HHS OIG 2014 Work Plan Highlights Grants Management and Allowable Cost Initiatives

Explore:  CDC Grants Healthcare HHS OIG

The U.S. Department of Health and Human Services (“HHS”) Office of Inspector General (“OIG”) released its Fiscal Year 2014 Work Plan (“2014 Plan”) on January 31, 2014. The OIG releases a work plan annually to identify new and ongoing investigative, enforcement, and compliance activities that it will undertake during that fiscal year.

Among the many projects outlined, the 2014 Plan introduces a number of initiatives related to planning, acquisition, contracting, management, and performance. Of primary importance to the development community, the HHS OIG plans to perform several examinations related to contracts and grants compliance, including:

  • Assess whether contractors applied the senior executive compensation benchmark required per 48 CFR 31.205-6(p), and determine the potential cost savings if contractors were required to apply the same benchmark to all employee compensation
  • Determine how HHS awarding agencies mitigate grantee risks and the extent to which HHS awarding agencies share information regarding concerns of grantee performance or accountability
  • Determine whether the administrative costs claimed by various contractors were reasonable, allocable, and allowable
  • Review compliance with OMB A-21, “Cost Principles for Educational Institutions,” at selected institutions of higher education based on the dollar value of Federal grants;
  • Assess the extent to which HHS grantees are aware of lobbying prohibitions and which mechanisms HHS agencies have in place to identify and address lobbying violations (The FY 2012 Consolidated Appropriations Act, Section 503, prohibits appropriations from being used for lobbying)
  • Assess whether the Centers for Disease Control and Prevention (CDC) followed Federal regulations and HHS policies in its oversight of HIV/AIDS prevention and research grants
  • Review non-Federal auditors’ performance in accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” and the American Recovery and Reinvestment Act of 2009

HHS is the largest grant-making agency in the Federal Government. In FY 2012, HHS awarded nearly $347 billion in grants. Given the number of awards and the obligated dollars, oversight and monitoring are vital to ensure effective programs and safeguard taxpayer dollars. Consequently, HHS OIG performs a variety of recipient audit services to identify significant areas of internal control weaknesses and noncompliance with laws and regulations, and to identify questioned costs that require formal resolution by Federal officials.

Read the HHS OIG 2014 Work Plan in its entirety here.

Topics:  CDC, Grants, Healthcare, HHS, OIG

Published In: Government Contracting Updates, Health Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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