Substance Abuse and Mental Health Services Projects of Regional and National Significance - AL #93.243 Reporting Condition: The Allegheny County Department of Human Services (DHS) did not submit the fiscal year 2024/2025 SF-425 report for the Treatment for Individuals Experiencing Homelessness (TIEH) program timely. The program fiscal year ended September 30, 2025. The report was due within 90 days of the fiscal year end (by December 29, 2025), but was not submitted until January 6, 2026, eight days late. DHS also did not report first tier subawards of $3 0,000 or more to SAM.gov. Criteria: The federal award requires SF-425 federal financial reports to be submitted within 90 days of the fiscal year end. The Federal Funding Accountability and Transparency Act (Transparency Act) requires direct recipients of federal grants or cooperative agreements to report first-tier subawards of $30,000 or more to SAM.gov. Cause: DHS did not adequately monitor or follow the reporting requirements established by the federal award and under the Transparency Act. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none. Recommendation: DHS should promptly submit all required subaward information to SAM.gov and implement processes to ensure ongoing compliance with all federal grant reporting requirements. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Temporary Assistance for Needy Families – AL# 93.558 Subrecipient Monitoring Condition: The Allegheny County Department of Human Services (DHS) did not perform monitoring in 2023, 2024 or 2025 for any (100%) of the three subrecipients selected for testing. Criteria: Uniform Guidance requires pass-through entities to monitor subrecipient activities to ensure compliance with applicable federal statutes, regulations, and the terms and conditions of federal awards. The pass-through entity is also responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. Depending upon the pass-through entity’s assessment of the risk posed by the subrecipient, the following monitoring tools may be useful for a pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: · Providing subrecipients with training and technical assistance on program-related matters; · Performing site visits to review the subrecipients program operation; and · Arranging for agreed-upon procedures engagements as described in 2 CFR 200.425. Cause: DHS employs eight auditors and conducts a risk assessment annually for more than 300 subrecipients across Homeless Assistance Programs, Housing and Urban Development programs, and American Rescue Plan Act (CSLFRF) funding. Based on this assessment, DHS selects a limited sample of subrecipients to receive site visits each year. DHS does not provide training and technical assistance, arrange for agreed-upon procedures engagements, or perform other procedures that could be categorized as monitoring for those subrecipients that do not receive site visits. As a result, not all high-risk subrecipients are being monitored within a reasonable time period. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: DHS should establish and implement a monitoring schedule that ensures timely reviews of subrecipients, particularly those designated as high risk, to provide reasonable assurance that subawards are administered in accordance with federal requirements and the terms Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Collaboration with Academia to Strengthen Public Health AL# 93.967 Program Income Condition: Interest income earned in the amount of $241,000.00 from a Health Department Public Health Workforce Investment Certificate of Deposit that matured in August 2025 was improperly recognized as a cash receipt for the Allegheny County Department of Health and was not remitted to the PA Department of Health and Human Services as required under applicable federal cash management regulations. Criteria: The Uniform Guidance (section 200.305(b)(12)) indicates that the recipient of Federal funds may retain up to $500 per year of interest earned on federal funds to use for administrative expenses of the recipient. Any additional interest earned on federal funds must be returned annually to the Department of Health and Human Services through the Payment Management System. Cause: The Allegheny County Treasurer’s Office was authorized by the Health Department to invest federal grant proceeds received under the CDC Collaboration with Academia to Strengthen Public Health program into a Certificate of Deposit. Upon maturity of the investment in August 2025, the Treasurer’s Office recorded the accrued interest earnings as departmental cash receipts. The Health Department failed to identify that such earnings constituted interest on advanced funds subject to federal remittance requirements. In addition, adequate oversight and interdepartmental review procedures were not in place to ensure proper accounting treatment and regulatory compliance for interest generated on federally funded investments. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Health Department, in coordination with the Treasurer’s Office, should correct the entry, record the amount owed, and promptly return the interest from the investment to the Department of Health and Human Services through the Payment Management System without delay. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Collaboration with Academia to Strengthen Public Health AL# 93.967 Procurement, Suspension and Debarrment Condition: Allegheny County entered into a contract with Tryfacta Inc. from January 1, 2025 through December 31, 2028 for temporary staffing services. Public Health grant proceeds were used to fund the contract for the Health Department. The contract did not include verification that the vendor was not federally suspended or debarred. Upon further inquiry, auditors determined that the Health Department did not conduct a search in SAM.gov to confirm that Tryfacta Inc. was not suspended or debarred prior to the establishment of the agreement. Criteria: 2 CFR 180.300 indicates that when a non-federal entity enters into a covered transaction with a lower tier entity, the non-federal entity must verify that the entity is not excluded or disqualified. This verification can be in the form of checking SAM.gov exclusions to verify that the entity is not suspended or debarred, collecting a certification from the entity, or adding a clause or condition to the covered transaction with the entity. Cause: The Allegheny County Division of Purchasing and Supplies contracted Tryfacta Inc. for countywide temporary staffing services. The Health Department thought that it was Purchasing’s responsibility for verifying that the vendor was not suspended or debarred. Therefore, the Health Department did not perform a SAM.gov search. 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 conduct SAM.gov searches when using federal funds to enter into a contract with to ensure the person or company is not suspended or debarred. 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 System for Award Management (SAM or SAM.gov) for first-tier subawards of $30,000 or more for 2025. A subaward is defined as an award provided by a pass-through entity to a subrecipient. The prior reporting system, the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS), was retired as of March 8, 2025 and all subaward reporting data and functionality are now on SAM.gov. There were two subawards that ACED did not report timely. The first subaward had a date of 1/22/2025 and should have been reported by 2/28/2025. The subaward was not reported until 4/3/2025, making it 34 days late. The second subaward had a date of 4/9/2025 and should have been reported by 5/31/2025. The subaward was not reported until 3/23/2026, making it 296 days late. Criteria: The Transparency Act requires recipients of grants to report first-tier subawards of $30,000 or more to SAM.gov. This information is to be reported in SAM 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 encountered issues with the FSRS change to the SAM.gov causing the required reporting to not be completed within the time requirements. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: ACED should implement internal controls to ensure that first-tier subawards are reported in SAM 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 2025 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 $236,702 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 $182,336. 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, however, these cross-charges were not properly completed, or were not completed timely. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None 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, 2025 is overstated by $55,051. The program income received and disbursed amounts were incorrectly reported for each quarter of program year 2024/2025. Program income received is under reported by $21,174 while program income disbursed is under reported by $47,079. Additionally, the ending balance for each quarter should have been $0.00, therefore the balance at June 30, 2025 is overstated by $9,715. 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, 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.
HOME Investment Partnership Program- AL #14.239 Program Income Condition: In 2025, ACED paid a subrecipient using $572,828 in Program Income funds; however, staff recorded the transaction incorrectly in the County’s JDEdward’s (JDE) accounting system. Instead of recording the payment as an expenditure, staff reduced the Program Income revenue account. As a result, the $572,828 expenditure was not captured as a drawdown in HUD’s IDIS system. After the issue was identified by the county auditors, ACED entered the drawdown in IDIS in June 2026. Criteria: Under GAAP, expenditures should be recorded when incurred by debiting the appropriate expenditure account and crediting accounts payable. Upon payment, accounts payable should be debited and cash credited. In addition, ACED policies require that drawdowns be completed once the Controller’s Office approves a warrant run containing the paid vouchers. Cause: ACED reported that staff reduced Program Income revenue because the project was funded with Program Income from multiple program years (2022 and 2025). The drawdown was not completed in 2025 because no warrant run was created by the Controller’s Office. A warrant run was not generated because the expenditure was never recorded to an expenditure account in JDE. Without this posting, the Controller’s Office could not initiate the warrant run. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none Recommendation: ACED should prepare an adjusting journal entry to correct the misclassification by debiting the appropriate expenditure account and crediting the Program Income revenue account for $572,828. ACED should also strengthen internal procedures to ensure that Program Income–funded expenditures are consistently recorded in the correct expenditure accounts, enabling timely warrant runs and drawdowns in accordance with policy. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
HOME Investment Partnership Program- AL #14.239 Special Tests Condition: On August 29, 2025, ACED submitted a drawdown request to HUD for $124,622 to reimburse salary and fringe benefit cross-charges for the second, third, and fourth quarters of 2024 and the second quarter of 2025. While ACED recorded the reimbursement, the corresponding expenditure was never recorded in the County’s JDEdwards (JDE) accounting system. The costs associated with the drawdown had originally been charged to a different ACED program in 2024 and 2025, and the necessary reclassification to align the expenditures with the drawdown was not completed in JDE. Criteria: HOME/HOME-ARP program requirements mandate that payment certification amounts must accurately correspond to the local jurisdiction’s recorded expenditures that support the drawdown request. Cause: The expenditure was not recorded in the County’s JDE accounting system due to lack of sufficient internal controls and inadequate oversight of the HOME program within ACED. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none Recommendation: ACED should process a journal entry in JDE to correctly record the $124,622 expenditure under the HOME program. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
HOME Investment Partnership Program- AL #14.239 Eligibility Condition: Allegheny County Economic Development (ACED) did not monitor project owner records related to tenant income eligibility for 24 of the 59 (41%) HOME Rental Projects still within their affordability period. This monitoring is required under ACED’s HOME Investment Partnerships Program Management Policies and Procedures. Criteria: ACED is required to ensure that project owners re-examine each tenant’s income annually throughout the project’s affordability period. Per ACED’s HOME Investment Partnerships Program Management Policies and Procedures, the department must also perform on-site inspections every three years, which include verifying property owner records related to tenant income. Cause: The lack of sufficient internal controls to track and ensure timely monitoring reviews contributed to the missed inspections. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: none Recommendation: ACED should strengthen internal controls to ensure that monitoring reviews are conducted timely and in accordance with established policies. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Continuum of Care — AL #14.267 Matching Condition: We selected a sample of five housing providers to review monthly invoices supporting 2025 matching expenditures. Our testing identified the following variances between the matching expenditures reported by DHS to HUD and the amounts claimed and supported by the housing providers. - For one provider, DHS reported $98,714 more in matching expenditures than the provider claimed. Additionally, $1,303 of the provider’s claimed match was unsupported, resulting in DHS overstating matching expenditures to HUD by a total of $100,017. - For another provider, DHS reported the amount claimed by the provider; however, the provider did not provide documentation to support $15,760 of the claimed matching expenditures. - For a third provider, DHS reported $6,253 more in matching costs than the amount claimed and supported by the provider. - For a fourth provider, DHS reported $268,629 less in matching expenditures than the amount claimed and supported by the provider. Criteria: Grantees (DHS) must have processes in place to verify the amounts claimed and reported as matching expenditures by providers, and a process in place to ensure that data reported to HUD agrees with accounting records. Cause: DHS lacks adequate processes and internal controls to ensure compliance with federal matching requirements. Sufficient reviews of the amounts claimed and reported as matching expenditures are not occurring. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: DHS management should implement routine, documented reviews of matching expenditures claimed by providers and reported to HUD. Strengthening these review procedures will help ensure the accuracy and completeness of reported matching amounts. Management Response: Management agrees with the finding, see attached Corrective Action Plan.
Continuum of Care — AL #14267 Special Tests Condition: Our testing of Rent Reasonableness for a sample of three DHS providers operating 90 housing units for the month of May, 2025 identified that: - 3 (3%) units had rent being charged that was higher than the rents of the comparable units. - 36 (40%) units lacked appropriate documentary evidence that rent reasonableness had been substantiated prior to executing the lease. Criteria: HUD will only provide rental assistance for a unit if the rent is reasonable. The recipient or subrecipient must determine whether the rent charged for the unit receiving rental assistance is reasonable in relation to rents being charged for comparable unassisted units, taking into account the location, size, type, quality, amenities, facilities, and management and maintenance of each unit. Reasonable rent must not exceed rents currently being charged by the same owner for comparable unassisted units (24 CF R 578.51 (g)). Cause: In a prior year DHS developed and implemented its own rent reasonableness policy and provided a rent reasonableness policy template to the Continuum of Care 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 Continuum of Care program providers had 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. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: DHS should continue to work with providers to ensure that they are adhering to HUD’s rent reasonableness requirements. By strengthening policies, training, and monitoring, the program will enhance compliance with HUD requirements, ensure rational rent payments, and safeguard federal housing assistance funds. 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 $54,241.35 in program expenditures reported in the Schedule of Expenditures of Federal Awards are not actually 2025 program expenditures. During our testing of allowable costs and activities, we found 3 expenditures related to services rendered in 2024 and were not accrued in 2024. These invoices were recorded on the cash basis instead of the modified accrual basis, as required. These expenditures were recorded in 2025 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 $54,241.35 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 Subrecipient Monitoring Condition: The Allegheny County Department of Human Services did not conduct fiscal monitoring reviews for seven (47%) of the 15 CSLFRF subrecipients assessed in accordance with required regulations. Specifically, of these seven subrecipients: · Three subrecipients have never undergone a review by DHS. · Two have not been reviewed since 2021. · One has not been reviewed since 2022. · One has not been reviewed since 2023. Criteria: According to the Uniform Guidance, pass-through entities are required to monitor subrecipient activities to ensure compliance with federal statutes, regulations, and the specific terms and conditions of the subawards. Cause: The Department of Human Services employs eight auditors. According to DHS management, to ensure it monitors subrecipients to the best of its ability despite the number of auditors, DHS conducts a risk assessment of over 300 Homeless Assistance Programs, Housing and Urban Development, and American Rescue Plan Act (CSLFRF) subrecipients. Based on the risk assessment, a limited sample of subrecipients is selected annually, and DHS conducts fiscal monitoring reviews of the sampled subrecipients. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None Recommendation: The Allegheny County Department of Human Services should ensure timely reviews of CSLFRF subrecipients to provide reasonable assurance that subrecipients administer subawards in accordance with the established terms and conditions.
Community Services Block Grant – AL #93.569 Subrecipient Monitoring Condition: The Allegheny County Department of Human Services (DHS) did not perform monitoring in 2023, 2024, or 2025 for three (100%) of the three subrecipients selected for testing. Criteria: Uniform Guidance requires pass-through entities to monitor subrecipient activities to ensure compliance with applicable federal statutes, regulations, and the terms and conditions of federal awards. The pass-through entity is also responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. Depending upon the pass-through entity’s assessment of the risk posed by the subrecipient, the following monitoring tools may be useful for a pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: · Providing subrecipients with training and technical assistance on program-related matters; · Performing site visits to review the subrecipients program operation; and · Arranging for agreed-upon procedures engagements as described in 2 CFR 200.425. Cause: DHS employs eight auditors and conducts a risk assessment annually for more than 300 subrecipients across Homeless Assistance Programs, Housing and Urban Development programs, and American Rescue Plan Act (CSLFRF) funding. Based on this assessment, DHS selects a limited sample of subrecipients to receive site visits each year. DHS does not provide training and technical assistance, arrange for agreed-upon procedures engagements, or perform other procedures that could be categorized as monitoring for those subrecipients that do not receive site visits. As a result, not all high-risk subrecipients are being monitored within a reasonable time period. Effect: The County was not in compliance with the terms of the federal grant program. Questioned Costs: None. Recommendation: DHS should establish and implement a monitoring schedule that ensures timely reviews of subrecipients, particularly those designated as high risk, to provide reasonable assurance that subawards are administered in accordance with federal requirements and the terms and conditions of each award. Management Response: Management agrees with the finding, see attached Corrective Action Plan.