Injury Prevention and Control Research & State and Community Based Programs – AL #93.136 Allowable Costs Condition: We determined that $78,700 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 4 expenditures out of 40 tested, that occurred in 2023 and were not accrued in 2023. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Allegheny County Health Department did not have processes and controls in place to ensure that $78,700 in program expenditures were recorded in the proper accounting period. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Health Department should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Community Health Workers for Public Health Response & Resilient AL #93.495 Allowable Costs Condition: We determined that $254,023 in program expenditures reported in the Schedule of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 8 expenditures that were occurred in 2023 and were not accrued in 2023. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Health Department did not have processes and controls in place to ensure that $254,023 in program expenditures were recorded in the proper accounting period. We were told by Health Department management that they only accrue for payments that they expect to pay within sixty days after the end of the year are not occurring. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Health Department should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Community Health Workers for Public Health Response & Resilient AL #93.495 Subrecipient Monitoring Condition: The Allegheny County Health Department did not communicate to three subrecipients randomly selected for testing all of the information required to be communicated about the subawards. It appears that the Health Department does not have a process in place to communicate such information. The Health Department did not determine whether the three subrecipients we randomly selected for testing were required to obtain single audits and did not request or review such audits. We were also informed that the Health Department did not determine whether any of the subrecipients involved in the administration of the program required single audits and did not request or review such audits from any of the subrecipients. Criteria: The Uniform Guidance indicates that all pass-through entities must verify that every subrecipient is audited as required when it is expected that the subrecipient's federal awards expended during the respective fiscal year equaled or exceeded the applicable threshold (2 CFR 200.332(f)) and consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass-through entity's own records (2 CFR 200.332(g)). Cause: This subrecipient monitoring was also a prior 2023 finding. The Health Department developed the corrective action plan for the prior finding on September 20, 2024, however, this grant ended on August 30, 2024 and the Health Department did not have the time to implement any of the corrective action plans for this program. In addition, the Health Department does not have proper internal controls in place to ensure they are complying with all audit requirements. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Health Department should maintain lists of the subrecipients utilized for each federal program and use checklists to help ensure that the required subrecipient monitoring activities are performed for each subrecipient to ensure compliance with federal requirements. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Community Health Workers for Public Health Response & Resilient AL #93.495 Reporting Condition: The Allegheny County Health Department did not report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Criteria: Under the requirements of the Federal Funding Accountability Act (Transparency Act), direct recipients of federal grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System. Cause: This reporting requirement was also a prior 2023 finding. The Health Department developed the corrective action plan for the prior finding on September 20, 2024, however, this grant ended on August 30, 2024 and the Health Department did not have the time to implement any of the corrective action plans for this program. In addition, the Health Department does not have proper internal controls in place to ensure they are complying with all audit requirements. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Health Department should immediately report the required data to the Federal Funding Accountability and Transparency Act Subaward Reporting System. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Injury Prevention and Control Research & State and Community Based Programs – AL #93.136 Allowable Costs Condition: We determined that $78,700 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 4 expenditures out of 40 tested, that occurred in 2023 and were not accrued in 2023. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Allegheny County Health Department did not have processes and controls in place to ensure that $78,700 in program expenditures were recorded in the proper accounting period. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Health Department should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
CDBG AL# 14.218 Reporting Condition: ACED did not timely report the data required by the Federal Funding Accountability and Transparency Act (Transparency Act) in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) for first—tier subawards of $30,000 or more for 2024. A subaward is defined as an award provided by a pass—through entity to a subrecipient. The data was required to be reported by August 31, 2024. However, ACED did not report the information until April 3, 2025, over 7 months late. Criteria: The Transparency Act requires recipients of grants to report first-tier subawards of $30,000 or more to the FSRS. This information is to be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Cause: ACED had a process to report the required information in the FSRS, but due to department turnover, the required reporting was not completed within the time requirements. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: ACED should i mplement internal controls to ensure that first-tier subawards are reported in the FSRS within the applicable timeframe. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
CDBG AL# 14.218 Allowable Costs Condition: Allegheny County Economic Development (ACED) charges CDBG program accounts for the salary and related fringe benefits of numerous employees, including employees that do not work full time on the CDBG program. Hours for each employee are tracked by the program(s) the employee works on each day. ACED needs to calculate the salary and benefit amounts for time not related to CDBG, charge the proper non-CDBG program, and reduce the CDBG program expense, based on these hours. ACED indicated these cross-charges are done on a quarterly basis. We tested salary and benefit cross-charges for one quarter of calendar year 2024 and recalculated the non-CDBG salary and benefit amounts using ACED time reports, salary information, and JDE fringe benefit reports. Based on our calculation, we noted $249,390 in salaries and fringe benefits were charged to the CDBG program for time not worked on CDBG. Of this amount, ACED did not record the cross charges or reduce program expenses by $127,289. Although ACED provided supporting documentation that CDBG expenses were reduced by the remaining $122,101, these entries were not recorded in JDE until 2025 (see also finding 2024-011). Criteria: Allowable costs include those that are incurred specifically for the Federal award (2 CFR Part 200 Subpart E -Cost Principles (2 CFR 200.405.a.1). Cause: ACED has a process to cross-charge time not worked on CDBG to the proper program, but due to department turnover, these cross-charges were not properly completed, or were not completed timely. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: $127,289 Recommendation: ACED should establish procedures to ensure that all cross-charges are properly calculated and completed in a timely manner. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
CDBG AL# 14.218 Reporting Condition: The cash on hand balance at the end of the quarter was not properly carried to the beginning balance on the next quarter’s report for three of the four quarters in the grant funds section of the cash on hand report. The balance at June 30, 2024 is overstated by $31,907. Criteria: HUD requires Community Development Block Grant (CDBG) grantees to submit quarterly “Cash on Hand” reports, also known as PR29 reports, to track their cash balances and ensure compliance with cash management requirements. These reports provide details on the cash on hand at the beginning of the reporting period, funds received through drawdowns, disbursements, and cash returned to the program. Cause: As in the prior year’s CDBG audit, there has been turnover in the staff, and human error has led to reporting errors. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: ACED should take steps to ensure that the “Cash on Hand” report is reviewed and accurate prior to submission to HUD. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
CDBG AL# 14.218 Allowable Costs Condition: Throughout our testing, we found expenditures totaling $150,550 that were not recorded in the proper accounting period. One of the 41 CDBG non-payroll expenditures tested for 2024, in the amount of $16,079, was a 2023 expenditure that was not properly accrued in 2023. One expenditure in the amount of $12,370 was included in the CDBG-CV PR07 report in 2024, but due to a miscommunication, it was not recorded in JDE until 2025. Cross-charges totaling $122,101 to reduce non-CDBG salary and fringe benefits costs recorded as CDBG expenditures in the fourth quarter of 2024 were not recorded in JDE until 2025. Criteria: Allowable costs include those that are incurred specifically for the Federal award (2 CFR Part 200 Subpart E -Cost Principles (2 CFR 200.405.a.1). Cause: ACED has a process to accrue expenditures, but due to department turnover, accruals were not properly completed for these transactions. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: ACED should implement procedures to ensure that expenditures and crosscharges are properly accrued for in the correct period. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Continuum of Care AL# 14.267 Matching Condition: We observed that in connection with 48 of 60 program provider invoices tested, inadequate support had been provided for the matching expenditures claimed by the program providers totaling $1,091,241. These instances were not identified and properly resolved by DHS, such that the matching expenditures claimed were included in the accumulation of matching costs that was to be reported to HUD. We also noted that for one of the 60 provider invoices, $14,890 worth of matching costs claimed and supported by a provider were not properly included by DHS as matching costs. In addition, for one of the 60 provider invoices, DHS included $190 as a matching cost even though , the provider did not provide support or claim the amount as matching costs. Furthermore, the total match reported to HUD by DHS on the Sage Financial Report did not agree to the accumulation of matching costs in the accounting records, which resulted in an underreporting of $6,308. Criteria: Grantees (DHS) should have a process in place to verify the amounts claimed and reported as matching expenditures, and a process in place to ensure that data reported to HUD agrees with the accounting records. Cause: DHS does not have appropriate processes and strong internal controls in place to facilitate compliance with the matching requirements. Sufficient reviews of the amounts claimed and reported as matching expenditures are not occurring. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none. Recommendation: DHS management should ensure that appropriate reviews of the amounts claimed and reported as matching expenditures routinely occur and all compliance requirements are followed for federal grants awarded. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Continuum of Care AL# 14.267 Special Tests Condition: We requested DHS to obtain documentation supporting rent reasonableness for 2024 from three randomly selected program providers. We observed that the documentation supplied by one provider (Allies for Health and Wellbeing) for 36 units (100%) was not sufficient to support rent reasonableness. We observed that the documentation supplied by another provider (YWCA) did not include an assessment of rent reasonableness for two of the 21 housing units (10%), and that although comparative data had been gathered for the other housing units, a conclusion regarding rent reasonableness had not been documented for 12 of the 21 units (57%). We also observed that the documentation supplied by the third provider (Mercy Life Center) did not include an evaluation of rent reasonableness for 43 of the 104 housing units (41%.). We also noted that for 4 of the 43 units, the monthly rent exceeded HUD’s fair market rental rate. In addition, for 11 of the 104 units (11%), the documentation supplied by the provider to support rent reasonableness was dated in 2022 or earlier instead of near the inception of the most recent lease. Furthermore, for 6 of the 104 (6%) housing units, the documentation supplied by the provider to support rent reasonableness indicated that the monthly rent was in fact not reasonable. Overall, of the three providers we tested a total of 161 housing units, of which 110 (68%) units had issues surrounding rent reasonableness. The total monthly rents associated with the 110 units were $98,060. Criteria: When program funds are used to. pay rent-for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units Considering relevant features. In addition, the evaluation of the rents must be. documented and maintained as evidence. Cause: In a prior year DHS: developed and implemented its own rent reasonableness policy and provided a rent reasonableness policy template to the C96 program providers to facilitate their development and implementation of such policies. However, during the prior year’s audit we determined that DHS did not take adequate measures to ensure that all CoC program providers had in fact implemented and were adhering to appropriate rent reasonableness policies. We have been advised that DHS is still working with providers to ensure that they are adhering to HUD’S rent reasonableness requirements. This is a repeat finding from the prior year. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none Recommendation: The County Department of Human Services should continue to work with providers to ensure that they are adhering to HUD’s rent reasonableness requirements and take steps to ensure that DHS’s monitoring of rent reasonableness routinely occurs on an annual basis. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Targeted Airshed Grant Program- AL# 66.956 Reporting Condition: The Allegheny County Health Department (ACHD) did not report first tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). ACHD also did not complete and submit an annual SF-425 report or any of the MBE/WBE reports that were required in 2024. Additionally, ACHD overreported program expenditures of $53,455 in the 3rd quarter SF-425 report. This was due to ACHD not considering the discounts Pittsburgh Regional Transit was receiving for the services provided by the 3rd party vendor, New Flyer of America. Although these discounts were not considered, the ACHD and Pittsburgh Regional Transit (PRT) met the cost sharing requirements of the agreement. As a result, there are no questioned costs associated with the misreporting. We were advised that the ACHD intends to submit a corrected report to the EPA as soon as possible. Criteria: Under the requirements of the Federal Funding Accountability Act (Transparency Act), direct recipients of federal grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System. In addition, the ACHD was required to submit accurate annual SF-425 report, MBE/WBE report, and quarterly reports for the Targeted Airshed Grant Program in 2024. Cause: The Health Department was not attentive to the reporting requirements of the Targeted Airshed Grant Program. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Health Department should immediately report the required data to the Federal Funding Accountability and Transparency Act Subaward Reporting System. In addition, the Health Department should be aware of all reporting requirements and review reports for accuracy before submitting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Targeted Airshed Grant Program- AL# 66.956 Subrecipient Monitoring Condition: The Allegheny County Health Department did not communicate to Pittsburgh Regional Transit (PRT) all of the information required to be communicated about the subaward. It appears that the Health Department does not have a process in place to communicate such information. The Health Department also did not determine whether PRT was required to obtain a single audit and did not request or review such an audit. Consequently, the Health Department has no knowledge of any subrecipient single audit findings that may impact the federal award. Criteria: The Uniform Guidance indicates that all pass-through entities must verify that every subrecipient is audited as required when it is expected that the subrecipient's federal awards expended during the respective fiscal year equaled or exceeded the applicable threshold (2 CFR 200.332(f)) and consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass-through entity's own records (2 CFR 200.332(g)). Cause: The Health Department was not attentive to the audit requirements. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Health Department should maintain lists of the subrecipients utilized for each federal program and use checklists to help ensure that the required subrecipient monitoring activities are performed for each subrecipient to ensure compliance with federal program requirements. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Coronavirus State and Local Fiscal Recovery Funds AL# 21.027 Allowable Costs Condition: We determined that $239,876.17 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 8 expenditures that occurred in 2023 and were not accrued in 2023. These invoices were recorded on the cash basis instead of the modified accrual basis, as required. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Department of Budget and Finance did not have processes and controls in place to ensure that $239,876.17 in program expenditures were recorded in the proper accounting period. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Office of Budget and Finance should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Coronavirus State and Local Fiscal Recovery Funds AL# 21.027 Allowable Costs Condition: We determined that $239,876.17 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 8 expenditures that occurred in 2023 and were not accrued in 2023. These invoices were recorded on the cash basis instead of the modified accrual basis, as required. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Department of Budget and Finance did not have processes and controls in place to ensure that $239,876.17 in program expenditures were recorded in the proper accounting period. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Office of Budget and Finance should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Coronavirus State and Local Fiscal Recovery Funds AL# 21.027 Allowable Costs Condition: We determined that $239,876.17 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2024 program expenditures. During our testing of allowable costs and activities, we found 8 expenditures that occurred in 2023 and were not accrued in 2023. These invoices were recorded on the cash basis instead of the modified accrual basis, as required. These expenditures were recorded in 2024 when the invoice was received. Criteria: The Uniform Guidance (section 200.403 (e)) indicates that expenditures must be determined in accordance with generally accepted accounting principles. Federal program expenditures are required to be reported in the proper accounting period. Cause: The Department of Budget and Finance did not have processes and controls in place to ensure that $239,876.17 in program expenditures were recorded in the proper accounting period. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Office of Budget and Finance should exercise greater care to ensure that program expenditures are charged timely to the proper programs to facilitate proper accounting and reporting. Management Response: Management agrees with the finding, see attached Corrective Action Plan.