NIH Research: Improvements Needed in Monitoring Extramural Grants
HEHS/AIMD-00-139
Published: May 31, 2000. Publicly Released: Jun 30, 2000.
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Highlights
Pursuant to a congressional request, GAO provided information on how the National Institutes of Health (NIH) monitors the use of extramural grant funds, focusing on: (1) how NIH monitors the scientific progress of extramural research; (2) whether NIH has controls to ensure the effective financial management of extramural research grants; and (3) how NIH used the increased funds from its fiscal year (FY) 1999 appropriations to support extramural research.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Health and Human Services | To improve internal controls at NIH, the Secretary of Health and Human Services should direct the Acting Director of NIH to require that the institutes document their assessments of grantees' scientific progress before awarding continued funding by ensuring that progress report review forms are properly filled out and problems with scientific progress are documented. |
HHS reported that an NIH work group had completed its follow-up activities on HHS referrals of delinquent audit reports for fiscal years 1995, 1996, and 1997, and is in full compliance with HHS' policy for ensuring that grant recipients meet Single Audit Act requirements.
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| Department of Health and Human Services | To improve internal controls at NIH, the Secretary of Health and Human Services should direct the Acting Director of NIH to ensure that institutes properly close out completed grant files in a timely manner. |
HHS concurs with the recommendation, but acknowledges that closing out grants is not a priority. In September 2002, HHS reported that all NIH institutes and centers require program staff to document their assessment of scientific progress by completing a progress report form/checklist on an annual basis and prior to additional funds being awarded for continuation of the projects.
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| Department of Health and Human Services | To improve internal controls at NIH, the Secretary of Health and Human Services should direct the Acting Director of NIH to follow up and resolve delinquent single audit reports on a timely basis after the Department of Health and Human Services has identified delinquent grantees and, in particular, complete the followup and resolution of delinquent reports for fiscal years 1995, 1996, and 1997. |
NIH reported that under HHS' new oversight efforts, sanctions are utilized, where appropriate, against delinquent grantees according to timetables provided under the Single Audit Act Amendments of 1996. Also, HHS reported that NIH had completed its follow-up activities on referrals of delinquent single audit reports for fiscal years 1995, 1996, and 1997, and is in full compliance with HHS' policy for ensuring that grant recipients meet Single Audit Act requirements.
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| Department of Health and Human Services | To improve internal controls at NIH, the Secretary of Health and Human Services Acting Director of NIH to establish and implement a process to ensure that single audit reports are reviewed to identify significant problems related to NIH's grants and use this process as a management tool for ensuring that significant problems are resolved and considered in the oversight and monitoring of grant recipients. |
NIH reported that its Division of Financial Advisory Services (DFAS) reviews each audit finding and discusses audit reports with cognizant NIH grants and contract management staff, representatives of other grant-awarding agencies, and officials from the grantee organization. To help with the resolution process, HHS' OIG issues monthly reports to HHS resolution office and DFAS tracks any outstanding findings. According to NIH, it is in full compliance with HHS' audit resolution policy.
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| Department of Health and Human Services | To improve internal controls at NIH, the Secretary of Health and Human Services should direct the Acting Director of NIH to ensure the accuracy of grant data in the three key financial management systems, information for management, planning, and coordination (IMPAC II), the central accounting system (CAS), and the payment management system (PMS), by: (1) resolving discrepancies resulting from the reconciliation between CAS and PMS on a timely basis; and (2) performing periodic detailed reviews of transactions, specifically the grant award amount, within IMPAC II, CAS, and PMS. |
Agency concurred with the recommendation and has implemented it. In September 2002, HHS reported that NIH has improved the timeliness and accuracy of their reconciliations and is striving to maintain the improved performance. NIH devoted more staff to improve their timeliness and accuracy and implemented a new NIH business system to also improve the quality of the process.
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| Department of Health and Human Services | To improve internal controls, the Secretary of Health and Human Services should direct the Assistant Secretary for Management and Budget to refine and implement the procedures that have been developed to identify, report, and follow up on grantees that are delinquent in submitting single audit reports by ensuring the: (1) completion of the followup and resolution of delinquent reports from fiscal years 1995, 1996, and 1997; (2) performance of the analysis to determine the status of the FY 1998 single audit reports; and (3) reinforcement of the use of sanctions against delinquent grantees. |
NIH reported that under HHS' new oversight efforts, sanctions are utilized, where appropriate, against delinquent grantees according to timetables provided under the Single Audit Act Amendments of 1996. Also, HHS reported that NIH had completed its follow-up activities on referrals of delinquent single audit reports for fiscal years 1995, 1996, and 1997, and is in full compliance with HHS' policy for ensuring that grant recipients meet Single Audit Act requirements.
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AuditsFinancial management systemsGrant monitoringHealth research programsInternal controlsResearch and developmentResearch grantsSingle auditGrant awardFinancial management