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 auditee did not use the de minimis cost rate.
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: Cost Allocation Plan
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 auditee did not use the de minimis cost rate.
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.
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 auditee did not use the de minimis cost rate.
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: 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 auditee did not use the de minimis cost rate.
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.