FAC Explorer

Finding 1238026 (2025-006)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-09-29
Audit: 412843
Organization: County of Allegheny, Pennsylvania (PA)
Auditor: ZELENKOFSKE AXELROD LLC

AI Summary

  • Core Issue: ACED improperly charged $236,702 in salaries and benefits to the CDBG program for time not worked on it, with $182,336 not recorded as cross-charges.
  • Impacted Requirements: Compliance with federal grant terms, specifically regarding allowable costs as outlined in 2 CFR Part 200.
  • Recommended Follow-Up: ACED should implement procedures to ensure timely and accurate cross-charging of employee time to the appropriate programs.

Finding Text

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.

Corrective Action Plan

Corrective action steps taken and/or planned: There are 2 primary reasons for the delay in submitting cross charges. One, an EA authorizing cross charges for specific programs had not been submitted. The EA has been submitted and approved and all outstanding cross charges are being processed at the time of this response. The second reason is due to the reimbursement process for some of the programs that the Department staff administers. The department, for many programs, acts as the sponsoring applicant, on behalf of non-profit agencies because certain programs disallow non-profits to apply on their own. Many of the programs do not pay costs up front to the department, requiring that the non-profits pay from their local funds, therefore delaying the ability to cross-charge costs to reimburse the CDBG program immediately. It was discovered after the former Senor Fiscal Manager left that billing for many projects had not occurred. The department has developed a process to bill the non-profits for the allowable administrative costs as soon as work on the projects begins to be able to reimburse CDBG timelier. Timetable of dates for performance of planned corrective action steps including completion date: At the time of this response cross-charges are being processed. Do. It is anticipated that all outstanding cross charges will be completed by the end of June 2026. E. Description of monitoring to be performed to ensure corrective action steps are taken: The Assistant Director, Operations and Assistant Director, Finance will work closely to ensure cross charges are completed in a timely manner now that processes have been established for all funding sources.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1238019 2025-012
    Material Weakness Repeat
  • 1238020 2025-012
    Material Weakness Repeat
  • 1238021 2025-012
    Material Weakness Repeat
  • 1238022 2025-011
    Material Weakness Repeat
  • 1238023 2025-003
    Material Weakness Repeat
  • 1238024 2025-004
    Material Weakness Repeat
  • 1238025 2025-005
    Material Weakness Repeat
  • 1238027 2025-007
    Material Weakness Repeat
  • 1238028 2025-014
    Material Weakness Repeat
  • 1238029 2025-015
    Material Weakness Repeat
  • 1238030 2025-016
    Material Weakness Repeat
  • 1238031 2025-008
    Material Weakness Repeat
  • 1238032 2025-009
    Material Weakness Repeat
  • 1238033 2025-001
    Material Weakness Repeat
  • 1238034 2025-002
    Material Weakness Repeat
  • 1238035 2025-001
    Material Weakness Repeat
  • 1238036 2025-002
    Material Weakness Repeat
  • 1238037 2025-001
    Material Weakness Repeat
  • 1238038 2025-002
    Material Weakness Repeat
  • 1238039 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $38.23M
14.267 CONTINUUM OF CARE PROGRAM $25.57M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $24.19M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $19.77M
93.658 FOSTER CARE TITLE IV-E $18.99M
93.563 CHILD SUPPORT SERVICES $18.60M
93.600 HEAD START $15.62M
93.659 ADOPTION ASSISTANCE $14.61M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $13.31M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $12.75M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $9.63M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $8.65M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $7.69M
93.667 SOCIAL SERVICES BLOCK GRANT $6.89M
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $5.10M
93.090 GUARDIANSHIP ASSISTANCE $4.40M
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $3.76M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $3.19M
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $3.17M
93.788 OPIOID STR $3.03M
97.067 HOMELAND SECURITY GRANT PROGRAM $2.39M
66.001 AIR POLLUTION CONTROL PROGRAM SUPPORT $1.78M
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $1.54M
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $1.49M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.45M
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $1.42M
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $1.40M
16.045 COMMUNITY-BASED VIOLENCE INTERVENTION AND PREVENTION INITIATIVE $1.33M
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $1.22M
93.569 COMMUNITY SERVICES BLOCK GRANT $1.21M
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $1.10M
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $1.08M
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $1.01M
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $965,607
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $960,390
93.304 RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH $900,024
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $889,142
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $720,008
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $687,352
16.922 EQUITABLE SHARING PROGRAM $649,519
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $639,707
94.016 AMERICORPS SENIORS SENIOR COMPANION PROGRAM (SCP) 94.016 $604,506
94.006 AMERICORPS STATE AND NATIONAL 94.006 $555,067
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $549,598
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $414,724
66.034 SURVEYS, STUDIES, RESEARCH, INVESTIGATIONS, DEMONSTRATIONS, AND SPECIAL PURPOSE ACTIVITIES RELATING TO THE CLEAN AIR ACT $342,976
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $330,044
93.778 GRANTS TO STATES FOR MEDICAID $320,811
16.742 PAUL COVERDELL FORENSIC SCIENCES IMPROVEMENT GRANT PROGRAM $306,213
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $283,132
93.940 HIV PREVENTION AND SURVEILLANCE ACTIVITIES-HEALTH DEPARTMENT BASED $264,936
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $262,418
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $262,164
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $260,257
93.334 THE HEALTHY BRAIN INITIATIVE: TECHNICAL ASSISTANCE TO IMPLEMENT PUBLIC HEALTH ACTIONS RELATED TO COGNITIVE HEALTH, COGNITIVE IMPAIRMENT, AND CAREGIVING AT THE STATE AND LOCAL LEVELS $243,450
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $240,957
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $221,270
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $217,850
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $213,467
16.575 CRIME VICTIM ASSISTANCE $206,030
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $197,552
16.741 DNA BACKLOG REDUCTION PROGRAM $188,976
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND SUBSTANCE USE PROGRAM $188,165
16.833 NATIONAL SEXUAL ASSAULT KIT INITIATIVE $173,688
93.070 ENVIRONMENTAL PUBLIC HEALTH AND EMERGENCY RESPONSE $153,620
95.001 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM $103,544
66.312 ENVIRONMENTAL JUSTICE GOVERNMENT-TO-GOVERNMENT (EJG2G) PROGRAM $98,710
93.791 MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION $93,567
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $91,454
93.823 PUBLIC HEALTH RESPONSE, FORECASTING, AND ANALYTIC CAPACITIES RELATED TO DISEASE OUTBREAKS, EPIDEMICS, AND PANDEMICS $91,169
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $81,780
93.324 STATE HEALTH INSURANCE ASSISTANCE PROGRAM $81,492
14.921 OLDER ADULTS HOME MODIFICATION GRANT PROGRAM $73,284
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $61,495
93.048 SPECIAL PROGRAMS FOR THE AGING, TITLE IV, AND TITLE II, DISCRETIONARY PROJECTS $60,679
93.071 MEDICARE ENROLLMENT ASSISTANCE PROGRAM $58,876
16.036 COMPREHENSIVE FORENSIC DNA ANALYSIS GRANT PROGRAM $54,558
93.747 ELDER ABUSE PREVENTION INTERVENTIONS PROGRAM $47,471
16.609 PROJECT SAFE NEIGHBORHOODS $35,903
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $35,298
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $34,000
14.906 HEALTHY HOMES TECHNICAL STUDIES GRANTS $30,000
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $29,698
93.197 CHILDHOOD LEAD POISONING PREVENTION PROJECTS, STATE AND LOCAL CHILDHOOD LEAD POISONING PREVENTION AND SURVEILLANCE OF BLOOD LEAD LEVELS IN CHILDREN $24,766
93.738 PPHF: RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH PROGRAM FINANCED SOLELY BY PUBLIC PREVENTION AND HEALTH FUNDS $23,078
66.956 TARGETED AIRSHED GRANT PROGRAM $21,856
93.041 SPECIAL PROGRAMS FOR THE AGING, TITLE VII, CHAPTER 3, PROGRAMS FOR PREVENTION OF ELDER ABUSE, NEGLECT, AND EXPLOITATION $19,918
93.945 ASSISTANCE PROGRAMS FOR CHRONIC DISEASE PREVENTION AND CONTROL $17,888
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $15,199
23.002 APPALACHIAN AREA DEVELOPMENT $14,613
16.560 NATIONAL INSTITUTE OF JUSTICE RESEARCH, EVALUATION, AND DEVELOPMENT PROJECT GRANTS $13,797
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $11,041
10.572 WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP) $8,466
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION€™S HEALTH $7,896
93.042 SPECIAL PROGRAMS FOR THE AGING, TITLE VII, CHAPTER 2, LONG TERM CARE OMBUDSMAN SERVICES FOR OLDER INDIVIDUALS $4,979
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $262
90.404 HAVA ELECTION SECURITY GRANTS $-248
17.259 WIOA YOUTH ACTIVITIES $-29,056
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $-32,504