Bureau of Financial Operations
The Bureau of Financial Operations provides financial and audit oversight, coordination, and support to executive management in the operation of its programs. These activities include the resolution of federal and other external audits; DHS-operated facility support providing technical assistance on finances to county and provider human services programs; and conducting performance audits and reviews of DHS-operated and funded programs.
Tina Long, Director
Bureau of Financial Operations
Tel: (717) 705-7605
Alexander Matolyak, Director
Division of Audit and Review
Tel: (717) 783-7786
Kelly Leighty, Director
Division of Financial Policy and Operations
Tel: (717) 705-0131
Wendy Nagle, Director
Division of Financial Report
Tel: (717) 772-2236
DIVISION OF AUDIT AND REVIEW
The Division of Audit and Review (DAR) supports the agencies within the Shared Services for Health and Human Services in operating effectively, efficiently, and with integrity through audits and related services. DAR carries out its mission by through its two distinct functional areas, which are:
- Field Offices: The DAR field office staff are located in the Harrisburg, Philadelphia, Pittsburgh, and Scranton areas and primarily conduct performance audits and technical assistance engagements.
- Audit Resolution Section: The DAR Audit Resolution Section is located in Harrisburg and is responsible for audit coordination, audit policy, single audit reviews, and audit settlement activities.
Performance Audits and Technical Assistance Engagements
DAR plans and conducts performance audits within the scope of the Shared Services for Health and Human Services agencies and includes internal processes and external organizations receiving federal or state funding. Activities are coordinated with program management having primary responsibility for the activity or the agency being evaluated. Technical assistance engagements are requested by Shared Services for Health and Human Services agency management and relate to a specific initiative or concern.
The results of the DAR audit activities are communicated by individual reports issued to the auditee, the Shared Services for Health and Human Services office having primary responsibility for the activity, as well as funding intermediaries such as county agencies. The audit processes and the resulting reports are issued in accordance with Government Auditing Standards.
Audit Resolution Section
The Audit Resolution Section (ARS) serves as the designated single point of contact for directing and controlling all audit, review, resolution, and related activities occurring within programs administered by the Shared Services for Health and Human Services agencies to ensure an orderly and efficient audit resolution process. ARS attempts to prevent or minimize the fiscal and programmatic impact of the audit or review on the agencies and ensures that the benefits derived from this process are utilized timely by the various programs. In addition, ARS manages the Commonwealth Single Audit and GAAP Audit for the Shared Services for Health and Human Services agencies.
ARS is responsible for the development and implementation of all audit policy affecting the Shared Services for Health and Human Services agency-operated and funded programs. They serve as a technical resource to the Shared Services for Health and Human Services agencies on auditing matters and serve as the technical resource for the determination of the appropriate Audit Clause selection for grants and contracts. ARS publications include the DHS Single Audit Supplement, audit clauses, as well as single audit and audit policy bulletins.
Single Audit Reviews and Audit Settlement Activities
ARS reviews the subrecipient audits from counties and non-profit agencies. Cost settlements are prepared to ensure program years are properly closed and funding is properly expended.
DIVISION OF FINANCIAL POLICY AND OPERATIONS
The Division of Financial Policy and Operations (DFPO) plans, organizes, directs, and coordinates the development and implementation of financial procedures and operations. This is accomplished through the following sections:
Financial Reporting and Payments Section
The Financial Reporting and Payments Section is responsible for support activities for the fiscal administration of the department's community-based programs. The section's responsibilities start when program offices have finalized their decision regarding the county allocation. Activities begin with the payment process and continue through the development, receipt, and review of the county expenditure reports. The section is also responsible for interpreting allowable cost regulations. The section is comprised of two units: Mental Health and Intellectual Disabilities Unit and Child Welfare and Social Programs Unit.
The units support the Office of Mental Health and Substance Abuse Services; Office of Developmental Programs; Office of Child Development and Early Learning; Office of Children, Youth and Families; Office of Medical Assistance Programs; Office of Income Maintenance; Office of Policy Development; and Office of Administration.
Tasks associated with these units include:
- Prepare payment documents that result in county programs being paid their allocations as determined by each program office.
- Develop, implement, review, and process county expenditure reports for the various programs.
- Prepare and distribute correspondence to counties and program offices regarding financial reporting and payments.
- Provide fiscal-related technical assistance to counties and regional program offices.
- Conduct training sessions for counties regarding payments, regulations, and reporting requirements.
- Research and communicate information regarding allowable cost regulations, proper reporting requirements, cost allocation, and accounting issues.
- Prepare the county Youth Development Center billings to the county Child Welfare Program.
Activities are governed by the following applicable PA Code Regulations:
- Title 55, Chapter 4300, County Mental Health and Intellectual Disabilities Fiscal Manual
- Title 55, Chapter 3170 Allowable Costs and Procedures for County Children and Youth
Fiscal Monitoring Section
The Fiscal Monitoring Section administers and coordinates the reporting requirements for the Social Services Block Grant (SSBG), a $93 million grant awarded annually by the federal government for the provision of social services. The section also monitors the counties' use and administration of the SSBG funds provided by the department. The legislative authority for the SSBG is Title XX of the Social Security Act.
The section monitors the counties' use and administration of the funding sources in the Human Services Block Grant (HSBG) to ensure compliance with applicable state and federal requirements. The HSBG offers a more flexible funding mechanism for selected counties to provide locally identified human services in the areas of Mental Health community base funded services, Behavioral Health Services Initiative, Intellectual Disabilities community base funded services, Act 152 funded services, and services provided through the Homeless Assistance Program and the Human Services Development Fund.
Reimbursement Operations Section
The Reimbursement Operations Section is responsible for establishing and maintaining uniform standards and maximizing the recovery of funds for the care and treatment provided at Commonwealth-operated mental health and intellectual disabilities facilities within the parameters set by federal, state, and local regulations. Staff of this section strive to attain their mission and perform these functions while maintaining the dignity of those we serve.
Tasks associated with this section include:
- Deciding liability for payment, that is, who is able to pay for the patient's care and to what extent.
- Billing for care provided within the limits of the liability decided.
- Accounting for charges and for payments against those charges.
- Safeguarding, depositing, and reporting receipts.
- Pursuing delinquencies.
- Applying and/or assisting in applying for patient(s) entitled benefits.
Activities are governed by the following:
- PA Code Regulations: Title 55, Chapter 4310, Client Liability – State MH/ID Facilities (1982)
- MH/MR Act of 1966
- Commonwealth Attorneys Act (1980)
- Vecchione Court Decision (1978)
- Medicare Regulations
- Medicaid Regulations
- Social Security Act
DIVISION OF FINANCIAL REPORTING
The Division of Financial Reporting (DFR) supports the Shared Services for Health and Human Services agencies by planning, organizing, and controlling financial policy development and implementation, conducting various financial studies, and serving as the department's interface with various federal agencies regarding cost allocation and other federal/state funding issues for the department. Also, DFR coordinates and monitors financial reporting activities related to all departmental funding streams.
Tasks associated with this division include:
- Develops strategies to increase federal financial support for programs operated by the department and prepares/reviews documents required to operationalize accepted strategies.
- Annually prepares a department-wide Cost Allocation Plan (DCAP) and negotiates indirect cost distribution methods and indirect cost rates with the federal government. Completes detailed financial schedules and computes indirect cost rates for multiple major federal programs based on approved methodologies.
- Performs detailed analyses, reviews, and studies of cost reporting of DHS Medicare reports for DHS-operated state mental hospitals; DHS Medicaid reports for state mental hospitals, state centers for individuals with intellectual disabilities, and Department of Military and Veterans Affairs centers; and cost reports for the youth development center and forestry camp system. This includes completion of overall cost reports related to Medicare, Medicaid, and state laws.
- Reviews and analyzes proposed account structure changes and controls departmental access to the Commonwealth's accounting system to ensure development of coding consistent with organizational structures, cost allocation, and budget planning.
- Properly classifying and monitoring fixed assets in the DHS and SAP Fixed Asset Accounting System and is responsible for the preparation of depreciation schedules for EDP equipment approved in advanced planning documents, the Master Lease Program, and any other EDP equipment identified in the statewide policy description.
- Manages/tracks the resolution of federal claims which may be deferred or disallowed by federal funding agencies.