FAC Explorer

Finding 1239058 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-30
Audit: 413918
Organization: Upmc (PA)
Auditor: ERNST & YOUNG LLP

AI Summary

  • Core Issue: UPMC's SEFA did not include allowable program income expenditures for the Ryan White, Part C program, leading to an understatement of $5,539,365.
  • Impacted Requirements: This oversight violates the Uniform Guidance 2 CFR section 200.510, which mandates accurate reporting of federal awards, including program income.
  • Recommended Follow-Up: UPMC should strengthen internal controls over the SEFA process to ensure all relevant expenditures are reported accurately, preventing future discrepancies.

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, 2024. Effect or potential effect: The expenditures in the SEFA for the Ryan White, Part C a program for the year ended December 31, 2024, 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 $5,539,365 (as compared to total restated expenditures for Ryan White, Part C of $7,048,401), 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: Yes, this is a repeat of finding 2023-002 from the prior year. 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: Corrective Action Plan: UPMC has remediated the control deficiency for the period ending December 31, 2025, by restating the 2024 Uniform Guidance report and including expenditures of program income in the SEFA for years ending on and after December 31, 2024. Completion: September 2026

Categories

Reporting

Other Findings in this Audit

  • 1239053 2024-003
    Material Weakness Repeat
  • 1239054 2024-003
    Material Weakness Repeat
  • 1239055 2024-003
    Material Weakness Repeat
  • 1239056 2024-003
    Material Weakness Repeat
  • 1239057 2024-003
    Material Weakness Repeat
  • 1239059 2024-004
    Material Weakness Repeat
  • 1239060 2024-004
    Material Weakness Repeat
  • 1239061 2024-004
    Material Weakness Repeat
  • 1239062 2024-004
    Material Weakness Repeat
  • 1239063 2024-004
    Material Weakness Repeat
  • 1239064 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $1.75M
14.267 CONTINUUM OF CARE PROGRAM $1.21M
97.036 COVID-19 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $733,542
84.215J FULL SERVICE COMMUNITY SCHOOLS PROGRAM $406,127
84.268 FEDERAL DIRECT STUDENT LOANS $386,281
93.965 COAL MINERS RESPIRATORY IMPAIRMENT TREATMENT CLINICS AND SERVICES $381,159
93.600 HEAD START $375,222
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $363,874
93.788 OPIOID STR $270,503
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $270,059
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $233,784
93.155 RURAL HEALTH RESEARCH CENTERS $224,952
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $218,022
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $200,611
93.928 SPECIAL PROJECTS OF NATIONAL SIGNIFICANCE $198,742
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $180,153
93.253 POISON CENTER SUPPORT AND ENHANCEMENT GRANT $141,272
84.063 FEDERAL PELL GRANT PROGRAM $138,188
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $129,024
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $120,240
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $100,000
17.258 WIOA ADULT PROGRAM $89,235
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $88,984
16.710 COVID-19 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $88,929
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $87,542
93.912 RURAL HEALTH CARE SERVICES OUTREACH, RURAL HEALTH NETWORK DEVELOPMENT AND SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT $78,398
93.958 COVID-19 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $69,062
93.870 COVID-19 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $57,617
93.242 MENTAL HEALTH RESEARCH GRANTS $50,476
16.758 IMPROVING THE INVESTIGATION AND PROSECUTION OF CHILD ABUSE AND THE REGIONAL AND LOCAL CHILDREN'S ADVOCACY CENTERS $50,366
93.070 ENVIRONMENTAL PUBLIC HEALTH AND EMERGENCY RESPONSE $50,000
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $47,732
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $43,000
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $33,523
93.211 TELEHEALTH PROGRAMS $33,207
93.658 FOSTER CARE TITLE IV-E $33,102
93.217 FAMILY PLANNING SERVICES $30,500
23.002 APPALACHIAN AREA DEVELOPMENT $29,567
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $22,670
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $21,986
93.083 PREVENTION OF DISEASE, DISABILITY, AND DEATH THROUGH IMMUNIZATION AND CONTROL OF RESPIRATORY AND RELATED DISEASES $21,738
64.125 VOCATIONAL AND EDUCATIONAL COUNSELING FOR SERVICEMEMBERS AND VETERANS $21,460
16.575 CRIME VICTIM ASSISTANCE $19,765
93.837 CARDIOVASCULAR DISEASES RESEARCH $14,755
94.006 AMERICORPS STATE AND NATIONAL 94.006 $10,580
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $10,311
93.599 CHAFEE EDUCATION AND TRAINING VOUCHERS PROGRAM (ETV) $7,500
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $6,500
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $6,500
93.667 SOCIAL SERVICES BLOCK GRANT $5,936
10.572 WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP) $5,641
17.245 TRADE ADJUSTMENT ASSISTANCE $5,000
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $4,236
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $2,350
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $2,113
64.028 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $1,112
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $925