county of erie, pennsylvania · 2018. 10. 11. · county of erie, pennsylvania schedules and...

County of Erie, Pennsylvania

Schedules and Exhibits Prepared for Compliance with Federal

and State Guidelines

Year Ended December 31, 2017 withIndependent Auditor’s Reports

Pursuing the profession while promoting the public good© www.md‐cpas.com

COUNTY OF ERIE, PENNSYLVANIA

SCHEDULES AND EXHIBITS PREPARED FOR COMPLIANCE WITHFEDERAL AND STATE GUIDELINES

YEAR ENDED DECEMBER 31, 2017

TABLE OF CONTENTS

Independent Auditor's Report on the Schedule of Expenditures of Federal Awards and on the Schedule of DHS Expenditures 1

Schedule of Expenditures of Federal Awards 2

Notes to Schedule of Expenditures of Federal Awards 11

Schedule of Pennsylvania Department of Human Services Expenditures 12

Independent Auditor's Reports Required by the Uniform Guidance:

Independent Auditor's 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 13

Independent Auditor's Report on Compliance for Each Major Federal and PA DHS Program and on Internal Control over Compliance Required by the Uniform Guidance and the DHS Single Audit Supplement 15

Schedule of Findings and Questioned Costs 18

Summary Schedule of Prior Audit Findings 19

Schedules and Exhibits Required by Pennsylvania Department of Human Services:

Independent Accountant’s Report on Applying Agreed-Upon Procedures 20

Child Support Enforcement – Exhibit A-1(a) – Comparison of Single Audit Expenditures with Reported Expenditures 22


SCHEDULES AND EXHIBITS PREPARED FOR COMPLIANCE WITHFEDERAL AND STATE GUIDELINES


TABLE OF CONTENTS

(Continued)

Child Support Enforcement – Exhibit A-1(c) – Comparison of Reported Incentives to Incentives on Deposit 23

Child Support Enforcement – Exhibit A-1(d) – Comparison of Single Audit Title IV-D Account with Reported Title IV-D Account 24

Medical Assistance Transportation Program – Exhibit III – Schedule of Revenues and Expenditures 25

Early Intervention Services – Exhibit V(a)EI – Schedule of Revenues, Expenditures, and Carryover Funds 26

Early Intervention Services – Exhibit V(b)EI – Report of Income and Expenditures 27

County Human Services Block Grant – Exhibit VI(a) BG-S – County Report of Income and Expenditures, Schedule of Fund Balances – Summary Report 28

County Human Services Block Grant – Exhibit VI(b) BG-S – County Report of Income and Expenditures, Schedule of Fund Balances – Summary Report 29

Child Care Information Services – Child Care Network – Exhibit VIII – Final CCIS Recap 30

DHS – Schedule of Expenditures of Federal Awards Reconciliation:

Independent Accountant’s Report on Applying Agreed-Upon Procedures 32

Reconciliation – Federal Awards Passed Through the Pennsylvania Department of Human Services Expenditures per the SEFA to Revenue Received per the Pennsylvania Audit Confirmation Reply 34

1

Independent Auditor’s Report on the Schedule of Expenditures of Federal Awards

and on the Schedule of DHS Expenditures

We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the

County’s basic financial statements. We issued our report thereon dated June 21, 2018, which contained an unmodified opinion 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements. Similarly, the schedule of Department of Human Services (DHS) expenditures is presented for purposes of additional analysis as required by DHS and is also 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. The information has been subjected to the auditing procedures applied in the audit of the 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 and schedule of DHS expenditures are fairly stated in all material respects in relation to the basic financial statements as a whole.

Pittsburgh, PennsylvaniaSeptember 21, 2018

Members ofCounty CouncilCounty of Erie,Pennsylvania

Pursuing the profession while promoting the public good© Pittsburgh | Harrisburg | Butler

www.md‐cpas.com State College | Erie | Lancaster

kjc

Maher Duessel

(Accrued) or Accrued orUnearned Federal (Unearned)

Grant CFDA Expenditures Revenue at Grant Revenue atFederal Grantor/Pass-Through Grantor/Program Title Number Number to Subrecipients December 31, 2016 Receipts Expenditures December 31, 2017

U.S. Department of Housing and Urban DevelopmentCDBG - Entitlement Grants Cluster:

Community Development Block Grants/Entitlement Grants:Times News B16MC420107 14.218 2,011$ -$ 2,011$ 2,011$ -$ Millcreek CDBG B16MC420107 14.218 27,989 - 27,989 27,989 - Vavala Construction B16MC420107 14.218 177,216 - 173,652 177,216 3,564 HANDS B16MC420107 14.218 3,300 - 3,300 3,300 - EC Human Relations Commission B16MC420107 14.218 524 - 524 524 - Fair Housing Resource Center B16MC420107 14.218 5,204 - 5,204 5,204 - Lifeworks Health Support Program B16MC420107 14.218 6,729 (2,260) 8,989 6,729 - Lifesworks B17MC420107 14.218 2,847 - 2,847 2,847 - Millcreek CDBG B17MC420107 14.218 249 - 249 249 - Empire Landscaping & Snow Services B17MC420107 14.218 11,706 - 11,706 11,706 -

Total CFDA #14.218 - Entitlement Grants Cluster 237,775 (2,260) 236,471 237,775 3,564

Passed-Through the Pennsylvania Department of Community and Economic Development:Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii:

Northeast CDBG B13DC420001 14.228 - (684) 684 - - County CDBG B14DC420001 14.228 - (61,519) 130,803 75,930 6,646 County CDBG B15DC420001 14.228 - - 119,755 190,724 70,969 Edinboro CDBG B15DC420001 14.228 - - 5,638 10,000 4,362 Girard CDBG B15DC420001 14.228 - (16,682) 52,153 38,050 2,579 McKean CDBG B15DC420001 14.228 - - 42,634 45,496 2,862 Northeast CDBG B15DC420001 14.228 - - 5,548 8,400 2,852 County CDBG B16DC420001 14.228 - - 2,751 5,143 2,392 Girard CDBG B16DC420001 14.228 - - 84,519 85,267 748 McKean CDBG B16DC420001 14.228 - - 1,424 2,124 700 Northeast CDBG B16DC420001 14.228 - - 1,481 2,229 748 Edinboro CDBG B16DC420001 14.228 - - 95,813 96,598 785

Total CFDA #14.228 - (78,885) 543,203 559,961 95,643

Emergency Solutions Grant Program:DCED 2016 Emergency Shelter - Contract Period 07/01/2016 to 06/30/2017 C000060164 14.231 134,647 - - 134,647 134,647 DCED 2016 Emergency Shelter - Contract Period 07/01/2017 to 06/30/2018 C000060164 14.231 48,042 - 134,647 48,042 (86,605)

Total CFDA #14.231 182,689 - 134,647 182,689 48,042

(Continued)


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


See accompanying notes to schedule of expenditures of federal awards.

2



U.S. Department of Housing and Urban Development (Cont.)Continuum of Care Program:

Self Start 1 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0331L3E051508 14.267 93,765 (258,535) 352,300 93,765 - Self Start 1 2016 COC - Contract Period 07/01/2016 to 06/30/2017 PA0331L3E051609 14.267 86,963 - 29,476 86,963 57,487 Self Start 1 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0331L3E051609 14.267 208,071 - 194,830 208,071 13,241 Self Start 2 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0332L3E051508 14.267 65,236 (44,163) 89,756 65,236 19,643 Self Start 2 2015 - Contract Period 07/01/2016 to 06/30/2017 PA0332L3E051508 14.267 23,648 - 43,291 23,648 (19,643) Self Start 2 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0331L3E051609 14.267 53,772 - 30,187 53,772 23,585 Self Start 3 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0427L3E051507 14.267 58,993 (58,433) 97,640 58,993 19,786 Self Start 3 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0427L3E051507 14.267 - - 19,786 - (19,786) Self Start 3 2016 - Contract Period 07/01/2016 to 06/30/2017 PA0427L3E051608 14.267 73,637 - 45,969 73,637 27,668 SPC Stairways Act 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0464L3E051501 14.267 7,860 (39,025) 46,885 7,860 - SPC Stairways Act 2016 COC - Contract Period 07/01/2016 to 06/30/2017 PA0464L3E051602 14.267 21,597 - 14,189 21,597 7,408 SPC Stairways Act 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0464L3E051602 14.267 50,092 - 38,921 50,092 11,171 SPC Finally Home 2013 - Contract Period 07/01/2017 to 06/30/2018 PA0327L3E051301 14.267 (24,326) - (24,326) (24,326) - SPC Finally Home 2014 - Contract Period 07/01/2017 to 06/30/2018 PA0327L3E051402 14.267 (19,689) - (19,689) (19,689) - SPC Finally Home 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0327L3E051503 14.267 7,798 (9,921) 13,229 7,798 4,490 SPC Finally Home 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0327L3E051503 14.267 4,841 - 9,331 4,841 (4,490) SPC Finally Home 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0327L3E051604 14.267 3,588 - 1,589 3,588 1,999 Hope for the Homeless 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0329L3E051508 14.267 157,696 (83,773) 204,457 160,760 40,076 Hope for the Homeless 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0329L3E051508 14.267 - - 40,076 - (40,076) Make it a Home Always I 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0604L3E051502 14.267 12,408 (28,525) 41,006 12,481 - Make it a Home Always I 2016 COC - Contract Period 07/01/2016 to 06/30/2017 PA0604L3E051603 14.267 32,472 - 15,535 33,103 17,568 Make it a Home Always I 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0604L3E051603 14.267 44,597 - 49,758 45,463 (4,295) Make it a Home Always II 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0857L3E051600 14.267 9,885 - 3,082 10,077 6,995 Transitional Living Plus 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0328L3E051506 14.267 124,805 (84,819) 169,234 127,228 42,813 Transitional Living Plus 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0328L3E051506 14.267 41,602 - 85,223 42,410 (42,813) Reach 2014 COC - Contract Period 07/01/2016 to 06/30/2017 PA0330L3E051407 14.267 - (81,359) 81,359 - - Reach 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0330L3E051508 14.267 67,430 (11,682) 57,070 67,430 22,042 Reach 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0330L3E051508 14.267 55,106 - 66,126 55,106 (11,020) New Life 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0426L3E051507 14.267 88,644 (41,926) 102,361 88,644 28,209 New Life 2015 - Contract Period 07/01/2017 to 06/30/2018 PA0426L3E051507 14.267 - - 28,209 - (28,209) Lighting the Candle I 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0463L3E051504 14.267 13,945 (28,896) 42,933 14,037 - Lighting the Candle I 2016 COC - Contract Period 07/01/2016 to 06/30/2017 PA0463L3E051605 14.267 38,124 - 23,367 38,864 15,497 Lighting the Candle I 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0463L3E051605 14.267 55,603 - 54,969 56,683 1,714 Lighting the Candle II 2015 COC - Contract Period 07/01/2016 to 06/30/2017 PA0603L3E051502 14.267 13,637 (15,947) 29,840 13,893 - Lighting the Candle II 2016 COC - Contract Period 07/01/2016 to 06/30/2017 PA0603L3E051603 14.267 46,905 - 25,828 47,816 21,988 Lighting the Candle II 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0603L3E051603 14.267 47,445 - 62,949 48,366 (14,583) My Way Home 2016 - Contract Period 07/01/2017 - 06/30/2018 PA0856L3E051600 14.267 129,692 - 73,614 132,188 58,574 HUD Independence 2016 - Contact Period 07/01/2017 to 06/30/2018 PA0855L3E051600 14.267 33,552 - 21,308 34,207 12,899 HUD Fresh Start 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0854L3E051600 14.267 28,977 - 12,432 29,529 17,097 HUD HMIS 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0852L3E051600 14.267 - - 37,760 50,756 12,996 HUD Planning Grant 2016 - Contract Period 07/01/2017 to 06/30/2018 PA0851L3E051600 14.267 - - 15,203 35,891 20,688

Total #14.267 1,758,371 (787,004) 2,327,063 1,860,778 320,719

(Continued)




(Continued)


3

(Accrued) or Accrued or

Unearned Federal (Unearned)

Grant CFDA Expenditures Revenue at Grant Revenue at

Federal Grantor/Pass-Through Grantor/Program Title Number Number to Subrecipients December 31, 2016 Receipts Expenditures December 31, 2017

U.S. Department of Housing and Urban Development (Cont.)

Shelter Plus Care Program:

Self Start 4 2010 SPC - Contract Period 07/01/2016 to 06/30/2017 PA0543C3E051000 14.238 9,419 (8,888) 14,457 9,419 3,850

Self Start 4 2010 - Contract Period 07/01/2017 to 06/30/2018 PA0543C3E051000 14.238 2,585 - 6,435 2,585 (3,850)

SPC Finally Home 2008 - Contract Period 07/01/2017 to 06/30/2018 PA0327C3E050800 14.238 (63,752) - (63,752) (63,752) -

Total CFDA #14.238 (51,748) (8,888) (42,860) (51,748) -

Total U.S. Department of Housing and Urban Development 2,127,087 (877,037) 3,198,524 2,789,455 467,968

U.S. Department of Health and Human Services

Passed-Through the Pennsylvania Department of Human Services:

Promoting Safe and Stable Families:

Time Limited Family Reunification - Contract Period 07/01/2016 to 06/30/2017 N/A 93.556 77,724 (47,051) 114,703 77,724 10,072

Time Limited Family Reunification - Contract Period 07/01/2017 to 06/30/2018 N/A 93.556 73,244 - 41,589 73,244 31,655

Caseworker Visitation - Contract Period 07/01/2016 to 06/30/2017 N/A 93.556 - - 13,454 1,000 (12,454)

Caseworker Visitation - Contract Period 07/01/2017 to 06/30/2018 N/A 93.556 - - - 12,454 12,454

Total CFDA #93.556 150,968 (47,051) 169,746 164,422 41,727

TANF Cluster:

Temporary Assistance for Needy Families:

Children and Youth - Contract Period 07/01/2016 to 06/30/2017 N/A 93.558 662,976 5,740 898,402 669,908 (234,234)

Children and Youth - Contract Period 07/01/2017 to 06/30/2018 N/A 93.558 638,290 - 669,908 646,434 (23,474)

CCIS - Former TANF Fund C - Contract Period 07/01/2016 to 06/30/2017 N/A 93.558 - - 1,153,518 1,153,518 -

CCIS - Contract Period 07/01/2016 to 06/30/2017 N/A 93.558 - - 154,468 154,468 -


Total CFDA #93.558 - TANF Cluster 1,301,266 5,740 3,199,472 2,947,504 (257,708)

Stephanie Tubbs Jones Child Welfare Services Program:

Children and Youth - Title IV-B - Contract Period 07/01/2016 to 06/30/2017 N/A 93.645 - - 67,708 67,708 -

Children and Youth - Title IV-B - Contract Period 07/01/2017 to 06/30/2018 N/A 93.645 - - 67,710 67,710 -

Total CFDA #93.645 - - 135,418 135,418 -

(Continued)




(Continued)


4





U.S. Department of Health and Human Services (Cont.)

Passed-Through the Pennsylvania Department of Human Services (Cont.):

Guardianship Assistance:

SPLC - Contract Period 07/01/2016 to 06/30/2017 N/A 93.090 - (78,997) 185,960 127,306 20,343

SPLC - Contract Period 07/01/2017 to 06/30/2018 N/A 93.090 - - 127,306 125,268 (2,038)

SPLC (IT Grant) - Contract Period 07/01/2016 to 06/30/2017 N/A 93.090 - 108 81 40 (149)

SPLC (IT Grant) - Contract Period 07/01/2017 to 06/30/2018 N/A 93.090 - - 24 270 246

Total CFDA #93.090 - (78,889) 313,371 252,884 18,402

Projects for Assistance in Transition from Homelessness (PATH):

MH PATH Grant - Contract Period 07/01/2016 to 06/30/2017 70154 93.150 44,791 22,131 44,790 66,921 -

MH PATH Grant - Contract Period 07/01/2017 to 06/30/2018 70154 93.150 45,411 - 45,411 45,411 -

Total CFDA #93.150 90,202 22,131 90,201 112,332 -

Foster Care - Title IV-E:

Title IV-E - Contract Period 07/01/2016 to 06/30/2017 N/A 93.658 1,027,127 (7,096,912) 1,613,492 3,666,787 9,150,207

Title IV-E - Contract Period 07/01/2017 to 06/30/2018 N/A 93.658 972,873 - 3,299,545 972,873 (2,326,672)

Title IV-E (IT Grant) - Contract Period 07/01/2016 to 06/30/2017 N/A 93.658 - (128,965) 37,958 40,245 131,252

Title IV-E (IT Grant) - Contract Period 07/01/2017 to 06/30/2018 N/A 93.658 - - 24,699 87,484 62,785

Title IV-E - Contract Period 07/01/2016 o 06/30/2017 N/A 93.658 - - 8,305 8,305 -

Total CFDA #93.658 2,000,000 (7,225,877) 4,983,999 4,775,694 7,017,572

Adoption Assistance:

Children and Youth - Contract Period 07/01/2016 to 06/30/2017 N/A 93.659 - (846,538) 2,740,660 1,818,211 (75,911)

Children and Youth - Contract Period 07/01/2017 to 06/30/2018 N/A 93.659 - - 1,818,211 1,872,007 53,796

Children and Youth (AFSCAR) - Contract Period 07/01/2016 to 06/30/2017 N/A 93.659 - 3,012 1,801 1,719 (3,094)

Children and Youth (AFSCAR) - Contract Period 07/01/2017 to 06/30/2018 N/A 93.659 - - 913 5,477 4,564

Total CFDA #93.659 - (843,526) 4,561,585 3,697,414 (20,645)

Child Care Development Fund Cluster:

Fund C 93.575 - - 1,378,837 1,378,837 -

Fund C 93.575 - - 3,149,542 3,149,542 -

Fund A 93.575 - - 1,283,034 1,283,034 -

Fund A 93.575 - - 987,958 987,958 -

N/A 93.596 - - 2,414,156 2,414,156 -

N/A 93.596 - - 2,312,009 2,312,009 -

Total CFDA #93.575 and CFDA #93.596 - Child Care Development Fund Cluster - - 11,525,536 11,525,536 -

Social Services Block Grant:



Children and Youth - Title XX SSGB - Contract Period 07/01/2016 to 06/30/2017 N/A 93.667 - - 130,399 130,399 -

Children and Youth - Title XX SSGB - Contract Period 07/01/2017 to 06/30/2018 N/A 93.667 - - 130,400 130,400 -

Mental Health SSBG - Contract Period 07/01/2016 to 06/30/2017 70135 93.667 219,191 - 219,191 219,191 -

Mental Health SSBG - Contract Period 07/01/2017 to 06/30/2018 70135 93.667 219,190 - 219,190 219,190 -

Intellectual Disabilities - Contract Period 07/01/2016 to 06/30/2017 70177 93.667 134,467 (1) 134,468 134,467 -

Intellectual Disabilities - Contract Period 07/01/2017 to 06/30/2018 70177 93.667 134,467 - 134,466 134,467 1

Total CFDA #93.667 707,315 (1) 1,899,893 1,899,893 1

(Continued)

Child Care and Development Block Grant - Low Income Fund A - Contract Period 07/01/2016 to 06/30/2017

Child Care and Development Block Grant - Low Income Fund A - Contract Period 07/01/2017 to 06/30/2018

Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Contract Period 07/01/2017 to 06/30/2018




(Continued)

Child Care Mandatory and Matching Funds of the Child Care and Development Fund - Contract Period 07/01/2016 to 06/30/2017

Child Care and Development Block Grant - Former TANF Fund C - Contract Period 07/01/2016 to 06/30/2017

Child Care and Development Block Grant - Former TANF Fund C - Contract Period 07/01/2017 to 06/30/2018


5



U.S. Department of Health and Human Services (Cont.)Passed-Through the Pennsylvania Department of Human Services (Cont.):

Child Support Enforcement:Title IV-D - Contract Period 01/01/2016 to 12/31/2016 M256001027 93.563 - (663,567) 663,584 17 - Title IV-D - Contract Period 01/01/2017 to 12/31/2017 M256001027 93.563 - - 2,179,541 2,820,181 640,640 Title IV-D Incentive - Contract Period 01/01/2016 to 12/31/2016 M256001027 93.563 - (201,555) 201,555 - - Title IV-D Incentive - Contract Period 01/01/2017 to 12/31/2017 M256001027 93.563 - - 359,956 564,076 204,120

Total CFDA #93.563 - (865,122) 3,404,636 3,384,274 844,760

Chafee Foster Care Independence Program:Contract Period 07/01/2016 to 06/30/2017 N/A 93.674 - (88,303) 129,789 90,174 48,688 Contract Period 07/01/2017 to 06/30/2018 N/A 93.674 - - 41,485 93,134 51,649

Total CFDA #93.674 - (88,303) 171,274 183,308 100,337

Medicaid Cluster:Medical Assistance Program:

Medical Assistance Transportation Program - Contract Period 07/01/2016 to 06/30/2017 N/A 93.778 (147,268) - (147,268) (147,268) - Medical Assistance Transportation Program - Contract Period 07/01/2016 to 06/30/2017 N/A 93.778 237,240 44,278 249,136 237,240 (56,174) Medical Assistance Transportation Program - Contract Period 07/01/2017 to 06/30/2018 N/A 93.778 268,604 - 212,430 268,604 56,174 Medical Assistance Transportation Program - Contract Period 07/01/2017 to 06/30/2018 N/A 93.778 435,797 - 499,528 435,797 (63,731) Intellectual Disabilities Waiver Admin - Contract Period 07/01/2016 to 06/30/2017 70175 93.778 38,657 10,714 168,026 178,740 - Intellectual Disabilities Waiver Admin - Contract Period 07/01/2017 to 06/30/2018 70175 93.778 45,799 - 168,350 147,631 (20,719) Intellectual Disabilities TSM Admin Claim - Contract Period 07/01/2016 to 06/30/2017 70175 93.778 - (6,699) 10,842 11,120 6,977 Intellectual Disabilities TSM Admin Claim - Contract Period 07/01/2017 to 06/30/2018 70175 93.778 - - 6,977 10,652 3,675 Early Intervention Waiver Administration - Contract Period 07/01/2016 to 06/30/2017 70184 93.778 - - 1,393 1,393 - Early Intervention Waiver Administration - Contract Period 07/01/2017 to 06/30/2018 70184 93.778 - - 1,394 1,394 - Mental Health Medicaid Admin Claims - Contract Period 07/1/2016 to 06/30/2017 70127 93.778 - (10,571) 10,571 9,525 9,525 Mental Health Medicaid Admin Claims - Contract Period 07/1/2017 to 06/30/2018 70127 93.778 - - 9,525 8,997 (528) Children and Youth Title XIX Medicaid - Contract Period 07/01/2016 to 06/30/2017 N/A 93.778 - 3,655 1,640 8,916 3,621 Children and Youth Title XIX Medicaid - Contract Period 07/01/2017 to 06/30/2018 N/A 93.778 - - 14,283 11,604 (2,679)

Total CFDA #93.778 - Medicaid Cluster 878,829 41,377 1,206,827 1,184,345 (63,859)

Substance Abuse and Mental Health Services - Projects of Regional and National Significance:MH Capitalization of POMS - Contract Period 07/01/2016 to 06/30/2017 70522 93.243 - 107,373 - - (107,373)

Total CFDA #93.243 - 107,373 - - (107,373)

(Continued)




(Continued)


6






Passed-Through the Pennsylvania Department of Human Services (Cont.):

Block Grants for Community Mental Health Services:

Contract Period 07/01/2016 to 06/30/2017 70167 93.958 249,649 352,262 246,230 332,272 (266,220)

Contract Period 07/01/2017 to 06/30/2018 70167 93.958 220,070 - 236,228 287,359 51,131

Total CFDA #93.958 469,719 352,262 482,458 619,631 (215,089)

Passed-Through the Pennsylvania Department of Health:

Passed-Through the University of Pittsburgh:

Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (SED):

PA Systems of Care - Contract Period 07/01/2016 to 06/30/2017 1H79SM063421-01 93.104 39,963 (14,835) 63,046 93,738 45,527

PA Systems of Care - Contract Period 07/01/2017 to 06/30/2018 1H79SM063421-01 93.104 49,468 - 45,527 76,973 31,446

PA Systems of Care - Contract Period 07/01/2017 to 06/30/2018 1H79SM063421-02 93.104 53,026 - - 73,871 73,871

Total CFDA #93.104 142,457 (14,835) 108,573 244,582 150,844

Passed-Through the Pennsylvania Department of Health:

Project Grants and Cooperative Agreements for Tuberculosis Control Programs:

DHHS/CDC TB Elimination and Laboratory - Contract Period 07/01/2016 to 06/30/2018 SAP 4100071766 93.116 - - 20,665 20,665 -

Total CFDA #93.116 - - 20,665 20,665 -

Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (AIDS) and Human Immunodeficiency

Virus (HIV) Infection in Selected Population Groups:

HIV Prevention Projects - Contract Period 01/01/2016 to 06/30/2018 SAP 4100070674 93.940 - (16,566) 49,070 46,784 14,280

Total CFDA #93.940 - (16,566) 49,070 46,784 14,280

Preventive Health and Health Services Block Grant funded solely with Prevention and Public Health Funds (PPHF):

Preventive Health and Health Services Block Grant - Contract Period - 07/01/2014 to 06/30/2017 SAP 4100067120 93.758 - (77,575) 264,945 187,370 -

Preventive Health and Health Services Block Grant - Contract Period - 07/01/2017 to 06/30/2020 SAP4100077254 93.758 - - 20,895 71,297 50,402

Total CFDA #93.758 - (77,575) 285,840 258,667 50,402

Maternal and Child Health Services Block Grant to the States:

Contract Period 07/01/2016 to 06/30/2019 SAP 4100072617 93.994 - (49,765) 223,433 260,302 86,634

Total CFDA #93.994 - (49,765) 223,433 260,302 86,634

Public Health Emergency Preparedness:

Contract Period 07/01/2016 to 06/30/2017 SAP 4100073250 93.069 - (84,667) 218,538 133,871 -

Contract Period 07/01/2016 to 06/30/2017 SAP 4100077902 93.069 - - - 89,789 89,789

Total CFDA #93.069 - (84,667) 218,538 223,660 89,789

Hospital Preparedness Program (HPP) and Public Health Emergency Preparedness (PHEP) Aligned Cooperative Agreements

Contract Period 07/01/2016 to 06/30/2017 SAP 4100073250 93.074 - (1,683) 40,633 38,950 -

Total CFDA #93.074 - (1,683) 40,633 38,950 -

National Bioterrorism Hospital Preparedness Program

Contract Period 07/01/2016 to 06/30/2017 SAP 4100073250 93.889 - (604) 7,402 6,798 -

Contract Period 07/01/2016 to 06/30/2017 SAP 4100077902 93.889 - - - 4,103 4,103

Total CFDA #93.889 - (604) 7,402 10,901 4,103

(Continued)




(Continued)


7






Passed-Through the Pennsylvania Department of Health (Cont.):

Medicare: Hospital Insurance

Contract Period 01/01/2016 to 12/31/2016 SAP 4100070581 93.773 - (46,100) 46,100 - -

Contract Period 04/01/2017 to 06/30/2018 SAP 4100077920 93.773 - - 94,478 115,750 21,272

Total CFDA #93.773 - (46,100) 140,578 115,750 21,272

PPHF Capacity Building Assistance to Strengthen Public Health Immunization Infrastructure and

Performance financed in part by Prevention and Public Health Funds

Contract Period 01/01/2017 to 03/31/2017 SAP 4100070581 93.539 - - 89,425 89,425 -

Contract Period 04/01/2017 to 06/30/2018 SAP 4100077920 93.539 - - 64,484 79,002 14,518

Total CFDA #93.539 - - 153,909 168,427 14,518

Passed-Through the Pennsylvania Department of Drug and Alcohol Programs:

Block Grants for Prevention and Treatment of Substance Abuse:

Drug and Alcohol - Contract Period 07/01/2016 to 06/30/2017 SAP 4100070709 93.959 - (127,395) 891,765 764,370 -

Drug and Alcohol - Contract Period 07/01/2017 to 06/30/2018 SAP 4100070709 93.959 - - 637,020 764,424 127,404

Total CFDA #93.959 - (127,395) 1,528,785 1,528,794 127,404

Total U.S. Department of Health and Human Services 5,740,756 (9,039,076) 34,767,933 33,800,137 7,902,853

U.S. Department of Agriculture


Child Nutrition Cluster:

School Breakfast Program - Contract Period 07/01/2016 to 06/30/2017 N/A 10.553 - - - 2,183 2,183

School Breakfast Program - Contract Period 07/01/2017 to 06/30/2018 N/A 10.553 - - 5,303 4,622 (681)

National School Lunch Program - Contract Period 07/01/2016 to 06/30/2017 N/A 10.555 - - - 2,183 2,183

National School Lunch Program - Contract Period 07/01/2017 to 06/30/2018 N/A 10.555 - - 8,307 4,622 (3,685)

Total CFDA #10.553 and CFDA #10.555 - Child Nutrition Cluster - - 13,610 13,610 -

SNAP Cluster:

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program:

CCIS - Contract Period - 07/01/2016 to 06/30/2017 N/A 10.561 - - 16,632 16,632 -

CCIS - Contract Period - 07/01/2017 to 06/30/2018 N/A 10.561 - - 14,575 14,575 -

Total CFDA #10.561 - SNAP Cluster - - 31,207 31,207 -

Passed-Through the Pennsylvania Department of Agriculture:

Food Distribution Cluster:

Emergency Food Assistance Program (Administrative Costs) - Contract Period 10/01/2016 to 9/30/2017 ME 441868 10.568 15,240 - 15,240 15,240 -

Emergency Food Assistance Program (Administrative Costs) - Contract Period 10/01/2016 to 9/30/2017 ME 441868 10.568 33,742 (8,959) 32,132 33,742 10,569

Emergency Food Assistance Program (Administrative Costs) - Contract Period 10/01/2017 to 9/30/2018 ME 441868 10.568 1,074 - - 1,074 1,074

Emergency Food Assistance Program (Food Commodities) - Contract Period 10/01/2016 to 9/30/2017 ME 441464 10.569 231,084 20,958 231,084 239,800 (12,242)

Emergency Food Assistance Program (Food Commodities) - Contract Period 10/01/2017 to 9/30/2018 ME 441464 10.569 - 12,242 - 10,729 (1,513)

Total CFDA #10.568 and CFDA #10.569 - Food Distribution Cluster 281,140 24,241 278,456 300,585 (2,112)

Total U.S. Department of Agriculture 281,140 24,241 323,273 345,402 (2,112)

U.S. Department of Education


Special Education - Grants for Infants and Families:

Early Intervention, Part C, Disabled - Contract Period 07/01/2016 to 06/30/2017 70170 84.181 141,940 - 141,940 141,940 -

Early Intervention, Part C, Disabled - Contract Period 07/01/2017 to 06/30/2018 70170 84.181 102,049 - 102,049 102,049 -

Total CFDA #84.181 243,989 - 243,989 243,989 -

Total U.S. Department of Education 243,989 - 243,989 243,989 -

(Continued)




(Continued)


8





U.S. Department of Commerce

Passed-Through the Pennsylvania Department of Environmental Protection:

Coastal Zone Management Administration Awards:

Coastal Zone Management NA13N0S4190131 11.419 - (6,301) 6,301 - -

Coastal Zone Management NA14N0S4190118 11.419 - (50,000) 62,269 12,269 -

Coastal Zone Management NA15N0S4190156 11.419 - - 54,401 54,401 -

Coastal Zone Management NA16 11.419 - - 1,973 32,916 30,943

Coastal Zone Management NA17 11.419 - - 9,293 9,293 -

Total CFDA #11.419 - (56,301) 134,237 108,879 30,943

Total U.S. Department of Commerce - (56,301) 134,237 108,879 30,943

U.S. Environmental Protection Agency

Beach Monitoring and Notification Program Implementation Grants:

Lake Erie Beach - Contract Period 01/01/2016 to 12/31/2016 CU-97334711-1 66.472 - (8,935) 8,935 - -

Lake Erie Beach - Contract Period 01/01/2017 to 12/31/2017 CU-97334712-0 66.472 - - 205,172 212,000 6,828

Total CFDA #66.472 - (8,935) 214,107 212,000 6,828

Passed-Through the Pennsylvania Department of Environmental Protection:

Great Lakes Program - Contract Period 04/01/2016 to 05/31/2019 SAP 4100075569 66.469 - - 29,603 53,544 23,941

Great Lakes Program - Contract Period 04/01/2016 to 03/31/2017 7C-FA-28.0 66.469 - - 37,421 37,421 -

Total CFDA #66.469 - - 67,024 90,965 23,941

Total U.S. Environmental Protection Agency - (8,935) 281,131 302,965 30,769

U.S. Department of Transportation

Passed-Through the Pennsylvania Department of Transportation:

Highway Planning and Construction Cluster:

Highway Planning and Construction:

Bridge Inspections N/A 20.205 - (49,372) - 856 50,228

Pennsylvania Department of Transportation ME 520897-6 20.205 - - 189,290 189,290 -

Pennsylvania Department of Transportation ME 521157-1A 20.205 - (69,892) 37,410 43,973 76,455

Total CFDA #20.205 - Highway Planning and Construction Cluster - (119,264) 226,700 234,119 126,683

Highway Safety Cluster:

State and Community Highway Safety:

Highway Safety Network - Contract Period 10/01/2015 to 09/30/2016 CTSP-2016-Erie-0005 20.600 - (31,996) 31,996 - -

Highway Safety Network - Contract Period 10/01/2016 to 09/30/2017 CTSP-2017-Erie-0007 20.600 - (25,066) 107,042 96,763 14,787

Highway Safety Network - Contract Period 10/01/2017 to 09/30/2018 CTSP-2018-Erie-00014 20.600 - - - 26,013 26,013

Total CDFA #20.600 - Highway Safety Cluster - (57,062) 139,038 122,776 40,800

Total U.S. Department of Transportation - (176,326) 365,738 356,895 167,483

(Continued)




(Continued)


9



U.S. Department of JusticePassed-Through Pennsylvania Commission on Crime and Delinquency:

Paul Coverdell Forensic Sciences Improvement Grant Program 2016-CD-BX-0046 16.742 - - 31,468 45,869 14,401

Total CFDA #16.742 - - 31,468 45,869 14,401

Passed-Through City of Erie:Edward Byrne Memorial Justice Assistance Grant Program N/A 16.738 - - 21,794 21,794 -

Total CFDA #16.738 - - 21,794 21,794 -

State Criminal Alien Assistance Program 2017 SCAAP 16.572 - - 33,825 33,825 -

Total CFDA #16.572 - - 33,825 33,825 -

Total U.S. Department of Justice - - 87,087 101,488 14,401

U.S. Department of Homeland SecurityPassed-Through Pennsylvania Emergency Management Agency:

Emergency Management Performance Grants:Contract Period 10/01/2015 to 09/30/2016 PEMA 2016-159 97.042 - (78,420) 78,420 - - Contract Period 10/01/2016 to 09/30/2017 PEMA 2017-045 97.042 - (22,469) 83,316 60,847 - Contract Period 10/01/2017 to 09/30/2018 N/A 97.042 - - - 19,083 19,083

Total CFDA #97.042 - (100,889) 161,736 79,930 19,083

Pre-Disaster Mitigation 7C-FA-28.0 97.047 - (4,747) 5,054 14,547 14,240

Total CFDA #97.047 - (4,747) 5,054 14,547 14,240

Homeland Security Grant Program:2015 SHSGP - NWPAERG Equipment - Contract Period 01/01/2017 to 12/31/2017 N/A 97.067 - - 880 880 - 2016 SHSGP - NWPAERG Equipment - Contract Period 01/01/2017 to 12/31/2017 N/A 97.067 - - 2,800 2,800 - 2015 Operation Stonegarden Erie County - Contract Period 09/01/2015 to 08/31/2017 EMW-2015-SS-00018 97.067 - - 22,328 22,328 - 2016 Operation Stonegarden Erie County - Contract Period 09/01/2016 to 08/31/2019 17-BUNERP-10-001 97.067 - - 69,874 80,258 10,384

Total CFDA #97.067 - - 95,882 106,266 10,384

Passed-Through Harborcreek Fire DepartmentAssistance to Firefighters Grant N/A 97.044 - - 203,955 203,955 -

Total CFDA #97.044 - - 203,955 203,955 -

Total U.S. Department of Homeland Security - (105,636) 466,627 404,698 43,707

Total schedule of expenditures of federal awards8,392,972$ (10,239,070)$ 39,868,539$ 38,453,908$ 8,656,012$

(Concluded)




(Continued)


10


NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


11

1. Basis of Presentation

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the County of Erie, Pennsylvania (County) under programs of the federal government for the year ended December 31, 2017. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial statements of the County.

Component Unit

The County’s financial statements include the operations of the Erie County Gaming Revenue Authority (Authority), which did not expend any federal awards and is not included in the accompanying Schedule for the year ended December 31, 2017. This Schedule does not include the expenditures of the Authority as the Authority was not required to complete a separate audit in accordance with the Uniform Guidance.

2. Summary of Significant Accounting Policies

Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The County’s federal awards are recognized following the cost principles of the Uniform Guidance. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years. The County has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

3. Emergency Food Assistance Program

In-kind values are reported in the Schedule at the fair value of the commodities receivedand disbursed.

Program

Child Support Enforcement 3,391,114$

Children and Youth Programs 38,262,232 *

Medical Assistance Transportation 1,588,746

Early Intervention 1,825,297

Mental Health/Intellectual Disabilities 19,995,444

Child Care Information Services 19,692,450 *

Human Services Development Fund 323,130

Combined Homeless Assistance Program 597,313

Total 85,675,726$


SCHEDULE OF PENNSYLVANIA DEPARTMENT


* Denotes major programs for DHS purposes. The portion of Children and Youth Programs related to

Adoption Assistance was tested as major. The portion of Child Care Information Services related to

Child Care and Development Fund Cluster was tested as major.

OF HUMAN SERVICES EXPENDITURES

12

County of Erie, Pennsylvania

Independent Auditor’s Reports Required by the Uniform Guidance

Year Ended December 31, 2017

13

Independent Auditor’s Report on Internal Control over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

We have 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 discretely

presented component unit, each major fund, and the aggregate remaining fund information of the County of Erie, Pennsylvania (County), as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated June 21, 2018. The financial statements of the Erie County Gaming Revenue Authority (Authority) were not audited in accordance with Government Auditing Standards and, accordingly, this report does not include reporting on internal control over financial reporting and on compliance and other matters associated with the Authority.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) to determine the 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 County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’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. Given these limitations, during

Members ofCounty CouncilCounty of Erie, Pennsylvania



Members of County CouncilCounty of Erie, PennsylvaniaIndependent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters

14

our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the County’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 determination of financial statement amounts. 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.

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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Pittsburgh, PennsylvaniaJune 21, 2018

kjc

Maher Duessel

15

Independent Auditor’s Report on Compliance for Each Major Federal and PA DHS Program and on Internal Control over Compliance Required by the Uniform Guidance

and the DHS Single Audit Supplement

Report on Compliance for Each Major Federal and DHS Program

We have audited the County of Erie, Pennsylvania’s (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the Pennsylvania Department of Human

Services (DHS) Single Audit Supplement that could have a direct and material effect on each of the County’s major federal and DHS programs for the year ended December 31, 2017. TheCounty’s major federal and DHS programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

The County’s financial statements include the operations of the Erie County Gaming Revenue Authority (Authority), which did not expend any federal awards and is not included in the schedule of expenditures of federal awards for the year ended December 31, 2017. Our audit, described below, did not include the operations of the Authority as the Authority was not required to complete a separate audit in accordance with the Uniform Guidance.

Management’s Responsibility

Management is responsible for compliance with the requirements of federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal and DHSprograms.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the County’s major federal and DHS programs based on our audit of the types of compliance requirements referred to above. We conducted 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; 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);and the DHS Single Audit Supplement. Those standards, the Uniform Guidance, and the DHS Single Audit Supplement 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 or DHS program




Members of County CouncilCounty of Erie, PennsylvaniaIndependent Auditor’s Report on Compliance for Each Major Federal and PA DHS Program and on Internal Control over Compliance

16

occurred. An audit includes examining, on a test basis, evidence about the County’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 opinion on compliance for each major federal and DHS program. However, our audit does not provide a legal determination of the County’s compliance.

Opinion on Each Major Federal and DHS Program

In our opinion, the County 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 major federal and DHS programs for the year ended December 31, 2017.

Report on Internal Control over Compliance

Management of the County 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 County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal and DHS 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 and DHS program and to test and report on internal control over compliance in accordance with the Uniform Guidance and the DHS Single Audit Supplement, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance.

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 or DHS program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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 or DHS program will not be prevented, or detected and corrected, on a timely basis. 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 or DHS program that is less

Members of County CouncilCounty of Erie, PennsylvaniaIndependent Auditor’s Report on Compliance for Each Major Federal and PA DHS Program

17

severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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 and the DHS Single Audit Supplement. Accordingly, this report is not suitable for any other purpose.


kjc

Maher Duessel


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


18

I. Summary of Audit Results

1. Type of auditor’s report issued: Unmodified. Prepared in accordance with Generally Accepted Accounting Principles.

2. Internal control over financial reporting:

Material weakness(es) identified? yes noSignificant deficiencies identified that are not considered to be material weakness(es)?

yes none reported

3. Noncompliance material to financial statements noted? yes no

4. Internal control over major programs:

Material weakness(es) identified? yes noSignificant deficiencies identified that are not considered to be material weakness(es)?

yes none reported

5. Type of auditor’s report issued on compliance for major programs: Unmodified

6. Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? yes no

7. Major Programs:

CFDA Number(s) Name of Federal Program or Cluster

14.267 Continuum of Care Program93.575 & 93.596 Child Care Development Fund Cluster93.659 Adoption Assistance93.959 Block Grants for Prevention and Treatment of Substance Abuse

8. Dollar threshold used to distinguish between type A and type B programs: $1,153,617

9. Auditee qualified as low-risk auditee? yes no

II. Findings related to the financial statements which are required to be reported in accordance with GAGAS.

No matters were reported.

III. Findings and questioned costs for federal and DHS awards.

No matters were reported.


SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


19

Finding 2016-001 – Allowable Costs/Cost Principles

Condition: The County of Erie, Pennsylvania (County) was reimbursed $551.52 by the Commonwealth of Pennsylvania (Commonwealth) for a service that the County did not incur an allowable cost for, as the County denied payment to the service provider.

Recommendation: We recommend that management implement procedures to reconcile the amounts paid to service providers to the amounts requested for reimbursement from the Commonwealth. By completing this reconciliation, the County can ensure that only expenditures incurred are reimbursed.

Status: The County’s management considers this finding corrected.

Finding 2016-002 – Allowable Costs/Cost Principles

Condition: Two separate instances were noted in which the invoice submitted by service providers to the County for payment did not agree to the supporting documentation provided as backup for the invoice.

Recommendation: We recommend that management implement procedures to request the supporting documentation for invoices submitted by service providers for payment and reconcile such documentation to the invoice to ensure improper payments are not made.

Status: The County’s management considers this finding corrected.

SCHEDULES AND EXHIBITS REQUIRED BYPENNSYLVANIA DEPARTMENT OF HUMAN SERVICES

20

Independent Accountant’s Report on Applying Agreed-Upon Procedures

We have performed the procedures enumerated below, which were agreed to by the Commonwealth of Pennsylvania Department of Human Services (DHS), and the County of Erie, Pennsylvania (County), solely to assist you with respect to the financial schedules and exhibits of the County required by the DHS Single Audit Supplement for fiscal years ended June 30, 2017 and December 31, 2017. The

County’s management is responsible for the financial schedules and exhibits. The sufficiency of theseprocedures is solely the responsibility of those specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested, or for any other purpose.

The procedures and associated findings are as follows:

(a) We have verified, by comparison of the amounts and classifications, that the supplemental financial schedules listed below, which summarize amounts reported to DHS for fiscal years ended June 30, 2017 and December 31, 2017, have been accurately compiled and reflect the audited books and records of the County. We have also verified by comparison to the example schedules that these schedules are presented, at a minimum, at the level of detail and in the format required by the DHS Single Audit Supplement pertaining to this period.

Exhibit Schedule

Child Support Enforcement A-1(a) Comparison of Single Audit Expenditures with Reported

Expenditures

A-1(c) Comparison or Reported Incentives to Incentives on Deposit

A-1(d) Comparison of Single Audit Title IV-D Account with Reported

Title IV-D Account

Medical Assistance Transportation Program III Schedule of Revenues and Expenditures

Early Intervention Services V (a) EI Schedule of Revenues, Expenditures, and Carryover Funds

V (b) EI Report of Income and Expenditures

County Human Services Block Grant VI (a) BG-S County Report of Income and Expenditures, Schedule of Fund

Balances - Summary Report

VI (b) BG-S County Report of Income and Expenditures, Schedule of Fund

Balances - Summary Report

Child Care Information Services - Child Care Network VIII Final CCIS Recap

Program Name




Members of County CouncilCounty of Erie, PennsylvaniaIndependent Accountant’s Report on Applying Agreed-Upon Procedures

21

(b) We have inquired of management regarding adjustments to reported revenues or expenditures, which were not reflected on the reports submitted to DHS for the period in question.

(c) The processes detailed in paragraphs (a) and (b) above disclosed no adjustments.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an audit or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the financial schedules and exhibits noted above. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of the Commonwealth of Pennsylvania Department of Human Services and the County of Erie, Pennsylvania, and is not intended to be, and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.


kjc

Maher Duessel

Quarter Ending: 3/31/2017 A. Total B. C. Incentive Net (A - B - Amt. Paid A. Total B. C. Incentive Net (A - B - Amt. Paid A. Total B. C. Incentive Net (A - B - Amt. Paid

Unallowable Paid Costs C) Unallowable Paid Costs C) Unallowable Paid Costs C)

1. Salary & Overhead 1,410,783$ 36,329$ 100,882$ 1,273,572$ 840,558$ 1,410,783$ 36,329$ 100,882$ 1,273,572$ 840,558$ -$ -$ -$ -$ -$

2. Fees & Costs 3 - - 3 3 3 - - 3 3 - - - - -

3. Interest & Program Income 14,542 382 - 14,160 9,346 14,542 382 - 14,160 9,346 - - - - -

4. Blood Testing Fees 1,601 - - 1,601 1,057 1,601 - - 1,601 1,057 - - - - -

5. Blood Testing Costs 3,601 - - 3,601 2,377 3,601 - - 3,601 2,377 - - - - -

6. ADP - - - - - - - - - - - - - - -

Net Total (1-2-3-4+5+6) 1,398,238$ 35,947$ 100,882$ 1,261,409$ 832,529$ 1,398,238$ 35,947$ 100,882$ 1,261,409$ 832,529$ -$ -$ -$ -$ -$



1. Salary & Overhead 1,244,392$ 30,956$ 200,415$ 1,013,021$ 668,594$ 1,244,392$ 30,956$ 200,415$ 1,013,021$ 668,594$ -$ -$ -$ -$ -$

2. Fees & Costs 4 - - 4 3 4 - - 4 3 - - - - -




6. ADP - - - - 1 - - - - 1 - - - - -

Net Total (1-2-3-4+5+6) 1,229,441$ 30,548$ 200,415$ 998,478$ 658,997$ 1,229,441$ 30,548$ 200,415$ 998,478$ 658,997$ -$ -$ -$ -$ -$



1. Salary & Overhead 1,232,808$ 31,606$ 146,527$ 1,054,675$ 696,085$ 1,232,808$ 31,606$ 146,527$ 1,054,675$ 696,085$ -$ -$ -$ -$ -$

2. Fees & Costs 4 - - 4 3 4 - - 4 3 - - - - -




6. ADP - - - - - - - - - - - - - - -

Net Total (1-2-3-4+5+6) 1,220,039$ 31,207$ 146,527$ 1,042,305$ 687,920$ 1,220,039$ 31,207$ 146,527$ 1,042,305$ 687,920$ -$ -$ -$ -$ -$



1. Salary & Overhead 1,127,626$ 28,842$ 113,687$ 985,097$ 650,164$ 1,127,626$ 28,842$ 113,687$ 985,097$ 650,164$ -$ -$ -$ -$ -$

2. Fees & Costs 3 - - 3 3 3 - - 3 3 - - - - -




6. ADP - - - - - - - - - - - - - - -

Net Total (1-2-3-4+5+6) 1,112,830$ 28,413$ 113,687$ 970,730$ 640,680$ 1,112,830$ 28,413$ 113,687$ 970,730$ 640,680$ -$ -$ -$ -$ -$

Single Audit Expenditures Reported Expenditures Single Audit Over/(Under) Reported


COMPARISON OF SINGLE AUDIT EXPENDITURES WITH REPORTED EXPENDITURES

FOR THE YEAR ENDED DECEMBER 31, 2017

Exhibit A-1(a)

CHILD SUPPORT ENFORCEMENT

22

County Erie County Year Ended December 31, 2017

MSE Incentive Paid Audited

Cost Worksheet Ending Title IV-D Account Type of

Month Incentive Balance Incentive Balance Account Structure

January 1 -$ -$ ( ) Separate Bank Account

( X ) Restricted Fund - General Ledger

March 31 100,882 -

( ) Other: Domestic Relations

June 30 200,415 -

September 30 146,527 -

December 31 113,687 -



COMPARISON OF REPORTED INCENTIVES TO INCENTIVES ON DEPOSIT


Exhibit A-1 (c)

23

Single Audit

Single Audit Reported Over / (Under)

Title IV-D Account Title IV-D Account Reported

Balance at January 1 258,852$ 258,852$ -$

Receipts:

Reimbursement 2,843,125 2,843,125 -

Incentives 561,511 561,511 -

Title XIX Incentives 7,183 7,183 -

Interest 807 807 -

Program income 62,157 62,157 -

Genetic testing costs 7,649 7,649 -

Maintenance of effort 1,274,800 1,274,800 -

Other 16,466 16,466 -

Total receipts 4,773,698 4,773,698 -

Intra-fund Transfer In - - -

Funds Available 5,032,550 5,032,550 -

Disbursements:

Incentive paid costs - - -

Transfers to General Fund 4,901,620 4,901,620 -

Vendor payments 116,663 116,663 -

Bank charges - - -

Other 13,454 13,454 -

Total disbursements 5,031,737 5,031,737 -

Intra-fund Transfers Out - - -

Balance at December 31 813$ 813$ -$

The Title IV-D account consists of one checking account and one sweep account.

Exhibit A-1(d)


COMPARISON OF SINGLE AUDIT TITLE IV-D ACCOUNT

WITH REPORTED TITLE IV-D ACCOUNT



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Reported Actual

Service Data:

Expenditures:

Group I clients 1,646,048$ 1,646,048$

Group II clients 33,593 33,593

Total expenditures 1,679,641$ 1,679,641$

Allocation Data:

Revenues:

Department of Human Services 1,672,201$ 1,672,201$

Interest income - -

Total revenues 1,672,201 1,672,201

Funds expended:

Operating costs 1,495,751 1,495,751

Administrative costs 176,450 176,450

Excess Revenues over Expenditures -$ -$


SCHEDULE OF REVENUES AND EXPENDITURES

MEDICAL ASSISTANCE TRANSPORTATION PROGRAM

FOR THE FISCAL YEAR ENDED JUNE 30, 2017

Exhibit III

25

Carryover (1) Allotment (2)

Total

Allocation (3)A. Early Intervention Services

1. Early Intervention Services 10235 82,569$ 1,629,030$ 1,711,599$ 1,673,628$ 37,971$ 7,772$ 45,743$

2. Early Intervention Training 10235 3,529 5,540 9,069 8,940 129 - 129

3. Early Intervention Administration 10235 - 99,787 99,787 99,787 - - -

4. Infant & Toddlers w/Disabilities (Part C) 70170 - 283,880 283,880 283,880 - - -

5. IT&F Waiver Administration 10235/70184 - 5,574 5,574 5,574 - - -

Total Early Intervention Services 86,098$ 2,023,811$ 2,109,909$ 2,071,809$ 38,100$ 7,772$ 45,872$

DHS Funds Available

Cost Eligible for

DHS Participation

(4) Balance of Funds (5)

Grant Fund

Adjustments

(6) Total Fund Balance (7)


SCHEDULE OF REVENUES, EXPENDITURES, AND CARRYOVER FUNDS

EARLY INTERVENTION SERVICES


Exhibit V(a)EI

Sources of DHS Funding Appropriation

26

Admin Early SupportsOffice Intervention Coordination Totals

I. TOTAL ALLOCATION 2,109,909$ II. TOTAL EXPENDITURES 116,448$ 1,689,670$ 1,356,480$ 3,162,598 III. COSTS OVER ALLOCATION

A. County Funded Eligible - - - - B. County Funded Ineligible - - - - C. Other Eligible - - - - D. Other Ineligible - - - - Subtotal Costs Over Allocation - - - -

IV. REVENUESA. Program Service Fees - - - - B. Private Insurance - - - - C. Medical Assistance - - 852,244 852,244 D. Earned Interest - - - - E. Other - - 8,964 8,964 Subtotal Revenues - - 861,208 861,208

V. DHS REIMBURSEMENTA. DHS Categorical Funding 90% 99,787 1,520,703 445,745 2,066,235 B. DHS Categorical Funding 100% 5,574 - - 5,574 Subtotal DHS Reimbursement 105,361 1,520,703 445,745 2,071,809

VI. COUNTY MATCH

10% County Match 11,087 168,967 49,527 229,581

VII. TOTAL DHS REIMBURSEMENT AND COUNTY MATCH 116,448$ 1,689,670$ 495,272$ 2,301,390

VIII. TOTAL CARRYOVER 38,100$

Exhibit V(b)EI


REPORT OF INCOME AND EXPENDITURES

EARLY INTERVENTION SERVICES


27

County Match 3.88%

Actual County Match ($) 826,481$

Actual County Match (%) 3.88%

Block Grant Reporting

Appropriation DHS Allocation Mental Health

Intellectual

Disabilities

Homeless

Assistance Child Welfare HSS D&A Total

Balance of

Funds Adjustments

Total Fund

Balance

Sources of Funding

1. State Human Services Block Grant multiple 21,273,457$ 13,972,891$ 3,175,661$ 642,222$ 1,206,578$ 449,002$ 1,327,103$ 20,773,457$ 500,000$ 26,295$ 526,295$

2. SSBG multiple 707,315 438,381 268,934 - - - - 707,315 - - -

3. SABG 80884 - - - - - - - - - - -

4. CMHSBG 70167 739,493 473,273 - - - - - 473,273 266,220 - 266,220

5. MA 70175 336,702 - 336,702 - - - - 336,702 - - -

6. Crisis Counseling 80222 - - - - - - - - - - -

Total for Block Grant 23,056,967$ 14,884,545$ 3,781,297$ 642,222$ 1,206,578$ 449,002$ 1,327,103$ 22,290,747$ 766,220$ 26,295$ 792,515$

I. Unexpended Allocation 550,000$

II. Maximum Retained Earnings (3%) 638,204 III. Waiver Requested Money (if applicable) -

IV. Total Requested Retained Earnings 550,000$

I. FY 15-16 Retained Earnings 550,000$

II. Total Expended Retained Earnings 550,000

III. Total Expended Retained Earnings - Waiver of 3% - IV. Amount to be Returned to DHS -

Prior Year Retained Earnings

Retained Earnings


COUNTY REPORT OF INCOME AND EXPENDITURES

COUNTY HUMAN SERVICES BLOCK GRANT


Exhibit VI(a) BG-S

Cost Eligible for DHS Participation

SCHEDULE OF FUND BALANCES - SUMMARY REPORT

28

Appropriation Total Carryover Allotment DHS Allocation

Costs Eligible for

DHS Participation Balance of Funds Adjustments

Total Fund

BalanceMental Health Services

1 State - Personal Care Homes 10252 -$ -$ -$ -$ -$ -$ -$ 2 Federal - Self Directed Care - TTI 70127 - - - - - - - 3 Federal - Infusing Peer Specialist into Crisis Services 70127 - - - - - - - 4 Federal - PATH Homeless Grant 70154 76,322 89,582 165,904 165,904 - - - 5 Federal - Capitalization of POMS 70522 107,372 - 107,372 - 107,372 - 107,372 6 Federal - Project Launch 71021 - - - - - - - 7 Federal - Bio-Terrorism Hospital Preparedness 80343 - - - - - - -

Subtotal Mental Health Services 183,694 89,582 273,276 165,904 107,372 - 107,372 Intellectual Disabilities Service

1 Temporary NBG Funds for Regional Collaboratives 10255 - - - - - - - 2 Elwyn 10236 - - - - - - - 3 Money Follows the Person 10263 - - - - - - -

Subtotal Intellectual Disabilities Services - - - - - - - Drug & Alcohol Services

1 State - Centers of Excellence 10262 - 500,000 500,000 330,000 170,000 - 170,000 Subtotal Drug & Alcohol Services - 500,000 500,000 330,000 170,000 - 170,000 Total for Non-Block Grant Reporting 183,694$ 589,582$ 773,276$ 495,904$ 277,372$ -$ 277,372$

Sources of Funding

SCHEDULE OF FUND BALANCES - SUMMARY REPORT

COUNTY REPORT OF INCOME AND EXPENDITURES


Exhibit VI(b) BG-S


COUNTY HUMAN SERVICES BLOCK GRANT

29

Admin./FSS Service Admin./FSS Service Total

Revenues:

DHS funds 1,017,826$ 9,782,281$ 514,498$ 6,191,268$ 17,505,873$

Interest - 924 - 467 1,391

Audit adjustments - - - - -

Other (e.g., penalties) - - - - -

Overpayments - 1,329 - 900 2,229

Total revenues 1,017,826 9,784,534 514,498 6,192,635 17,509,493

Expenditures:

Final report totals 955,840 9,764,842 483,192 6,208,365 17,412,239

Carry forward amount - - - - -

Uncollected overpayments - - - - -

Total expenditures 955,840 9,764,842 483,192 6,208,365 17,412,239

Total due to DHS 61,986$ 19,692$ 31,306$ (15,730)$ 97,254$

(Continued)

Former TANFLow Income


FINAL CCIS RECAP

CHILD CARE INFORMATION SERVICES - CHILD CARE NETWORK


Exhibit VIII

30

TANF TANF TANF State General

Training Working MOE Food Stamps Assistance TANF Total

Revenues:

TANF/FS/GA Service:

DHS funds 605,216$ 539,738$ 303,809$ 58,599$ -$ 1,507,362$

Interest 177 - - - - 177

Total service 605,393 539,738 303,809 58,599 - 1,507,539

TANF/FS/FSS:

DHS funds 80,127 62,599 37,043 13,190 - 192,959

Audit adjustments - - - - - -

Other (e.g., penalties) - - - - - -

Total FSS 80,127 62,599 37,043 13,190 - 192,959

Total revenues 685,520 602,337 340,852 71,789 - 1,700,498

Expenditures:

TANF/FS/GA Service:

Final reports total 595,448 556,741 310,296 60,214 - 1,522,699

Carry forward amount - - - - - -

Total service 595,448 556,741 310,296 60,214 - 1,522,699

TANF/FS/FSS:

Final reports total 75,975 59,356 35,124 12,506 - 182,961

Carry forward amount - - - - - -

Uncollectable overpayments - - - - - -

Total FSS 75,975 59,356 35,124 12,506 - 182,961

Total expenditures 671,423$ 616,097$ 345,420$ 72,720$ -$ 1,705,660$

(Concluded)


FINAL CCIS RECAP

CHILD CARE INFORMATION SERVICES - CHILD CARE NETWORK


Exhibit VIII, Continued

31

DHS – SCHEDULE OF EXPENDITURES OFFEDERAL AWARDS RECONCILIATION

32

Independent Accountant’s Report on Applying Agreed-Upon Procedures

We have performed the procedures enumerated below, which were agreed to by the Commonwealth of Pennsylvania Department of Human Services (DHS), and the County of Erie, Pennsylvania (County), solely to assist you with respect to the financial schedules and exhibits of the County required by the DHS Single Audit Supplement for the year ended

December 31, 2017. The County’s management is responsible for the reconciliation schedule. The sufficiency of these procedures is solely the responsibility of those specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested, or for any other purpose.

The procedures to be performed and associated findings on the reconciliation schedule are as follows:

A) Agree the expenditure amounts listed on the reconciliation schedule under the “Federal Expenditures per the SEFA” column to the audited Schedule of Expenditures of Federal Awards (SEFA).

B) Agree the receipt amounts listed on the reconciliation schedule under the “Federal Awards Received per the audit confirmation reply from Pennsylvania” column to the subrecipient federal amounts that were reflected in the audit confirmation reply from the Office of Budget, Comptroller Operations.

C) Recalculate the amounts listed under the “Difference” column and the “% Difference” column.

D) Agree the amounts listed under the “Difference” column to the audited books and records of the County.

E) Agree the “Detailed Explanation of the Differences” to the audited books and records of the County.

F) Based on the procedures detailed in paragraphs (A) through (E) above, disclose any adjustments and/or findings which have not been reflected on the corresponding schedules (list each separately).

See the attached Exhibit XX for the results of the procedures performed.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an audit or review, the objective of which would be the

Members of County CouncilCounty of Erie, Pennsylvania



Members of County CouncilCounty of Erie, PennsylvaniaIndependent Accountant’s Report on Applying Agreed-Upon Procedures

33

expression of an opinion or conclusion, respectively, on the reconciliation schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of the Commonwealth of Pennsylvania Department of Human Services and the County of Erie, Pennsylvania, and is not intended to be, and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.


kjc

Maher Duessel

Federal AwardsReceived per the Audit

Federal Expenditures Confirmation Reply from Detailed ExplanationCFDA Name CFDA Number per the SEFA Pennsylvania Difference % Difference of the Differences

State Administrative Matching Grants for Supplemental Nutrition Assistance Program 10.561 31,207$ 30,308$ 899$ 3% 1Special Education - Grants for Infants and Families 84.181 243,989 224,044 19,945 9% 1Guardianship Assistance 93.090 252,884 249,194 3,690 1% 1Projects for Assistance in Transition from Homelessness (PATH) 93.150 112,332 112,907 (575) -1% 1Promoting Safe and Stable Families 93.556 164,422 202,832 (38,410) -19% 1Temporary Assistance for Needy Families 93.558 2,947,504 2,977,421 (29,917) -1% 1Child Support Enforcement 93.563 3,384,274 3,398,635 (14,361) 0% 1Child Care and Development Block Grant 93.575 6,799,371 7,337,993 (538,622) -7% 1Child Care Mandatory and Matching Funds of the Child Care Development Fund 93.596 4,726,165 4,726,165 - 0% n/aStephanie Tubbs Jones Child Welfare Services Program 93.645 135,418 135,418 - 0% n/aFoster Care - Title IV-E 93.658 4,775,694 4,313,228 462,466 11% 1Adoption Assistance 93.659 3,697,414 3,644,329 53,085 1% 1Social Services Block Grant 93.667 1,899,893 1,898,826 1,067 0% 1Chafee Foster Care Independence Program 93.674 183,308 165,941 17,367 10% 1Medical Assistance Program 93.778 1,184,345 1,351,682 (167,337) -12% 1Block Grants for Community Mental Health Services 93.958 619,631 477,459 142,172 30% 1

n/a - Amounts are in agreement.1. The difference is due to timing based on the audit confirmation reflecting cash payments versus the modified accrual accounting of federal expenditures on the schedule of federal expenditures. Management believes this calculation represents federal expenditures.


RECEIVED PER THE PENNSYLVANIA AUDIT CONFIRMATION REPLY

DEPARTMENT OF HUMAN SERVICES EXPENDITURES PER THE SEFA TO REVENUE

RECONCILIATION - FEDERAL AWARDS PASSED THROUGH THE PENNSYLVANIA

YEAR ENDED DECEMBER 31, 2017Exhibit XX

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