Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
Community Development Block Grant Entitlement Grants Cluster.
Federal Assistance Listing Number: 14.218
Criteria:
Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules.
Condition:
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”).
Cause:
During the period under audit, there was not a formal reconciliation and review process over CDBG program income.
Effect:
PHDC’s program income balance per its general ledger was understated.
Recommendation:
We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program:
All Federal, State and Local Programs
Criteria:
PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance.
Condition:
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided.
Cause:
Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff.
Effect:
Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements.
Recommendation:
We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit.
Management’s Response to Finding:
PHDC is in agreement with this finding and will complete and implement a corrective action plan.