Grant Administration

CDC Oversight of Grantees' Activities Needs Improvement Gao ID: HRD-94-12 December 10, 1993

This report discusses funding by the Centers for Disease Control and Prevention (CDC) to promote "safer sex" as a way of controlling the spread of the virus that causes AIDS. GAO examined whether grant recipients used federal money to engage in prohibited lobbying; improperly advocate cultural, institutional, ideological, economic, or other causes; or encourage homosexuality or the illegal use of intravenous drugs. Although CDC did not find grantees engaging in prohibited lobbying, its oversight was not accompanied by adequate controls over the use of federal funds to pay membership dues to organizations. During GAO's review, CDC strengthened its controls by requiring staff to gather information on the organizations receiving dues and the purpose of these payments. Also, the Public Health Service revised its grants administration policy on the extent of organizations' lobbying to determine the allowability of such dues reimbursement. CDC's oversight of AIDS-related materials produced with federal funds has fallen short.

GAO found that: (1) CDC has not found grantees' misuse of federal funds for lobbying; (2) CDC has improved its controls over reimbursement of membership dues paid by the grantees by gathering information on the organizations receiving the dues and the purpose of these payments; (3) CDC now requires additional documentation for reimbursement of membership dues to organizations that may participate in lobbying activities; (4) grantees are by nature advocacy groups and generally are not prohibited from advocacy activities except lobbying; (5) CDC does not reject grantees for funding or monitor them closely but does not award grants to organizations that advocate positions that are inconsistent with program objectives; (6) CDC has required grantees to establish program review panels to review acquired immunodeficiency syndrome (AIDS) related materials to ensure compliance with legislative prohibitions regarding the use of federal funds, but it does not ensure that the reviews are performed; and (7) CDC is reevaluating its policy options for its review requirements for AIDS-related materials.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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