Pennsylvania Single Audit Report (FY Ended June 30, 2021)
- Issuer
- Source documents
- Document type
- Audit Report
- Date
- 2021-06-30
- Case
- 2022 Single Audit Fye 2021 06 30
Summary
The Commonwealth of Pennsylvania Single Audit Report for the fiscal year ended June 30, 2021, prepared by the Office of the Budget and transmitted to the U.S. Department of Health and Human Services by Secretary of the Budget Gregory Thall on March 18, 2022. The transmittal letter states that the Schedule of Expenditures of Federal Awards reflects $72.5 billion of federal expenditures and that 94 percent, or $68.4 billion, was under programs audited as major programs. The audit was performed jointly by the Department of the Auditor General and CliftonLarsonAllen LLP, whose report states that the financial statements present fairly, in all material respects, the Commonwealth's financial position. The report covers 20 major federal programs, findings and questioned costs, the status of 35 prior findings and corrective action plans.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Commonwealth of Pennsylvania
SINGLE
AUDIT
REPORT
For the Fiscal Year
Ended June 30, 2021
Governor
Tom Wolf
the
the
Commonwealth of Pennsylvania
Single Audit Report
For the Fiscal Year Ended June 30, 2021
Tom Wolf, Governor
Prepared By:
Office of the Budget
Gregory Thall
Secretary
Brian Lyman, CPA
Chief Accounting Officer
This document is available on the Office of the Budget website at:
https://www.budget.pa.gov/Publications%20And%20Reports/Pages/State-LevelSingleAudit.aspx
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Commonwealth of Pennsylvania
Single Audit Report
For the Fiscal Year Ended June 30, 2021
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Title Page .................................................................................................................................................. 1
Table of Contents ...................................................................................................................................... 3
Letter of Transmittal ................................................................................................................................. 4
INDEPENDENT AUDITORS’ REPORTS
Independent Auditors’ Report ................................................................................................................... 8
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ............................................................................................................ 12
Independent Auditors’ Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by
the Uniform Guidance ............................................................................................................................ 15
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Schedule of Expenditures of Federal Awards……………………………………………………………. 24
Notes to the Schedule of Expenditures of Federal Awards………………………………………………. 40
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditors’ Results .................................................................................................................. 44
Index to Basic Financial Statement Findings............................................................................................. 46
Basic Financial Statement Findings........................................................................................................... 47
Index to Federal Award Findings and Questioned Costs .......................................................................... 53
Matrix of Findings by Federal Agency ...................................................................................................... 56
Federal Award Findings and Questioned Costs ........................................................................................ 57
MANAGEMENT’S SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
June 30, 2020 Single Audit ....................................................................................................................... 92
June 30, 2019 Single Audit ....................................................................................................................... 97
MANAGEMENT’S CORRECTIVE ACTION PLANS
Corrective Action Plans for June 30, 2021 ................................................................................................ 102
APPENDIX
Legend of Abbreviations .......................................................................................................................... 116
3
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF THE GOVERNOR
GREGORY THALL
SECRETARY
GOVERNOR’S OFFICE OF THE BUDGET
March 18, 2022
To the United States Department of Health and Human Services:
We are pleased to submit the Commonwealth of Pennsylvania's (Commonwealth) Single Audit Report for
the fiscal year ended June 30, 2021. This audit has been performed in accordance with Government Auditing
Standards issued by the Comptroller General of the United States, and satisfies the requirements of the Single Audit
Act Amendments of 1996 and the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
The Commonwealth's Annual Comprehensive Financial Report for the year ended June 30, 2021 has been
issued under separate cover. The auditors’ report on the supplementary schedule of expenditures of federal awards,
and the reports on compliance and internal control over financial reporting and compliance with requirements related
to major federal programs are contained in this document.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying Schedule of Expenditures of Federal Awards reflects $72.5 billion of federal expenditures by the
Commonwealth during the fiscal year ended June 30, 2021. Most of the federal expenditures occurred in fifteen state
agencies, as follows:
FEDERAL
AGENCY NAME EXPENDITURES
(in thousands)
Human Services $32,340,901
Labor & Industry 30,928,258
Education 2,669,176
Transportation 2,471,396
Corrections 1,274,161
Community & Economic Development 594,897
Health 542,654
Executive Offices 299,707
State Police 250,748
Emergency Management Agency 222,877
Agriculture 195,299
Military & Veterans Affairs 175,369
Environmental Protection 115,809
Drug and Alcohol Programs 109,119
Aging 108,916
Subtotal $72,299,287
Other Agencies (14) 204,028
Grand Total $72,503,315
4
United States Department of Health and Human Services
March 18, 2022
Page 2
For purposes of the Commonwealth's single audit, a Type A federal program is any program with federal
expenditures of at least $108.8 million. Of the $72.5 billion expended, 94 percent, or $68.4 billion, represents
expenditures under federal programs audited as major programs. The Summary of Auditors’ Results lists the
Commonwealth's 20 major federal programs tested for the fiscal year ended June 30, 2021.
FINDINGS AND RECOMMENDATIONS - CURRENT YEAR
The accompanying report for the fiscal year ended June 30, 2021 contains various findings, as disclosed in the
Schedule of Findings and Questioned Costs. Findings pertaining to the audit of the Commonwealth’s basic financial
statements are detailed in the Basic Financial Statement Findings. Findings pertaining to the audit of the
Commonwealth’s federal programs are detailed in the Federal Award Findings and Questioned Costs. The findings
contain detailed explanations of the compliance issues, questioned costs, the auditors' recommendations, and the
agency responses. This report also includes the Commonwealth's corrective action plan for each finding.
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
The Summary Schedule of Prior Audit Findings reflects the current status of prior year findings. The status of 35
findings are described from single audits between the years ended June 30, 2019 through June 30, 2020.
INDEPENDENT AUDIT
The Commonwealth's June 30, 2021 single audit and basic financial statement audit were performed jointly by the
Department of the Auditor General and the independent public accounting firm of CliftonLarsonAllen LLP. The
audits were performed pursuant to the authority vested in the Auditor General and the Governor under Section 402
of the Fiscal Code of 1929, and in the Governor under Section 701 of the Administrative Code of 1929.
REPORTS OF OTHER INDEPENDENT AUDITORS
Other auditors performed the single audits of the Pennsylvania Higher Education Assistance Agency, the
Pennsylvania Housing Finance Agency, the State System of Higher Education (component units of the
Commonwealth), the Philadelphia Regional Port Authority, the Commonwealth Financing Authority (blended
component units of the Commonwealth), and the Judicial Department of Pennsylvania (part of the primary
government). Federal programs administered by these agencies are not included in the Commonwealth's Schedule
of Expenditures of Federal Awards. These agencies have sent their single audit reports directly to the Federal Audit
Clearinghouse for distribution to the appropriate federal agencies.
ACKNOWLEDGMENTS
We wish to express our appreciation to the staff of the various Commonwealth agencies whose time and
dedicated effort made this audit possible and, at the same time, to affirm our commitment to maintaining the highest
standards of accountability in the Commonwealth's management of federal awards.
Sincerely,
Gregory Thall
Secretary of the Budget
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6
Independent Auditors’
Reports
Commonwealth of Pennsylvania
7
CliftonLarsonAllen LLP
CLAconnect.com
Department of the Auditor General
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania 17120-0018
INDEPENDENT AUDITORS' REPORT
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania
We have jointly audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund information
of the Commonwealth of Pennsylvania (the Commonwealth), as of and for the year ended June 30, 2021, and the
related notes to the financial statements, which collectively comprise the Commonwealth’s basic financial
statements as listed in the table of contents of the separately issued Annual Comprehensive Financial Report.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to jointly express opinions on these financial statements based on our audit. We did not
jointly audit the financial statements of certain funds and component units of the Commonwealth, which represent
the indicated percent of assets and deferred outflows of resources and revenues or additions as presented in the
table below. Those financial statements were audited by other auditors, including CliftonLarsonAllen LLP and the
Commonwealth of Pennsylvania’s Department of the Auditor General acting separately, whose reports thereon
have been furnished to us, and our opinions, insofar as they relate to the amounts included for those funds and
component units, are based solely on the reports of the other auditors.
Percent of Opinion Unit's Total
Opinion Unit Entity Assets / Deferred
Revenues /
Outflow of
Additions
Resources
Business-Type Activities Tuition Payment Fund; State Stores Fund; Commonwealth Financing 52% 9%
Authority; Philadelphia Regional Port Authority
Major Proprietary Fund Tuition Payment Fund 100% 100%
Major Proprietary Fund State Stores Fund 100% 100%
Major Proprietary Fund Commonwealth Financing Authority 100% 100%
Aggregate Discretely Pennsylvania Turnpike Commission; Pennsylvania Housing Finance 100% 100%
Presented Component Units Agency; Pennsylvania Higher Education Assistance Agency;
Pennsylvania Infrastructure Investment Authority; State System of
Higher Education; State Public School Building Authority; Philadelphia
Shipyard Development Corporation; Port of Pittsburgh Commission;
Pennsylvania Industrial Development Authority; Pennsylvania
Convention Center Authority; Thaddeus Stevens College of Technology;
Pennsylvania Higher Educational Facilities Authority, Pennsylvania
Rural Health Redesign Center Authority, Pennsylvania Health Insurance
Exchange Authority
8
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Percent of Opinion Unit's Total
Opinion Unit Entity Assets / Deferred
Revenues /
Outflow of
Additions
Resources
Aggregate Remaining Fund Philadelphia Regional Port Authority; State Employees' Retirement 92% 77%
Information System; Deferred Compensation Fund; Public School Employees'
Retirement System; Tuition Account Investment Program; INVEST
Program
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement. The financial
statements of the State System of Higher Education, State Employees’ Retirement System, the Deferred
Compensation Fund, the Public School Employees’ Retirement System, the Pennsylvania Higher Education
Assistance Agency, the Pennsylvania Higher Educational Facilities Authority, the State Public School Building
Authority, the Port of Pittsburgh Commission, the Pennsylvania Turnpike Commission, the Philadelphia Regional
Port Authority and the Pennsylvania Rural Health Redesign Center Authority were not audited in accordance with
Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the Commonwealth of Pennsylvania as of June 30, 2021, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matters
Change in Accounting Principle
During fiscal year ended June 30, 2021, the Commonwealth adopted GASB Statement No. 87 Leases. As a result
of the implementation of this standard, the Commonwealth reported a restatement for the change in accounting
principle (see Note 18). Our auditors’ opinion was not modified with respect to the restatement.
9
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Pennsylvania Turnpike Commission
The Pennsylvania Turnpike Commission, a discretely presented component unit, has committed to making
significant payments under an Amended Lease and Funding Agreement as required under the terms of Act 44 of
2007 and Act 89 of 2013. The Pennsylvania Turnpike Commission’s ability to make such payments is dependent
on its continuing capability to issue bonds to fund such payments and ultimately to raise tolls sufficient to repay
its bonded debt and current lease payments (see Note 16). Our auditors’ opinion was not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 20-44, and the schedules of pension and OPEB amounts, the budgetary
comparison schedules, as listed in the table of contents and notes to the required supplementary information on
pages 202-212, included in the separately issued Annual Comprehensive Financial Report, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We and other auditors have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Commonwealth’s basic financial statements. The introductory section, combining non-major fund
and component unit financial statements, budgetary comparison schedules for budgeted non-major special
revenue funds, and statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements.
The combining non-major fund and component unit financial statements, and the budgetary comparison schedules
for budgeted non-major special revenue funds, as listed in the table of contents of the separately issued Annual
Comprehensive Financial Report, are the responsibility of management and were derived from and relate directly
to the underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America by us and other auditors. In our opinion based on our audit, the
procedures performed as described below and the reports of the other auditors, the supplementary information is
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on
them.
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The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2021, on
our consideration of the Commonwealth's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Commonwealth’s internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the Commonwealth’s internal
control over financial reporting and compliance.
Harrisburg, Pennsylvania Baltimore, Maryland
December 10, 2021 December 10, 2021
11
CliftonLarsonAllen LLP
CLAconnect.com
Department of the Auditor General
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania 17120-0018
Independent Auditors’ Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania
We have jointly audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the Commonwealth of Pennsylvania (the Commonwealth), as of and for the year ended June
30, 2021, and the related notes to the financial statements, which collectively comprise the Commonwealth’s
basic financial statements, and have issued our report thereon dated December 10, 2021. Our report includes a
reference to other auditors, including CliftonLarsonAllen LLP and the Commonwealth of Pennsylvania’s
Department of the Auditor General acting separately, who audited the financial statements of certain funds and
component units of the Commonwealth, which represent the indicated percent of assets and deferred outflows of
resources and revenues or additions as presented in the table below and as described in our report on the
Commonwealth’s financial statements. This report does not include the results of the other auditors’ testing of
internal control over financial reporting or compliance and other matters that are reported on separately by those
auditors.
Percent of Opinion Unit's Total
Opinion Unit Entity Assets / Deferred
Revenues /
Outflow of
Additions
Resources
Business-Type Activities Tuition Payment Fund; State Stores Fund; Commonwealth Financing 52% 9%
Authority; Philadelphia Regional Port Authority
Major Proprietary Fund Tuition Payment Fund 100% 100%
Major Proprietary Fund State Stores Fund 100% 100%
Major Proprietary Fund Commonwealth Financing Authority 100% 100%
Aggregate Discretely Pennsylvania Turnpike Commission; Pennsylvania Housing Finance 100% 100%
Presented Component Units Agency; Pennsylvania Higher Education Assistance Agency;
Pennsylvania Infrastructure Investment Authority; State System of
Higher Education; State Public School Building Authority;
Philadelphia Shipyard Development Corporation; Port of Pittsburgh
Commission; Pennsylvania Industrial Development Authority;
Pennsylvania Convention Center Authority; Thaddeus Stevens
College of Technology; Pennsylvania Higher Educational Facilities
Authority, Pennsylvania Rural Health Redesign Center Authority,
Pennsylvania Health Insurance Exchange Authority
12
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Percent of Opinion Unit's Total
Opinion Unit Entity Assets / Deferred
Revenues /
Outflow of
Additions
Resources
Aggregate Remaining Fund Philadelphia Regional Port Authority; State Employees' Retirement 92% 77%
Information System; Deferred Compensation Fund; Public School Employees'
Retirement System; Tuition Account Investment Program; INVEST
Program
The financial statements of the State System of Higher Education, State Employees’ Retirement System, the
Deferred Compensation Fund, the Public School Employees’ Retirement System, the Pennsylvania Higher
Education Assistance Agency, the Pennsylvania Higher Educational Facilities Authority, the State Public School
Building Authority, the Port of Pittsburgh Commission, the Pennsylvania Turnpike Commission, the
Pennsylvania Rural Health Redesign Center Authority and the Philadelphia Regional Port Authority were not
audited in accordance with Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Commonwealth's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the Commonwealth’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the Commonwealth’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been
identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the
accompanying findings and questioned costs as items 2021-001 and 2021-002 that we consider to be significant
deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Commonwealth's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
13
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Commonwealth’s Response to Findings
The Commonwealth’s responses to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. The Commonwealth’s responses were not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Commonwealth’s internal control
or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Commonwealth’s internal control and compliance. Accordingly, this communication
is not suitable for any other purpose.
Harrisburg, Pennsylvania Baltimore, Maryland
December 10, 2021 December 10, 2021
14
CliftonLarsonAllen LLP
CLAconnect.com
Department of the Auditor General
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania 17120-0018
Independent Auditors’ Report on Compliance for Each Major Federal Program; Report on
Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Harrisburg, Pennsylvania
Report on Compliance for Each Major Federal Program
We have jointly audited the Commonwealth of Pennsylvania’s (Commonwealth) compliance with the types
of compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the Commonwealth’s major federal programs for the year ended June 30, 2021.
The Commonwealth’s major federal programs are identified in the summary of auditors’ results section of
the accompanying schedule of findings and questioned costs.
The Commonwealth’s basic financial statements include the operations of the State System of Higher
Education, the Pennsylvania Higher Education Assistance Agency, the Philadelphia Shipyard Development
Corporation, the Pennsylvania Housing Finance Agency, the Philadelphia Regional Port Authority, the
Pennsylvania Convention Center Authority, the Commonwealth Financing Authority, and the Judicial
Department of Pennsylvania, which received approximately $5.1 billion in federal awards and $18.2 billion
of federal loan guarantees that are not included in the schedule of expenditures of federal awards for the
year ended June 30, 2021. Our audit, described below, did not include the operations of these eight entities
because other auditors were engaged to perform audits (when required) in accordance with the Uniform
Guidance.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the Commonwealth’s major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
15
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the Commonwealth’s
compliance with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our qualified and unmodified opinions on
compliance for major federal programs. However, our audit does not provide a legal determination of the
Commonwealth’s compliance.
Basis for Qualified Opinion on the 9 Major Federal Programs Identified in the Following Table
As identified in the following table and as described in the accompanying schedule of findings and
questioned costs, the Commonwealth did not comply with requirements regarding the following:
State Administering Finding Assistance Federal Compliance
Agency Number Listing Program/Cluster Requirement
Number
(C = COVID-
19)
Department of 2021-004 15.252 Abandoned Mine Subrecipient Monitoring
Environmental Land Reclamation
Protection
Department of 2021-005 10.551 – C Supplemental Special Tests and
Human Services 10.561 Nutrition Assistance Provisions related to
Program (SNAP) Electronic Benefits
Cluster Transfer (EBT) Card
Security
93.558 Temporary
Assistance for Needy
Families
Department of 2021-008 93.558 Temporary Subrecipient Monitoring
Human Services Assistance for Needy
Families
93.658 – C Foster Care – Title
IV-E
93.659 – C Adoption Assistance
16
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
State Administering Finding Assistance Federal Compliance
Agency Number Listing Program/Cluster Requirement
Number
(C = COVID-
19)
Various Agencies 2021-015 15.252 Abandoned Mine Subrecipient Monitoring
Land Reclamation
16.575 Crime Victim
Assistance
93.558 Temporary
Assistance for Needy
Families
93.563 Child Support
Enforcement
93.575 – C Child Care and
93.596 Development Fund
(CCDF) Cluster
93.658 – C Foster Care – Title
IV-E
93.659 – C Adoption Assistance
97.036 – C Disaster Grants –
Public Assistance
(Presidentially
Declared Disasters)
Compliance with such requirements is necessary, in our opinion, for the Commonwealth to comply with
the requirements applicable to those programs.
Qualified Opinion on the 9 Major Federal Programs Identified Above
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the
Commonwealth complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on the identified major federal programs for the year
ended June 30, 2021.
Unmodified Opinion on Each of the Other Major Federal Programs
In our opinion, the Commonwealth complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its other major federal
programs identified in the summary of auditors’ results section of the accompanying schedule of findings
and questioned costs for the year ended June 30, 2021.
17
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
Other Matters
The results of our auditing procedures disclosed other instances of noncompliance, which are required to
be reported in accordance with the Uniform Guidance and which are identified in the following table and
described in the accompanying schedule of findings and questioned costs. Our opinion on each major
federal program is not modified with respect to these matters.
State Administering Finding Assistance Federal Compliance
Agency Number Listing Program/Cluster Requirement
Number
(C = COVID-
19)
Department of 2021-003 84.425 – C Education Reporting
Education Stabilization Fund
Department of 2021-006 21.023 – C Emergency Rental Reporting
Human Services Assistance Program
Department of 2021-007 93.558 Temporary Subrecipient Monitoring
Human Services Assistance for Needy
Families
Department of 2021-009 93.775 Medicaid Cluster Special Tests and
Human Services 93.777 – C Provisions related to the
93.778 – C Medicaid National
Correct Coding Initiative
(NCCI)
Department of 2021-010 93.775 Medicaid Cluster Special Tests and
Human Services 93.777 – C Provisions related to the
93.778 – C Managed Care Financial
Audit
Department of Labor 2021-011 17.225 – C Unemployment Eligibility
and Industry Insurance
97.050 – C Presidential Declared
Disaster Assistance to
Individuals and
Households – Other
Needs
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The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
State Administering Finding Assistance Federal Compliance
Agency Number Listing Program/Cluster Requirement
Number
(C = COVID-
19)
Various Agencies 2021-014 20.205 – C Highway Planning Subrecipient Monitoring
20.219 and Construction
Cluster
93.558 Temporary
Assistance for Needy
Families
93.658 – C Foster Care – Title
IV-E
93.659 – C Adoption Assistance
Department of 2021-015 93.775 Medicaid Cluster Subrecipient Monitoring
Human Services 93.777 – C
93.778 – C
The Commonwealth’s responses to the noncompliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. The Commonwealth’s responses were not
subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the responses.
Report on Internal Control Over Compliance
Management of the Commonwealth is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the Commonwealth’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal program
to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on
the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Commonwealth’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over compliance
that might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that have not been identified. However, as discussed below, we did
identify certain deficiencies in internal control over compliance that we consider to be material weaknesses
and significant deficiencies.
19
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal
control over compliance described in the accompanying schedule of findings and questioned costs as items
2021-004, 2021-005, 2021-008, and 2021-015 to be material weaknesses.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal program
that is less severe than a material weakness in internal control over compliance, yet important enough to
merit attention by those charged with governance. We consider the deficiencies in internal control over
compliance described in the accompanying schedule of findings and questioned costs as items 2021-003,
2021-006, 2021-007, 2021-009, 2021-010, 2021-011, 2021-012, 2021-013, 2021-014, and 2021-015 to be
significant deficiencies.
The Commonwealth’s responses to the internal control over compliance findings identified in our audit are
described in the accompanying schedule of findings and questioned costs. The Commonwealth’s responses
were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have jointly audited the financial statements, issued under separate cover, of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the Commonwealth as of and for the year ended June 30,
2021, and the related notes to the financial statements, which collectively comprise the Commonwealth’s
basic financial statements. We issued our report thereon dated December 10, 2021, which includes a
reference to other auditors and contained unmodified opinions on those financial statements. Our audit was
conducted for the purpose of forming opinions on the financial statements that collectively comprise the
basic financial statements. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial statements.
20
The Honorable Tom Wolf, Governor
Commonwealth of Pennsylvania
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of expenditures
of federal awards is fairly stated in all material respects in relation to the basic financial statements as a
whole.
a
Harrisburg, Pennsylvania Baltimore, Maryland
March 18, 2022 March 18, 2022
21
THIS PAGE INTENTIONALLY LEFT BLANK
22
Schedule of Expenditures
of Federal Awards
Commonwealth of Pennsylvania
23
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
U.S. Department of Agriculture
SNAP Cluster: `
10.551 Supplemental Nutrition Assistance Program 2,768,077
10.551 COVID-19 - Supplemental Nutrition Assistance Program 2,083,766
Total Supplemental Nutrition Assistance Program 4,851,843
10.561 State Administrative Matching Grants for Supplemental Nutrition Assistance Program 194,812 21,577
Total SNAP Cluster 5,046,655
Child Nutrition Cluster:
10.553 School Breakfast Program 64,721 64,582
10.553 COVID-19 - School Breakfast Program 37,620 37,620
Total School Breakfast Program 102,341
10.555 National School Lunch Program (Cash Assistance) 173,412 173,160
10.555 COVID-19 - National School Lunch Program (Cash Assistance) 83,383 83,383
24 10.555 National School Lunch Program (Food Commodities) 48,292 48,292
Total National School Lunch Program 305,087
10.556 Special Milk Program for Children 24 24
10.556 COVID-19 - Special Milk Program for Children 13 13
Total Special Milk Program for Children 37
10.559 Summer Food Service Program for Children (Cash Assistance) 124,441 123,998
10.559 COVID-19 - Summer Food Service Program for Children (Cash Assistance) 41,647 41,647
10.559 Summer Food Service Program for Children (Food Commodities) 587 587
Total Summer Food Service Program for Children 166,675
10.579 Child Nutrition Discretionary Grants Limited Availability 1,130 1,130
Total Child Nutrition Cluster 575,270
Food Distribution Cluster:
10.565 Commodity Supplemental Food Program (Cash Assistance) 3,719 3,715
10.565 Commodity Supplemental Food Program (Food Commodities) 8,045 8,045
Total Commodity Supplemental Food Program 11,764
10.568 Emergency Food Assistance Program (Administrative Costs) 4,928 3,668
10.568 COVID-19 - Emergency Food Assistance Program (Administrative Costs) 5,539 5,539
Total Emergency Food Assistance Program (Administrative Costs) 10,467
10.569 Emergency Food Assistance Program (Food Commodities) 78,416 78,416
Total Food Distribution Cluster 100,647
Forest Service Schools and Roads Cluster:
10.665 Schools and Roads - Grants to States 2,642 2,642
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
10.025 Plant and Animal Disease, Pest Control, and Animal Care 6,946 260
10.170 Specialty Crop Block Grant Program - Farm Bill 1,335 1,188
10.171 Organic Certification Cost Share Programs 176
10.178 Trade Mitigation Program Eligible Recipient Agency Operational Funds 1,180 1,180
10.304 Homeland Security - Agricultural 143
10.534 Child and Adult Care Food Program (CACFP) Meal Training Grants 32
10.541 Child Nutrition- Technology Innovation Grant 124
10.545 Farmers’ Market SNAP Support Grants 2
10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and Children 105,729 37,263
10.557 COVID-19 - WIC Special Supplemental Nutrition Program for Women, Infants, and Children 15,197 4,000
Total WIC Special Supplemental Nutrition Program for Women, Infants, and Children 120,926
10.558 Child and Adult Care Food Program (Cash Assistance) 52,547 51,641
10.558 COVID-19 - Child and Adult Care Food Program (Cash Assistance) 25,980 25,980
10.558 Child and Adult Care Food Program (Food Commodities) 76 76
25 Total Child and Adult Care Food Program 78,603
10.560 State Administrative Expenses for Child Nutrition 9,932 318
10.572 WIC Farmers' Market Nutrition Program (FMNP) 1,190 213
10.574 Team Nutrition Grants 31
10.575 Farm to School Grant Program 55
10.576 Senior Farmers Market Nutrition Program 1,028
10.578 WIC Grants to States (WGS) 2,153 512
10.582 Fresh Fruit and Vegetable Program 3,043 3,043
10.649 COVID-19 - Pandemic EBT Administrative Costs 342
10.664 Cooperative Forestry Assistance 257
10.675 Urban and Community Forestry Program 1
10.676 Forest Legacy Program 7 7
10.678 Forest Stewardship Program 7
10.680 Forest Health Protection 589 12
10.691 Good Neighbor Authority 3
10.698 State & Private Forestry Cooperative Fire Assistance 1,392 678
Passed through: National Fish and Wildlife Foundation
10.902 Soil And Water Conservation (Award ID 060217057473) 43
10.931 Agricultural Conservation Easement Program 257
Total - U.S. Department of Agriculture $5,955,011 $824,409
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
U.S. Department of Commerce
Economic Development Cluster
11.307 Economic Adjustment Assistance 240
11.407 Interjurisdictional Fisheries Act of 1986 22
11.419 Coastal Zone Management Administration Awards 1,728 723
11.474 Atlantic Coastal Fisheries Cooperative Management Act 13
Total - U.S. Department of Commerce $2,003 $723
U.S. Department of Defense
12.112 Payments to States in Lieu of Real Estate Taxes 401 401
12.400 Military Construction, National Guard 5,066
12.401 National Guard Military Operations and Maintenance (O&M) Projects 69,997
26 12.401 COVID-19 - National Guard Military Operations and Maintenance (O&M) Projects 1,207
Total National Guard Military Operations and Maintenance (O&M) Projects 71,204
12.404 National Guard Challenge Program 1,335
12.617 Economic Adjustment Assistance for State Governments 1,031 924
12.620 Troops to Teachers Grant Program 71
Total - U.S. Department of Defense $79,108 $1,325
U.S. Department of Housing and Urban Development
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster:
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants 3,444 3,362
14.228 Community Development Block Grants/State's Program 39,379 38,343
14.228 COVID-19 - Community Development Block Grants/State's Program 2,667 2,313
Total Community Development Block Grants/State's Program 42,046
14.231 Emergency Solutions Grant Program 5,566 5,313
14.231 COVID-19 - Emergency Solutions Grant Program 5,232 4,943
Total Emergency Solutions Grant Program 10,798
14.239 Home Investment Partnerships Program 9,277 8,279
14.241 Housing Opportunities for Persons with AIDS 2,290 2,287
14.241 COVID-19 - Housing Opportunities for Persons with AIDS 391 391
Total Housing Opportunities for Persons with AIDS 2,681
14.267 Continuum of Care Program 828
14.401 Fair Housing Assistance Program - State and Local 371
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing 377 340
Total - U.S. Department of Housing and Urban Development $69,822 $65,571
U.S. Department of the Interior
Fish and Wildlife Cluster:
15.605 Sport Fish Restoration 8,648
15.611 Wildlife Restoration and Basic Hunter Education 25,000
Total Fish and Wildlife Cluster 33,648
15.250 Regulation of Surface Coal Mining and Surface Effects of Underground Coal Mining 12,046 15
15.252 Abandoned Mine Land Reclamation (AMLR) 57,712 8,783
15.433 Flood Control Act Lands 5 5
15.608 Fish and Wildlife Management Assistance 66
15.615 Cooperative Endangered Species Conservation Fund 167
27 15.634 State Wildlife Grants 1,540
15.667 Highlands Conservation 693
15.808 U.S. Geological Survey - Research and Data Collection 19
15.810 National Cooperative Geologic Mapping 79
15.904 Historic Preservation Fund Grants-In-Aid 2,010 126
15.916 Outdoor Recreation Acquisition, Development and Planning 839 831
15.925 National Maritime Heritage Grants 10 10
15.928 Battlefield Land Acquisition Grants 948 948
15.957 Emergency Supplemental Historic Preservation Fund 186
15.981 Water Use and Data Research 34
Total - U.S. Department of the Interior $110,002 $10,718
U.S. Department of Justice
16.004 Law Enforcement Assistance - Narcotics and Dangerous Drugs Training 2,462
16.017 Sexual Assault Services Formula Program 582 582
16.034 COVID-19 - Coronavirus Emergency Supplemental Funding Program 10,395 5,285
16.321 Antiterrorism Emergency Reserve 1,854 1,854
16.540 Juvenile Justice and Delinquency Prevention 552 399
16.550 State Justice Statistics Program for Statistic Analysis Centers 233
16.554 National Criminal History Improvement Program (NCHIP) 2,121 388
16.575 Crime Victim Assistance 83,352 79,847
16.576 Crime Victim Compensation 4,168
16.582 Crime Victim Assistance/Discretionary Grants 217
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
16.588 Violence Against Women Formula Grants 4,843 4,469
16.593 Residential Substance Abuse Treatment for State Prisoners 372 134
16.606 State Criminal Alien Assistance Program 1,639
16.609 Project Safe Neighborhoods 598 278
16.710 Public Safety Partnership and Community Policing Grants 1,623
16.734 Special Data Collections and Statistical Studies 138 131
16.738 Edward Byrne Memorial Justice Assistance Grant Program 5,778 3,756
16.741 DNA Backlog Reduction Program 1,004
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program 815 417
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program 3
16.750 Support for Adam Walsh Act Implementation Grant Program 256
16.752 Economic, High-Tech, and Cyber Crime Prevention 26
16.754 Harold Rogers Prescription Drug Monitoring Program 666 59
16.812 Second Chance Act Reentry Initiative 348 16
16.813 NICS Act Record Improvement Program 144
28 16.816 John R. Justice Prosecutors and Defenders Incentive Act 56
16.825 Smart Prosecution Initiative 192 136
16.827 Justice Reinvestment Initiative (2) (2)
16.835 Body Worn Camera Policy and Implementation 514 516
16.838 Comprehensive Opioid Abuse Site-Based Program 578 565
16.839 STOP School Violence 60 59
16.922 Equitable Sharing Program 196
Total - U.S. Department of Justice $125,783 $98,889
U.S. Department of Labor
Employment Service Cluster:
17.207 Employment Service/Wagner-Peyser Funded Activities 22,491
17.801 Jobs for Veterans State Grants 5,966
Total Employment Service Cluster 28,457
WIOA Cluster:
17.258 WIOA Adult Program 28,349 25,072
17.259 WIOA Youth Activities 30,851 29,082
17.278 WIOA Dislocated Worker Formula Grants 52,012 46,608
Total WIOA Cluster 111,212
17.002 Labor Force Statistics 2,388
17.005 Compensation and Working Conditions 300
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
17.225 Unemployment Insurance 5,271,655 366
17.225 COVID-19 - Unemployment Insurance 23,321,031
Total Unemployment Insurance 28,592,686
17.235 Senior Community Service Employment Program 3,962 3,835
17.245 Trade Adjustment Assistance 23,639 8,205
17.271 Work Opportunity Tax Credit Program (WOTC) 1,122
17.273 Temporary Labor Certification for Foreign Workers 386
17.277 WIOA National Dislocated Worker Grants / WIA National Emergency Grants 2,116 2,086
17.277 COVID-19 - WIOA National Dislocated Worker Grants / WIA National Emergency Grants 498 460
Total WIOA National Dislocated Worker Grants / WIA National Emergency Grants 2,614
17.280 WIOA Dislocated Worker National Reserve Demonstration Grants 1,544 1,438
17.285 Apprenticeship USA Grants 1,192 597
17.600 Mine Health and Safety Grants 420
29 Total - U.S. Department of Labor $28,769,922 $117,749
U.S. Department of Transportation
Highway Planning and Construction Cluster:
20.205 Highway Planning and Construction 1,914,213 158,348
20.205 COVID-19 - Highway Planning and Construction 407,152
Total Highway Planning and Construction 2,321,365
20.219 Recreational Trails Program 2,515 2,288
Total Highway Planning and Construction Cluster 2,323,880
Federal Motor Carrier Safety Assistance Cluster:
20.218 Motor Carrier Safety Assistance 8,325
Federal Transit Cluster:
20.500 Federal Transit - Capital Investment Grants 1,027 310
20.507 Federal Transit - Formula Grants 21,525 1,349
20.525 State of Good Repair Grants Program 4,793 3,858
Total Federal Transit Cluster 27,345
Transit Services Programs Cluster:
20.513 Enhanced Mobility of Seniors & Individuals with Disabilities 10,355 9,939
Research and Development Cluster:
20.530 Public Transportation Innovation (Award ID PA202005800) 178 178
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
Highway Safety Cluster:
20.600 State and Community Highway Safety 12,730 5,862
20.616 National Priority Safety Programs 5,873 3,589
Total Highway Safety Cluster 18,603
20.106 Airport Improvement Program 17,041 16,623
20.106 COVID-19 - Airport Improvement Program 2,057 2,057
Total Airport Improvement Program 19,098
20.200 Highway Research and Development Program 357 11
20.215 Highway Training and Education 72
20.232 Commercial Driver's License Program Implementation Grant 367
20.240 Fuel Tax Evasion-Intergovernmental Enforcement Effort 69
20.505 Metropolitan Trans Planning & State & Non-Metropolitan Planning & Research 5,188
20.509 Formula Grants for Rural Areas and Tribal Transit Program 25,946 25,487
30 20.509 COVID-19 - Formula Grants for Rural Areas and Tribal Transit Program 36,054 36,054
Total Formula Grants for Rural Areas and Tribal Transit Program 62,000
20.520 Paul S. Sarbanes Transit in the Parks 55 55
20.528 Rail Fixed Guideway Public Trans. System State Safety Oversight Form. Grant Program 741
20.614 National Highway Traffic Safety Admin Discretionary Safety Grants & Cooperative Agreements 164
20.615 E-911 Grant Program 2,120
20.700 Pipeline Safety Program State Base Grant 2,212
20.703 Interagency Hazardous Materials Training and Planning Grants 551 155
20.933 National Infrastructure Investments 9,682 7,659
Total - U.S. Department of Transportation $2,491,362 $273,822
U.S. Department of the Treasury
21.016 Equitable Sharing 431
21.019 COVID-19 - Coronavirus Relief Fund 2,764,742 823,479
21.023 COVID-19 - Emergency Rental Assistance Program 564,535 564,110
Total - U.S. Department of the Treasury $3,329,708 $1,387,589
Appalachian Regional Commission
23.002 Appalachian Area Development 458 146
Total - Appalachian Regional Commission $458 $146
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
Equal Employment Opportunity Commission
30.001 Employment Discrimination Title VII of the Civil Rights Act of 1964 549
Total - Equal Employment Opportunity Commission $549 $0
General Services Administration
39.003 Donation of Federal Surplus Personal Property 648 648
Total - General Services Administration $648 $648
National Foundation on the Arts and Humanities
45.025 Promotion of the Arts - Partnership Agreements 800
45.025 COVID-19 - Promotion of the Arts - Partnership Agreements 517 517
Total Promotion of the Arts - Partnership Agreements 1,317
45.310 Grants to States 4,489 2,602
31 45.310 COVID-19 - Grants to States 134 132
Total Grants to States 4,623
45.312 COVID-19 - National Leadership Grants 82
Total - National Foundation on the Arts and Humanities $6,022 $3,251
National Science Foundation
47.076 Education and Human Resources 15
Total - National Science Foundation $15 $0
Small Business Administration
59.061 State Trade Expansion 182
Total - Small Business Administration $182 $0
U.S. Department of Veterans Affairs
64.010 Veterans Nursing Home Care 113
64.014 Veterans State Domiciliary Care 3,895
64.014 COVID-19 - Veterans State Domiciliary Care 54
Total Veterans State Domiciliary Care 3,949
64.015 Veterans State Nursing Home Care 47,749
64.015 COVID-19 - Veterans State Nursing Home Care 11,092
Total Veterans State Nursing Home Care 58,841
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
64.111 Veterans Education Assistance 1,213
Total - U.S. Department of Veterans Affairs $64,116 $0
Environmental Protection Agency
Clean Water State Revolving Fund Cluster:
66.458 Capitalization Grants for Clean Water State Revolving Funds 62,947 62,947
Drinking Water State Revolving Fund Cluster:
66.468 Capitalization Grants for Drinking Water State Revolving Funds 32,328 23,408
66.001 Air Pollution Control Program Support 5,450
66.032 State Indoor Radon Grants 462 64
66.034 Surveys, Studies, Research, Investigations, Demos & Special Purpose Activities - Clean Air Act 745
66.040 Diesel Emissions Reduction Act (DERA) State Grants 332 332
32 66.204 Multipurpose Grants to States and Tribes 124
66.419 Water Pollution Control State, Interstate, and Tribal Program Support 6,003
66.432 State Public Water System Supervision 4,957
66.441 Healthy Watersheds Consortium Grant Program 57
66.444 Lead Testing in School and Child Care Program Drinking Water 151
66.454 Water Quality Management Planning 401
66.460 Nonpoint Source Implementation Grants 2,514 1,822
66.461 Regional Wetland Program Development Grants 248
66.466 Chesapeake Bay Program 8,226 5,545
Passed through: National Fish and Wildlife Foundation
66.466 Chesapeake Bay Program (Award ID 060216053407) 165 162
66.466 Chesapeake Bay Program (Award ID 060217057473) 229
Total Chesapeake Bay Program 8,620
66.469 Great Lakes Program 275 176
66.605 Performance Partnership Grants 1,037
66.608 Environmental Information Exchange Network Grant Program and Related Assistance 240
66.801 Hazardous Waste Management State Program Support 3,796
66.804 Underground Storage Tank (UST) Prevention, Detection, and Compliance Program 393
66.805 Leaking Underground Storage Tank Trust Fund Corrective Action Program 1,562
66.817 State and Tribal Response Program Grants 437
Total - Environmental Protection Agency $133,079 $94,456
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
U.S. Department of Energy
81.041 State Energy Program 2,276 440
81.042 Weatherization Assistance for Low-Income Persons 14,661 11,541
81.138 State Heating Oil & Propane Program 9
Total - U.S. Department of Energy $16,946 $11,981
U.S. Department of Education
Special Education Cluster (IDEA):
84.027 Special Education - Grants to States 468,327 454,815
84.173 Special Education - Preschool Grants 13,217 12,702
Total Special Education Cluster (IDEA) 481,544
TRIO Cluster:
84.042 TRIO - Student Support Services 325
33
Student Financial Assistance Programs Cluster:
84.007 Federal Supplemental Educational Opportunity Grants 63
84.033 Federal Work-Study Program 4
84.063 Federal Pell Grant Program 2,803
84.268 Federal Direct Student Loans 3,717
Total Student Financial Assistance Programs Cluster 6,587
84.002 Adult Education - Basic Grants to States 17,588 16,953
84.010 Title I Grants to Local Educational Agencies 642,312 626,405
84.011 Migrant Education - State Grant Program 5,291 4,866
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth 1,464 1,145
84.048 Career and Technical Education - Basic Grants to States 41,674 39,482
84.126 Rehabilitation Services - Vocational Rehabilitation Grants to States 107,538
84.144 Migrant Education - Coordination Program 54 54
84.177 Rehabilitation Services - Independent Living Services for Older Individuals Who are Blind 1,266
84.181 Special Education - Grants for Infants and Families 15,298 13,663
84.187 Supported Employment Services for Individuals with the Most Significant Disabilities 610
84.196 Education for Homeless Children and Youth 3,407 3,132
84.287 Twenty-First Century Community Learning Centers 51,267 48,493
84.323 Special Education - State Personnel Development 1,576 1,403
84.358 Rural Education 1,281 1,281
84.365 English Language Acquisition State Grants 15,320 14,543
84.367 Supporting Effective Instruction State Grants 74,665 71,320
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
84.369 Grants for State Assessments and Related Activities 10,955
84.372 Statewide Longitudinal Data Systems 1,535
84.377 Title I Grants to Local Educational Agencies 6,059 6,059
84.424 Student Support and Academic Enrichment Program 46,485 45,965
84.425C COVID-19 - Education Stabilization Fund - GEER Fund 63,927 63,927
84.425D COVID-19 - Education Stabilization Fund - ESSER Fund 479,749 479,713
84.425E COVID-19 - Education Stabilization Fund - HEERF Student Aid Portion 136
84.425F COVID-19 - Education Stabilization Fund - HEERF Institutional Portion 134
84.425R COVID-19 - Education Stabilization Fund - CRRSA EANS Program 833 793
Total COVID-19 - Education Stabilization Fund 544,779
84.938 Disaster Recovery Assistance for Education 217 217
Total - U.S. Department of Education $2,079,097 $1,906,931
Elections Assistance Commission
90.401 Help America Vote Act Requirements Payments 1,614 401
34
90.404 2018 HAVA Election Security Grants 6,200 1,934
90.404 COVID-19 - 2018 HAVA Election Security Grants 8,267 6,393
Total 2018 HAVA Election Security Grants 14,467
Total - Elections Assistance Commission $16,081 $8,728
U.S. Department of Health and Human Services
Aging Cluster:
93.044 Special Programs for the Aging - Title III, Part B, Grants for Supp Svc & Senior Cntrs 25,533 23,775
93.044 COVID-19 - Special Programs for the Aging - Title III, Part B, Grants for Supp Svc & Senior Cntrs 6,970 6,970
Total Special Programs for the Aging - Title III, Part B, Grants for Supp Svc & Senior Cntrs 32,503
93.045 Special Programs for the Aging - Title III, Part C, Nutrition Services 22,347 22,300
93.045 COVID-19 - Special Programs for the Aging - Title III, Part C, Nutrition Services 24,614 24,614
Total Special Programs for the Aging - Title III, Part C, Nutrition Services 46,961
93.053 Nutrition Services Incentive Program 5,933 5,933
Total Aging Cluster 85,397
CCDF Cluster:
93.575 Child Care and Development Block Grant 240,740 215,679
93.575 COVID-19 - Child Care and Development Block Grant 262,441 262,441
Total Child Care and Development Block Grant 503,181
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund 110,115 109,977
Total CCDF Cluster 613,296
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
Head Start Cluster:
93.600 Head Start 7,312 7,312
93.600 COVID-19 - Head Start 396 396
Total Head Start 7,708
Total Head Start Cluster 7,708
Medicaid Cluster:
93.775 State Medicaid Fraud Control Units 7,667
93.777 State Survey & Cert. of Health Care Providers & Suppliers (Title XVIII) Medicare 16,311
93.777 COVID-19 - State Survey & Cert. of Health Care Providers & Suppliers (Title XVIII) Medicare 3,136
Total State Survey & Cert. of Health Care Providers & Suppliers (Title XVIII) Medicare 19,447
93.778 Medical Assistance Program 22,195,842 323,099
93.778 COVID-19 - Medical Assistance Program 1,605,735
Total Medical Assistance Program 23,801,577
35 Total Medicaid Cluster 23,828,691
93.041 Special Programs for the Aging - Title VII, Chapter 3, Programs for Prev of Elder Abuse 200 200
93.042 Special Programs for the Aging - Title VII, Chapter 2, Long Term Care Om. Services 612 612
93.042 COVID-19 - Special Programs for the Aging - Title VII, Chapter 2, Long Term Care Om. Services 227 215
Total Special Programs for the Aging - Title VII, Chapter 2, Long Term Care Om. Services 839
93.043 Special Programs for the Aging - Title III, Part D, Disease Prevent and Health Promo Serv 753 753
93.048 COVID-19 - Special Programs for the Aging - Title IV and Title II, Discretionary Projects 1,712 1,628
93.052 National Family Caregiver Support, Title III, Part E 5,882 5,882
93.052 COVID-19 - National Family Caregiver Support, Title III, Part E 3,995 3,995
Total National Family Caregiver Support, Title III, Part E 9,877
93.069 Public Health Emergency Preparedness 16,909 4,283
93.070 Environmental Public Health and Emergency Response 239 120
93.071 Medicare Enrollment Assistance Program 990 594
93.079 Cooperative Agreements to Promote Adolescent Health 25
93.090 Guardianship Assistance 13,249 12,554
93.090 COVID-19 - Guardianship Assistance 1,416 1,416
Total Guardianship Assistance 14,665
93.092 Affordable Care Act (ACA) Personal Responsibility Education Program 920 914
93.103 Food and Drug Administration - Research 2,241
93.104 Community Mental Health Services for Children with Serious Emotional Disturbances 2,538 2,538
93.110 Maternal and Child Health Federal Consolidated Programs 130
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs 762
93.127 Emergency Medical Services for Children 183 180
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
93.130 Coop. Agreements to States/Territories for the Coordination & Dev. of Primary Care Offices 145
93.136 Injury Prevention & Control Research & State & Community Based Programs 8,489 4,386
93.136 COVID-19 - Injury Prevention & Control Research & State & Community Based Programs 124 124
Total Injury Prevention & Control Research & State & Community Based Programs 8,613
93.150 Projects for Assistance in Transition from Homelessness (PATH) 2,386 2,292
93.165 Grants to States for Loan Repayment 1,124
93.197 Childhood Lead Poisoning Prevention Projects, St and Lcl Childhood Lead Poising Prev 390 97
93.226 Research on Healthcare Costs, Quality and Outcomes (463) (463)
93.234 Traumatic Brain Injury State Demonstration Grant Program 356 348
93.235 Title V State Sexual Risk Avoidance Education (Title V State SRAE) Program 1,140 1,136
93.236 Grants to States to Support Oral Health Workforce Activities 389 224
93.240 State Capacity Building 204
93.240 COVID-19 - State Capacity Building 56
Total State Capacity Building 260
93.243 Substance Abuse and Mental Health Services - Projects of Reg. and Nat. Significance 8,245 6,729
36 Passed through: Vibrant Emotional Health
93.243 Substance Abuse and Mental Health Services - Projects of Reg. and Nat. Significance (Award ID 988 Planning Grant) 127 127
Total Substance Abuse and Mental Health Services - Projects of Reg. and Nat. Significance 8,372
93.251 Early Hearing Detection and Intervention 186 175
93.268 Immunization Cooperative Agreements (Cash Assistance) 9,026 2,601
93.268 COVID-19 - Immunization Cooperative Agreements (Cash Assistance) 7,417 2,512
93.268 Immunization Cooperative Agreements (Vaccines) 101,717
Total Immunization Cooperative Agreements 118,160
93.270 Viral Hepatitis Prevention and Control 149
93.283 Centers for Disease Control & Prevention - Investigations and Technical Assistance 243
93.305 PPHF 2018: Office of Smoking and Hlth-Nat State-Based Tobacco Control Programs 73 45
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 3,240 310
93.323 COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 98,387 11,266
Total Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 101,627
93.324 State Health Insurance Assistance Program 1,607 1,552
93.354 Activities to Support STLT Health Dept. Response to Public Health or Healthcare Crises 66 85
93.354 COVID-19 - Activities to Support STLT Health Dept. Response to Public Health or Healthcare Crises 19,113 4,684
Total Activities to Support STLT Health Dept. Response to Public Health or Healthcare Crises 19,179
93.366 State Actions to Improve Oral Health Outcomes & Partner Actions to Improve Oral Health Outcomes 394 337
93.367 Flexible Funding Model - Infrastructure Development & Maintenance for SMFRP 558
93.369 ACL Independent Living State Grants 750 417
93.387 National and State Tobacco Control Program 1,658 532
93.426 Improving the Hlth of Americans through Prev & Mgmt of Diab & HD and Stroke 1,882 1,129
93.434 Every Student Succeeds Act/Preschool Development Grants (6) (10)
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (WISEWOMAN) 609 97
93.439 State Physical Activity and Nutrition (SPAN) 884 390
93.448 Food Safety and Security Monitoring Project 114
93.478 Preventing Maternal Deaths: Supporting Maternal Mortality Review Committees 232 4
93.498 COVID-19 - Provider Relief Fund 2,519
93.500 Pregnancy Assistance Fund Program 239 237
93.556 Promoting Safe and Stable Families Program 10,266 10,149
93.558 Temporary Assistance for Needy Families 391,359 205,982
93.563 Child Support Enforcement 163,401 137,399
93.566 Refugee and Entrant Assistance - State/Replacement Designee Administered Programs 7,589 6,597
93.568 Low-Income Home Energy Assistance 174,778 23,166
93.568 COVID-19 - Low-Income Home Energy Assistance 30,604 4,761
Total Low-Income Home Energy Assistance 205,382
93.569 Community Services Block Grant 26,267 25,444
93.569 COVID-19 - Community Services Block Grant 9,373 9,126
37 Total Community Services Block Grant 35,640
93.576 Refugee and Entrant Assistance - Discretionary Grants 551 438
93.590 Community-Based Child Abuse Prevention Grants 814 814
93.599 Chafee Education and Training Vouchers Program (ETV) 1,614 1,614
93.599 COVID-19 - Chafee Education and Training Vouchers Program (ETV) 1,818 1,818
Total Chafee Education and Training Vouchers Program (ETV) 3,432
93.603 Adoption and :Legal Guardianship Incentive Payments 246 27
93.630 Developmental Disabilities Basic Support and Advocacy Grants 3,527 2,466
93.643 Children's Justice Grants to States 176 176
93.645 Stephanie Tubbs Jones Child Welfare Services Program 9,205 8,353
93.658 Foster Care - Title IV-E 221,752 212,073
93.658 COVID-19 - Foster Care - Title IV-E 6,020 6,020
Total Foster Care - Title IV-E 227,772
93.659 Adoption Assistance 144,850 107,147
93.659 COVID-19 - Adoption Assistance 11,449 11,449
Total Adoption Assistance 156,299
93.667 Social Services Block Grant 87,301 73,959
93.669 Child Abuse and Neglect State Grants 871 89
93.671 Family Violence Prevention & Services/Domestic Violence Shelter & Supportive Services 4,498 4,498
93.671 COVID-19 - Family Violence Prevention & Services/Domestic Violence Shelter & Supportive Services 746 746
Total Family Violence Prevention & Services/Dom. Violence Shelter & Supportive Services 5,244
93.674 John H. Chafee Foster Care Program for Successful Transition for Adulthood 4,081 4,081
93.735 State Public Health Approaches for Ensuring Quitline Capacity- Funded in part by PPHF 6 2
93.747 Elder Abuse Prevention Interventions Program (51)
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
93.767 Children's Health Insurance Program 545,512 265,780
93.767 COVID-19 - Children's Health Insurance Program 36,418 15,293
Total Children's Health Insurance Program 581,930
93.788 Opioid STR 70,086 51,547
93.791 Money Follows the Person Rebalancing Demonstration 3,841 496
93.791 COVID-19 - Money Follows the Person Rebalancing Demonstration 33
Total Money Follows the Person Rebalancing Demonstration 3,874
93.817 Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities 1,315 1,067
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services (40) (40)
93.870 Maternal, Infant & Early Childhood Home Visiting Grant Program 10,020 9,838
93.876 Antimicrobial Resistance Surveillance in Retail Food Specimens 128
93.881 The Health Insurance Enforcement and Consumer Protections Grant Program 257
93.889 National Bioterrorism Hospital Preparedness Program 5,138 3,582
93.889 COVID-19 - National Bioterrorism Hospital Preparedness Program 2,635 2,584
Total National Bioterrorism Hospital Preparedness Program 7,773
38 93.898 Cancer Prevention & Control Programs for State, Territorial & Tribal Organizations 5,011 2,861
93.917 HIV Care Formula Grants 34,461 604
93.917 COVID-19 - HIV Care Formula Grants 537 537
Total HIV Care Formula Grants 34,998
93.940 HIV Prevention Activities - Health Department Based 4,804 1,088
93.944 Human Immunodeficiency Virus (HIV)/AIDS Surveillance 299
93.946 Cooperative Agreements to Support Safe Motherhood and Infant Health Initiative Program 263
93.958 Block Grants for Community Mental Health Services 24,104 23,352
93.959 Block Grants for Prevention and Treatment of Substance Abuse 65,828 56,534
93.968 Funding in Support of the Pennsylvania Rural Health Model 2,150
93.977 Sexually Transmitted Diseases (STD) Prevention and Control Grants 1,860 292
93.982 COVID-19 - Mental Health Disaster Assistance and Emergency Mental Health 622 580
93.991 Preventive Health and Health Services Block Grant 7,064 4,946
93.994 Maternal and Child Health Services Block Grant to the States 24,929 15,826
Total - U.S. Department of Health and Human Services $27,022,230 $2,394,904
Corporation for National and Community Service
94.003 State Commissions 388
94.006 AmeriCorps 10,729 10,729
94.009 Training and Technical Assistance 187 52
Total - Corporation for National and Community Service $11,304 $10,781
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Schedule of Expenditures of Federal Awards - June 30, 2021
Passed
Federal Through to
Assistance Expenditures Subrecipients
Listing # Assistance Listing Program Name (000's) (000's)
Executive Office of the President
95.001 High Intensity Drug Trafficking Areas Program 3,912
Total - Executive Office of the President $3,912 $0
Social Security Administration
Disability Insurance/SSI Cluster:
96.001 Social Security - Disability Insurance 126,571
Total - Social Security Administration $126,571 $0
U.S. Department of Homeland Security
97.008 Non-Profit Security Program 429 429
97.012 Boating Safety Financial Assistance 2,442
97.023 Community Assistance Program State Support Services Element (CAP-SSSE) 161
39 97.029 Flood Mitigation Assistance (4) (264)
97.032 COVID-19 - Crisis Counseling 269 245
97.036 Disaster Grants - Public Assist (Presidentially Declared Disasters) 22,408 10,785
97.036 COVID-19 - Disaster Grants - Public Assist (Presidentially Declared Disasters) 133,337 60,003
Total Disaster Grants - Public Assist (Presidentially Declared Disasters) 155,745
97.039 Hazard Mitigation Grant 2,430 2,324
97.041 National Dam Safety Program 197 106
97.042 Emergency Management Performance Grants 9,684 4,825
97.042 COVID-19 - Emergency Management Performance Grants 126
Total Emergency Management Performance Grants 9,810
97.044 Assistance to Firefighters Grant 135
97.045 Cooperating Technical Partners 62
97.047 BRIC: Building Resilient Infrastructure and Communities 957 901
97.050 COVID-19 - Presidential Declared Disaster Assistance to Individuals and Households - Other Needs 1,889,403
97.067 Homeland Security Grant Program 26,901 21,358
97.091 Homeland Security Biowatch Program 447
Total - U.S. Department of Homeland Security $2,089,384 $100,712
GRAND TOTAL $72,503,315 $7,313,333
- See Notes to Schedule of Expenditures of Federal Awards -
COMMONWEALTH OF PENNSYLVANIA
Notes to the Schedule of Expenditures of Federal Awards - June 30, 2021
Note A: Single Audit Reporting Entity
The Commonwealth of Pennsylvania (the Commonwealth) includes expenditures in its schedule of expenditures of federal
awards (SEFA) for all federal programs administered by the same funds, agencies, boards, commissions, and component
units included in the Commonwealth’s financial reporting entity used for its basic financial statements. However, the State
System of Higher Education (SSHE), the Pennsylvania Higher Education Assistance Agency (PHEAA), the Pennsylvania
Housing Finance Agency (PHFA), the Pennsylvania Convention Center Authority (PCCA), the Philadelphia Shipyard
Development Corporation (PSDC), which are discretely presented component units, the Philadelphia Regional Port Authority
(PRPA) and the Commonwealth Financing Authority (CFA), which are blended component units, elect to have their own
single audits (when required) and their expenditures of federal awards are therefore excluded from the Commonwealth’s
SEFA. These seven component units are required to submit their own single audit reports to the Federal Audit Clearinghouse.
The PCCA and the PSDC are not required to submit a single audit for the year ended June 30, 2021, because their federal
expenditures were below the requirement threshold. In addition, the Judicial Department of Pennsylvania, which is included
in the Primary Government, elected to have its own single audit performed. Their federal expenditures are also excluded from
the Commonwealth’s SEFA.
Note B: Basis of Accounting
All expenditures for each program included in the schedule of expenditures of federal awards are net of applicable program
income and refunds.
Expenditures reported under Assistance Listing Number (ALN) 10.551, Supplemental Nutrition Assistance Program (SNAP),
represent amounts the Electronic Benefits Transfer (EBT) contractor paid to retail outlets for participants’ purchases under
the program during the fiscal year ended June 30, 2021.
Expenditures reported under ALN 10.555, National School Lunch Program, ALN 10.558, Child and Adult Care Food
Program, ALN 10.559, Summer Food Service Program, ALN 10.565, Commodity Supplemental Food Program, and ALN
10.569, Emergency Food Assistance Program, include the value of food commodity distributions calculated using the U.S.
Department of Agriculture, Food and Nutrition Service, commodity price lists in effect as of July 1, 2020 and January 1,
2021.
Subrecipient expenditures reported under ALN 14.228, Community Development Block Grants, ALN 14.231, Emergency
Solutions Grant Program, prior to August 23, 2012 with the exception of FY 2011 subrecipient expenditures reported after
December 31, 2014, and ALN 14.239, Home Investment Partnerships Program, represent funds drawn directly from the
Housing and Urban Development (HUD) Integrated Disbursement and Information System (IDIS) by subrecipients of the
Commonwealth.
Expenditures for ALN 20.200, Highway Research and Development Program, ALN 20.205, Highway Planning and
Construction, ALN 20.215, Highway Training and Education, ALN 20.219, Recreational Trails Program, ALN 20.505,
Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research, and ALN 20.933, National
Infrastructure Investments are presented on the basis that expenditures are reported to the U.S. Department of Transportation.
Accordingly, certain expenditures are recorded when paid and certain other expenditures are recorded when the federal
obligation is determined.
Amounts reported as expenditures for ALN 39.003, Donation of Federal Surplus Personal Property, represent the General
Services Administration’s average fair market value percentage of 23.34 percent of the federal government’s original
acquisition cost (OAC) of the federal property transferred to recipients by the Commonwealth.
Expenditures identified on the SEFA as Vaccines under ALN 93.268, Immunization Cooperative Agreements, represent the
dollar value of the items used.
Expenditures reported by the Pennsylvania Department of Transportation (PennDOT) for ALN 97.036, Disaster Grants-
Public Assistance (Presidentially Declared Disasters), are recorded when the estimated federal obligation is determined and
reimbursed.
40
COMMONWEALTH OF PENNSYLVANIA
Notes to the Schedule of Expenditures of Federal Awards - June 30, 2021
The remaining expenditures included in the schedule of expenditures of federal awards are presented on the cash plus invoices
payable basis. Invoices payable represent Commonwealth expenditures recorded on the general ledger for which the
Commonwealth Treasury Department has not made cash disbursements.
The Commonwealth has not elected to use the 10% de minimis cost rate referenced in Uniform Guidance § 200.414 Indirect
(F&A) costs.
Note C: Categorization of Expenditures
The schedule of expenditures of federal awards reflects federal expenditures for all individual grants that were active during
the fiscal year ended June 30, 2021. The categorization of expenditures by program included in the SEFA is based on the
Assistance Listing. Changes in the categorization of expenditures occur based on revisions to the ALN, which are issued on
a real-time basis on the Assistance Listing website.
Note D: Unemployment Insurance
In accordance with Department of Labor, Office of Inspector General instructions, the Commonwealth recorded State Regular
Unemployment Compensation (UC) benefits under ALN 17.225 in the schedule of expenditures of federal awards. The
individual state and federal portions are as follows (amounts in thousands):
State Regular UC Benefits $4,582,709
Federal UC Benefits 23,767,016
Federal Admin. 242,961
Total Expenditures $28,592,686
Note E: Unaudited Donations
Federally funded COVID-19 related PPE donations with an estimated value of $20 million were received by the
Commonwealth during the fiscal year. This amount is not reflected on the SEFA.
41
THIS PAGE INTENTIONALLY LEFT BLANK
42
Schedule of Findings
and Questioned Costs
Commonwealth of Pennsylvania
43
COMMONWEALTH OF PENNSYLVANIA
Summary of Auditors’ Results - June 30, 2021
Financial Statements
Type of report the auditors issued on whether
the financial statements audited were prepared
in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? X yes none reported
Noncompliance material to financial
statements noted? yes X no
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? X yes no
Significant deficiency(ies) identified? X yes none reported
Type of auditors' report issued on compliance
for major federal programs:
Qualified for noncompliance in the following major federal programs:
Supplemental Nutrition Assistance Program (SNAP) Cluster (ALN 10.551 and 10.561)
Abandoned Mine Land Reclamation (ALN 15.252)
Crime Victim Assistance (ALN 16.575)
Temporary Assistance for Needy Families (ALN 93.558)
Child Support Enforcement (ALN 93.563)
Child Care and Development Fund (CCDF) Cluster (ALN 93.575 and 93.596)
Foster Care – Title IV-E (ALN 93.658)
Adoption Assistance (ALN 93.659)
Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036)
Unmodified for the following major federal programs:
Unemployment Insurance (ALN 17.225)
WIOA Cluster (ALN 17.258, 17.259, and 17.278)
Highway Planning and Construction Cluster (ALN 20.205 and 20.219)
Coronavirus Relief Fund (ALN 21.019)
Emergency Rental Assistance Program (ALN 21.023)
Education Stabilization Fund (ALN 84.425)
Immunization Cooperative Agreements (ALN 93.268)
44
COMMONWEALTH OF PENNSYLVANIA
Summary of Auditors’ Results - June 30, 2021
Unmodified for the following major federal programs (continued):
Low-Income Home Energy Assistance (ALN 93.568)
Children’s Health Insurance Program (ALN 93.767)
Medicaid Cluster (ALN 93.775, 93.777, and 93.778)
Presidential Declared Disaster Assistance to Individuals and Households – Other Needs (ALN 97.050)
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? X yes no
Identification of Major Federal Programs:
Federal
Assistance Listing Expenditures
Number(s) Name of Federal Program or Cluster (000s)
10.551 and 10.561 Supplemental Nutrition Assistance Program (SNAP) $5,046,655
Cluster (C)
15.252 Abandoned Mine Land Reclamation 57,712
16.575 Crime Victim Assistance 83,352
17.225 Unemployment Insurance (C) 28,592,686
17.258, 17.259, and 17.278 WIOA Cluster 111,212
20.205 and 20.219 Highway Planning and Construction Cluster (C) 2,323,880
21.019 Coronavirus Relief Fund (C) 2,764,742
21.023 Emergency Rental Assistance Program (C) 564,535
84.425 Education Stabilization Fund (C) 544,779
93.268 Immunization Cooperative Agreements (C) 118,160
93.558 Temporary Assistance for Needy Families 391,359
93.563 Child Support Enforcement 163,401
93.568 Low-Income Home Energy Assistance (C) 205,382
93.575 and 93.596 Child Care and Development Fund (CCDF) Cluster (C) 613,296
93.658 Foster Care – Title IV-E (C) 227,772
93.659 Adoption Assistance (C) 156,299
93.767 Children’s Health Insurance Program (C) 581,930
93.775, 93.777, and 93.778 Medicaid Cluster (C) 23,828,691
97.036 Disaster Grants – Public Assistance (Presidentially Declared 155,745
Disasters) (C)
97.050 Presidential Declared Disaster Assistance to Individuals and 1,889,403
Households – Other Needs (C)
Total Federal Expenditures – Major Programs $68,420,991
(C) = COVID-19 Funds included
Dollar threshold used to distinguish between
Type A and Type B programs (000s): $108,755
Auditee qualified as low-risk auditee? yes X no
45
COMMONWEALTH OF PENNSYLVANIA
Index to Basic Financial Statement Findings - June 30, 2021
Impacted
Finding State Finding CAP
No. Finding Title Agency Page Page
2021-001* Information Technology General Controls Need OA-OIT 47 102
Improvement (A Similar Condition Was Noted in Prior
Year Finding 2020-001)
2021-002* Information Technology Control Weaknesses in the L&I 49 102
Unemployment Compensation and Pandemic OA-OIT
Unemployment Assistance Systems
* - Significant Deficiency
** - Material Weakness
CAP - Corrective Action Plan
46
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Office of Administration – Office for Information Technology
Finding 2021 – 001:
Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior Year
Finding 2020-001)
Type of Finding: Significant Deficiency
Condition: Our review of information technology (IT) general controls in the Office of Administration, Office for
Information Technology (OA-OIT), for the fiscal year ended June 30, 2021, disclosed the following control deficiencies
in applications supported by the Employment, Banking, and Revenue (EBR) and Infrastructure and Economic
Development (I&ED) Delivery Centers:
1. There was a lack of segregation of duties between application development and promotion of code to production in
certain applications in the mainframe and client/server environments in the EBR Delivery Center. Developers
(including contractors) were granted the ability to develop code and to promote code to production. In other cases,
developers were given the ability to change the operations schedule (while such access may be required in certain
circumstances, the associated risk should be mitigated with monitoring of production environments for unauthorized
changes).
2. In the EBR Delivery Center there were a large number of users with privileged and administrative access to a
mainframe environment. The use of this access was not logged and/or monitored, and there were no policies or
procedures governing the granting of powerful user attributes in the mainframe environment. The mainframe in
question was replaced June 2021 and is no longer considered production. In two client-server environments, certain
users had access to accounts with shared passwords.
3. Two system administrators retained access to EBR and I&ED Delivery Center applications after they separated
employment. Further, during the period when applications were being implemented quickly in response to the
COVID-19 pandemic, the EBR Delivery Center suspended normal controls over adding and deleting users in two
systems. New and terminated users were tracked through the use of a shared spreadsheet accessible to a large number
of people.
A detailed schedule of issues has been provided to the OA-OIT for corrective action.
Criteria: Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the
internal control framework outlined in the United States Government Accountability Office’s Standards for Internal
Control in the Federal Government (Green Book), published in September 2014.
• Green Book Principle 11 – Design Activities for the Information System, states in part:
o 11.12 Management designs control activities over access to protect an entity from inappropriate access and
unauthorized use of the system. These control activities support appropriate segregation of duties. By preventing
unauthorized use of and changes to the system, data and program integrity are protected from malicious intent
(e.g., someone breaking into the technology to commit fraud, vandalism, or terrorism) or error.
o 11.14 Management designs control activities to limit user access to information technology through authorization
control activities such as providing a unique user identification or token to authorized users. These control
activities may restrict authorized users to the applications or functions commensurate with their assigned
responsibilities, supporting an appropriate segregation of duties. Management designs other control activities
to promptly update access rights when employees change job functions or leave the entity.
A well-designed system of internal controls dictates that effective IT general controls, which include adequate segregation
of duties, access controls to programs and data, and controls over adding and deleting users, be established and functioning
to ensure that overall agency operations are conducted in accordance with management’s intent.
47
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Finding 2021 – 001: (continued)
Cause: Certain segregation of duties weaknesses, as well as certain privileged user control issues, were noted in legacy
systems in the EBR Delivery Center that have been replaced or are scheduled for replacement during fiscal year end 2022.
The segregation of duties weaknesses in other client-server environments have not been addressed by the EBR Delivery
Center because of the belief that there is not enough staff to separate development of code from promotion to production.
Management in the EBR Delivery Center has not developed policies for granting privileged/administrative access to
systems. The shared accounts in one client-server system were default IDs which were not monitored, despite the
recommendation of the application manufacturer. The shared administrative accounts in another client-server environment
were created during system installation. Management is hesitant to delete the accounts and has not developed controls to
lock the accounts or monitor their use.
A new system designed to remove separated users automatically from an I&ED Delivery Center application was abandoned
when it erroneously removed active users. The I&ED Delivery Center has begun planning for a new automated system;
however, the manual system used in the interim failed to operate effectively when a user’s termination was backdated on
a separation report generated by Human Resources. In the EBR Delivery Center, the informal mechanism used to track
new and terminated users in certain systems was due to the speed at which a large number of users were added to implement
applications to expend Coronavirus Aid, Relief, and Economic Security (CARES) Act funding. The formal process used
to track new and terminated users in these systems was re-implemented in May 2021. Additionally, a designated backup
was not identified to process termination requests.
Effect: Segregation of duties weaknesses, inappropriate and unmonitored privileged access, as well as ineffective controls
over new and separated users, all contribute to the risk that system actions can occur that are not in accordance with
management’s intent. Applications serving the Departments of Revenue, Labor and Industry, Insurance, and
Transportation were impacted by these control weaknesses. Further, without properly functioning controls over
segregation of duties and privileged access, as well as controls over new and terminated users, the auditors are precluded
from reliance on computer controls in these agencies.
Recommendation: We recommend that OA-OIT management continue its efforts to resolve the general computer control
deficiencies noted above. Specific consideration should be given to:
• Creating controls and procedures that segregate the development of programs from promotion of code to the
production environment;
• Preventing developers from having access to the production environment and the operations schedule;
• Developing policies to govern the granting of privileged/administrative access;
• Monitoring and controlling the use of privileged accounts, as well as shared user IDs with shared passwords;
• Continuing efforts to develop an automated system to deactivate separated user accounts in the I&ED Delivery Center;
• Developing an alert system when employee/contractor user separations are backdated in Human Resource reports;
and
• Ensuring controls designed to remove users’ access from systems when employees or contractors no longer need
access or terminate employment are operating effectively.
As systems are being replaced at the Department of Labor and Industry and the Department of Insurance, we recommend
implementation of controls in the new systems that conform to the criteria listed above.
Agency Response: Office of Administration, Office for Information Technology (OA-OIT), agrees with this finding.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
48
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Department of Labor and Industry
Office of Administration – Office for Information Technology
Finding 2021 – 002:
Information Technology Control Weaknesses in the Unemployment Compensation and Pandemic Unemployment
Assistance Systems
Type of Finding: Significant Deficiency
Condition: During the fiscal year ended June 30, 2021, the Department of Labor and Industry (L&I) paid Pandemic
Unemployment Assistance (PUA) and regular Unemployment Compensation (UC) benefits using three systems: 1) the
outsourced PUA system; 2) the legacy UC mainframe system through June 8, 2021; and 3) the UC Benefits Modernization
System (UC Ben Mod) after June 8, 2021. We identified the following control weaknesses in these systems:
• Issuance of duplicate PUA payments of approximately $304.8 million in July 2020 without adequate controls over
the outsourced system.
• Inconsistent application of UC applicant identity verification software and data cross-match procedures without a
documented fraud risk assessment.
• Implementation of the UC Ben Mod system without the following:
o adherence to the Office of Administration, Office for Information Technology’s (OA-OIT) Enterprise Data
and Information Management Policy;
o a list of known issues provided to one individual responsible for the “go live” decision; and
o a signed agreement with OA-OIT for management and governance of the UC Ben Mod servers hosted at the
Enterprise Data Center (EDC).
• Creation of large numbers of system administrator accounts granted to vendor personnel in the UC Ben Mod system
without policies or procedures for granting the access and without documented monitoring of the administrators’
actions in the system.
Criteria: Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the
internal control framework outlined in the United States Government Accountability Office’s Standards for Internal
Control in the Federal Government (Green Book), published in September 2014:
• Green Book Principle 1 – Demonstrate Commitment to Integrity and Ethical Values, states in part:
o 1.04 The oversight body’s and management’s directives, attitudes, and behaviors reflect the integrity and
ethical values expected throughout the entity. The oversight body and management reinforce the commitment
to doing what is right, not just maintaining a minimum level of performance necessary to comply with
applicable laws and regulations, so that these priorities are understood by all stakeholders, such as
regulators, employees, and the general public.
• Green Book Principle 8 – Assess Fraud Risk, states in part:
o 8.02 Management considers the types of fraud that can occur within the entity to provide a basis for
identifying fraud risks. Types of fraud [include]… Misappropriation of assets - Theft of an entity’s assets.
This could include … fraudulent payments….
49
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Finding 2021 – 002: (continued)
o 8.04 and 8.05 Management considers fraud risk factors…Management uses the fraud risk factors to identify
fraud risks… Other information provided by internal and external parties can also be used to identify fraud
risks. This may include allegations of fraud or suspected fraud reported by the office of the inspector general
or internal auditors, personnel, or external parties that interact with the entity.
o 8.06 Management analyzes and responds to identified fraud risks so that they are effectively mitigated. Fraud
risks are analyzed through the same risk analysis process performed for all identified risks. Management
analyzes the identified fraud risks by estimating their significance, both individually and in the aggregate, to
assess their effect on achieving the defined objectives.
o 8.07 Management responds to fraud risks through the same risk response process performed for all analyzed
risks. Management designs an overall risk response and specific actions for responding to fraud risks. It
may be possible to reduce or eliminate certain fraud risks by making changes to the entity’s activities and
processes. …. Further, when fraud has been detected, the risk assessment process may need to be revised.
• Green Book Principle 11 – Design Activities for the Information System, states in part:
o 11.09 Management designs control activities over the information technology infrastructure to support the
completeness, accuracy, and validity of information processing by information technology. … Management
evaluates the objectives of the entity and related risks in designing control activities for the information
technology infrastructure.
o 11.12 Management designs control activities over access to protect an entity from inappropriate access and
unauthorized use of the system... By preventing unauthorized use of and changes to the system, data and
program integrity are protected from malicious intent (e.g., someone breaking into the technology to commit
fraud, vandalism, or terrorism) or error.
o 11.14 Management designs control activities to limit user access to information technology through
authorization control activities such as providing a unique user identification or token to authorized users.
These control activities may restrict authorized users to the applications or functions commensurate with their
assigned responsibilities, supporting an appropriate segregation of duties.
o 11.17 … Management … evaluates the unique risks that using a service organization presents for the
completeness, accuracy, and validity of information submitted to and received from the service organization
OA-OIT issued the following Information Technology Policies (ITPs) and Operational Document (OPD) to provide
governance and guidance to agencies during implementation of new systems and placement of servers in the Enterprise
Data Center:
• ITP-INF000 – Enterprise Data and Information Management Policy, provides direction for effectively managing
data and information life cycles including establishing data migration controls for data sets to be accessed from their
original sources, and efficiently moved from source to target destinations in an effective and secure manner.
• OPD-INF000A – Migration Audit Checklist Template, which agencies must use to facilitate data migration as
delineated in ITP-INF000.
• ITP-BUS007 – Enterprise Service Catalog, establishes policy that Agency and Delivery Centers under the Governor’s
jurisdiction are required to utilize all Enterprise Standards that are identified in the Enterprise Service Catalog if that
Enterprise Standard is needed to support agency/delivery center business needs.
50
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Finding 2021 – 002: (continued)
Cause: In response to the economic upheaval caused by the COVID-19 pandemic, L&I management was forced to
implement the PUA program under an extremely compressed timeline. They responded by contracting with the vendor
already tasked with building the UC Ben Mod system. The vendor implemented the PUA system on cloud infrastructure.
The duplicate PUA payments in July 2020 occurred when normal vendor processing was interrupted and the outsourced
system failed to mark 30,000 high-dollar payments as already sent to claimants. While L&I procedures required a manual
review of high-dollar claims, due to time constraints, the payments were processed without the required review. After the
duplicate payments were made, L&I management adjusted the recipients’ claim records to withhold a percentage of future
payments until the overpayments were recouped. After the event, additional controls were implemented to mark payments
as they were paid and verify future payments against those previously paid to prevent duplications.
After the PUA program was implemented, L&I management received information that cyber actors from inside and outside
the United States were mining personally identifiable information (PII) obtained from data breaches external to the
Department and using that PII to file fraudulent claims. L&I management implemented fraud measures including
contracting with an identity verification vendor to prevent fraudulent PUA claims filed after October 20, 2020. L&I
management did not, however, perform a formal fraud risk assessment prior to implementing the new procedures as
required by Federal standards on internal control. L&I management did not apply the new identity verification procedures
to all PUA claims filed prior to October 2020, although certain previously-flagged claims were subjected to review.
Further, L&I management did not apply the new identity verification procedures to regular UC claimants until July 2021.
Finally, while L&I management performed several cross-matches between regular UC claimants and other databases as a
fraud detection measure during the audit period, L&I management excluded PUA claims from certain cross-matches that
were routinely applied to regular UC claims.
When implementing the new UC Ben Mod system in June 2021 as a replacement for the legacy UC mainframe, L&I
management chose to follow the vendor’s data migration plan rather than the OA-OIT policy. While OA-OIT provided
guidance to L&I management during the system implementation, L&I management did not obtain a formal waiver from
the Enterprise Data and Information Management Policy as was required. When questioned about the lack of a list of
known issues provided to the individual who gave the approval to go-live with the new system, L&I management
responded that the go-live decision was not attributable to one individual but was a shared decision based on all available
information at the time. As for the large number of users with administrative access into the UC Ben Mod system, L&I
management relied heavily on the vendor during the initial months of the system implementation and has begun removing
administrative access into the system. L&I management has yet to develop policies for granting and monitoring vendor
access into the system and has not entered into a formal agreement with OA-OIT for administration of the servers at the
Enterprise Data Center.
Finally, during the course of our procedures, we identified additional causes of the duplicate payments that we have
specifically excluded from this finding because of the sensitive nature of this information. This additional information has
been included in a separate communication provided to management and the Commonwealth Audit Committee.
Effect: While L&I management took steps to recoup the duplicate payments from future PUA payments, L&I
management did not provide an estimate of the amount of the $304.8 million in duplicate payments that have not been
recovered. Similarly, there is no estimate of the amount of fraud that could have been prevented had identity verification
procedures and data cross-matches been applied uniformly to PUA and regular UC claims filed during the pandemic.
L&I management’s failure to follow the OA-OIT Enterprise Data and Information Management Policy resulted in the
lack of certain controls over data migration, such as comparison of before and after snapshots of financial balances, which
may have led to data migration errors that may impact the accuracy of payments in the new system. Also, certain
documentation required by the policy has not been developed and retained that would be helpful for the ongoing
administration of the system by L&I management and OA-OIT management. Without procedures for granting and
monitoring administrative access to the UC Ben Mod system, L&I cannot be assured that changes to data and programs
are properly authorized. Without these controls and a formal governance agreement over the system with OA-OIT,
management cannot be assured the system is functioning in accordance with management’s intent.
Recommendations: We recommend that L&I management perform the following:
51
COMMONWEALTH OF PENNSYLVANIA
Basic Financial Statement Findings - June 30, 2021
Finding 2021 – 002: (continued)
• Take steps to identify and recover any duplicate PUA payments that have not been recouped through withholding of
benefits;
• Continue to monitor the controls over the outsourced PUA system as long as the system continues to pay claims;
• Perform an additional after-action review of management’s response to the computer operations error that led to the
duplicate payments and evaluate the need for further corrective actions in the control environment to prevent overrides
of controls in the future;
• Establish written procedures for error handling during production processing in the UC Ben Mod system to ensure
computer operations errors do not result in duplicate payments;
• Refine the formal risk assessment process to document consideration of various types of fraud risk, including the risk
of fraudulent payments, so that formal responses and controls can be developed to reduce or eliminate fraud risk;
• Develop processes to revise the formal fraud risk assessment as needed when additional fraud is detected;
• Implement identity verification procedures during weekly certifications for regular UC claims filed prior to July 2021
and for any PUA claims backlogged in the benefit determination process;
• Fully complete OA-OIT’s Migration Audit Checklist Template to ensure key artifacts are created and retained to
ensure successful operation of the UC Ben Mod system; and
• Make a request to OA-OIT to consume Enterprise Standard services from the Enterprise Service Catalog so that a
written agreement can be made for OA-OIT to document the management and governance of the UC Ben Mod servers
hosted at the Enterprise Data Center (EDC).
We recommend that OA-OIT management perform the following:
• Issue guidance to make it clear that the OA-OIT Enterprise Data and Information Management Policy and Migration
Audit Checklist Template apply to all agencies who implement new systems and migrate data to the new systems.
When OA-OIT provides guidance to agencies during system implementation, OA-OIT should ensure the agencies
follow OA-OIT policy so that available resources from OA-OIT can be leveraged for large system implementations;
and
• Clarify the responsibility for the “go live” decision on any new system implementation and ensure that the person or
persons responsible for “go live” have a list of known issues presented in writing so that they have documented
awareness of the risks of implementation.
We recommend that L&I management and OA-OIT management perform the following:
• Implement a privileged user management system over the UC Ben Mod system. In the absence of an automated tool,
implement manual processes to monitor changes to the database, operating system, system files, and application.
Agency Response: Office of Administration, Office for Information Technology (OA-OIT on behalf of Labor & Industry)
agrees with this finding.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
52
COMMONWEALTH OF PENNSYLVANIA
Index to Federal Award Findings and Questioned Costs - June 30, 2021
Impacted
Finding Compliance Questioned State Finding CAP
Number ALN Assistance Listing Program Name Finding Title Conclusion Costs Agency Page Page
2021-003 84.425 COVID 19 – Education Stabilization A Significant Deficiency and Noncompliance NC ND PDE 57 103
* Fund Exist at the Department of Education Related to
Submission of Elementary and Secondary
School Emergency Relief Fund Annual
Reporting
2021-004 15.252 Abandoned Mine Land Reclamation A Material Weakness and Material MNC ND DEP 59 105
** Noncompliance Exist at the Department of
Environmental Protection Related to
Subrecipient Monitoring (A Similar Condition
Was Noted in Prior Year Finding 2020-004)
2021-005 10.551 Supplemental Nutrition Assistance A Material Weakness and Material MNC ND DHS 61 106
** 10.561 Program (SNAP) Cluster (including Noncompliance Exist at the Department of
COVID-19) Human Services Related to Electronic Benefits
93.558 Temporary Assistance for Needy Transfer Card Security (A Similar Condition
Families Was Noted in Prior Year Finding 2020-005)
53
2021-006 21.023 COVID 19 – Emergency Rental A Significant Deficiency and Noncompliance NC ND DHS 64 107
* Assistance Program Exist at the Department of Human Services
Related to Submission of Emergency Rental
Assistance Monthly and Quarterly Reporting
2021-007 93.558 Temporary Assistance for Needy Department of Human Services Did Not Validate NC ND DHS 66 107
* Families Financial Information as Part of Its On-Site
Monitoring of Temporary Assistance for Needy
Families Subrecipients (A Similar Condition
Was Noted in Prior Year Finding 2020-006)
* - Significant Deficiency MNC - Material Noncompliance
** - Material Weakness NC - Noncompliance
ND - The amount of questioned costs cannot be determined N/A - Not Applicable
CAP - Corrective Action Plan
COMMONWEALTH OF PENNSYLVANIA
Index to Federal Award Findings and Questioned Costs - June 30, 2021
Impacted
Finding Compliance Questioned State Finding CAP
Number ALN Assistance Listing Program Name Finding Title Conclusion Costs Agency Page Page
2021-008 93.558 Temporary Assistance for Needy Material Weaknesses and Material MNC ND DHS 68 108
** Families Noncompliance Exist in Monitoring of Foster
93.658 Foster Care – Title IV-E (including Care, Adoption Assistance, and Temporary
COVID-19) Assistance for Needy Families Subrecipients by
93.659 Adoption Assistance (including COVID- the Department of Human Services’ Office of
19) Children, Youth, and Families (A Similar
Condition Was Noted in Prior Year Finding
2020-007)
2021-009 93.775 Medicaid Cluster (including COVID-19) A Significant Deficiency and Noncompliance NC None DHS 71 109
* 93.777 Exist at the Department of Human Services
93.778 Related to the Medicaid National Correct Coding
Initiative (A Similar Condition Was Noted in
Prior Year Finding 2020-010)
2021-010 93.775 Medicaid Cluster (including COVID-19) A Significant Deficiency and Noncompliance NC None DHS 73 109
* 93.777 Exist at the Department of Human Services
54 93.778 Related to the Managed Care Financial Audit
2021-011 17.225 Unemployment Insurance (including A Significant Deficiency and Noncompliance NC ND L&I 75 110
* COVID-19) Exist Related to Eligibility of Unemployment
97.050 COVID-19 – Presidential Declared Recipients
Disaster Assistance to Individuals and
Households – Other Needs
2021-012 17.225 Unemployment Insurance (including A Significant Deficiency Exists at the N/A None L&I 78 111
* COVID-19) Department of Labor and Industry Related to the
Reemployment Services and Eligibility
Assessments Program
* - Significant Deficiency MNC - Material Noncompliance
** - Material Weakness NC - Noncompliance
ND - The amount of questioned costs cannot be determined N/A - Not Applicable
CAP - Corrective Action Plan
COMMONWEALTH OF PENNSYLVANIA
Index to Federal Award Findings and Questioned Costs - June 30, 2021
Impacted
Finding Compliance Questioned State Finding CAP
Number ALN Assistance Listing Program Name Finding Title Conclusion Costs Agency Page Page
2021-013 16.575 Crime Victim Assistance Information Technology General Controls Need N/A None OA-OIT 80 111
* Improvement (A Similar Condition Was Noted
in Prior Year Finding 2020-015)
2021-014 Various Various ALNs – See Finding State Agencies Did Not Identify the Federal NC ND Various 82 111
* Award Information and Applicable
Requirements at the Time of the Subaward and
Did Not Evaluate Each Subrecipient’s Risk of
Noncompliance as Required by the Uniform
Grant Guidance (A Similar Condition Was
Noted in Prior Year Finding 2020-020)
2021-015 Various Various ALNs – See Finding A Material Weakness and Material NC – ND Various 85 113
*- Medicaid Noncompliance Exist in the Commonwealth’s Medicaid
** - All Other Subrecipient Audit Resolution Process (A MNC –
Programs Similar Condition Was Noted in Prior Year All Other
Finding 2020-021) Programs
55
* - Significant Deficiency MNC - Material Noncompliance
** - Material Weakness NC - Noncompliance
ND - The amount of questioned costs cannot be determined N/A - Not Applicable
CAP - Corrective Action Plan
COMMONWEALTH OF PENNSYLVANIA
Matrix of Findings by Federal Agency - June 30, 2021
Federal Agency USDA DOI DOJ DOL DOT TRE ED HHS USDHS
Prefix 10 15 16 17 20 21 84 93 97
Finding
2021-003 X
2021-004 X
2021-005 X X
2021-006 X
2021-007 X
2021-008 X
2021-009 X
2021-010 X
2021-011 X X
2021-012 X
2021-013 X
2021-014 X X
2021-015 X X X X
56
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Department of Education
Finding 2021 – 003:
ALN 84.425 – COVID 19 – Education Stabilization Fund
A Significant Deficiency and Noncompliance Exist at the Department of Education Related to Submission of
Elementary and Secondary School Emergency Relief Fund Annual Reporting
Federal Grant Number(s) and Year(s): S425D2 (3/13/2020 – 9/30/2022)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Reporting
Condition: As the State Educational Agency (SEA), the Pennsylvania Department of Education (PDE) is required to
submit an annual data report to the United States Department of Education (USDE). This report supports the annual
collection of data pertaining to the uses of funds under the Elementary and Secondary School Emergency Relief Fund
(ESSER). USDE awards ESSER grants to SEAs for the purpose of providing local educational agencies (LEAs), including
charter schools that are LEAs, with emergency relief funds to address the impact of the Novel Coronavirus Disease 2019
(COVID-19) on elementary and secondary schools across the nation. LEAs must provide equitable services to students
and teachers in non-public schools as required under the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act).
During the fiscal year ended June 30, 2021, PDE was required to submit an annual report for the period March 13, 2020
to September 30, 2020 by February 1, 2021. As the direct recipient of ESSER funds, PDE is responsible for ensuring the
timeliness and accuracy of the annual report submission. PDE worked with USDE’s contractor and obtained summary
information from the LEAs to compile and submit the report. The report contained all required data elements. However,
PDE did not implement policies and procedures to ensure the accuracy of the information reported by the LEAs. Therefore,
PDE was unable to provide supporting documentation for amounts reported by LEAs on the annual report or to
demonstrate that they had reviewed and verified the accuracy of this information.
Criteria: The July 2021 OMB Compliance Supplement, Part 4, Section L.3.c, Reporting – Special Reporting – Annual
Reporting, states in part:
Direct recipients of ESSER I and ESSER II grants must submit an annual report [OMB No. 1810-0749] with data for the
following categories:
• Overall ESSER I and ESSER II Fund Grant for SEA;
• SEA Reserve (up to 10 percent of total allocation);
• Mandatory Subgrants to LEAs, Section 18003(c) of the CARES Act and Section 313(c) of the CRRSA Act…
• Student Participation and Engagement; and
• Full-Time Equivalent (FTE) Positions.
2 CFR Section 200.303, Internal controls, states:
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that
the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the
terms and conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework”, issued by the Committee of the Sponsoring Organizations
of the Treadway Commission (COSO).
57
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 003: (continued)
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: PDE did not implement policies and procedures to ensure the accuracy of information reported by LEAs which
was included on the Annual Report.
Effect: Without review and validation of the detail supporting the summary information reported by LEAs, the Annual
Report may have contained inaccurate information.
Recommendation: We recommend that PDE implement formal policies and procedures to verify the information reported
by LEAs to be included on the Annual Report. Reported amounts should be reviewed for accuracy before reports are
submitted to USDE to ensure that reports filed are complete and accurate.
Agency Response: PDE agrees with the finding as written.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
58
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Department of Environmental Protection
Finding 2021 – 004:
ALN 15.252 – Abandoned Mine Land Reclamation
A Material Weakness and Material Noncompliance Exist at the Department of Environmental Protection Related
to Subrecipient Monitoring (A Similar Condition Was Noted in Prior Year Finding 2020-004)
Federal Grant Number(s) and Year(s): S21AF10015 (4/01/2021 – 12/31/2021), S21AF10015 (1/01/2021 – 12/31/2023),
S20AF20092 (10/01/2020 – 09/30/2023), S20AF20006 (1/01/2020 – 12/31/2022), S19AF20006 (1/01/2019 – 12/31/2021),
S19AF20004 (12/01/2018 – 11/30/2021), S18AF20006 2018 (4/01/2018 – 12/31/2020), S18AF20004 (11/01/2017 –
10/31/2020), S16AF20042 (6/01/2016 – 5/31/2021)
Type of Finding: Material Weakness, Material Noncompliance
Compliance Requirement: Subrecipient Monitoring
Condition: The Department of Environmental Protection (DEP) administers the Abandoned Mine Land Reclamation
(AMLR) program funded by the United States Department of the Interior (DOI). During the fiscal year ended June 30,
2021, DEP expended $57,711,525 for the AMLR program, of which $8,783,233 was paid to 23 entities with whom DEP
executed subrecipient agreements to provide abandoned mine land reclamation repairs and services throughout
Pennsylvania. These subrecipient agreements included clauses requiring subrecipient Single Audits. Also, as a result of
the expenditures being recorded as subrecipient expenditures in the SAP accounting system, the expenditures were
reported as subrecipient expenditures to the federal government when they were automatically uploaded to the federal
USASpending system. Our audit testing disclosed that DEP did not conduct program monitoring of these subrecipient
expenditures during the fiscal year ended June 30, 2021.
Criteria: As part of administering the AMLR program, DEP must have policies, procedures, and controls in place to
ensure compliance with federal requirements within contract requirements and regulations.
2 CFR Section 200.332, Requirements for pass through entities, states in part:
All pass-through entities must:
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in
compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward
performance goals are achieved.
The standard contract agreement between DEP and the local grantee states, in part:
Audit/Compliance Review Requirements - The contractor must comply with all applicable federal and state grant
requirements including the Single Audit Act Amendments of 1996; 2 CFR Part 200 as amended; and any other applicable
law or regulation, and any amendment to such other applicable law or regulation that may be enacted or promulgated by
the federal government.
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
59
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 004: (continued)
Cause: DEP management indicated that the 23 entities were contractors for whom subrecipient monitoring requirements
were not applicable, and the related expenditures were erroneously recorded in the SAP accounting system and on the
Commonwealth’s SEFA as subrecipient expenditures. DEP management stated that their policies and procedures are not
significantly different between the entities recorded as subrecipients and those recorded as contractors. However, as noted
in the finding condition, our audit disclosed that DEP executed subrecipient agreements with the 23 entities, some of whom
had Single Audits conducted, with the AMLR expenditures reported on the Single Audit SEFAs as required for
subrecipients.
In December 2019, DEP’s Bureau of Abandoned Mine Reclamation management decided that DEP would not approve
any additional agreements until the issue is resolved at both the federal and state levels. However, DEP management
stated that the agreements that were already in place would continue as executed. DEP did charge expenditures against
the previously executed agreements but did not execute any new agreements during the current audit period.
Effect: Without the timely completion of AMLR program subrecipient monitoring, DEP cannot ensure compliance with
federal statutes, regulations, and the terms and conditions of the subaward contracts, confirm that local subgrantees are
performing satisfactory work, ensure the efficient use of program resources, and minimize the risk for fraud and abuse.
Completing monitoring activities is essential for DEP to determine whether the local agencies are complying with federal
regulations and spending grant funds appropriately.
If contractors are misrepresented as subrecipients in the agreements and SAP accounting system, expenditures may be
incorrectly reported and unnecessary Single Audit burden has been created at the subrecipient level.
Recommendation: We recommend that DEP management make a determination of whether recipients with existing
agreements are contractors or subrecipients, and if changes are necessary, amend the agreements and correct the accounting
system to record subrecipient and contractor expenditures accurately. DEP should seek formal federal DOI approval to
revise any existing agreements to contractor agreements. DEP should also follow this determination consistently with
future agreements and accounting treatment.
DEP should also develop written policies and procedures for subrecipient monitoring and implement them immediately to
ensure timely subrecipient compliance with federal regulations.
Agency Response: DEP agrees with the facts as presented in the finding.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
60
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Department of Human Services
Finding 2021 – 005:
ALN 10.551 and 10.561 – Supplemental Nutrition Assistance Program (SNAP) Cluster
(including COVID-19)
ALN 93.558 – Temporary Assistance for Needy Families
A Material Weakness and Material Noncompliance Exist at the Department of Human Services Related to
Electronic Benefits Transfer Card Security (A Similar Condition Was Noted in Prior Year Finding 2020-005)
Federal Grant Number(s) and Year(s): 211PA405S2514 (10/01/2020 – 9/30/2021), 201PA405S2514 (10/01/2019 –
9/30/2020), 2101PATANF (10/01/2020 – 9/30/2021), 2001PATANF (10/01/2019 – 9/30/2020)
Type of Finding: Material Weakness, Material Noncompliance
Compliance Requirement: Special Tests and Provisions related to EBT Card Security
Condition: During our audit of the Supplemental Nutrition Assistance Program (SNAP) administered by the Department
of Human Services (DHS), we evaluated the security over Electronic Benefits Transfer (EBT) cards, which includes both
the physical security of EBT cards during the issuance process at County Assistance Offices (CAO), as well as the handling
of EBT cards returned from the United States Postal Service as undeliverable, or those that have been lost or stolen. EBT
cards are the method by which SNAP benefit payments are made available to recipients. Also, EBT cards are the primary
method by which cash and special allowance benefit payments are made available to Temporary Assistance for Needy
Families (TANF) recipients. Total benefit expenditures for SNAP for the fiscal year ended June 30, 2021 totaled $4.9
billion. Total benefit expenditures for TANF for the fiscal year ended June 30, 2021 totaled $111.2 million.
Fourteen of the 87 CAO and district locations that issued EBT cards were selected for site testing in the current audit
period. During our review of the physical security over EBT cards, we noted exceptions at all CAO and district locations
selected for testing. These exceptions included the following:
1) Certain EBT personnel interviewed were unable to adequately answer all questions regarding EBT Security
policies and procedures (1 district office and 4 locations);
2) The ending inventory count of EBT cards at June 30, 2021 which was calculated using the weekly log including
July 1, 2020, the daily logs for the fiscal year ended June 30, 2021, and the EBT shipment logs for the fiscal year
ended June 30, 2021 did not reconcile to the inventory count on the weekly log including June 30, 2021 in the
EBT Card Tracking Database (2 district offices and 9 locations);
3) The EBT card issuance total on the Over the Counter (OTC) Card Reconciliation Report for the fiscal year ended
June 30, 2021 provided by the EBT Project Office did not reconcile to the daily logs for the fiscal year ended
June 30, 2021 in the EBT Card Tracking Database (2 district offices and 8 locations);
4) Failure to perform the following:
• Appoint an Alternate EBT Coordinator (1 district office and 1 location);
• Completion of the witness field on an EBT Shipment Verification Log (1 location);
• Completion of the witness field on a Ribbon Installation and Destruction Log (1 location);
• Create adequate written internal procedures for EBT Security for over the counter card mailings (6
locations);
• Designate a manager or supervisor to the Alternate EBT Coordinator role (1 location);
• Destroy paper EBT logs after four years (2 locations);
• Ensure that coverage for card pinning is available until 5:00 PM each business day (1 location);
• Locate shipping manifest to support the EBT Shipments Verification Log (1 location);
61
COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 005: (continued)
• Maintain adequate segregation of duties when completing the Weekly Log in the EBT Card Tracking
Database. A user edited the Weekly Log after it was approved (1 location);
• Maintain adequate security of EBT Cards (5 locations);
• Maintain adequate security of pinning device (4 locations);
• Maintain adequate security of ribbons, paper EBT logs, and Electronic Payment Processing and
Information Control (EPPIC) EBT Systems Application forms (2 locations);
• Proper completion of the date field on the EBT Shipment Verification Log (1 location);
• Proper completion of the requestor field on the EPPIC EBT Systems Application forms (2 district offices
and 9 locations);
• Retain paper EBT logs for four years (1 location);
• Retain EPPIC EBT Systems Application forms electronically (2 district offices and 1 location);
• Timely completion and submission of the EPPIC EBT Systems Application forms to the Office of
Income Maintenance EBT Security (1 location).
Forty of the 261 business days in the current audit period were selected to review the handling and destruction of returned
EBT cards. During our review of the handling and destruction of returned EBT cards, we noted exceptions on two of the
forty business days selected for testing. These exceptions included the following:
1) Failure to properly complete the EBT Headquarters Card Destruction Log. The "Cards Destroyed By" column
of the EBT Headquarters Card Destruction Log was signed and dated by the clerk two days prior to the daily log
date.
2) Failure to properly complete the EBT Headquarters Card Destruction Log. The "Approved by Project Office"
column of the EBT Headquarters Card Destruction Log was signed and dated by the supervisor one year earlier
than the daily log date.
Criteria: The 2021 OMB Compliance Supplement, Part 4 – Agency Program Requirements for the SNAP Cluster, Special
Tests and Provisions – N.3 EBT Card Security, states:
The state is required to maintain adequate security over, and documentation/records for, EBT cards to prevent their theft,
embezzlement, loss, damage, destruction, unauthorized transfer, negotiation, or use (7 CFR Section 274.8(b)(3)).
7 CFR Section 274.5, Record retention and forms security, states:
(c) Accountable Documents.
(1) EBT cards shall be considered accountable documents. The State agency shall provide the following minimum security
and control procedures for these documents:
i. Secure storage;
ii. Access limited to authorized personnel;
iii. Bulk inventory control records;
iv. Subsequent control records maintained through the point of issuance or use; and
v. Periodic review and validation of inventory controls and records by parties not otherwise involved in maintaining
control records.
45 CFR Section 75.302 applicable to TANF states:
(b) The financial management system of each non-Federal entity must provide for the following (see also §75.361, 75.362,
75.363, 75.364, and 75.365):
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Finding 2021 – 005: (continued)
(4) Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must
adequately safeguard all assets and assure that they are used solely for authorized purposes. See §75.303.
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: Established policies and procedures were not followed consistently across CAO and district locations, which
resulted in ineffective internal controls over EBT card security.
Effect: Without adequate security controls over EBT cards, there exists the possibility of misappropriation and/or abuse.
Recommendation: We recommend that DHS monitor EBT card security at CAO and district locations on a regular basis
to improve consistency in the execution of documented policies and procedures.
Agency Response: DHS agrees with this finding.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Human Services
Finding 2021 – 006:
ALN 21.023 – COVID 19 – Emergency Rental Assistance Program
A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related to Submission of
Emergency Rental Assistance Monthly and Quarterly Reporting
Federal Grant Number(s) and Year(s): G019649899 (3/13/2020 – 9/30/2021)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Reporting
Condition: Emergency Rental Assistance (ERA) 1 and ERA 2 state, local, and territorial recipients were required to
submit monthly and quarterly reports to the United States Department of the Treasury (US Treasury). The monthly reports
are brief two-question updates through which ERA recipients provide US Treasury with very high-level counts of the
numbers of households receiving assistance and the amounts of ERA funds distributed. The quarterly reports are in-depth
reports with data on an array of programmatic and financial information to provide transparency in the use and progress
of ERA funds. Monthly reports were required beginning with the month ending April 30, 2021, and quarterly reports were
required beginning with Quarter 1, covering the period of award date through March 30, 2021, and for Quarter 2, covering
the period of April 1 through June 30, 2021. As the direct recipient of ERA funds, the Department of Human Services
(DHS) is responsible for ensuring the timeliness and accuracy of the report submissions. DHS obtained report information
from subrecipients which was compiled and submitted by the due dates. The reports contained all required data elements,
however, DHS did not implement policies and procedures to ensure the accuracy of the information reported by the
counties. Therefore, DHS was unable to provide supporting documentation for amounts reported by county subrecipients
on the reports or to demonstrate that they had reviewed and verified the accuracy of this information.
Criteria: The Emergency Rental Assistance Program Reporting Guidance published by the US Treasury identifies several
steps in the reporting process:
• Recipients gather and maintain required information such as counts of applicants and participants; amounts paid
directly or indirectly to tenants, landlords, and utility/home energy providers; amounts paid to subrecipients and
contractors; and administrative expenses.
• Recipients will need to communicate with and gather required information from their subrecipients and
contractors, if applicable.
• After manually entering or uploading the report information, Recipients must review the information entered or
submitted to the online reporting forms for any errors and completeness. Following completion of the report in
Treasury’s portal, the Recipient’s designated Authorized Representative for Reporting must certify to the
authenticity and accuracy of the information provided and formally submit the report to Treasury.
2 CFR Section 200.303, Internal controls, states:
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that
the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the
terms and conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United
States or the “Internal Control Integrated Framework”, issued by the Committee of the Sponsoring Organizations
of the Treadway Commission (COSO).
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Finding 2021 – 006: (continued)
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: DHS did not implement policies and procedures to ensure the accuracy of information reported by counties which
was included on the reports.
Effect: Without review and validation of the detail supporting the summary information reported by counties, the reports
may have contained inaccurate information.
Recommendation: We recommend that DHS implement formal policies and procedures to verify the information
reported by counties to be included on the reports. Reported amounts should be reviewed for accuracy before reports are
submitted to US Treasury to ensure that reports filed are complete and accurate.
Agency Response: DHS agrees with this finding. DHS is working to validate information provided by counties for
federal submission. Given the urgent nature of this program, delay in receiving federal guidance, and state legislated
reporting, DHS has not yet validated county submittals for the payments made during the period from March 2021 through
June 30, 2021, as this new program was in response to a global health pandemic.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Human Services
Finding 2021 – 007:
ALN 93.558 – Temporary Assistance for Needy Families
Department of Human Services Did Not Validate Financial Information as Part of Its On-Site Monitoring of
Temporary Assistance for Needy Families Subrecipients (A Similar Condition Was Noted in Prior Year Finding
2020-006)
Federal Grant Number(s) and Year(s): 2101PATANF (10/01/2020 – 9/30/2021), 2001PATANF (10/01/2019 –
9/30/2020)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Subrecipient Monitoring
Condition: During the fiscal year ended June 30, 2021, the Department of Human Services (DHS) paid $69.2 million in
Temporary Assistance for Needy Families (TANF) funding to subrecipients within the New Directions, Cash Grants, and
Alternatives to Abortion appropriations (or 17.6 percent) out of total federal TANF expenditures of $391.4 million reported
on the June 30, 2021 Schedule of Expenditures of Federal Awards.
Our testing of DHS’s during-the-award monitoring of subrecipients for the fiscal year ended June 30, 2021 disclosed that
DHS performed on-site monitoring for all 15 subrecipients selected for testing. The on-site monitoring that was performed
consisted of reviews of program operations including design, data entry accuracy and timeliness, case management
analysis, and program payment performance goals. The on-site monitoring also included a review of a sample of TANF
recipient case files to ensure that the recipients’ TANF activities were documented and accurately entered in the
Commonwealth’s Workforce Development System. However, DHS’s monitoring procedures for the 15 subrecipients
were not adequate as they did not include a review or monitoring of subrecipient financial records, which would provide
an assessment of a subrecipient’s compliance with applicable federal regulations. Although DHS’s monitoring procedures
include reviewing subrecipient completed questionnaires for selected subrecipients that had questions related to financial
matters, DHS’s monitoring personnel did not review subrecipient financial records. For example, DHS did not perform
procedures to ensure subrecipient invoices agreed to the books and records of the subrecipient and that the records were
adequate to support the allowability of costs paid by DHS during the award period. In addition, DHS’s monitoring
procedures did not include an evaluation of the operating effectiveness of DHS subrecipients’ procedures to monitor Single
Audits and any related findings.
In addition to the 15 subrecipients noted above, we followed up on one subrecipient identified in the prior year finding as
not being on-site monitored by DHS when the risk assessment warranted on-site monitoring. Our follow-up on DHS’s
monitoring of this subrecipient during the current audit period disclosed that DHS personnel began to perform on-site
monitoring on this subrecipient. However, the on-site monitoring was not completed at the time we completed our on-site
monitoring testing. Since the on-site monitoring was not completed, internal control weaknesses, noncompliance, and
questioned costs may have existed and remained undetected during the current audit period. This subrecipient received
approximately $815,000 of TANF funds during the fiscal year ended June 30, 2021.
Criteria: 45 CFR Section 75.352, Requirements for pass-through entities, states:
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in
compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward
performance goals are achieved. Pass-through entity monitoring of the subrecipient must include:
(1) Reviewing financial and performance reports required by the pass-through entity.
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Finding 2021 – 007: (continued)
(2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining
to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site
reviews, and other means.
(3) Issuing a management decision for audit findings pertaining to the Federal award provided to the subrecipient...
2 CFR Section 200.332, Requirements for Pass-through Entities, states in part:
All pass-through entities must:
(e) Depending upon the pass-through entity's assessment of risk posed by the subrecipient (as described in paragraph (b)
of this section), the following monitoring tools may be useful for the pass-through entity to ensure proper accountability
and compliance with program requirements and achievement of performance goals:
(1) Providing subrecipients with training and technical assistance on program-related matters; and
(2) Performing on-site reviews of the subrecipient's program operations;
(3) Arranging for agreed-upon-procedures engagements as described in §200.425 [Audit services].
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: DHS has not implemented adequate during-the-award monitoring procedures of subrecipients to include testing
of the financial records and the subrecipients’ monitoring of Single Audits sufficient to ensure compliance with federal
regulations. In addition, as indicated in DHS’s corrective action plan for the prior year finding, DHS planned to implement
new procedures to be used for the on-site monitoring performed during the current audit period. However, as indicated
above, the updated procedures were not implemented for the current audit period.
Regarding the aforementioned subrecipient for which on-site monitoring was not completed, DHS personnel stated that
they are working with the subrecipient to obtain the necessary documentation to complete the on-site monitoring.
Effect: TANF subrecipients could be operating in noncompliance with federal regulations without timely detection and
correction by DHS management.
Recommendation: DHS should strengthen its controls to ensure during-the-award monitoring of TANF subrecipients
includes procedures to ensure that subrecipients are in compliance with applicable federal regulations, including ensuring
that all required Single Audits were obtained by all DHS subrecipients.
Agency Response: DHS agrees with this finding.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Human Services
Finding 2021 – 008:
ALN 93.558 – Temporary Assistance for Needy Families
ALN 93.658 – Foster Care – Title IV-E (including COVID-19)
ALN 93.659 – Adoption Assistance (including COVID-19)
Material Weaknesses and Material Noncompliance Exist in Monitoring of Foster Care, Adoption Assistance, and
Temporary Assistance for Needy Families Subrecipients by the Department of Human Services’ Office of Children,
Youth, and Families (A Similar Condition Was Noted in Prior Year Finding 2020-007)
Federal Grant Number(s) and Year(s): 2101PATANF (10/01/2020 – 9/30/2021), 2001PATANF (10/01/2019 –
9/30/2020), 1901PATANF (10/01/2018 – 9/30/2019), 1801PATANF (10/01/2017 – 9/30/2018), 2101PAFOST
(10/01/2020 – 9/30/2021), 2001PAFOST (10/01/2019 – 9/30/2020), 2101PAADPT (10/01/2020 – 9/30/2021),
2001PAADPT (10/01/2019 – 9/30/2020)
Type of Finding: Material Weakness, Material Noncompliance
Compliance Requirement: Subrecipient Monitoring
Condition: The Department of Human Services’ (DHS) Office of Children, Youth, and Families (OCYF) performs two
types of during-the-award monitoring of its 67 subrecipient County Children and Youth Agencies (CCYAs). One group
within OCYF performs on-site inspections to support its reissuance of licenses for all 67 CCYAs to whom DHS subgrants
funds to perform Foster Care, Adoption Assistance services, and Temporary Assistance for Needy Families (TANF) Child
Welfare. These inspections primarily focus on health, safety, and performance issues, and each on-site inspection is
documented on an Annual Survey and Evaluation Summary. A license, or certificate of compliance, is issued for a period
of one year if the results of the on-site inspection determine the entity is in compliance with statutes, ordinances, and
regulations.
In addition, a separate group within DHS’s OCYF performs Title IV-E Quality Assurance Compliance Reviews which
primarily focus on eligibility and allowability. These two types of on-site monitoring visits are not performed at the same
time. To test DHS’s licensing/inspections and Quality Assurance Compliance Reviews in the current year, we selected 13
of the 67 CCYAs receiving Foster Care, Adoption Assistance, and TANF funds.
Our current year testing of the on-site licensing inspections disclosed the following exceptions:
• On-site inspections of two of the 13 CCYAs tested were not completed within 12 months of the completion of
the prior on-site inspection. One of the current year inspections was completed four months late and one of the
current year inspections was completed 5 months late.
• On-site inspections of three of the 13 CCYAs tested were either not reviewed and approved timely, or not
reviewed and approved at all by a supervisor and a regional director. The inspections were approved between 1
and 207 days after the expiration of the prior license.
Also, as part of our testing of monitoring, we noted that DHS did not have adequate procedures in place to determine if
CCYAs were monitoring their subrecipients. Specifically, DHS did not perform procedures to determine if CCYAs were
monitoring Single Audits of subrecipients and evaluating the follow-up of any findings, or that CCYAs were only paying
for allowable services.
Foster Care program payments made by DHS to its 67 CCYA subrecipients during the fiscal year ended June 30, 2021
were $204.5 million, or 89.8 percent of total Foster Care expenditures of $227.8 million reported on the June 30, 2021
Schedule of Expenditures of Federal Awards (SEFA). Adoption Assistance program payments made by DHS to its
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Finding 2021 – 008: (continued)
67 CCYA subrecipients during the fiscal year ended June 30, 2021 were $118.6 million, or 75.9 percent of total Adoption
Assistance expenditures of $156.3 million reported on the June 30, 2021 SEFA. TANF Child Welfare program payments
made by DHS to its 67 CCYA subrecipients during the fiscal year ended June 30, 2021 were $48.6 million, or 12.4 percent
of total TANF expenditures of $391.4 million reported on the June 30, 2021 SEFA.
Criteria: 45 CFR Section 75.352, applicable to TANF, Foster Care, and Adoption Assistance states:
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in
compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward
performance goals are achieved. Pass-through entity monitoring of the subrecipient must include:
(1) Reviewing financial and performance reports required by the pass-through entity.
(2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining
to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site
reviews, and other means.
(3) Issuing a management decision for audit findings pertaining to the Federal award provided to the subrecipient…
Pennsylvania Code Title 55, Chapter 20, Licensure or Approval of Facilities and Agencies, Section 20.51 states:
A certificate of compliance will be issued to the legal entity by the Department if, after an inspection by an authorized
agent of the Department, it is determined that requirements for a certificate of compliance are met.
In addition, Pennsylvania Code Title 55, Chapter 20, Section 20.52 states:
If, during an inspection, authorized agents of the Department observe items of noncompliance with licensure or approval
regulations, the legal entity shall submit an acceptable written plan to correct each noncompliance item and shall establish
an acceptable period of time to correct these items.
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: DHS personnel indicated that the two on-site inspections that were not completed within 12 months of the prior
inspection and the three inspections that were not timely reviewed and approved by a supervisor or a regional director
were due to the COVID-19 pandemic, which caused a delay in scheduling the on-site inspections, as well as the subsequent
review and approvals.
DHS believes that its current monitoring procedures to determine subrecipient eligibility, monitor programmatic
operations, review subrecipient audits, and review subrecipient agreed-upon-procedure reports are sufficient to effectively
monitor its subrecipients or contractors.
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Finding 2021 – 008: (continued)
Effect: DHS OCYF’s failure to perform timely on-site inspections and the subsequent reviews and approvals of the
inspection reports before the expiration of the prior license allowed the CCYAs to operate without a proper license for an
extended period of time. Also, since DHS did not determine if CCYAs were monitoring their subrecipients, CCYAs could
be operating in noncompliance with federal regulations without timely detection and correction by DHS management.
Recommendation: DHS’s OCYF should strengthen its controls to ensure monitoring and inspections of Foster Care,
Adoption Assistance, and TANF subrecipients are performed and reviewed by management on a timely basis and include
procedures to ensure CCYAs are monitoring their subrecipients or contractors.
Agency Response: DHS agrees with this finding.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Human Services
Finding 2021 – 009:
ALN 93.775, 93.777, and 93.778 – Medicaid Cluster (including COVID-19)
A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related to the Medicaid
National Correct Coding Initiative (A Similar Condition Was Noted in Prior Year Finding 2020-010)
Federal Grant Number(s) and Year(s): 2105PA5MAP (10/01/2020 – 9/30/2021), 2105PA5ADM (10/01/2020 –
9/30/2021), 2005PA5MAP (10/01/2019 – 9/30/2020), 2005PA5ADM (10/01/2019 – 9/30/2020)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Special Tests and Provisions related to the Medicaid National Correct Coding Initiative
(NCCI)
Condition: The Pennsylvania Department of Human Services (DHS) is required by the United States Department of
Health and Human Services (HHS), Centers for Medicare and Medicaid Services (CMS), to implement six required
Medicaid National Correct Coding Initiative (NCCI) methodologies. These methodologies include procedure-to-
procedure and medically unlikely edits of Medicaid fee-for-service claims submitted for processing through DHS’s
PROMISe system to ensure that only proper payments of Medicaid procedures are reimbursed. As part of this process,
DHS is required to download quarterly NCCI edit tables from CMS which are subsequently uploaded into PROMISe by
DHS’s PROMISe vendor.
During the fiscal year ended June 30, 2021, DHS did not ensure that its contract with the PROMISe vendor included the
NCCI Confidentiality Agreement required by the HHS/CMS Medicaid NCCI Technical Guidance Manual.
Criteria: Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the
internal control framework outlined in the United States Government Accountability Office’s Standards for Internal
Control in the Federal Government (Green Book), published in September 2014. The Green Book states in part:
Management should identify, analyze, and respond to significant changes that could impact the internal control system.
The HHS/CMS Medicaid NCCI Technical Guidance Manual, Section 7.1.2, Sharing of State Medicaid NCCI Edit Files by
States with Other Entities, states in part:
A state Medicaid agency may share these quarterly state Medicaid NCCI edit files which are posted on the secure RISSNET
[Regional Information Sharing System Network] portal with the contracted fiscal agent that processes its fee-for-service
claims or with any of its contracted Medicaid managed-care entities that is using the Medicaid NCCI methodologies in its
processing of claims or encounter data, if appropriate confidentiality agreements are in place.
The HHS/CMS Medicaid NCCI Technical Guidance Manual, Section 7.1.3, Confidentiality Agreements Requirements for
Contracted Parties, states:
At a minimum, the following elements must be included in the confidentiality agreements for any contracted party using
the Medicaid NCCI files posted on the secure RISSNET portal:
Disclosure shall be limited to only those responsible for the implementation of the quarterly state Medicaid NCCI edit
files.
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Finding 2021 – 009: (continued)
After the start of the new calendar quarter, a contracted party may disclose only non-confidential information contained
in the Medicaid NCCI edit files that is also available to the general public found on the Medicaid NCCI webpage.
The contracted party agrees to use any non-public information from the quarterly state Medicaid NCCI edit files only for
any business purposes directly related to the implementation of the Medicaid NCCI methodologies in the particular state.
New, revised, or deleted Medicaid NCCI edits shall not be published or otherwise shared with individuals, medical
societies, or any other entities unless it is a contracted party prior to the posting of the Medicaid NCCI edits on the
Medicaid NCCI webpage.
Implementation of new, revised, or deleted Medicaid NCCI edits shall not occur prior to the first day of the calendar
quarter.
Only a state Medicaid agency has the discretion to release additional information for selected individual edits or limited
ranges of edits from the files posted on the secure RISSNET portal.
State Medicaid agencies must impose penalties, up to and including loss of contract, for violations of any confidentiality
agreement relating to use of the secure RISSNET portal edit files.
Cause: DHS personnel stated that the confidentiality agreement required by the HHS/CMS Medicaid NCCI Technical
Guidance Manual was not included in the PROMISe contract, since the contract was finalized prior to the HHS issuance
of the NCCI requirements.
Effect: Since DHS did not ensure the required NCCI Confidentiality Agreement was included in its contract with the
PROMISe vendor, DHS was not in compliance with federal regulations.
Recommendation: DHS should ensure the required NCCI Confidentiality Agreement is included in an amendment to its
contract with the PROMISe vendor.
Agency Response: DHS agrees with this finding.
Questioned Costs: None
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Human Services
Finding 2021 – 010:
ALN 93.775, 93.777, and 93.778 – Medicaid Cluster (including COVID-19)
A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related to the Managed
Care Financial Audit
Federal Grant Number(s) and Year(s): 2105PA5MAP (10/01/2020 – 9/30/2021), 2105PA5ADM (10/01/2020 –
9/30/2021), 2005PA5MAP (10/01/2019 – 9/30/2020), 2005PA5ADM (10/01/2019 – 9/30/2020)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Special Tests and Provisions related to the Managed Care Financial Audit
Condition: The Pennsylvania Department of Human Services (DHS) administers the Medicaid Cluster for which
expenditures reported on the fiscal year ended June 30, 2021 Schedule of Expenditures of Federal Awards totaled
$23,828,691,242. DHS is required by the United States Department of Health and Human Services (HHS), Centers for
Medicare and Medicaid Services (CMS), to obtain two types of audits for Medicaid Cluster managed care: annual audited
financial reports and periodic audits. The periodic audits concern the accuracy, truthfulness, and completeness of the
encounter and financial data submitted by, or on behalf of, each managed care organization (MCO), and the periodic audit
results are required to be posted on DHS’s website.
During the fiscal year ended June 30, 2021, periodic audits were required for MCOs used for behavioral health, long-term
care, and physical health. Periodic audit reports for behavioral health were obtained, and the results were properly posted
to DHS’s website. DHS’s Office of Long-Term Living (OLTL) obtained all three required periodic audit reports for the
long-term care MCOs, but OLTL did not ensure the periodic audit reports’ results were posted on DHS’s website as
required by HHS. DHS’s Office of Medical Assistance Programs (OMAP) did not obtain one required periodic audit
report for the physical health MCOs, so the periodic audit’s results were not available to be posted on DHS’s website as
required by HHS.
Criteria: 42 CFR Section 438.602, State responsibilities, states:
(e) Periodic audits. The State must periodically, but no less frequently than once every 3 years, conduct, or contract for
the conduct of, an independent audit of the accuracy, truthfulness, and completeness of the encounter and financial data
submitted by, or on behalf of, each MCO, PIHP [Prepaid Inpatient Health Plan], or PAHP [Prepaid Ambulatory Health
Plan].
(g) Transparency. The State must post on its website, as required in §438.10(c)(3), the following documents and reports:
(4) The results of any audits under paragraph (e) of this section.
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should identify, analyze, and respond to significant changes that could impact the internal control system.
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Finding 2021 – 010: (continued)
Cause: DHS’s OLTL personnel stated that the periodic audit reports’ results were not posted to DHS’s website due to an
oversight. DHS’s OMAP personnel represented the periodic audit was in process but the audit report was not complete,
so there were no results available to post to DHS’s website.
Effect: Since DHS did not ensure all periodic audit reports were completed, and the periodic audit report results were not
all posted to DHS’s website, DHS was not in compliance with federal regulations.
Recommendation: DHS’s OMAP should implement procedures to timely obtain the required periodic audit reports.
OLTL and OMAP should implement procedures to post the periodic audit reports’ results to the DHS website.
Agency Response: DHS agrees with this finding.
Questioned Costs: None
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Labor and Industry
Finding 2021 – 011:
ALN 17.225 – Unemployment Insurance (including COVID-19)
ALN 97.050 – COVID-19 – Presidential Declared Disaster Assistance to Individuals and
Households – Other Needs
A Significant Deficiency and Noncompliance Exist Related to Eligibility of Unemployment Recipients
Federal Grant Number(s) and Year(s): C10164 (7/1/2020 – 6/30/2021), C29020 (7/1/2020 – 6/30/2021), C29120
(7/1/2020 – 6/30/2021), C29420 (7/1/2020 – 6/30/2021), C28420 (7/1/2020 – 6/30/2021)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Eligibility
Condition: During the fiscal year ended June 30, 2021, several presidential acts including the Coronavirus Aid, Relief,
and Economic Securities Act of 2020, the Continued Assistance for Unemployed Workers Act of 2020, and the American
Rescue Plan Act of 2021 were in effect or signed into law authorizing additional funding under both the Unemployment
Insurance program and the Presidential Declared Disaster Assistance to Individuals and Households – Other Needs
program. This federal funding administered by the Pennsylvania Department of Labor and Industry (L&I) was significant
and expanded program eligibility to include individuals affected by changes in employment status resulting from the
COVID-19 pandemic. In accordance with the federal guidance in the Unemployment Insurance Program Letter (UIPL)
16-20, dated April 5, 2020, L&I management implemented a self-attestation strategy through January 2021 to expedite the
disbursement of funds to the individuals with the greatest need. Federal guidance on self-attestation did not change until
the issuance of UIPL 16-20, Change 4, dated January 8, 2021, when L&I management implemented additional changes in
procedures. UIPL 16-20, Change 4, introduced the requirement to obtain documentation of employment/self-employment
or the planned commencement of employment/self-employment.
During the period under self-attestation, several states, including Pennsylvania, experienced significant fraudulent claims.
As a result, the United States Department of Labor (USDOL) and L&I, as well as other federal and state authorities, have
partnered to investigate the extent and methods used to perpetuate the fraud and to identify program improvements. L&I
management implemented ID.me in October 2020 to strengthen verification procedures to authenticate claimants in the
Pandemic Unemployment Assistance (PUA) system. Through January 2021, eligibility determinations made by L&I’s
management followed the existing policies and procedures for this COVID-19 pandemic funding. However, in order to
meet federal and state expectations of timely disbursement, the policies and procedures by design did not include adequate
verification procedures for eligibility throughout the fiscal year under audit. The procedures and policies accommodations
contributed to vulnerabilities within the unemployment programs.
We also performed certain tests of information technology (IT) general controls as part of our audit of the Annual
Comprehensive Financial Report, which included tests of applications that supported activities which were material to the
Commonwealth’s financial statements. Basic Financial Statement Finding 2021 – 002, which was reported for the
Commonwealth for the fiscal year ended June 30, 2021, disclosed internal control deficiencies in applications supporting
the unemployment major programs.
Criteria: 2 CFR Section 200.303, Internal controls, states:
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 011: (continued)
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control
Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
29 CFR 97.20(b), Standards for financial management systems, states in part:
(3) Internal Control. Effective control and accountability must be maintained for all grant and subgrant cash, real and
personal property, and other assets. Grantees and subgrantees must adequately safeguard all such property and must
assure that it is used solely for authorized purposes.
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should consider the potential for fraud when identifying, analyzing, and responding to risks.
Management should identify, analyze, and respond to significant changes that could impact the internal control system.
The July 2021 OMB Compliance Supplement, Part 4, states:
State Workforce Agencies (SWA) responsibilities include: (1) establishing specific, detailed policies and operating
procedures which comply with the requirements of federal laws and regulations; (2) determining the state UI tax structure;
(3) collecting state UI contributions from employers (commonly called “unemployment taxes”); (4) determining claimant
eligibility and disqualification provisions; (5) making payment of UI benefits to claimants; (6) managing the program’s
revenue and benefit administrative functions; (7) administering the programs in accordance with established policies and
procedures; and (8) enacting state UC law that conforms with federal UC law and that state law and operations
substantially comply with federal law.
Cause: Pennsylvania experienced unprecedented claims volume with increased funding and additional program
requirements with a priority for efficient distribution from both the USDOL and Commonwealth officials. Commonwealth
management made decisions to relax verification procedures to meet demand and program expectations. During the fiscal
year several verification procedures including ID.me and data cross checks were implemented to assist in determining the
extent of fraudulent activity, and to detect and prevent the filing of further fraudulent claims.
Effect: The unemployment programs became more vulnerable to fraudulent claims due to the relaxing of verification
procedures.
Recommendation: We recommend that L&I management implement additional internal controls to efficiently verify
program eligibility while providing timely payment to program beneficiaries.
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 011: (continued)
Agency Response: The Department acknowledges the issuance of this finding. Pennsylvania is tasked with following
federal guidelines in the processing of all types of unemployment insurance.
Questioned Costs: Undetermined and under investigation by federal and state authorities.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Department of Labor and Industry
Finding 2021 – 012:
ALN 17.225 – Unemployment Insurance (including COVID-19)
A Significant Deficiency Exists at the Department of Labor and Industry Related to the Reemployment Services
and Eligibility Assessments Program
Federal Grant Number(s) and Year(s): C10164 (7/1/2020 – 6/30/2021), C29020 (7/1/2020 – 6/30/2021), C29120
(7/1/2020 – 6/30/2021), C29420 (7/1/2020 – 6/30/2021)
Type of Finding: Significant Deficiency
Compliance Requirement: Special Tests and Provisions related to Unemployment Insurance (UI) Reemployment
Programs: Worker Profiling and Reemployment Services (WPRS) and Reemployment Services and Eligibility
Assessments (RESEA)
Condition: During the fiscal year ended June 30, 2021, the Department of Labor and Industry (L&I) was required to
administer reemployment services for the Unemployment Insurance (UI) program. The Commonwealth of Pennsylvania
elected to operate the Reemployment Services and Eligibility Assessments (RESEA) program to satisfy the Worker
Profiling and Reemployment Services (WPRS) federal mandate which was permitted by federal requirements.
The RESEA program enables claimants who are most likely to exhaust their benefits to access services that assist them to
return to work or provide assistance in areas such as job search or placement, job markets, and testing. Claimant
participants work with a case administrator (administrator) throughout the program, and the administrators are supervised
by a case manager. L&I’s program procedures are outlined in the Labor and Industry RESEA Manual which details
claimant selection, eligibility, and the intervention process performed by the administrator to assist participating claimants.
The Commonwealth of Pennsylvania’s RESEA program was suspended for the first half of the 2021 fiscal year due to the
COVID-19 pandemic and became operational again in January 2021. L&I management indicated that case managers can
use reporting tools to monitor that cases are proceeding and being completed as required. Additionally, administrators can
use a comprehensive checklist from the RESEA Manual to ensure that all elements of the program are being satisfied for
each case. In order to test the RESEA requirements for the period of January 2021 until the fiscal year end of June 30,
2021, a sample of 40 out of 4,087 claimant cases that completed the program during that time period was selected for
testing. No noncompliance was identified. However, we were unable to test the operating effectiveness of certain internal
control procedures at the case level, since supporting documentation for reporting tools and checklists was not maintained
for 31 of the 40 cases tested.
Criteria: 2 CFR Section 200.303, Internal controls, states:
The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the
non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal
Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control
Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
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Finding 2021 – 012: (continued)
Management should design control activities to achieve objectives and respond to risks.
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: According to L&I management, the reporting tools and checklist were optional and could be used by
administrators and case managers at their discretion. As a result, these control measures were not being applied and/or
documented consistently from case to case.
Effect: The lack of adequate internal controls over compliance in the RESEA program could result in improper
identification of claimants and insufficient services resulting in federal noncompliance. Although noncompliance was not
identified by our audit procedures, fully operational controls would enable case administrators and managers to ensure
compliance with program requirements and to timely prevent and detect instances of noncompliance.
Recommendation: We recommend that L&I management require the use of the checklist and/or reporting tools to
strengthen internal controls and to ensure verification of all elements of the RESEA program are occurring, accurate, and
complete. Also, L&I management should ensure that proper documentation of the use of these tools is maintained.
Agency Response: In the recent Single Audit conducted on the RESEA program for the fiscal year ended June 30, 2021,
it was determined that the program was lacking internal controls. It was recommended through the audit that the staff
checklist for the RESEA program provided in the RESEA Policy and Procedures Desk Guide be a mandatory requirement.
The L&I management team agrees that this checklist become mandatory. The updated RESEA staff checklist will be
completed for each RESEA participant. The supervisor will review each RESEA participant’s file to ensure all portions
of the program have been completed, and both the staff member and the supervisor will sign off, acknowledging their
review.
The RESEA Checklist has been sent to all Pennsylvania CareerLink Program Supervisors and Career Advisors/Trainees
to notify them of this new mandatory requirement and the requirement to retain the checklist in the participant’s file.
In addition, the RESEA Policy and Procedures Desk Guide will be updated to reflect this mandatory new requirement for
staff.
Questioned Costs: None
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Federal Award Findings and Questioned Costs - June 30, 2021
Office of Administration – Office for Information Technology
Finding 2021 – 013:
ALN 16.575 – Crime Victim Assistance
Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior Year
Finding 2020-015)
Federal Grant Number(s) and Year(s): 2020-V2-GX-0063 (10/01/2019 – 9/30/2023), 2019-V2-GX-0026 (10/01/2018
– 9/30/2022), 2018-V2-GX-0068 (10/01/2017 – 9/30/2021), 2017-VA-GX-0069 (10/01/2016 – 9/30/2020)
Type of Finding: Significant Deficiency
Compliance Requirement: Other
Condition: As part of testing internal controls over major programs, we performed certain tests of information technology
(IT) general controls, including procedures to determine the status of prior year Single Audit Finding 2020 – 015. Our
procedures disclosed the following control deficiencies in an application supported by the Public Safety Delivery Center
that impacted the Crime Victim Assistance program:
1. As noted in the prior year, we found a lack of segregation of duties between application development and
promotion of code to production.
2. Five administrator accounts on servers managed by the Enterprise Data Center (EDC) were not removed timely
after the users separated employment. These five accounts had full administrative access rights to the major
program’s application and database servers.
A detailed schedule of issues has been provided to the Office of Administration, Office for Information Technology (OA-
OIT), for corrective action.
Criteria: Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the
internal control framework outlined in the United States Government Accountability Office’s Standards for Internal
Control in the Federal Government (Green Book), published in September 2014.
• Green Book Principle 11 – Design Activities for the Information System, states in part:
o 11.04 Management designs the entity’s information system and the use of information technology… Additionally,
information technology may enhance internal control over security and confidentiality of information by
appropriately restricting access.
o 11.12 Management designs control activities over access to protect an entity from inappropriate access and
unauthorized use of the system. These control activities support appropriate segregation of duties. By preventing
unauthorized use of and changes to the system, data and program integrity are protected from malicious intent
(e.g., someone breaking into the technology to commit fraud, vandalism, or terrorism) or error.
o 11.14 Management designs control activities to limit user access to information technology through authorization
control activities such as providing a unique user identification or token to authorized users. These control
activities may restrict authorized users to the applications or functions commensurate with their assigned
responsibilities, supporting an appropriate segregation of duties. Management designs other control activities
to promptly update access rights when employees change job functions or leave the entity.
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Finding 2021 – 013: (continued)
A well-designed system of internal controls dictates that effective general computer controls, which include adequate
segregation of duties, access controls to programs and data, appropriate monitoring, and controls to update access rights,
be established and functioning to ensure that overall agency operations are conducted in accordance with management’s
intent.
Cause: As noted in the prior year finding, developers continued to have administrative access to the change management
software tool. Although the tool was configured to log activity and send an automated email to a third party when a
developer approved code to production, no documentation was maintained as evidence that the logs or the email
notifications were monitored. As for the separated users whose accounts were not removed, the control to remove the
accounts at the time of separation failed, and the bi-annual access reviews performed by EDC administrators did not
identify these inappropriate accounts. When EDC moved to a quarterly review, the separated users’ accounts were
identified and removed prior to the end of the audit.
Effect: The deficiencies noted above in IT general controls could result in unauthorized changes to the software and
noncompliance with federal laws and regulations. Segregation of duties weaknesses and untimely removal of access when
no longer needed contribute to the risk that system activity can occur that is not in accordance with management’s intent.
Finally, without properly functioning controls over segregation of duties and separated users, the auditors are precluded
from reliance on computer controls in the Crime Victim Assistance program. Separately, not deleting accounts with
administrative access after the user separates employment increases the risk that accounts could be misused, intentionally
or unintentionally either by authorized users, or by unauthorized external entities that have compromised the account.
Recommendation: We recommend that OA-OIT continue its efforts to resolve the general computer control deficiencies
noted above. Specific consideration should be given to:
• Segregating the development of programs from promotion to the production environment;
• When segregation of duties is not possible, performing documented monitoring of the activities of developers
who have the ability to implement code to production;
• Removing server administrator accounts timely upon user separation; and
• Conducting effective periodic access reviews of privileged users.
Agency Response: Office of Administration, Office for Information Technology (OA-OIT), agrees with this finding.
Questioned Costs: None
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Federal Award Findings and Questioned Costs - June 30, 2021
Various Agencies
Finding 2021 – 014:
ALN 20.205 and 20.219 – Highway Planning and Construction Cluster (including COVID-19)
ALN 93.558 – Temporary Assistance for Needy Families
ALN 93.658 – Foster Care – Title IV-E (including COVID-19)
ALN 93.659 – Adoption Assistance (including COVID-19)
State Agencies Did Not Identify the Federal Award Information and Applicable Requirements at the Time of the
Subaward and Did Not Evaluate Each Subrecipient’s Risk of Noncompliance as Required by the Uniform Grant
Guidance (A Similar Condition Was Noted in Prior Year Finding 2020-020)
Federal Grant Number(s) and Year(s): N78000 (7/01/2020 – 6/30/2021), 2101PATANF (10/01/2020 – 9/30/2021),
2001PATANF (10/01/2019 – 9/30/2020), 1901PATANF (10/01/2018 – 9/30/2019), 1801PATANF (10/01/2017 –
9/30/2018), 2101PAFOST (10/01/2020 – 9/30/2021), 2001PAFOST (10/01/2019 – 9/30/2020), 2101PAADPT
(10/01/2020 – 9/30/2021), 2001PAADPT (10/01/2019 – 9/30/2020)
Type of Finding: Significant Deficiency, Noncompliance
Compliance Requirement: Subrecipient Monitoring
Condition: The Uniform Guidance in 2 CFR Section 200 applies to the major programs listed above for the fiscal year
ended June 30, 2021. Our testing disclosed that the state agencies did not identify the federal award information and
applicable requirements in subrecipient award documents. Additionally, the state agencies did not evaluate each
subrecipient’s risk of noncompliance for the purpose of determining the appropriate subrecipient monitoring related to the
subaward. This represents an internal control weakness which causes subrecipients to be improperly informed of federal
award information and not adequately monitored by the state agencies. Also, it could cause the omission or improper
identification of program expenditures on subrecipients’ Schedules of Expenditures of Federal Awards (SEFAs). The
following chart shows which federal award information required by 2 CFR Section 200 was omitted (as indicated by “No”)
from the subrecipient award documents at the time of the subaward and which major programs did not have a state agency
evaluation of each subrecipient’s risk of noncompliance.
Subaward Contact
Period of Information
Amount Passed to Federal Performance for Evaluation of
Subrecipients (in Award Start and Awarding Subrecipient
Program thousands) Date End Dates Official Risk
HPC Cluster
(including COVID- $160,636 - - No -
19)
TANF – Child
$48,556 No No No No (1)
Welfare
Foster Care –
Counties (including $204,494 No No No No (1)
COVID-19)
Foster Care – Non-
$13,599 No No No No
Profit Contract
Adoption
Assistance –
$118,596 No No No No (1)
Counties (including
COVID-19)
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 014: (continued)
Federal Name of
Award Federal Assistance Assistance
Identification Awarding Listing Listing
Program
Number Agency Number Title
HPC Cluster (including
- - No No
COVID-19)
TANF – Child Welfare No No - -
Foster Care – Counties
No No - -
(including COVID-19)
Foster Care – Non-
No No No No
Profit Contract
Adoption Assistance –
Counties (including No No - -
COVID-19)
(The cells with a hyphen in the table indicate that the federal award information was included in the subrecipient award
documents or was not applicable for the respective major program.)
(1) Although an evaluation of subrecipient risk was conducted, the only risk factor used in the evaluation was the error
rate detected for the county subrecipients. The evaluation is deemed inadequate since there was no written evidence that
the risk assessment considered other risk factors, such as the risk factors identified in 2 CFR Section 200.332.
Criteria: 2 CFR Section 200.332, Requirements for pass-through entities, states in part:
All pass-through entities must:
(a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following
information at the time of the subaward and if any of these data elements change, include the changes in subsequent
subaward modification. When some of this information is not available, the pass-through entity must provide the best
information available to describe the Federal award and subaward. Required information includes:
(1) Federal Award Identification.
(iii) Federal Award Identification Number (FAIN);
(iv) Federal Award Date (see the definition of Federal Award date in section 200.1) of award to the recipient by
the Federal agency;
(v) Subaward Period of Performance Start and End Date;
(xi) Name of Federal awarding agency, pass-through entity, and contact information for awarding official of the
pass-through entity;
(xii) Assistance Listings Number and Title; the pass-through entity must identify the dollar amount made available
under each Federal award and the Assistance Listings Number at time of disbursement;
(6) Appropriate terms and conditions concerning closeout of the subaward.
(b) Evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions
of the subaward for purposes of determining the appropriate subrecipient monitoring described in paragraphs (d) and
(e) of this section, which may include consideration of such factors as:
(1) The subrecipient’s prior experience with the same or similar subawards;
(2) The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance
with Subpart F [Audit Requirements] of this part, and the extent to which the same or similar subaward has
been audited as a major program;
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 014: (continued)
(3) Whether the subrecipient has new personnel or new or substantially changed systems; and
(4) The extent and results of Federal awarding agency monitoring (e.g., if the subrecipient also receives Federal
awards directly from a Federal awarding agency).
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s Standards for Internal Control in the Federal
Government (Green Book), published in September 2014. The Green Book states in part:
Management should identify, analyze, and respond to risks related to achieving the defined objectives. Management
should identify, analyze, and respond to significant changes that could impact the internal control system.
Cause: In general, the state agencies’ process for subrecipient award monitoring did not identify the omission of required
elements from the grant awards. In addition, the risk assessments performed by the agencies were not properly
documented.
Effect: Excluding the federal grant award information at the time of the subaward may cause subrecipients and their
auditors to be uninformed about specific program and other regulations that apply to the funds they receive. There is also
the potential for subrecipients to have incomplete SEFAs in their Single Audit reports submitted to the Commonwealth,
and federal funds may not be properly audited at the subrecipient level in accordance with the Single Audit Act and
Uniform Guidance.
Not evaluating each subrecipient’s risk of noncompliance for purposes of determining the appropriate subrecipient
monitoring related to the subaward may result in subrecipients using the subaward for unauthorized purposes or in violation
of the terms and conditions of the subaward, and state agency monitoring would not detect this noncompliance and ensure
it is corrected in a timely manner.
Recommendation: State agencies should develop policies and reporting mechanisms to ensure all required federal award
information is disseminated to all subrecipients at the time of the subaward to ensure subrecipient compliance with the
Uniform Guidance in 2 CFR Section 200 and other applicable federal regulations. In addition, state agencies should
correspond with applicable subrecipients to ensure they are aware of the correct federal award information and review
applicable subaward documents prior to issuance to ensure federal information is complete and accurate. State agencies
should also implement procedures to adequately document their evaluation of each subrecipient’s risk of noncompliance
as cited in 2 CFR Section 200.332 for purposes of determining the appropriate subrecipient monitoring related to the
subaward.
PennDOT Response: PennDOT agrees with the finding.
DHS Response: DHS agrees with the finding.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Various Agencies
Finding 2021 – 015:
ALN 15.252 – Abandoned Mine Land Reclamation
ALN 16.575 – Crime Victim Assistance
ALN 93.558 – Temporary Assistance for Needy Families
ALN 93.563 – Child Support Enforcement
ALN 93.575 and 93.596 – Child Care and Development Fund (CCDF) Cluster (including
COVID-19)
ALN 93.658 – Foster Care – Title IV-E (including COVID-19)
ALN 93.659 – Adoption Assistance (including COVID-19)
ALN 93.775, 93.777, and 93.778 – Medicaid Cluster (including COVID-19)
ALN 97.036 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) (including
COVID-19)
A Material Weakness and Material Noncompliance Exist in the Commonwealth’s Subrecipient Audit Resolution
Process (A Similar Condition Was Noted in Prior Year Finding 2020-021)
Federal Grant Number(s) and Year(s): S21AF10015 (1/01/2021 – 12/31/2023), S20AF20092 (10/01/2020 –
9/30/2023), S20AF20006 (1/01/2020 – 12/31/2022), S19AF20006 (1/01/2019 – 12/31/2021), S19AF20004 (12/01/2018
– 11/30/2021), S18AF20004 (11/01/2017 – 10/31/2020), S18AF20006 (4/01/2018 – 12/31/2020), S16AF20042
(6/01/2016 – 5/31/2021), 2020-V2-GX-0063 (10/01/2019 – 9/30/2023), 2019-V2-GX-0026 (10/01/2018 – 9/30/2022),
2018-V2-GX-0068 (10/01/2017 – 9/30/2021), 2017-VA-GX-0069 (10/01/2016 – 9/30/2020), 2101PATANF (10/01/2020
– 9/30/2021), 2001PATANF (10/01/2019 – 9/30/2020), 2101PACSES (10/01/2020 – 9/30/2021), 2001PACSES
(10/01/2019 – 9/30/2020), G2101PACCDF (10/01/2020 – 9/30/2021), G2001PACCDF (10/01/2019 – 9/30/2020),
2101PAFOST (10/01/2020 – 9/30/2021), 2001PAFOST (10/01/2019 – 9/30/2020), 2101PAADPT (10/01/2020 –
9/30/2021), 2001PAADPT (10/01/2019 – 9/30/2020), 2105PA5MAP (10/01/2020 – 9/30/2021), 2005PA5MAP
(10/01/2019 – 9/30/2020), 4506DRPA (1/20/2020 – 3/02/2024), 3441DRPA (1/20/2020 – 1/20/2025), 4408DRPA
(11/27/2018 – 11/27/2022)
Type of Finding: Significant Deficiency, Noncompliance for Medicaid Cluster
Material Weakness, Material Noncompliance for Other Programs
Compliance Requirement: Subrecipient Monitoring
Condition: Under the Commonwealth of Pennsylvania's (Commonwealth) implementation of the Single Audit Act,
review and resolution of subrecipient Single Audit reports is split into two stages. The Office of the Budget’s Bureau of
Accounting and Financial Management (OB-BAFM) ensures the reports meet technical standards through a centralized
desk review process. The various funding agencies in the Commonwealth are responsible for making a management
decision on each finding within six months of the Federal Audit Clearinghouse’s (FAC) Management Decision Letter
(MDL) start date for audits subject to Uniform Guidance and to ensure appropriate corrective action is taken by the
subrecipient (except for Uniform Guidance audits under U.S. Department of Labor programs which are permitted 12
months for management decisions in accordance with 2 CFR Section 2900.21). Each Commonwealth agency is also
responsible for reviewing financial information in each audit report to determine whether the audit included all pass-
through funding provided by the agency in order to ensure pass-through funds were subject to audit. Most agencies meet
this requirement by performing Schedule of Expenditures of Federal Awards (SEFA) reconciliations. The agency is also
required to adjust Commonwealth records, if necessary.
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 015: (continued)
Our fiscal year ended June 30, 2021 audit of the Commonwealth’s process for review and resolution of subrecipient Single
Audits included an evaluation of the Commonwealth’s fiscal year ended June 30, 2020 subrecipient audit universe for
audits due for submission to the FAC during the fiscal year ended June 30, 2021. We also evaluated the Commonwealth’s
review of 33 subrecipient audit reports with findings in major programs/clusters which were identified on the
Commonwealth agencies’ tracking lists during the fiscal year ended June 30, 2021, and required management decisions
by Commonwealth agencies.
Our testing disclosed the following audit exceptions regarding the Commonwealth agencies’ review of subrecipient audit
reports:
• Department of Environmental Protection (DEP): The time period for making a management decision on findings was
approximately 8.6 months after the FAC MDL start date for one out of two audit reports with findings.
• Department of Human Services (DHS): The time period for making a management decision on findings ranged from
approximately 7.2 months to 20.3 months after the FAC MDL start date for 22 out of 23 subrecipient audit reports
with findings. There was also a delay in DHS’s procedures to ensure the subrecipient SEFAs were accurate so that
major programs were properly determined and subject to audit. In addition, our review disclosed that three
subrecipient audit reports with findings for which DHS was the lead agency were submitted late to the FAC, with
FAC acceptance dates ranging from approximately 3.6 months to 10.8 months after the Single Audit due date.
• Pennsylvania Commission on Crime and Delinquency (PCCD): The time period for making a management decision
on findings was approximately 10.3 months after the FAC MDL start date for one out of two subrecipient audit reports
with findings.
• Pennsylvania Emergency Management Agency (PEMA): The time period for making a management decision on
findings was approximately 12 months after the FAC MDL start date for one subrecipient audit report with findings.
In addition, our review disclosed the one subrecipient audit report with findings for which PEMA was the lead agency
was submitted approximately 16 months late to the FAC and was excluded from PEMA’s tracking list.
As a follow-up to the prior year finding, we noted that the Commonwealth subgranted federal funds totaling $285,634,900
to the City of Philadelphia during the fiscal year ended June 30, 2020, for which a Single Audit was not submitted to the
FAC as of our January 2022 testing date. This was over 3.5 months after the September 30, 2021 due date, which had
been extended due to the COVID-19 pandemic in accordance with the Office of Management and Budget’s Memorandum
M-21-20, Appendix 3. Our testing disclosed that DHS’s subgrants to the City of Philadelphia were material for four of
the 14 major programs/clusters with material subgranted funds.
Our follow-up on the prior year finding also disclosed that the Commonwealth subgranted federal funds totaling
$30,158,167 to Bucks County during the fiscal year ended December 31, 2019. The audit was submitted to the FAC on
February 24, 2021, which was nearly two months after the December 31, 2020 due date, which had been extended in
accordance with the Office of Management and Budget’s Memorandum M-20-26, Appendix A.
DHS was the lead agency for the City of Philadelphia and Bucks County audits.
Criteria: 2 CFR §200.332, Requirements for pass-through entities, states in part:
All pass-through entities must:
(d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in
compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward
performance goals are achieved. Pass-through entity monitoring of the subrecipient must include:
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 015: (continued)
(2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining
to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site
reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address
Single Audit findings related to the particular subaward.
(3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the
subrecipient from the pass-through entity as required by §200.521 [Management decision].
(f) Verify that every subrecipient is audited as required by Subpart F [Audit Requirements] of this part when it is expected
that the subrecipient’s Federal awards expended during the respective fiscal year equaled or exceeded the threshold set
forth in §200.501 [Audit requirements].
(g) Consider whether the results of the subrecipient’s audit, on-site review, or other monitoring indicate conditions that
necessitate adjustments to the pass-through entity’s own records.
(h) Consider taking enforcement action against noncompliant subrecipients as described in §200.339 [Remedies for
noncompliance] of this part and in program regulations.
In order to carry out these responsibilities properly, good internal control dictates that state pass-through agencies ensure
subrecipient Single Audit SEFAs are representative of state payment records each year, and that the related federal
programs have been properly subjected to Single Audit procedures.
2 CFR §200.512, Report submission, states in part:
(a) General. (1) The audit must be completed and the data collection form described in paragraph (b) of this section and
reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after
receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday,
Sunday, or Federal holiday, the reporting package is due the next business day.
2 CFR §200.521, Management decision, states in part:
(a) General. The management decision must clearly state whether or not the finding is sustained, the reasons for the
decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action.
(d) Time requirements. The Federal awarding agency or pass-through entity responsible for issuing a management
decision must do so within six months of acceptance of the audit report by the FAC. The auditee must initiate and proceed
with corrective action as rapidly as possible and corrective action should begin no later than upon receipt of the audit
report.
2 CFR §200.505, Sanctions, states:
In cases of continued inability or unwillingness to have an audit conducted in accordance with this part, Federal agencies
and pass-through entities must take appropriate action as provided in §200.339 [Remedies for noncompliance].
2 CFR §200.339, Remedies for noncompliance, states in part:
If a non-Federal entity fails to comply with the U.S. Constitution, Federal statutes, regulations or the terms and conditions
of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described
in §200.208 [Specific conditions]. If the Federal awarding agency or pass-through entity determines that noncompliance
cannot be remedied by imposing additional conditions, the federal awarding agency or pass-through entity may take one
or more of the following actions, as appropriate in the circumstances.
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal entity or more severe
enforcement action by the Federal awarding agency or pass-through entity.
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 015: (continued)
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity
or action not in compliance.
(c) Wholly or partly suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and Federal awarding agency
regulations (or in the case of a pass-through entity, recommend such a proceeding be initiated by a Federal awarding
agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
To ensure Commonwealth enforcement of federal regulations for subrecipient noncompliance with audit requirements,
Commonwealth Management Directive 325.8, Remedies for Recipient Noncompliance with Audit Requirements, Section
5 related to policy, states in part:
(a) Agencies must develop and implement remedial action that reflects the unique requirements of each program…
(b) Overall periods for the implementation of remedial action should not exceed six months from the date the first remedial
action is initiated. At the end of the six-month period, the recipient should take the appropriate corrective action or the
final stage of remedial action should be imposed on the recipient. Examples of remedial action include, but are not limited
to:
(1) Meeting or calling the recipient to explain the importance and benefits of the audit and audit resolution processes,
emphasizing the value of the audit as an administrative tool and the Commonwealth’s reliance on an acceptable
audit and prompt resolution as evidence of the recipient’s ability to properly administer the program.
(2) Encouraging the entity to establish an audit committee or designate an individual as the single point of contact
to:
(a) Communicate regarding the audit.
(b) Arrange for and oversee the audit.
(c) Direct and monitor audit resolution.
(3) Providing technical assistance to the recipient in devising and implementing an appropriate plan to remedy the
noncompliance.
(4) Withholding a portion of assistance payments until the noncompliance is resolved.
(5) Withholding or disallowing overhead costs until the noncompliance is resolved.
(6) Suspending the assistance agreement until the noncompliance is resolved.
(7) Terminating the assistance agreement with the recipient and, if necessary, seeking alternative entities to
administer the program.
Management Directive 325.9, Processing Audits of Federal Pass-Through Funds, Section 7 related to procedures, states
in part:
c. Agencies.
(1) Evaluate single audit report submissions received from BOA [now OB-BAFM] to determine program purpose
acceptability by verifying, at a minimum, that all agency-funded programs are properly included on the
applicable financial schedules; that findings affecting the agency contain sufficient information to facilitate a
management decision; and that the subrecipient has submitted an adequate corrective action plan.
(6) Impose or coordinate the imposition of remedial action in accordance with 2 CFR Part 200.338 [now 200.339]
and Management Directive 325.8, Remedies for Recipient Noncompliance with Audit Requirements, when
subrecipients fail to comply with the provisions of Subpart F.
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COMMONWEALTH OF PENNSYLVANIA
Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 015: (continued)
Management Directive 325.12, Standards for Internal Control for Commonwealth Agencies, adopted the internal control
framework outlined in the United States Government Accountability Office’s, Standards for Internal Control in the
Federal Government (Green Book), published in September 2014. The Green Book states in part:
Management should establish and operate monitoring activities to monitor the internal control system and evaluate the
results. Management should remediate identified internal control deficiencies on a timely basis.
Cause: One reason provided by Commonwealth management for untimely audit resolution in the various agencies,
including making management decisions, approving corrective action, and performing procedures to ensure the accuracy
of subrecipient SEFAs, and for the exclusion of an audit from a tracking list, was either a change in staff or a lack of staff
to follow up and process subrecipient audit reports more timely. DEP personnel stated the late management decision
resulted from late notification of FAC audit receipt by OB-BAFM. PCCD personnel indicated the management decision
was not completed due to an oversight.
Regarding late and outstanding audit report submissions, the Commonwealth agencies did not appear to be timely
implementing remedial action steps in accordance with 2 CFR §200.339 and Commonwealth Management Directive 325.8
in order to ensure compliance with federal audit submission requirements.
Effect: Since required management decisions were not made within six months to ensure appropriate corrective action
was taken on audits received from subrecipients, the Commonwealth did not comply with federal regulations, and
subrecipients were not made aware of acceptance or rejection of corrective action plans in a timely manner. Further,
noncompliance may recur in future periods if control deficiencies are not corrected on a timely basis, and there is an
increased risk of unallowable charges being made to federal programs if corrective action and recovery of questioned costs
is not timely.
Regarding the SEFA reviews or alternate procedures which are not being performed timely and the late Single Audit report
submissions, there is an increased risk that subrecipients could be misspending and/or inappropriately tracking and
reporting federal funds over multiple year periods, and these discrepancies may not be properly monitored, detected, and
corrected by agency personnel on a timely basis as required.
Finally, additional federal pass-through funds may be unaudited in the future without timely and effective remedial action
from Commonwealth agencies to enforce compliance.
Recommendation: We recommend that the above weaknesses that cause untimely subrecipient Single Audit resolution,
including untimely management decisions on findings, untimely review of the SEFA or alternate procedures, and late audit
report submissions be corrected to ensure compliance with federal requirements and Commonwealth Management
Directives, and to better ensure more timely subrecipient compliance with program requirements.
Commonwealth agencies should promptly pursue outstanding audits and implement remedial action steps on a timely basis
in accordance with 2 CFR §200.339 and Commonwealth Management Directive 325.8.
DEP Response: DEP agrees with the finding.
DHS Response: While DHS agrees with this finding, we believe we are in compliance with 2 CFR §200.339 and
Commonwealth Management Directive 325.8 related to outstanding audits. We continue to work with counties and their
independent auditors to obtain any late Single Audit reports, and albeit late, we do receive them which is the ultimate goal.
PCCD Response: PCCD is in agreement with the finding.
PEMA Response: PEMA agrees with this finding. The subrecipient was inadvertently excluded from PEMA’s audit
tracking list due to failure of our new employee to enter the information into the Single Audit database. As soon as we
became aware of the omission, and having previously reviewed the audit report, a management decision letter was issued
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Federal Award Findings and Questioned Costs - June 30, 2021
Finding 2021 – 015: (continued)
to the subrecipient on January 21, 2022. In addition, please note that PEMA had been in constant communication with
this subrecipient to resolve its noncompliance due to failure to submit the Single Audit reporting package within nine
months of its year end date of December 31, 2018, and BAFM and the Bureau of State and Federal Audits have been
provided documentary evidence of these communications.
Questioned Costs: The amount of questioned costs cannot be determined.
The corrective action plan for this finding, if any, has not been reviewed by the auditors. See Corrective Action
Plans located elsewhere in this Report.
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Management’s
Summary Schedule of
Prior Audit Findings
Commonwealth of Pennsylvania
91
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF THE GOVERNOR
GREGORY THALL
SECRETARY
GOVERNOR’S OFFICE OF THE BUDGET
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
FINDINGS FOR THE YEAR ENDED JUNE 30, 2020:
(Please see Corrective Action Plan Schedule for planned corrective actions for any current year repeat findings.)
FINANCIAL STATEMENT FINDINGS
STATEWIDE (SW)
2020-001 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior
Year Finding 2019-001)
The system issues in question have been resolved or will be resolved when the system migration is completed.
Continuing to develop the process of changing the profiles such that they are managed like service accounts
per policy. Account monitoring documentation is being addressed. Continuing to develop the process of
changing the profiles such that they are managed like service accounts per policy. A workgroup has been
formed and seeking a Privileged Identity Management (PIM) solution. Anticipated completion date: June
2022.
2020-002 Unemployment Compensation Accounts Payable Accrual Methodology and Controls Need Improvement
BAFM and L&I met to discuss what is needed for the ACFR, which included the request for the accrued
benefits which included copies of the files that the auditors used last year. The following due dates were
established where L&I will send BAFM (by UC program) the benefits paid by benefit week for the period of
July-October 31: July info to be received August 10, August info to be received September 10, September 1-
17 info to be received September 24, and Sept 18-October 31 to be received November 5. L&I is on target to
meet the due dates requested. The anticipated CAP completion date is October 2021.
FEDERAL PROGRAM FINDINGS
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT (DCED)
2020-003 The Department of Community and Economic Development Did Not Perform Adequate During-the-Award
Monitoring of Subrecipients (A Similar Condition Was Noted in Prior Year Finding 2019-004)
DCED has made progress towards eliminating the backlog of monitoring and should have it completed by
June 30, 2022. Finding was not reissued.
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COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
DEPARTMENT OF ENVIRONMENTAL PROTECTION (DEP)
2020-004 A Material Weakness and Material Noncompliance Exist at the Department of Environmental Protection
Related to Subrecipient Monitoring
DEP ceased issuing AMLR Project Grants until the finding is resolved. DOI provided training on the Uniform
Guidance. The training provided a broad overview but lacked specific details related to the AML Program.
The instructor made numerous mentions that details specific to implementation of the AML Program and,
AML and AMLER grants, needed to be provided by DOI. Following a discussion with staff in the Governor’s
Office, DEP was asked to draft a letter to DOI requesting guidelines that delineate the types of AML service
delivery and AML reclamation project activities that would render an AML grant agreement as subrecipient
or contractor relationships under Uniform Guidance. Staff in the Governor’s Office informed DEP that, in
lieu of sending the letter to DOI, they would present the issue to the Intergovernmental Team in DOI. DOI
staff in the Pittsburgh Field Office indicated they are preparing a briefing paper on the finding for DOI
leadership. Anticipated CAP completion is before the end of 2022.
DEPARTMENT OF HUMAN SERVICES (DHS)
2020-005 A Material Weakness and Material Noncompliance Exist at the Department of Human Services Related to
Electronic Benefits Transfer Card Security (A Similar Condition Was Noted in Prior Year Finding 2019-007)
To comply with the OIM EBT Procedures Manual, County Assistance Offices (CAOs) and District Offices
reviewed and updated their internal procedures for over the counter card mailings as needed. Findings will
be reported to each area’s Staff Assistant. CAOs and district offices were instructed to review their pinning
list and card creator list to ensure the names are correct and ensure there is adequate coverage from opening
to close, including lunch and breaks. Findings will be reported to each area’s Staff Assistant. CAOs and
district offices were instructed to only use EBT card paper logs in cases of emergency. All card information
should be recorded in the EBT card tracking database. CAOs and district offices were instructed to review
EBT manual Executive Director Responsibility; when an EBT staff separates from the CAO, the staff must
be removed from the EBT list within 24 hours. The staff assistant to the Director of Operations will email
the area staff assistants the list of exceptions. The area staff assistants will address each exception with the
CAO to take the necessary actions to ensure safeguards are in place to prevent future exceptions. Finding
repeated due to timing of corrective actions.
2020-006 Department of Human Services Did Not Validate Financial Information as Part of Its On-Site Monitoring of
Temporary Assistance for Needy Families Subrecipients (A Similar Condition Was Noted in Prior Year
Finding 2019-008)
OIM-TANF - The checklist updates need to be completed and will be implemented when onsite monitoring
resumes after the pandemic. Office of Policy Development’s (OPD) new Grant and Policy Specialist was
hired and risk assessments for FY 20-21 were completed in December 2020. Real Alternatives was identified
for monitoring. Virtual monitoring took place on June 28, 2021. OPD is still awaiting some of the required
documentation for review. The anticipated completion date for the CAP is June 2022.
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COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
DEPARTMENT OF HUMAN SERVICES (DHS) (Continued)
2020-007 Material Weaknesses and Material Noncompliance Exist in Monitoring of Foster Care, Adoption Assistance,
and Temporary Assistance for Needy Families Subrecipients by the Department of Human Services’ Office
of Children, Youth, and Families (A Similar Condition Was Noted in Prior Year Finding 2019-009)
OCYF does subrecipient monitoring using regularly scheduled on-site licensing inspections, regular contact
with subrecipients, and regular Quality Assurance (QA) reviews and visits. OCYF Regional Director Staff
have verified that OCYF Regional Offices are issuing the Licensing Inspection Summary (LIS) within 15
days of the close of the inspection, as is considered timely. Counties are required to maintain a written contract
with each provider to which clients are referred. The provider agency must submit to the county children and
youth agency (CCYA) quarterly progress reports, discharge summaries, billing statements, and other written
reports as required by the CCYA and/or DHS regulations or guidance. The CCYA must also monitor provider
adherence to the Child Protective Services Law (CPSL) background check requirements for services coded
as “in-home”. Counties have primary oversight of their service providers by the fiscal office, quality assurance
staff, or their contract monitors. The CCYA must document these efforts and report them to DHS. As part of
the County single audit reporting package, counties are required to include a supplemental schedule, subjected
to Agreed-Upon Procedures. The schedule documents CCYA monitoring of providers’ adherence to the
requirements of the CPSL for in-home providers. The schedule lists all providers, date of most recent
monitoring, if there were exceptions, submission of a CAP, and acceptance, implementation, and follow-up.
The auditor is required to test the list for completeness and analyze the CCYA’s documentation of monitoring
activities for adequacy, obtaining necessary CAPs, timely follow-up, and adequacy and accuracy of
monitoring documentation. As single audit reports are received in the DHS/Audit Resolution Section, a copy
is transmitted to OCYF for review by the Bureau of Budget and Fiscal Support and use in the Quality
Assurance reviews, including the supplemental information and any applicable findings contained. In
addition, the AG conducts annual engagements of the CCYAs to ascertain and certify actual expenditures on
behalf of children residing within the County and to determine compliance with regulations. During these
engagements, the AG reviews the county policies and procedures of in-home purchased services billings and
CPSL adherence. Any issued findings and/or observations included in these reports are also considered in
Licensing Inspections and QA reviews. Finding repeated due to timing of corrective actions.
2020-008 A Significant Deficiency and Noncompliance Exist in the Review and Approval of Temporary Assistance for
Needy Families Subrecipient Invoices by the Department of Human Services' Office of Children, Youth, and
Families
Corrective action was taken.
2020-009 Noncompliance and Weaknesses Exist in the Department of Human Services’ Program Monitoring of the
Social Services Block Grant and the Block Grants for Prevention and Treatment of Substance Abuse
Subrecipients (A Similar Condition Was Noted in Prior Year Finding 2019-010)
OA-SSBG: The Bureau of Financial Operations (BFO) conducted the risk assessment during the year ended
June 30, 2021, and continues to conduct during-the-award monitoring for SSBG and SABG using the results
of that documented risk assessment. For FY20-21, 18 of the 67 counties were identified as high-risk; and six
counties were monitored for SSBG, of which two were high-risk. These reports are either in process or
complete. Beginning July 1, 2021, DHS will no longer receive SABG funding to pass-through to
subrecipients; therefore, risk assessments and monitoring on this funding will stop.
Office of Policy Development (OPD)-SSBG: Risk assessments for FY 20-21 were completed in December
2020. Monitoring prioritizes subrecipients receiving a “high risk” designation and/or those who did not
receive monitoring during the prior fiscal year. Three providers were identified for FY 20-21 monitoring. Due
to Covid-19, these providers took part in virtual monitoring between May-June 2021. The CAP is considered
to be complete for OPD. The CAP for OA-SSBG should be completed by June 2023. Finding was not
reissued.
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COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
DEPARTMENT OF HUMAN SERVICES (DHS) (Continued)
2020-010 A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related to the
Medicaid National Correct Coding Initiative
DHS, Bureau of Data and Claims Management (BDCM) will add the NCCI Confidentiality Agreement to the
forthcoming contract amendment by March 2022.
DEPARTMENT OF LABOR AND INDUSTRY (L&I)
2020-011 Significant Deficiency and Noncompliance Related to the Department of Labor and Industry’s Preparation
and Submission of the Semi-Annual SF-425 Report (A Similar Condition Was Noted in Prior Year Finding
2019-013)
Procedures have been revised and implemented to make every effort to ensure the accuracy of the current
reports prior to submission. Due to unforeseen circumstances, the revision and correction of previously
submitted SF-425s has been delayed. Anticipated CAP completion date is July 2022. Finding was not
reissued.
2020-012 A Significant Deficiency and Noncompliance Exist in the Department of Labor and Industry’s Procedures for
Performing Eligibility Determinations (A Similar Condition Was Noted in Prior Year Finding 2019-011)
Level 3 case reviews are currently underway, and upon completion L&I will have the eligibility determination
scores for the period of July 1, 2020 to June 30, 2021. L&I expects analysis of the compliance for this specific
item to be complete in August 2021. Anticipated CAP completion date is July 2022. Finding was not reissued.
2020-013 A Significant Deficiency and Noncompliance Exist in the Department of Labor and Industry’s Procedures
Related to Period of Performance Requirements (A Similar Condition Was Noted in Prior Year Finding 2019-
012)
L&I has consultants meeting with OVR district offices prior to formalizing their analysis. Anticipated CAP
completion date is December 2021. Finding was not reissued.
DEPARTMENT OF TRANSPORTATION (PennDOT)
2020-014 A Significant Deficiency and Noncompliance Exist Related to Monitoring of Locally Sponsored Projects
Corrective action was taken.
OFFICE OF ADMINISTRATION, OFFICE FOR INFORMATION TECHNOLOGY (OA-OIT)
2020-015 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior Year
Finding 2019-014)
OA-OIT is removing write access from developers and having database administrators as the only staff with
write access to databases. Developers can retain read access for troubleshooting and debugging.
Implementing quarterly reviews of the groups/users to help ensure more timely and accurate user access
rights. The 'large number of users' issue is being addressed. OA-OIT is seeking possible solutions and seeing
if there is funding for a Privileged Identity Management (PIM) solution. A workgroup has been formed and
is seeking a PIM product /vendor. Anticipated completion date: June 2022.
95
COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
OFFICE OF THE BUDGET, OFFICE OF COMPTROLLER OPERATIONS (OB-OCO)
2020-016 A Significant Deficiency and Noncompliance Exist Over the Preparation and Submission of the Quarterly
CMS-64 Report
Corrective action was taken.
PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY (PCCD)
2020-017 A Significant Deficiency and Noncompliance Exist in the Pennsylvania Commission on Crime and
Delinquency’s Procedures Related to Period of Performance Requirements (A Similar Condition Was Noted
in Prior Year Finding 2019-017)
Corrective action was taken.
2020-018 Material Weakness and Material Noncompliance Exist in the Pennsylvania Commission on Crime and
Delinquency Monitoring of Crime Victim Assistance Program Subrecipients (A Similar Condition Was
Noted in Prior Year Finding 2019-018)
Corrective action was taken.
2020-019 A Significant Deficiency and Noncompliance Exist in the Pennsylvania Commission on Crime and
Delinquency’s Procedures Related to Performance Reporting Requirements
Corrective action was taken.
STATEWIDE (SW)
2020-020 State Agencies Did Not Identify the Federal Award Information and Applicable Requirements at the Time of
the Subaward and Did Not Evaluate Each Subrecipient’s Risk of Noncompliance as Required by the Uniform
Grant Guidance (A Similar Condition Was Noted in Prior Year Finding 2019-019)
DHS-OCYF: FY 20-21 Tentative Allocation Letters were sent out on April 1, 2021, with ALN and funding
amounts. Final Allocation Letters will be sent by July 31, 2021, with an attachment including all Federal
Award information: Amount, Federal Award Identification Number (FAIN); Federal Award Date; Subaward
Period of Performance Start and End Date; Name of Federal awarding agency, pass-through entity, and
contact information for awarding official; ALN and Name. OCYF has a risk assessment process in place for
Title IV-E and TANF awards. During the Quality Assurance reviews, which occur twice a year at a minimum,
OCYF reviews a sample of Title IV-E eligible foster care cases, Title IV-E ineligible foster care cases, Title
IV-E eligible adoption assistance cases, and TANF eligible cases. Depending on the number of eligibility and
claiming errors identified during the review, OCYF schedules more frequent visits as the risk of repeated and
continued errors in these CCYAs is higher. Inaccurate eligibility determinations lead to inaccurate federal
claiming, so basing the review schedule on a CCYA’s eligibility review outcome allows OCYF to target those
CCYAs where inaccurate claiming is a higher risk. However, to further address this finding, the risk
assessment now includes documentation of other risk factors, such as: submission of a single audit report,
prior experience, and new personnel.
PennDOT is reviewing all RAS agreements to ensure all agreements contain a notice provision. Any RAS
agreement that does not contain a notice provision will have an attachment uploaded with party contacts to
satisfy the notice requirement.
96
COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
STATEWIDE (SW) (Continued)
2020-021 A Material Weakness and Material Noncompliance Exist in the Commonwealth’s Subrecipient Audit
Resolution Process (A Similar Condition Was Noted in Prior Year Finding 2019-020)
DCED and PennDOT took corrective action.
DDAP finalized written procedures on the subrecipient audit review process. The Procurement Section Chief
vacated the position in June of 2021. The position is instrumental in the review process of the subrecipient
audits. DDAP continues to train additional staff on the subrecipient audit process. Division staff continues
to review current audits. However, due to the Section Chief vacancy, DDAP anticipates the CAP completion
to be December 2021. DDAP is not included in the current finding.
DEP staff attended a training held by OB-BAFM. This virtual training, covering subrecipient audit
processing, was attended by all DEP fiscal federal fiscal management specialists. Finding repeated due to
timing of corrective actions.
DHS remains in contact with entities to obtain outstanding audit reports and anticipates the backlog of reports
needing a review will be eliminated by June 30, 2022.
PCCD plans to formally document all management decisions within six months of FAC acceptance according
to their written procedures. Finding repeated due to an administrative oversight.
FINDINGS FOR THE YEAR ENDED JUNE 30, 2019:
FINANCIAL STATEMENT FINDINGS
STATEWIDE (SW)
2019-001 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior Year
Finding 2018-001)
Refer to finding 2020-001 for the status of this issue.
FEDERAL PROGRAM FINDINGS
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT (DCED)
2019-004 The Department of Community and Economic Development Did Not Perform Adequate During-the-Award
Monitoring of Subrecipients (A Similar Condition Was Noted in Prior Year Finding 2018-003)
Refer to finding 2020-003 for the status of this issue.
DEPARTMENT OF HUMAN SERVICES (DHS)
2019-007 A Material Weakness and Material Noncompliance Exist at the Department of Human Services Related to
Electronic Benefits Transfer Card Security (A Similar Condition Was Noted in Prior Year Finding 2018-007)
Refer to finding 2020-005 for the status of this issue.
2019-008 Department of Human Services Did Not Validate Financial Information as Part of Its On-Site Monitoring of
Temporary Assistance for Needy Families Subrecipients (A Similar Condition Was Noted in Prior Year
Finding 2018-008)
Refer to finding 2020-006 for the status of this issue.
97
COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
DEPARTMENT OF HUMAN SERVICES (DHS) (Continued)
2019-009 Material Weaknesses and Material Noncompliance Exist in Monitoring of Foster Care, Adoption Assistance,
and Temporary Assistance for Needy Families Subrecipients by the Department of Human Services’ Office
of Children, Youth, and Families (A Similar Condition Was Noted in Prior Year Finding 2018-010)
Refer to finding 2020-007 for the status of this issue.
2019-010 Noncompliance and Weaknesses Exist in the Department of Human Services’ Program Monitoring of the
Social Services Block Grant and the Block Grants for Prevention and Treatment of Substance Abuse
Subrecipients (A Similar Condition Was Noted in Prior Year Finding 2018-011)
Refer to finding 2020-009 for the status of this issue.
DEPARTMENT OF LABOR AND INDUSTRY (L&I)
2019-011 A Material Weakness and Material Noncompliance Exist in the Department of Labor and Industry’s
Procedures for Performing Eligibility Determinations and Completing Individualized Plans for Employment
(A Similar Condition Was Noted in Prior Year Finding 2018-014)
Refer to finding 2020-012 for the status of this issue.
2019-012 A Material Weakness and Material Noncompliance Exist in the Department of Labor and Industry’s
Procedures Related to Period of Performance Requirements (A Similar Condition Was Noted in Prior Year
Finding 2018-015)
Refer to finding 2020-013 for the status of this issue.
2019-013 Significant Deficiency and Noncompliance Related to the Department of Labor and Industry’s Preparation
and Submission of the Semi-Annual SF-425 Report
Refer to finding 2020-011 for the status of this issue.
OFFICE OF ADMINISTRATION, OFFICE FOR INFORMATION TECHNOLOGY (OA-OIT)
2019-014 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in Prior Year
Finding 2018-017)
Refer to finding 2020-015 for the status of this issue.
PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY (PCCD)
2019-017 A Significant Deficiency and Noncompliance Exist in the Pennsylvania Commission on Crime and
Delinquency’s Procedures Related to Period of Performance Requirements
Refer to finding 2020-017 for the status of this issue.
2019-018 Material Weakness and Material Noncompliance Exist in the Pennsylvania Commission on Crime and
Delinquency Monitoring of Crime Victim Assistance Program Subrecipients
Refer to finding 2020-018 for the status of this issue.
98
COMMONWEALTH OF PENNSYLVANIA
Summary Schedule of Prior Audit Findings - June 30, 2021
Finding State Agency/Finding Title/Comments
STATEWIDE (SW)
2019-019 State Agencies Did Not Identify the Federal Award Information and Applicable Requirements at the Time of
the Subaward and Did Not Evaluate Each Subrecipient’s Risk of Noncompliance as Required by the Uniform
Grant Guidance (A Similar Condition Was Noted in Prior Year Finding 2018-020)
Refer to finding 2020-020 for the status of this issue.
2019-020 A Material Weakness and Material Noncompliance Exist in the Commonwealth’s Subrecipient Audit
Resolution Process (A Similar Condition Was Noted in Prior Year Finding 2018-021)
Refer to finding 2020-021 for the status of this issue.
99
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100
Management’s
Corrective Action Plans
Commonwealth of Pennsylvania
101
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF THE GOVERNOR
GREGORY THALL
SECRETARY
GOVERNOR’S OFFICE OF THE BUDGET
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-001 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in
Prior Year Finding 2020-001)
OA-OIT Michael The system(s) in question have been resolved or will be resolved when the system migration is 06/30/2022
Dailey, IT completed. OA-OIT is continuing to develop the process of changing the profiles per policy. Account
102
Manager 3 monitoring documentation is being addressed.
Kevin Sperber,
IT Generalist
Admin. 1
Ken Kitch, IT
Manager
Gerry
Schopman,
Prog. Anyst. 4
Loc Tran, IT
Manager 1
2021-002 Information Technology Control Weaknesses in the Unemployment Compensation and Pandemic
Unemployment Assistance Systems
OA-OIT Edward The system(s) in question have been resolved or will be resolved when the system migration is 06/30/2022
Bowlen, Dir. completed. We are continuing to develop the process of changing the profiles per policy and
of App. and communicating policy. Account monitoring documentation is being addressed. A large number of the
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-002 Service Del. system administrator accounts to the vendor have been revoked already.
(cont’d)
David
Dodson-
Andrews, Sr.
Proj. Manager,
Ben Mod
2021-003 A Significant Deficiency and Noncompliance Exist at the Department of Education Related to
Submission of Elementary and Secondary School Emergency Relief Fund Annual Reporting
PDE Susan The Pennsylvania Department of Education (PDE) recognizes that backup documentation for the 09/01/2022
McCrone, reporting monitoring was not provided. However, PDE does not believe it was out of compliance.
Division
Manager, The information submitted to the United States Department of Education (USDE) contained information
103 Federal collected and reviewed by several programmatic and administrative levels at PDE. The monitoring and
Programs, record keeping procedures provided reasonable assurance, to the best of PDE’s ability at that time, to
PDE ensure the information collected and submitted with the annual report was accurate.
Current reporting procedures: PDE used its eGrants system to collect all LEA required records under
ESSER I and ESSER II. The eGrants system is designed to allow licensed educational agencies and
certain community-based programs within the commonwealth access to PDE grants. Through this
system, the LEA can submit applications for funding, e-sign contracting documents, upload back-up
documentation, submit program quarterly reports, and file final expenditure reports. The eGrants system
makes it possible for records pertaining to the ESSER awards to be retained separately from other grant
funds, including funds that an SEA or LEA receives under the CARES Act and CRRSA. This follows
the requirements under 2 C.F.R. § 200.334 and 34 C.F.R. § 76.730, including financial records related to
the use of grant funds.
Only an eGrants authorized user that is associated with an Agency or LEA that has an active
Program/Project and the role of Agency Project Writer can upload documents to the project. The SEA
staff then reviews and investigates the documents. Projects advance if the documents are complete and
correct.
The grant process is as follows:
• PDE announces and releases grant application in eGrants;
• LEA designated individual completes application in eGrants;
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-003 • Prior to submission, LEA’s board-approved designee signs off electronically on application (typically
(cont’d) Superintendent or Chief Executive Officer);
• The program area reviews the grant application and returns it for corrections (if necessary). Otherwise,
an approvable application goes to the division chief for electronic signature;
• Chief Counsel reviews and approves application for form and legality;
• The Office of Comptroller Operations completes the review of the application and fully executes the
contract; and
• LEA receives its first monthly payment. Payments for grants processed through eGrants are made
monthly through PDE’s Financial Accounting Information (FAI) System. The FAI system interfaces
with PDE’s financial accounting records system, SAP. Monthly payments to LEAs are continuous and
automatic based on quarterly financial reports collected through the FAI System.
Through quarterly financial reporting, LEAs are required to report the amount of cash received,
expended, and on hand. If the amount of cash-on-hand reported is determined to be too high, or the
quarterly report is not submitted, monthly payments will be suspended until the next quarterly report is
104 due.
Current monitoring procedures: Monitoring to ensure compliance with existing federal guidelines
typically occurs from January through May annually. LEAs complete an online self-assessment available
within Pennsylvania’s federal monitoring online system, Fedmonitor. All LEAs receive a unique
username and password to access Fedmonitor. LEAs are monitored cyclically or as needed based on
risk.
Beginning in 2021–22, all LEAs were placed on a four-year monitoring cycle and will be monitored
once between 2021–22 and 2024–25. Additionally, all LEAs are annually assessed for risk to prevent
fraud, waste, and abuse. Those deemed to be medium or high risk on the LEA Risk Assessment will be
monitored every year. Points range from 1–20, and most LEAs fall in the low-risk category, with a score
of nine and under.
Annually, the categories and points are evaluated to determine compliance with Uniform Grant
Guidance. LEAs are assigned points for the following factors to determine risk:
• Failure to submit federal grant applications by established deadlines;
• Failure to submit reports/plans by established deadlines which include:
o Pennsylvania Information Management System data collection;
o Performance Goal Output Reports; and Schoolwide plan(s);
• Previous year monitor/audit findings;
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-003 • Excessive federal program carryover Title I allocation. All LEAs receive at least one point for
(cont’d) allocation; the higher the allocation, the higher the points;
• New entity;
• New federal program coordinators, business managers, and/or superintendent/chief executive officer;
and
• New accounting software at the LEA.
A risk assessment, conducted by an outside, contracted entity stated that PDE’s risk is heightened due to
the four-year monitoring cycle. Therefore, PDE is working to hire an outside contractor to monitor LEA
funds distributed through ESSER I and ESSER II by September 2022.
PDE has also self-identified gaps in procedures and internal controls and taken steps to correct them.
As stated above, policies and procedures are present but are currently being revised, to support the influx
of federal dollars over such a short period of time.
105
Due to capacity issues, PDE does take responsibility for the delay in revising its monitoring and internal
control policy. However, PDE has been working to mitigate risks in several areas based on an
assessment of risk performed by an outside contractor. For the second phase of the risk assessment and
internal controls process, PDE is working to secure an outside contractor to assist with monitoring and
establish corrected internal policies and procedures.
2021-004 A Material Weakness and Material Noncompliance Exist at the Department of Environmental
Protection Related to Subrecipient Monitoring (A Similar Condition Was Noted in Prior Year
Finding 2020-004)
DEP Brian Bradley, This issue was first identified in the last single audit. The corrective actions are ongoing. 06/30/2022
Director,
Bureau of AMLR program representatives attended an online training on March 2, 2021, covering 2 CFR 200 and
Abandoned contractor or subrecipient determinations. The training was being provided by the Department of the
Mine Interior, Office of Surface Mining Reclamation and Enforcement (DOI/OSM).
Reclamation
The DEP has ceased issuing AMLR grants under Management Directive 305.20, Grant Administration
Tim Golding, and will not resume issuing them until the AMLR program has subrecipient monitoring procedures in
Executive place.
Assistant,
Office of DEP management has determined the recipients with existing agreements are subrecipients. DEP will
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-004 Administration follow this determination consistently with future agreements and accounting treatment.
(cont’d) and
Management DEP is developing written policies and procedures for subrecipient monitoring and will notify grantees
to implement them immediately to ensure timely subrecipient compliance with federal regulations.
2021-005 A Material Weakness and Material Noncompliance Exist at the Department of Human Services
Related to Electronic Benefits Transfer Card Security (A Similar Condition Was Noted in Prior
Year Finding 2020-005)
DHS Jeanette 1. The EBT Project Office will make updates to the EBT Procedures Manual (Manual) and OIM EPPIC 03/30/2022
Coulston, OIM EBT Systems Application form (application). The manual will be updated to provide one link to the
Income application. The application will be updated to properly identify signature requirements. Notification of
Maintenance updates will be sent to CAO staff via the End of the Week publication.
Program
Representative 2. All CAOs and district offices will be reminded of the EBT Coordinators’, alternates’, pinners’, and 04/01/2022
106 card makers’ responsibilities and will ensure users in the EBT Card Tracking Database know their
responsibilities and segregation of duties. A reminder will be sent to review the OIM EBT Procedural
Manual.
3. OIM mandates annual training for EBT personnel to be completed at the beginning of each year. The Completed
training reviews the procedures that safeguard access to the EBT systems. Also included is the
following:
a. Review of roles and responsibilities and who may hold a role
b. Card maker and pinner coverage for all business hours
c. Proper security for EBT cards and associated items
d. Timeframes for submitting changes
e. Retention timeframes
Area managers and Staff assistants monitor completion of the training.
4. The EBT Program office will provide guidelines for the CAOs to follow when reviewing/updating 07/01/2022
their written internal procedures for EBT security for card mailings.
5. The EBT Project Officer will start retraining of parties that are responsible for the completion of the Completed
EBT Headquarters Card Destruction log.
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-006 A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related
to Submission of Emergency Rental Assistance Monthly and Quarterly Reporting
DHS Joel DHS Office of Income Maintenance has hired a contractor to assist in developing monitoring procedures 09/30/2022
O'Donnell, to ensure the accuracy of ERAP reporting. Once those procedures are developed, the contractor will also
Dir., Bur. of assist with the validation of the information from the counties.
Prog. Support
2021-007 Department of Human Services Did Not Validate Financial Information as Part of Its On-Site
Monitoring of Temporary Assistance for Needy Families Subrecipients (A Similar Condition Was
Noted in Prior Year Finding 2020-006)
DHS Joel New Directions 06/30/2022
O’Donnell, The Office of Income Maintenance (OIM) updated agency monitoring personnel checklists in FY 2019-
Director, 20 to include testing various financial controls of select grantees based on their Risk Assessment scores.
107 Bureau of
Program OIM had planned to move forward with a portion of on-site monitoring during the year ended June 30,
Support 2020, however, since March 13, 2020, agency personnel have been restricted from travel, making on-site
monitoring not feasible. OIM is currently operating under a public health emergency. Once the state
provides travel guidance at the conclusion of the health emergency and there is a recovery plan in place
as an agency, OIM will be able to perform this monitoring.
Jazmin Alternatives to Abortion 06/30/2022
Cartwright, The Office of Policy Development (OPD) initiated numerous conversations with the Alternatives to
Grants and Abortion grantee regarding receiving the requested documentation for monitoring (communication
Policy occurred regularly from April 2021 through January 2022). The grantee disagrees that the disclosure of
Specialist this information is a requirement of the grant agreement and as such has not provided the documentation
needed to complete the monitoring.
On January 27, 2022, DHS sent a letter to the grantee requesting a response to determine the next steps
for this monitoring review. On January 28, 2022, the grantee requested to meet with DHS's Office of
General Counsel to discuss the issue and find a solution.
The Office of General Counsel and the Alternatives to Abortion grantee are in the process of scheduling
a meeting to discuss this situation and come to a resolution. In addition, OPD completed risk
assessments for FY 21-22. Monitoring will prioritize subrecipients receiving a “high risk” designation
and/or who have not been monitored in the past 5 years. Monitoring will occur by June 30, 2022.
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-008 Material Weaknesses and Material Noncompliance Exist in Monitoring of Foster Care, Adoption
Assistance, and Temporary Assistance for Needy Families Subrecipients by the Department of
Human Services’ Office of Children, Youth, and Families (A Similar Condition Was Noted in
Prior Year Finding 2020-007)
DHS TinaMarie OCYF Regional Director staff have verified that OCYF Regional Offices are issuing the Licensing 06/30/2022
Petrovitz, Inspection Summary (LIS) within 15 days of the close of the inspection, as is considered timely. If
Director, applicable, counties have ten calendar days to respond to the plan of correction (POC) and that POC
County needs to be reviewed by the regional office within ten business days for compliance. This LIS will be
Support sent to Harrisburg for processing.
Concerning the monitoring of subrecipients: Counties are required to maintain a written contract with
each provider to which clients are referred. The provider agency must submit to the county children and
youth agency (CCYA) quarterly progress reports, discharge summaries, billing statements, and other
written reports as required by the CCYA and/or in accordance with DHS regulations or guidance. The
108 CCYA must monitor provider adherence to the Child Protective Services Law (CPSL) background
check requirements to assure the safety of children receiving prevention, reunification, and aftercare
services (coded as “in-home”). Counties have primary oversight of their service providers by the fiscal
office, quality assurance staff or their contract monitors. The CCYA must document these efforts and
report them to DHS.
As part of the county single audit reporting package, all counties are required to include a supplemental
schedule, which is subjected to an Agreed-Upon Procedures engagement. The schedule documents
CCYA monitoring of providers’ adherence to the requirements of the CPSL for children in in-home
providers. The schedule includes a list of all providers, date of most recent monitoring, if there were
exceptions, submission of a corrective action plan (CAP), and acceptance, implementation, and follow-
up on the CAP. The county’s independent auditor is required to test the list for completeness and analyze
the CCYA’s documentation of monitoring activities for adequacy, obtaining necessary corrective action
plans, and timely follow-up on corrective action plans, and adequacy and accuracy of monitoring
documentation.
As single audit reports are received in DHS, a copy is transmitted to OCYF for review by the Bureau of
Budget and Fiscal Support and use in QA reviews, including the supplemental information and any
applicable findings contained.
In addition, the Pennsylvania Department of the Auditor General (AG) conducts annual engagements of
the CCYAs to ascertain and certify actual expenditures on behalf of children residing within the County
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-008 and to determine compliance with regulations. During these engagements, the AG reviews the county
(cont’d) policies and procedures of in-home purchased services billings and CPSL adherence. Any issued
findings and/or observations included in these reports are also considered in Licensing Inspections and
QA reviews.
2021-009 A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related
to the Medicaid National Correct Coding Initiative (A Similar Condition Was Noted in Prior Year
Finding 2020-010)
DHS Sandra OMAP’s Bureau of Data and Claims Management (BDCM) is currently negotiating an amendment to 06/30/2022
Marcella, Dir., the PROMISe contract which will include the necessary NCCI Confidentiality Agreement.
BDCM
2021-010 A Significant Deficiency and Noncompliance Exist at the Department of Human Services Related
to the Managed Care Financial Audit
109
DHS Michael Office of Long-Term Living (OLTL): Completed
Penney, Dir., OLTL posted the annual Community Health Choices MCO audits to the DHS website on January 31,
Div. of Rate 2022. In addition, OLTL will post these audits or a summary of them on the DHS website every year.
Setting and
Auditing
Maranatha Office of Medical Assistance Programs (OMAP): 05/31/2022
Perez, Dir., OMAP conducted most recent encounter and financial data audit between September and December
Bur. of Fiscal 2021. The audit work is complete; however, OMAP is currently reviewing the draft audit report. For
Mgmt. (BFM), this reason, a final audit report was not published to the website in December 2021. OMAP intends to
post the final audit report on DHS’ website in the spring of 2022.
Maki Traynor,
Dir., Div. of In order to be in compliance with the encounter and financial data audit requirement in subsequent
HealthChoices periods, OMAP will start the next required encounter data audit in time to publish the report by
Rates, BFM December 31, 2024
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-011 A Significant Deficiency and Noncompliance Exist Related to Eligibility of Unemployment
Recipients
L&I Rebecca Keen, Since the implementation of ID.me in the PUA system in October 2020, and in the Ben Mod system in 12/31/2022
Acting July 2021, Pennsylvania continues to monitor and address system vulnerabilities as needed. The chart
Director, below documents Pennsylvania’s improvements to this fraud preventative measure in the Ben Mod
Office of UC system:
Benefits
Policy - 7/16/2021 - ID.me goes live for initial claims.
- 7/22/2021 - ID.me goes live for anyone filing weekly certifications on claims with an effective date
after March 1, 2021.
- 7/30/2021 - ID.me goes live for any time a claimant changes his/her Keystone ID (all claim types).
- 10/11/2021 - ID.me goes live for any time a claimant changes his/her payment method (all claim
types).
110 A request has been made to Geographic Solutions (GSI), Pennsylvania’s system vendor, to establish a
web service connection to the National Association of State Workforce Agency’s (NAWSA’s) Integrity
Data Hub. The hub is comprised of a unique set of tools that, when actively utilized by all U.S. states
and territories, forms a powerful mechanism for detecting and preventing UI fraud in one robust system.
- Integrity Data Hub - Designed by the Integrity Center’s leading UI experts, the hub provides critical
cross-matching functionality to combat the challenges and urgencies of UI fraud.
- Suspicious Actor Repository - Participating states match current claims against this state-populated
database of fraudulent and suspicious claims data. The repository leverages the investigative power of all
states for the benefit of each state.
Plans are also under way to add multi-factor authentication, a two-step process that will add an extra
layer of protection against fraud and identity theft.
Pennsylvania will be using NASWA's online training resources to train staff on:
- Properly identifying a caller (identity theft).
- Increasing listening skills to assist staff in identifying conflicting information between claimants'
statements.
- Knowing what questions to ask and when to clarify or verify information.
- Educating claimants on their rights, responsibilities, and requirements for eligibility.
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-011 - Identifying potential fictitious employer schemes or multi-claimant schemes.
(cont’d)
Pennsylvania is also working with a U.S. Department of Labor Tiger Team, specifically designed to
analyze state systems and processes and, following recommendations by the Tiger Team, to implement
any recommendations using federal grant funds. One of the focuses of the Tiger Team grant is to
prevent, detect, and recover fraudulent UI overpayments. The Tiger Team is in the process of reviewing
current processes and will be making recommendations to improve the fraud measures.
2021-012 A Significant Deficiency Exists at the Department of Labor and Industry Related to the
Reemployment Services and Eligibility Assessments Program
L&I Dorraine It was recommended through the audit that an existing staff checklist from the RESEA Policy and Completed
Rauch, Procedures Desk Guide be used as a mandatory control of the program. Based on that recommendation,
Workforce the agency took the checklist, updated it and made it a fillable PDF. There are signature requirements for
Dev. Super. the staff case manager to sign off on, certifying that all steps have been completed. The checklist is then
111 provided to the supervisor who is then required to review the participant’s activity and sign off,
Crystal acknowledging that all steps were completed.
Houser,
Division On February 11, 2022 an email along with the fillable checklist was sent to all PA CareerLink® staff
Chief, Quality working in the RESEA program notifying them of the new requirement to complete and sign the
Assurance checklist, effective February 14, 2022.
2021-013 Information Technology General Controls Need Improvement (A Similar Condition Was Noted in
Prior Year Finding 2020-015)
OA-OIT Derin Myers, Public Safety Delivery Center will monitor and document the review of email notifications and code Completed
PCCD, production logs to verify that developers are not pushing unauthorized code to production.
Director,
OFMA EDC now performs quarterly review of privileged user accounts to ensure former employees do not
continue to have server access.
2021-014 State Agencies Did Not Identify the Federal Award Information and Applicable Requirements at
the Time of the Subaward and Did Not Evaluate Each Subrecipient’s Risk of Noncompliance as
Required by the Uniform Grant Guidance (A Similar Condition Was Noted in Prior Year Finding
2020-020)
DHS TinaMarie OCYF is sending out a Restrictions and Requirements document with each FY 21-22 Tentative and Completed
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-014 Petrovitz, Final Allocation letter. The document lists all OCYF’s grants, the federal agency granting the fund and
(cont’d) Director of where to find the rules and regulations guiding the usage of the funds.
County
Support FY 21-22 Tentative Allocation Letters are being sent in March 2022. The Final Allocation Letters will
be sent out once the budget passes.
FY 20-21 Tentative Allocation Letters were sent on April 1, 2021, with Assistance Listing Numbers
(ALN) and funding amounts. Final Allocation Letters were sent July 31, 2021, with an attachment
including all Federal Award information: ALN and Name, Amount, Federal Award Identification
Number (FAIN); Federal Award Date; Subaward Period of Performance Start and End Date; Name of
Federal awarding agency, pass-through entity, and contact information for awarding official.
OCYF has a risk assessment process in place for Title IV-E and TANF awards. During the Quality
Assurance reviews, which occur twice a year at a minimum, OCYF reviews a sample of Title IV-E
eligible foster care cases, Title IV-E ineligible foster care cases, Title IV-E eligible adoption assistance
112 cases, and TANF eligible cases. Depending on the number of eligibility and claiming errors identified
during the review, OCYF schedules more frequent visits as the risk of repeated and continued errors in
these CCYAs is higher. Inaccurate eligibility determinations lead to inaccurate federal claiming, so
basing the review schedule on a CCYA’s eligibility review outcome allows OCYF to target those
CCYAs where inaccurate claiming is a higher risk. However, to further address this finding, the risk
assessment now includes documentation of other risk factors, such as: submission of a single audit
report, prior experience, and new personnel. The corrective actions are considered complete.
PennDOT Ryan Shiffler, PennDOT will continue to include the ALN in all RAS agreements. PennDOT is developing further 06/30/2022
Project Dev. guidance to ensure that Federal & State Assistance Program Names and Numbers are identified correctly
Engineer and populated in agreements. PennDOT will continue to reinforce the need for a notice provision in
RAS agreements. Any RAS agreement that does not contain a notice provision within its body will have
Jeffrey Spotts, an attachment uploaded with party contacts to satisfy the notice requirement and further guidance to
Acting Deputy remind PennDOT personnel of this approach is forthcoming.
Chief Counsel
Nick Balzer,
Asst. Counsel
Dougie Chon,
Asst. Counsel
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-015 A Material Weakness and Material Noncompliance Exist in the Commonwealth’s Subrecipient
Audit Resolution Process (A Similar Condition Was Noted in Prior Year Finding 2020-021)
DEP Jennifer L. During an audit in December 2020, DEP Fiscal Management became aware of staff not completing the Completed
Brandt, necessary steps for the management decision process that is included in the instructions for handling
Senior Fiscal single audit reviews. DEP Fiscal Management staff immediately contacted the DEP Program Grant
Management Officers for a review of these findings and the submitted corrective action plans. At that time, there was
Specialist, also a thorough review of all single audits received with findings for the calendar year to ensure these
Federal Grants steps were not missed on any other submissions.
and Audits
DEP Fiscal Management staff participated in a mandatory review of department and Commonwealth
policies focusing on these steps January 21, 2021. DEP Fiscal Management updated the internal
procedures to highlight these steps to ensure they are not missed on any future single audit review on
February 1, 2021.
113
DEP Fiscal Management staff participated in a high-level training held by OB-BAFM on March 30,
2021. All staff attended the session, including staff who previously worked on single audits and new
staff that had recently come on board.
OB-BAFM provides agencies with single audit reporting packages that have findings each week that
have been accepted by the Federal Audit Clearinghouse. This allows to start the management decision
process in a timelier manner and meet the six-month deadline for issuing a decision.
DHS David Bryan, Regarding the timeliness of finding resolution and procedures related to the SEFA reviews, the Audit 06/30/2022
Manager, Resolution Section (ARS) hired an additional staff member in August 2021 and is currently in the
Audit Res. process of hiring another staff member as of February 2022. In addition, ARS is continuing to have staff
Section from other areas in the Division of Audit and Review assist with these reviews to make them timelier.
Finally, the ARS is working with Office of the Budget, Bureau of Accounting and Financial
Alexander Management to develop a risk-based approach for single audit reviews, which will greatly streamline the
Matolyak, process of single audit reviews to gain substantial efficiencies.
Director,
Division of Regarding late audit report submissions, DHS will continue to follow the requirements of 2 CFR
Audit and §200.339 and Commonwealth Management Directive 325.8. DHS will continue to work with counties
Review and their independent auditors to obtain any late Single Audit reports.
COMMONWEALTH OF PENNSYLVANIA
Corrective Action Plans - June 30, 2021
Anticipated
Contact Completion
Finding Agency Person & Title Finding Title/Corrective Action Date
2021-015 PCCD Chris Epoca, Internal operating procedures have been revised to include the following corrective actions: Completed
(cont’d) Deputy
Director, PCCD will monitor the “Agency Finding Responsibility Spreadsheet” provided by OB-BAFM on a
OFMA weekly basis.
Once OB-BAFM determines PCCD is the Lead/Responsible agency, PCCD will document the start date
on issuing a management decision. PCCD will issue the Management Decision within six months of
acceptance of the audit report by the Federal Audit Clearinghouse (FAC).
PEMA Anne N. Ofili, The FAC Weekly Listing and Agency Finding Responsibility Spreadsheet provided by OB-BAFM are Completed
Grants Comp. now reviewed by a more senior staff to ensure the OB-BAFM routine upload emails are being entered
Division Chief correctly into the single audit database by the designated staff.
114
Appendix
Commonwealth of Pennsylvania
115
COMMONWEALTH OF PENNSYLVANIA
APPENDIX - Legend of Abbreviations - June 30, 2021
The following legend presents descriptions of abbreviations:
ABBREVIATION DESCRIPTION
AA Adoption Assistance
AMLR Abandoned Mine Land Reclamation
ACA Affordable Care Act
ACF Administration for Children and Families
ACFR Annual Comprehensive Financial Report
ACH Automated Clearing House
AG Department of the Auditor General
AGRI Department of Agriculture
AICPA American Institute of Certified Public Accountants
ALN Assistance Listing Number
ARC Appalachian Regional Commission
BAFM Bureau of Accounting and Financial Management
BCSE Bureau of Child Support Enforcement
BFD Bureau of Food Distribution
BFO Bureau of Financial Operations
BFS Basic Financial Statements
BOA Bureau of Audits
BPS Bureau of Payable Services
BQA Bureau of Quality Assurance
BUCD Bureau of Unemployment Compensation Disbursements
BWDA Bureau of Workforce Development Administration
CACFP Child and Adult Care Food Program
CAO County Assistance Office
CAP Corrective Action Plan
CARES Coronavirus Aid, Relief, and Economic Security Act
CCDBG Child Care and Development Block Grant
CCDF Child Care and Development Fund
CCIS Child Care Information Service
CCYA County Children and Youth Agency
CDBG Community Development Block Grants
CFDA Catalog of Federal Domestic Assistance
CFR Code of Federal Regulations
CHIP Children’s Health Insurance Program
CIS Client Information System
CMIA Cash Management Improvement Act of 1990
CMS Centers for Medicare and Medicaid Services
CNC Child Nutrition Cluster
CN-PEARS Child Nutrition Program Electronic Application and
Reimbursement System
COPPAR Commonwealth of Pennsylvania Policy and Procurement Action Request
COSO Committee of Sponsoring Organizations of the Treadway Commission
COVID-19 Coronavirus Disease 2019
CSE Child Support Enforcement
CVA Crime Victim Assistance
CWDS Commonwealth Workforce Development System
CWSRF Capitalization Grants for Clean Water State Revolving Funds
DCED Department of Community and Economic Development
DDAP Department of Drug and Alcohol Programs
DEP Department of Environmental Protection
DFN Division of Food and Nutrition
DFP Division of Federal Programs
DGS Department of General Services
DHS Department of Human Services
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COMMONWEALTH OF PENNSYLVANIA
Legend of Abbreviations (Continued) - June 30, 2021
ABBREVIATION DESCRIPTION
DMVA Department of Military and Veterans Affairs
DOD United States Department of Defense
DOE United States Department of Energy
DOH Department of Health
DOI United States Department of Interior
DOJ United States Department of Justice
DOL United States Department of Labor
DOR Department of Revenue
DOT United States Department of Transportation
EBT Electronic Benefits Transfer
eCIS Electronic Client Information System
ED United States Department of Education
EPA United States Environmental Protection Agency
ERA COVID - 19 – Emergency Rental Assistance Program
ESEA Elementary and Secondary Education Act
ESSER Elementary and Secondary School Emergency Relief Fund
FAC Federal Audit Clearinghouse
FAIN Federal Award Identification Number
FC Foster Care – Title IV-E
FEMA Federal Emergency Management Agency
FFY Federal Fiscal Year
FHWA Federal Highway Administration
FNS Food and Nutrition Service
FYE Fiscal Year Ended
GAAP Generally Accepted Accounting Principles
GAO United States Government Accountability Office
HHS United States Department of Health and Human Services
HIV Human Immunodeficiency Virus
HPC Highway Planning and Construction
HSGP Homeland Security Grant Program
HUD United States Department of Housing and Urban Development
IDEA Individuals with Disabilities Education Act
IES Integrated Enterprise System
IESO Integrated Enterprise Systems Office
IT Information Technology
ITP Information Technology Policy
ITS Integrated Tax System
L&I Department of Labor and Industry
LCB Liquor Control Board
LEA Local Educational Agency
LIHEAP Low-Income Home Energy Assistance Program
LWIB Local Workforce Investment Board
MA Medical Assistance Program
MD Management Directive
MLF Motor License Fund
MOU Memorandum of Understanding
NCLB No Child Left Behind
NGMO National Guard Military Operations and Maintenance Projects
NIST National Institute of Standards and Technology
NSLP National School Lunch Program
NSP Neighborhood Stabilization Program
OA Office of Administration
OB Office of the Budget
OCDEL Office of Child Development and Early Learning
OCO Office of Comptroller Operations
117
COMMONWEALTH OF PENNSYLVANIA
Legend of Abbreviations (Continued) - June 30, 2021
ABBREVIATION DESCRIPTION
OCYF Office of Children, Youth, and Families
ODP Office of Developmental Programs
OIG Office of Inspector General
OIM Office of Income Maintenance
OIT Office for Information Technology
OMB Office of Management and Budget
OVR Office of Vocational Rehabilitation
PCCD Pennsylvania Commission on Crime and Delinquency
PDA Pennsylvania Department of Aging
PDE Pennsylvania Department of Education
PDOT Pennsylvania Department of Transportation
PEMA Pennsylvania Emergency Management Agency
PennDOT Pennsylvania Department of Transportation
PENNVEST Pennsylvania Infrastructure Investment Authority
PID Pennsylvania Insurance Department
PIMS Pennsylvania Information Management System
PLCB Pennsylvania Liquor Control Board
PTE Pass-through entity
PUA Pandemic Unemployment Assistance
RESEA Reemployment Services and Eligibility Assessments
RFP Request for Proposal
RS-VR Rehabilitation Services – Vocational Rehabilitation Grants to States
SABG Block Grants for Prevention and Treatment of Substance Abuse
SAS Statement on Auditing Standards
SDLC Systems Development Life Cycle
SEA State Educational Agency
SEFA Schedule of Expenditures of Federal Awards
SNAP Supplemental Nutrition Assistance Program
SOC System and Organization Controls
SSA United States Social Security Administration
SSAE Statements on Standards for Attestation Engagements
SSBG Social Services Block Grant
SW Statewide Finding
SWIF State Workers’ Insurance Fund
TANF Temporary Assistance for Needy Families
TRE United States Department of the Treasury
UC Unemployment Compensation
UCMS Unemployment Compensation Modernization System
UG Uniform Guidance
UI Unemployment Insurance
USDA United States Department of Agriculture
USDE United States Department of Education
USDHS United States Department of Homeland Security
USDOJ United States Department of Justice
USDOL United States Department of Labor
WIA Workforce Investment Act
WIC Women, Infants, and Children
WIOA Workforce Innovation and Opportunity Act
WPRS Worker Profiling and Reemployment Services
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