Provider Independent Certified Audit/Review
Certified Audit Review Procedures
All Department of Human Service providers meeting the state or federal expenditure criteria noted below, are required to submit a yearly certified audit prepared by an independent certified public accountant. The audit must include supplemental schedules reflecting Allegheny County revenue and expenditures, as well as an opinion as to the fairness of the financial statements. Furthermore, disclosures are required for internal controls, related party transactions, fixed assets, the indirect cost allocation plan being used in addition to other relevant information.
Certified Audit Expenditure Criteria
Federal - OMB Circular A-133
- Federally-funded expenditures greater than or equal to $500,000
State - GAGAS (Yellow Book)
- Department of Public Welfare - Combined federal and state DPW expenditures greater than or equal to $500,000
- PA Department of Health - Bureau of Drug and Alcohol Program expenditures greater than or equal to $300,000
Procedures for Submitting, Review and Follow-Up
Service provider submits the completed audit report to DHS Office of Administrative and Information Managment Services for review.
Audit due dates:
- June 30 fiscal year-end - due March 31 of the following year
- Other fiscal year-end - due by last day of the ninth month following the agency's fiscal year end
A preliminary review is completed to identify audits containing findings (areas of concern), and questioned costs, or for which a management letter regarding internal control weaknesses have been issued to the agency by the auditor of record.
If the agency's Corrective Action Plan (CAP) is not included in the audit report, DHS sends a letter requesting a CAP to include specific actions by agency management to correct the finding, a timetable for implementation and the responsible agency staff person assigned to implement the CAP.
A member of the Contract Compliance Unit will review the CAP to assure it adequately addresses all findings and/or questioned costs and will issue a management decision letter to the agency within six months following receipt of the audit report.
The audit acceptance review checklist is completed by the monitor to assure all necessary reports, schedules, findings, CAPs and management letters are included in the audit report package and are in the correct format. A letter is sent to the provider if there are questions or if schedules are missing.
The notes to the audited financial statements are closely reviewed for related-party disclosures, self-insurance, administrative cost allocation plan, accounts receivable/payable to Allegheny County and fixed-asset disclosures.
The final review checklist includes the reconciliation of costs per audit to payments made by DHS. The audited financial statements and schedules are reviewed for completeness, accuracy and logic.
A year-end audit reconciliation is completed, reconciling audit expenditures, expenditures eligible for DHS participation and final contract payments.
A letter is sent to the service provider following the final audit review and may request a return of funds (agency surplus) or close the audit.
For associated documents see the Manuals and Instructions page and the Forms page.
Provider Audit Reporting Requirements
If the provider expends total federal awards of $500,000 or more (from ALL funding sources) during its fiscal year, either directly from the federal government or indirectly from a recipient of federal funds, the provider is required to have a single audit or program-specific audit made in accordance with the provisions of OMB Circular A-133.
If the provider expends total federal awards of less than $500,000 (from ALL funding sources) during its fiscal year, it is exempt from the above audit requirements. However, it is required to maintain auditable records of any federal, state and county funds that supplement such awards, and to provide access to such records by federal, state and county agencies or their designees for a period of at least four years.
June 30 fiscal year-end audit report packages are due March 31 of the following year.
Other fiscal year-end - due by last day of the ninth month following the agency's fiscal year end.