FAC Explorer

Audit 342922

FY End
2024-06-30
Total Expended
$1.02B
Findings
2
Programs
12
Organization: Pennsylvania Housing Finance Agency (PA)
Year: 2024 Accepted: 2025-02-18
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523591 2024-001 Significant Deficiency - B
1100033 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.195 Project-Based Rental Assistance (pbra) $548.73M - 0
14.239 Home Investment Partnerships Program $221.38M Yes 1
21.026 Homeowner Assistance Fund $124.76M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $62.27M Yes 0
14.275 Housing Trust Fund $47.59M - 0
21.011 Capital Magnet Fund $3.80M Yes 0
66.458 Clean Water State Revolving Fund $3.59M Yes 0
10.438 Section 538 Rural Rental Housing Guaranteed Loans $2.95M - 0
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $2.23M - 0
99.U19 Housing Stability Counseling Program $1.19M - 0
14.169 Housing Counseling Assistance Program $746,005 - 0
93.791 Money Follows the Person Rebalancing Demonstration $382,028 - 0

Contacts

Name Title Type
S2PKLYWMLA24 Adrianne Trumpy Auditee
7177803823 Gaby Miller Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOANS/LOAN GUARANTEES Accounting Policies: DESCRIPTION OF ORGANIZATION Pennsylvania Housing Finance Agency (the Agency) was created by the General Assembly of the Commonwealth of Pennsylvania in 1972 to provide affordable housing for older adults, persons and families of modest means, and persons with disabilities. Pursuant to the Housing Finance Agency Law, Act 1959, P.L. 1688, No. 620, as amended, the Agency is authorized and empowered, among other things, to finance the construction and rehabilitation of housing units for persons and families of low and moderate income, persons with special needs or the elderly, including those who receive assistance from federal government programs. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activities of the Agency under programs of the federal government for the year ended June 30, 2024. The information in the 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 (the Uniform Guidance). The Schedule presents only a selected portion of the operations of the Agency, and it is not intended to and does not present the financial position, changes in net position, or cash flows of the Agency. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency does not have a negotiated indirect cost rate and therefore may elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed below are administered by the Agency, and the balances and transactions related to these programs are included in the Agency’s basic financial statements. Loans outstanding at the beginning of the year, loans made during the year, and administrative costs are presented in the Schedule. The Agency had the following federal loan balances outstanding at June 30, 2024: Loan Balance Roll Forward (Amounts Program Title and Federal Assistance Listing Number (FALN) in Thousands) Home Investment Partnerships Program (Faln: 14.239): Beginning Balance as of June 30, 2023 (Multifamily Loans) $ 209,641 Total Additions 8,890 Total Repayments (2,343) Ending Balance as of June 30, 2024 (Multifamily Loans) $ 216,188 Beginning Balance as of June 30, 2023 (Single Family Loans) $ 2 ,385 Total Additions 43 Total Repayments (184) Ending Balance as of June 30, 2024 (Single Family Loans) $ 2 ,244 Housing Trust Fund Program (Faln: 14.275): Beginning Balance as of June 30, 2023 $ 34,898 Total Additions 1 2,695 Total Repayments (394) Ending Balance as of June 30, 2024 $ 47,199 DCRP and CCRP (Faln: 21.027): Beginning Balance as of June 30, 2023 $ 16,821 Total Additions 45,319 Total Repayments - Ending Balance as of June 30, 2024 $ 62,140 Capital Magnet Fund (Faln: 21.011): Beginning Balance as of June 30, 2023 $ 2 ,775 Total Additions 1,025 Total Repayments (78) Ending Balance as of June 30, 2024 $ 3 ,722 Section 536 Rural Rental Housing Guaranteed Loans (Faln: 10.438): Beginning Balance as of June 30, 2023 $ 3 ,334 Total Additions - Total Repayments (57) Ending Balance as of June 30, 2024 $ 3 ,277 x 90% The Maximum Loan Guaranteed Balance as of June 30, 2024 $ 2 ,949 The maximum loan guarantee must not exceed 90% of the outstanding principal per the agreement with the USDA.
Title: SIGNIFICANT EFFECTS OF SUBSEQUENT EVENTS Accounting Policies: DESCRIPTION OF ORGANIZATION Pennsylvania Housing Finance Agency (the Agency) was created by the General Assembly of the Commonwealth of Pennsylvania in 1972 to provide affordable housing for older adults, persons and families of modest means, and persons with disabilities. Pursuant to the Housing Finance Agency Law, Act 1959, P.L. 1688, No. 620, as amended, the Agency is authorized and empowered, among other things, to finance the construction and rehabilitation of housing units for persons and families of low and moderate income, persons with special needs or the elderly, including those who receive assistance from federal government programs. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activities of the Agency under programs of the federal government for the year ended June 30, 2024. The information in the 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 (the Uniform Guidance). The Schedule presents only a selected portion of the operations of the Agency, and it is not intended to and does not present the financial position, changes in net position, or cash flows of the Agency. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency does not have a negotiated indirect cost rate and therefore may elect to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. On August 29, 2024, the Agency sold single family mortgage revenue bonds Series 2024-146 totaling $501,209. Proceeds were used to purchase new single family mortgage loans and to provide down payment assistance for persons and families of low and moderate income. This should have been included in the FS but appears to have been missed. On December 18, 2024, the Agency sold single family mortgage revenue bonds Series 2024-147 totaling $301,817. Proceeds were used to purchase new single family mortgage loans and to provide down payment assistance for persons and families of low and moderate income.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Home Investment Partnerships Program Assistance Listing Number: 14.239 Federal Award Identification Number and Year: Various Pass-Through Agency: Department of Community and Economic Development Pass-Through Number(s): Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding:  Other Matters and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the compliance supplement, agencies are permitted to use program funds for the payment of reasonable administrative and planning costs. Condition: During our testing of 40 payroll charges to the Home Investment Partnerships Program, we noted that 1 employee's total hours were entered incorrectly, overcharging administrative cost reimbursement. Questioned costs: Known - $1,088 Likely - $3,095 Context: In a statistically valid sample, we noted that 1 of 40 payroll charges tested contained an employee whose total hours were entered incorrectly as 410.50 instead of 40.50. The payroll system capped the hours charged to the maximum of 75 hours, which is still over by 34.50 hours. Cause: Although internal control procedures were followed, and support agreed to 40.50 hours, a typographical error occurred during creation of the bill submitted to HUD. Effect: There is an error in the administrative reimbursement requested of HUD. Repeat Finding: Not a repeat finding. Recommendation: We recommend that PHFA review their internal control procedures over the compilation of their Home Investment Partnerships Program administrative expenses prior to submission to HUD for reimbursement. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Home Investment Partnerships Program Assistance Listing Number: 14.239 Federal Award Identification Number and Year: Various Pass-Through Agency: Department of Community and Economic Development Pass-Through Number(s): Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding:  Other Matters and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the compliance supplement, agencies are permitted to use program funds for the payment of reasonable administrative and planning costs. Condition: During our testing of 40 payroll charges to the Home Investment Partnerships Program, we noted that 1 employee's total hours were entered incorrectly, overcharging administrative cost reimbursement. Questioned costs: Known - $1,088 Likely - $3,095 Context: In a statistically valid sample, we noted that 1 of 40 payroll charges tested contained an employee whose total hours were entered incorrectly as 410.50 instead of 40.50. The payroll system capped the hours charged to the maximum of 75 hours, which is still over by 34.50 hours. Cause: Although internal control procedures were followed, and support agreed to 40.50 hours, a typographical error occurred during creation of the bill submitted to HUD. Effect: There is an error in the administrative reimbursement requested of HUD. Repeat Finding: Not a repeat finding. Recommendation: We recommend that PHFA review their internal control procedures over the compilation of their Home Investment Partnerships Program administrative expenses prior to submission to HUD for reimbursement. Views of responsible officials: There is no disagreement with the audit finding.