Department of Health

Health Research, Inc.: Disbursement of Grant Funds

Health Research, Inc. (HRI) is a not-for-profit corporation that administers funding which supports or extends the programs and research activities of the Department of Health. The majority of HRI funds are provided by federal grants. We examined HRIís controls over disbursements made from grant funds and found that improvements were needed in the controls over funds disbursed to subcontractors. In particular, we determined that some of the expenses claimed by subcontractors were not adequately documented or were not allowable under the terms of the grant agreements. We recommended that the undocumented and inappropriate expenses be recovered by the Department, and the Departmentís controls be strengthened.

For a complete copy of Report 2002-S-39 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.