Title: Loan Balances
Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards includes the
federal, state and city grant activity of the Authority and is presented using the accrual basis
of accounting. 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. Some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation
of, the financial statements. In addition, the expenditures reported in this schedule may differ
from certain financial reports submitted to federal, state, or city funding agencies due to
those financial reports covering expenditures of a different fiscal year and including
cumulative (from prior years) data rather than data for the current year only.
Because the schedule presents only a selected portion of the operations of the Authority, it
is not intended to and does not present the financial position, change in net position or cash
flows of the Authority.
De Minimis Rate Used: N
Rate Explanation: The Authority elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The Authority accumulated all administrative and program management expenses in a
separate project account. On a monthly basis, this pool of expenses is allocated among the
Authority’s project ledgers based on each project’s relative share of total employee hours.
Relative hours are determined through periodic time reports completed by every employee.
Administrative and program management expenses charged to the project account include
all related Authority payroll and fringe benefit expenses and administrative costs (e.g., rent,
utilities, office supplies, etc.). Purchased goods and services (e.g., brochures, legal services,
etc.) that are directly attributable to an Authority project are charged directly to a specific
project, and are not included in the cost allocation.
Loan balances represent federal funds disbursed in accordance with developer contracts for
the acquisition, rehabilitation and construction of designated projects. The loans receivable
and the corresponding liabilities to the City are not presented in the Authority’s basic
financial statements due to the uncertainty in the collectability of these loans receivable.
Loan balances are tracked to ensure that collections, if any, are either repaid to the City or
reinvested within the Program under the authorization of the City.
Initial loans are disclosed on the schedule of expenditures of federal, state and city awards
as expenditures. Subsequent disclosure of outstanding loan balances is not required since
the federal government does not impose continuing compliance requirements other than
repayment of the loans.
Title: Contracts
Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards includes the
federal, state and city grant activity of the Authority and is presented using the accrual basis
of accounting. 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. Some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation
of, the financial statements. In addition, the expenditures reported in this schedule may differ
from certain financial reports submitted to federal, state, or city funding agencies due to
those financial reports covering expenditures of a different fiscal year and including
cumulative (from prior years) data rather than data for the current year only.
Because the schedule presents only a selected portion of the operations of the Authority, it
is not intended to and does not present the financial position, change in net position or cash
flows of the Authority.
De Minimis Rate Used: N
Rate Explanation: The Authority elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The Authority accumulated all administrative and program management expenses in a
separate project account. On a monthly basis, this pool of expenses is allocated among the
Authority’s project ledgers based on each project’s relative share of total employee hours.
Relative hours are determined through periodic time reports completed by every employee.
Administrative and program management expenses charged to the project account include
all related Authority payroll and fringe benefit expenses and administrative costs (e.g., rent,
utilities, office supplies, etc.). Purchased goods and services (e.g., brochures, legal services,
etc.) that are directly attributable to an Authority project are charged directly to a specific
project, and are not included in the cost allocation.
The Authority’s contracts are with various governmental agencies. The contracts authorize
funds to reimburse eligible and allowable costs related to administrative, program
management and program activities. Other eligible program activities may be included in the
contractual agreements if stated goals and policy directives are met.
Program activities include, but are not limited to, the acquisition of properties; relocation of
individuals and families displaced from residential properties and businesses displaced from
commercial establishments; demolition; maintenance of Authority owned property; site
improvements (public works/facilities) involving the installation of curbs, sidewalks and trees;
disposition activities with DHCD; planning activities; and the implementation of rehabilitation
programs under the Philadelphia Home Improvement Loan.
The contracts are funded by federal, state and city awards and the related program income
is generated primarily from land sales and property rentals.
Title: General Information
Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards includes the
federal, state and city grant activity of the Authority and is presented using the accrual basis
of accounting. 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. Some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation
of, the financial statements. In addition, the expenditures reported in this schedule may differ
from certain financial reports submitted to federal, state, or city funding agencies due to
those financial reports covering expenditures of a different fiscal year and including
cumulative (from prior years) data rather than data for the current year only.
Because the schedule presents only a selected portion of the operations of the Authority, it
is not intended to and does not present the financial position, change in net position or cash
flows of the Authority.
De Minimis Rate Used: N
Rate Explanation: The Authority elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The Authority accumulated all administrative and program management expenses in a
separate project account. On a monthly basis, this pool of expenses is allocated among the
Authority’s project ledgers based on each project’s relative share of total employee hours.
Relative hours are determined through periodic time reports completed by every employee.
Administrative and program management expenses charged to the project account include
all related Authority payroll and fringe benefit expenses and administrative costs (e.g., rent,
utilities, office supplies, etc.). Purchased goods and services (e.g., brochures, legal services,
etc.) that are directly attributable to an Authority project are charged directly to a specific
project, and are not included in the cost allocation.
The Philadelphia Redevelopment Authority (the “Authority”) was established by ordinance
on September 21, 1945, under the Urban Development Law enacted by the Commonwealth
of Pennsylvania (the Commonwealth). The primary function of the Authority is to acquire
property in blighted areas in the City of Philadelphia (the City) under rights of eminent
domain to be sold or leased for private or public redevelopment. Funding for projects is
provided primarily through federal, state and city grants, as well as through the issuance of
revenue bonds. All financial awards received directly from federal, state or city agencies, as
well as financial awards passed through other governmental agencies are included on the
schedule of expenditures of federal, state and city awards.