FAC Explorer

Finding 1239044 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-09-30
Audit: 413916
Organization: Upmc (PA)
Auditor: ERNST & YOUNG LLP

AI Summary

  • Core Issue: UPMC's SEFA did not include allowable expenditures from program income for the Ryan White, Part C program, leading to an understatement of $5,528,826.
  • Impacted Requirements: Compliance with Uniform Guidance 2 CFR section 200.510, which mandates accurate reporting of federal awards and expenditures.
  • Recommended Follow-Up: UPMC should strengthen internal controls over the SEFA process to ensure all relevant expenditures, including program income, are accurately reported.

Finding Text

Reporting – SEFA Preparation Information of the federal program: Federal Grantor: U.S. Department of Health and Human Services Federal Cluster: None Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Federal Award Numbers: H76HA31655, H76HA25775, H76HA00617, and P06HA9851 Federal Award Period: April 1, 2022 through March 31, 2025; May 1, 2022 through April 30, 2025; May 1, 2022 through April 30, 2025; and September 1, 2023 through August 31, 2024 Criteria or specific requirement (including statutory, regulatory or other citation): The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (the SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: Ryan White, Part C requires the use of program income under the additive method, which requires program income earned from a federally funded program is added to the federal award amount and used to further program objectives. Under the method, allowable expenditures of program income are included on the SEFA. UPMC’s SEFA did not include expenditures related to program income, which were allowable. Cause: UPMC’s SEFA included grant funds expended under the Ryan White, Part C program but did not include program income funds expended under the Ryan White, Part C program for the year ended December 31, 2023. Effect or potential effect: The expenditures in the SEFA for the Ryan White, Part C a program for the year ended December 31, 2023, were understated which resulted in the improper identification of major federal programs and, therefore, required the restatement of the previously issued Uniform Guidance report to include Ryan White, Part C as a major federal program. Questioned costs: None. Context: Expenditures for Ryan White, Part C were understated by $5,528,826 (as compared to total restated expenditures for Ryan White, Part C of $7,149,887), which resulted in Ryan White, Part C being identified as major federal program upon inclusion of the allowable expenditures from program income. Identification as a repeat finding, if applicable: This finding is not a repeat finding. Recommendation: UPMC should evaluate its internal controls over the SEFA process to ensure that reported federal expenditures include both grant expenditures and applicable program income expenditures, when required, to support the accurate reporting of federal expenditures. Views of responsible officials: Management concurs with this finding.

Corrective Action Plan

Federal agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: Ryan White, Part C requires the use of program income under the additive method, which requires program income earned from a federally funded program is added to the federal award amount and used to further program objectives. Under the method, allowable expenditures of program income are included on the SEFA. UPMC’s SEFA did not include expenditures related to program income, which were allowable. As a result, the expenditures in the SEFA for the Ryan White, Part C, were understated which resulted in the improper identification of major federal programs and, therefore, required the restatement of the previously issued Uniform Guidance report to include Ryan White, Part C as a major federal program. Corrective Action Plan: UPMC has remediated the control deficiency for the period ending December 31, 2025, by restating the 2023 Uniform Guidance report and including expenditures of program income in the SEFA for years ending on and after December 31, 2023. Completion: September 2026

Categories

Reporting

Other Findings in this Audit

  • 1239037 2023-001
    Material Weakness Repeat
  • 1239038 2023-002
    Material Weakness Repeat
  • 1239039 2023-002
    Material Weakness Repeat
  • 1239040 2023-002
    Material Weakness Repeat
  • 1239041 2023-002
    Material Weakness Repeat
  • 1239042 2023-002
    Material Weakness Repeat
  • 1239043 2023-002
    Material Weakness Repeat
  • 1239045 2023-003
    Material Weakness Repeat
  • 1239046 2023-003
    Material Weakness Repeat
  • 1239047 2023-003
    Material Weakness Repeat
  • 1239048 2023-003
    Material Weakness Repeat
  • 1239049 2023-003
    Material Weakness Repeat
  • 1239050 2023-003
    Material Weakness Repeat
  • 1239051 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 COVID-19 PROVIDER RELIEF FUND $49.20M
97.036 COVID-19 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $42.18M
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $11.61M
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $1.36M
84.268 FEDERAL DIRECT STUDENT LOANS $601,865
93.600 HEAD START $593,391
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $506,362
93.155 RURAL HEALTH RESEARCH CENTERS $405,568
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $332,540
93.253 POISON CENTER SUPPORT AND ENHANCEMENT GRANT $320,859
84.215J FULL SERVICE COMMUNITY SCHOOLS PROGRAM $304,903
10.557 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $236,197
84.425N COVID-19 EDUCATION STABILIZATION FUND $223,035
93.965 COAL MINERS RESPIRATORY IMPAIRMENT TREATMENT CLINICS AND SERVICES $219,884
84.063 FEDERAL PELL GRANT PROGRAM $193,625
93.556 PROMOTING SAFE AND STABLE FAMILIES $192,584
93.788 OPIOID STR $175,182
17.258 WIA ADULT PROGRAM $149,500
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $135,526
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $95,827
14.267 CONTINUUM OF CARE PROGRAM $82,445
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $74,035
93.301 COVID-19 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $70,000
93.928 SPECIAL PROJECTS OF NATIONAL SIGNIFICANCE $66,823
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $66,002
93.242 MENTAL HEALTH RESEARCH GRANTS $57,705
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES_PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $53,347
84.425F COVID-19 EDUCATION STABILIZATION FUND $52,991
16.758 IMPROVING THE INVESTIGATION AND PROSECUTION OF CHILD ABUSE AND THE REGIONAL AND LOCAL CHILDREN'S ADVOCACY CENTERS $45,577
64.125 VOCATIONAL AND EDUCATIONAL COUNSELING FOR SERVICEMEMBERS AND VETERANS $40,619
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $37,227
93.493 CONGRESSIONAL DIRECTIVES $36,173
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $34,500
23.002 APPALACHIAN AREA DEVELOPMENT $30,804
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $26,179
16.575 CRIME VICTIM ASSISTANCE $25,728
93.217 FAMILY PLANNING_SERVICES $24,767
84.126 REHABILITATION SERVICES_VOCATIONAL REHABILITATION GRANTS TO STATES $23,846
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $23,283
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $22,679
93.837 CARDIOVASCULAR DISEASES RESEARCH $16,500
93.870 COVID-19 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $11,945
64.028 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $11,244
93.958 COVID-19 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $11,228
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $11,112
93.912 RURAL HEALTH CARE SERVICES OUTREACH, RURAL HEALTH NETWORK DEVELOPMENT AND SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT $8,302
93.667 SOCIAL SERVICES BLOCK GRANT $7,890
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $6,933
17.278 WIA DISLOCATED WORKER FORMULA GRANTS $6,500
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $6,500
17.245 TRADE ADJUSTMENT ASSISTANCE $5,000
93.599 CHAFEE EDUCATION AND TRAINING VOUCHERS PROGRAM (ETV) $5,000
10.572 WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP) $4,623
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $3,750
93.866 AGING RESEARCH $3,375
93.083 PREVENTION OF DISEASE, DISABILITY, AND DEATH THROUGH IMMUNIZATION AND CONTROL OF RESPIRATORY AND RELATED DISEASES $3,258
93.658 FOSTER CARE_TITLE IV-E $2,894
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $2,872
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $923
93.600 COVID-19 HEAD START $76