FAC Explorer

Audit 343362

FY End
2022-12-31
Total Expended
$16.62M
Findings
10
Programs
10
Organization: City of Harrisburg (PA)
Year: 2022 Accepted: 2025-02-21
Auditor: Boyer & Ritter LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524188 2022-003 Material Weakness Yes F
524189 2022-004 Material Weakness Yes L
524190 2022-005 Material Weakness Yes P
524191 2022-004 Material Weakness Yes L
524192 2022-005 Material Weakness Yes P
1100630 2022-003 Material Weakness Yes F
1100631 2022-004 Material Weakness Yes L
1100632 2022-005 Material Weakness Yes P
1100633 2022-004 Material Weakness Yes L
1100634 2022-005 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $11.54M Yes 0
14.218 Community Development Block Grants/entitlement Grants $2.00M Yes 3
14.905 Lead Hazard Reduction Demonstration Grant Program $1.24M Yes 2
14.231 Emergency Solutions Grant Program $987,139 Yes 0
14.239 Home Investment Partnerships Program $558,204 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $161,333 - 0
14.900 Lead-Based Pain Hazard Control in Privately-Owned Housing $76,155 - 0
16.012 Alcohol, Tobacco, and Firearms_training Assistance $12,080 - 0
16.607 Bulletproof Vest Partnership Program $2,668 - 0
93.103 Food and Drug Administration Research $1,675 - 0

Contacts

Name Title Type
E4KUXKHG38V4 Bryan McCutcheon Auditee
7172556434 Matthew Wildasin Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: Generally, expenditures are recognized in the Schedule on the modified accrual basis of accounting. Federal expenditures under loan programs consist of loans disbursed during the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the primary government of the City of Harrisburg (City), Pennsylvania for the year ended December 31, 2022. The City’s reporting entity is defined in Note 1(a) to the City’s basic financial statements. Federal awards expended directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule.
Title: Relationship to Basic Financial Statements Accounting Policies: Generally, expenditures are recognized in the Schedule on the modified accrual basis of accounting. Federal expenditures under loan programs consist of loans disbursed during the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the City’s basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in the U.S. Office of Management and Budget (OMB) Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Section 108 Loans Accounting Policies: Generally, expenditures are recognized in the Schedule on the modified accrual basis of accounting. Federal expenditures under loan programs consist of loans disbursed during the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The City entered into various promissory notes under Section 108 of the Housing and Community Development Act of 1974 (Public Law 93-383), as amended. The proceeds from the notes were to administer acquisition, relocation, clearance, rehabilitation, and disposition of City properties. These notes do not have continuing compliance requirements. As collateral, the City pledged all grants approved or for which the City may become eligible under Title I of the Housing and Community Development Act of 1974, as amended, and program income derived from disposition by sale or lease of any real property to the extent acquired or rehabilitated with the guaranteed loan funds, including any interest earned on such disposition proceeds. Interest payments are required to be made to the Federal Financing Bank on the daily unpaid principal balances. The composition of promissory notes outstanding under Section 108 at December 31, 2022, is as follows: Original Date of Note: September 14, 2006, refinanced to 2019A Amount of Note: $ 3,795,000 Interest Rate: 2.55% - 2.86% Required Interest Payment: Semi-Annual, Feb 1 & Aug 1 Principal Balance 12/31/2022: $ 855,000 2022 Principal Payments: $ 210,000 Section 108 loans changed during the year as follows: Beginning of Year - $ 1,065,000 Additions - $0 Payments - $ (210,000) End of Year - $ 855,000

Finding Details

Finding 2022-003
U.S. Department of Housing and Urban Development - Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: During the audit, it was noted that the City was not conducting an inventory of equipment and real property purchased with CDBG grants funds. Criteria: The Code of Federal Regulations [2 CFR section 200.313(d)(1) and 200.313(d)(2)] requires equipment and real property records must be maintained that include a description of the property or equipment, a serial or identification number (if applicable), the source of funding, acquisition date, cost of the property or equipment, location, and condition. In addition, the Code of Federal Regulations requires that a physical inventory of equipment and real property must be taken, and the results reconciled with the records at least once every two years. Cause: The City does not have controls in place to ensure that an inventory of equipment and real property purchased with grant funds is being conducted and maintained. Effect: The City is not in compliance with the Equipment and Real Property federal requirements. Failure to comply with grant award requirements could jeopardize future funding. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that all federal equipment and real property requirements are followed, including maintaining an accurate and complete listing of equipment and real property purchased with grant funds and conducting an inventory on those items at least every two years. Views of Responsible Officials: Expenditures of CDBG grant funding for capital outlays on equipment and real property are readily identifiable within the City’s fixed assets module of the accounting system, including subsequent retirements of any such capital assets. The Department acknowledges related physical inventory observations to identify these assets have not been consistently performed. The Department will work to formalize such inventory procedures working off of an available assets listing generated from within the fixed assets system. The City will look to complete such process as soon as is feasibly possible.
Finding 2022-004
U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022. Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period. Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays. Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year. Questioned Costs: This finding does not result in questioned costs. Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting. Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.
Finding 2022-005
U.S. Department of Housing and Urban Development - Community Development Block Grants/Entitlement Grants Cluster & Lead Hazard Reduction Grant Program (ALN #14.218 & 14.905) Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Cause: The City does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. Effect: The City is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: The planned audit timeline was repeatedly interrupted and impacted by ongoing functional issues of a new City-wide financial management system, expanded financial managerial supporting work asked of the Accounting Manager, and recent occurring vacancies in key financial managerial positions. With resulting recent expansion of financial management staff, the Accounting Manager will continue to work and look forward to improved efficiency in the performance of ongoing audit preparation work during the current year.
Finding 2022-004
U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022. Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period. Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays. Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year. Questioned Costs: This finding does not result in questioned costs. Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting. Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.
Finding 2022-005
U.S. Department of Housing and Urban Development - Community Development Block Grants/Entitlement Grants Cluster & Lead Hazard Reduction Grant Program (ALN #14.218 & 14.905) Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Cause: The City does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. Effect: The City is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: The planned audit timeline was repeatedly interrupted and impacted by ongoing functional issues of a new City-wide financial management system, expanded financial managerial supporting work asked of the Accounting Manager, and recent occurring vacancies in key financial managerial positions. With resulting recent expansion of financial management staff, the Accounting Manager will continue to work and look forward to improved efficiency in the performance of ongoing audit preparation work during the current year.
Finding 2022-003
U.S. Department of Housing and Urban Development - Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: During the audit, it was noted that the City was not conducting an inventory of equipment and real property purchased with CDBG grants funds. Criteria: The Code of Federal Regulations [2 CFR section 200.313(d)(1) and 200.313(d)(2)] requires equipment and real property records must be maintained that include a description of the property or equipment, a serial or identification number (if applicable), the source of funding, acquisition date, cost of the property or equipment, location, and condition. In addition, the Code of Federal Regulations requires that a physical inventory of equipment and real property must be taken, and the results reconciled with the records at least once every two years. Cause: The City does not have controls in place to ensure that an inventory of equipment and real property purchased with grant funds is being conducted and maintained. Effect: The City is not in compliance with the Equipment and Real Property federal requirements. Failure to comply with grant award requirements could jeopardize future funding. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that all federal equipment and real property requirements are followed, including maintaining an accurate and complete listing of equipment and real property purchased with grant funds and conducting an inventory on those items at least every two years. Views of Responsible Officials: Expenditures of CDBG grant funding for capital outlays on equipment and real property are readily identifiable within the City’s fixed assets module of the accounting system, including subsequent retirements of any such capital assets. The Department acknowledges related physical inventory observations to identify these assets have not been consistently performed. The Department will work to formalize such inventory procedures working off of an available assets listing generated from within the fixed assets system. The City will look to complete such process as soon as is feasibly possible.
Finding 2022-004
U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022. Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period. Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays. Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year. Questioned Costs: This finding does not result in questioned costs. Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting. Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.
Finding 2022-005
U.S. Department of Housing and Urban Development - Community Development Block Grants/Entitlement Grants Cluster & Lead Hazard Reduction Grant Program (ALN #14.218 & 14.905) Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Cause: The City does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. Effect: The City is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: The planned audit timeline was repeatedly interrupted and impacted by ongoing functional issues of a new City-wide financial management system, expanded financial managerial supporting work asked of the Accounting Manager, and recent occurring vacancies in key financial managerial positions. With resulting recent expansion of financial management staff, the Accounting Manager will continue to work and look forward to improved efficiency in the performance of ongoing audit preparation work during the current year.
Finding 2022-004
U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022. Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period. Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays. Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year. Questioned Costs: This finding does not result in questioned costs. Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting. Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.
Finding 2022-005
U.S. Department of Housing and Urban Development - Community Development Block Grants/Entitlement Grants Cluster & Lead Hazard Reduction Grant Program (ALN #14.218 & 14.905) Condition: The annual audit and data collection form submission are being filed after the regulatory deadlines. Criteria: The Code of Federal Regulations (2 CFR section 200.512(a)(1) requires that the annual audit and data collection form be submitted no later than 9 months after the end of the audit period. Cause: The City does not have controls in place to ensure that it is adhering to the timelines established in the Code of Federal Regulation. Effect: The City is not in compliance with the Report submission requirements. Questioned Costs: This finding does not result in questioned costs. Recommendations: We recommend that the City implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Views of Responsible Officials: The planned audit timeline was repeatedly interrupted and impacted by ongoing functional issues of a new City-wide financial management system, expanded financial managerial supporting work asked of the Accounting Manager, and recent occurring vacancies in key financial managerial positions. With resulting recent expansion of financial management staff, the Accounting Manager will continue to work and look forward to improved efficiency in the performance of ongoing audit preparation work during the current year.