DoS to perform periodic program and financial audits of the use of such funds.

The purpose of the MOA is to support efforts to meet the HIV/AIDS prevention, care, and treatment goals of the “United States Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003,” and the President’s Emergency Plan for AIDS Relief (PEPFAR). The GHP funds that are transferred to the DoD are allocated between the Defense Health Agency (DHA) and the Army. Two DoD programs—the DHA DoD HIV/AIDS Prevention Program (DHAPP) and the Army Military HIV Research Program (MHRP)—receive the GHP funds provided by the DoS. See the Attachment for additional background and MOA information.

The objective of our review was to determine whether the DoD used the funds transferred from the DoS in accordance with the MOA between the DoD and the DoS to support efforts for the prevention, treatment, control of, and research on, HIV/AIDS. 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 review to obtain limited assurance about whether any material modifications should be made to the subject matter in order for it to be in accordance with applicable criteria. We believe that the evidence obtained provides a reasonable basis for our 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.

To complete our review, we nonstatistically selected a sample of $85,649,563.83 of the $126,723,951.01 (67.59 percent) in DoD GHP obligations made during FY 2020. Specifically, we nonstatistically selected $22,241,067.51 of the $47,072,702.67 (47.25 percent) in DHAPP obligations from FY 2020 and $63,408,496.32 of the $79,651,248.34 (79.61 percent) in MHRP obligations from FY 2020. We requested and received supporting documentation for each sample item from the DHAPP and the MHRP. We verified the obligation amounts by comparing the accounting data to the obligation documents received. We also reviewed contracts and grant agreements relating to these obligations to ensure that the DoD obligated the funds for purposes to support efforts for the prevention, treatment, control of, and research on, HIV/AIDS as required by the MOA. See the Table below for a summary of FY 2020 DHAPP and MHRP GHP obligations.

This report is the result of Proj. No. D2021-D000FT-0109.000.