Finding 522207 (2024-006)

Finding 2024-00􀀙 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Health and Human Services Federal Program Name: Foster Care Title IV-E Assistance Listing Number: 93.658 Pass-Through Agency: Pennsylvania Department of Human Services Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, the Organization receives funding from various counties across the state of Pennsylvania which consists of commingled federal, state, and local assistance with contract terms that stipulate it is the contractor’s responsibility to solicit the counties for purposes of determining the source of funding provided. Condition and Context: The expenditures included on the schedule of expenditures of federal awards (Schedule) initially prepared by the Organization included expenditures of state and local assistance. Questioned Costs: $-0- Cause: The Organization did not perform their responsibilities under the contract terms, which state it is their responsibility to solicit the counties for purposes of determining the source of funding provided during the fiscal year. Additionally, the Organization did not have adequate policies and procedures in place for accurately determining the breakdown of the commingled assistance received. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: 􀁸 The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. 􀁸 The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. 􀁸 The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.