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EXECUTIVE SUMMARY:
The objective of this review was to determine whether Heartland AIDS Resource Council (HARC) implemented its Ryan White program activities and claimed costs in accordance with Federal guidelines during the three fiscal years ended February 28, 2001. We found that HARC overstated the number of benefiting clients by up to 400 percent during the audit period. By over reporting the total clients benefiting from the program, the Health Resources and Services Administration (HRSA) and ultimately Congress based its funding decisions on inaccurate data. Overall, we found HARC’s expenditures were appropriate, with the exception of $15,000 of reimbursement that could not be justified by expenses recorded in the accounting records. We are recommending that HARC (1) establish procedures to accurately account for and report the actual number of unduplicated clients served, (2) reimburse the Federal Government $15,000, and (3) strengthen controls to ensure expenditures submitted for reimbursement are supported in its accounting system. The HARC concurred with all of our findings and recommendations.