Philadelphia K-12 Schools COVID-19 Testing Program Audit

HHS OIG Reports & Publications

Filed February 4th, 2026

Detected February 11th, 2026

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Summary

The HHS Office of Inspector General found that Philadelphia did not consistently monitor its COVID-19 screening testing program for K-12 schools, leading to $257,620 in unallowable costs and overpayments. The OIG recommended Philadelphia update its procedures for oversight and compliance.

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What changed

The HHS Office of Inspector General (OIG) issued a report (A-05-24-00003) finding that Philadelphia failed to meet all requirements for its COVID-19 screening testing program funded by the CDC through the American Rescue Plan. Specifically, Philadelphia did not consistently monitor subrecipient compliance with background check requirements and reimbursed a subrecipient $10,525 in unallowable costs and $247,095 in overpayments, totaling $257,620.

The OIG recommends that the Philadelphia Department of Public Health develop or update procedures for compliance with Federal, subrecipient, and contract requirements, including oversight of subrecipients and monitoring of contract terms. Philadelphia is also recommended to refund the $257,620 to the CDC. Philadelphia has indicated concurrence with the second recommendation and disagreement with the finding related to the first, detailing planned corrective actions. The update for these recommendations is expected by August 3, 2026.

What to do next

Develop or update procedures for subrecipient oversight and contract monitoring.
Ensure compliance with background check requirements for subrecipients.
Address the refund of $257,620 in unallowable costs and overpayments to the CDC.