HHS Cracks Down on Years of Unchecked Audit Findings
WASHINGTON — May 21, 2026 — The U.S. Department of Health and Human Services (HHS), through the Office of the Assistant Secretary for Financial Resources (ASFR), today announced the launch of AERO — the Audit Enforcement and Risk Oversight initiative — a department-wide program integrity effort designed to hold states and grantees accountable for persistent audit noncompliance. In a formal letter to all 50 state governors and treasurers, HHS is putting states on notice that chronic audit noncompliance, unresolved findings, and delinquent audit submissions will no longer be tolerated, and warning that states with delinquent submissions or persistent unresolved findings should expect further communication in the coming weeks. “Taxpayers deserve to know that their dollars are being spent as intended,” said Gustav Chiarello, HHS Assistant Secretary for Financial Resources and Chief Financial Officer. “Years of audit reports documented serious vulnerabilities and failures in oversight, y...