Does your organization provide residential intellectual disabilities services? You should be aware that payments made by the State of Pennsylvania for residential intellectual disabilities services will not be considered sub-recipient federal funds for the year ending June 30, 2017. These funds will no longer need to be reported on the SEFA (Schedule of Expenditures of Federal Awards). These funds were previously reported under CFDA Number 93.788. The ODP (Office of Developmental Programs) supplemental schedules and Agreed Upon Procedures (AUP) on the SEFA reconciliation schedule will no longer be required.
Additionally, the ODP has changed their Waiver rate setting methodology. The Waiver residential services will be paid on a fee schedule effective January 1, 2018, and the Waiver transportation services will be paid on a fee schedule effective July 1, 2018. ODP will no longer be using cost reports for rate setting for Waiver residential and transportation services; the last cost report used for rate setting will be the FY 15-16 cost report.
How Will This Impact The Audit?
- We are working with our clients to assess if a Single Audit will still be needed. And if so, what will the major program(s) be?
- The AUP and SEFA reconciliation may still need to be performed depending on whether a Single Audit is required and what the federal programs are.
- If the funds are from a material revenue stream, the revenue will still need to be confirmed with the Treasury.
- Billing documentation will also continue to be tested, but we may not need to perform testing of internal control steps related to billing.
You can view the original communication
from ODP regarding these changes here.