FAC Explorer

Audit 402899

FY End
2024-12-31
Total Expended
$19.08M
Findings
6
Programs
19
Organization: City of Reading (PA)
Year: 2024 Accepted: 2026-06-02
Auditor: HERBEIN + COMPANY INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1216359 2024-003 Material Weakness Yes BL
1216360 2024-003 Material Weakness Yes BL
1216361 2024-003 Material Weakness Yes BL
1216362 2024-003 Material Weakness Yes BL
1216363 2024-003 Material Weakness Yes BL
1216364 2024-003 Material Weakness Yes BL

Programs

ALN Program Spent Major Findings
14.248 COMMUNITY DEVELOPMENT BLOCK GRANTS SECTION 108 LOAN GUARANTEES $2.15M Yes 0
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH $756,980 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $728,763 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $303,978 Yes 0
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $208,266 Yes 0
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $171,395 Yes 0
14.900 LEAD HAZARD REDUCTION GRANT PROGRAM $115,828 Yes 0
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $70,545 Yes 0
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $44,253 Yes 0
20.205 TRANSPORATION ENHACEMENT FUNDS $43,677 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $20,000 Yes 1
16.999 US DEPARTMENT OF JUSTICE - JOINT LAW ENFORCEMENT OPERATIONS $11,302 Yes 0
16.999 DEA (DEA ADMIN REIMBURSEMENT) $9,752 Yes 0
16.999 CBP JOPREIM (US TREASURY DEPT JOINT OPS REIMB) $8,645 Yes 0
30.002 EMPLOYMENT DISCRIMINATION_STATE AND LOCAL FAIR EMPLOYMENT PRACTICES AGENCY CONTRACTS $6,765 Yes 0
66.458 CLEAN WATER STATE REVOLVING FUND $2,948 Yes 0
16.999 US DEPARTMENT OF JUSTICE - MAPAE $2,115 Yes 0
16.999 US DEPARTMENT OF JUSTICE - FBI $764 Yes 0
14.401 FAIR HOUSING ASSISTANCE PROGRAM $479 Yes 0

Contacts

Name Title Type
JRFAKVSPUBM7 Michael Oppenheimer Auditee
6106552583 Christopher Turtell Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the City of Reading under programs of the federal government for the year ended December 31, 2024. 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). Because the Schedule presents only a selected portion of the operations of the City of Reading, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Reading.
As a Community Development Block Grant (CDBG) entitlement community, the City participates in the Department of Housing and Urban Development’s Section 108 loan program. The City submits an application, often in conjunction with a third party who will ultimately receive the loan, to obtain a low interest loan. The proceeds from this loan must be used to meet one of the national objectives for the CDBG program and be allowable costs under the CDBG Program. The loans are secured through collateral of the third party as well as the pledging of future CDBG entitlement funds. As of December 31, 2024, the City had the following Section 108 loan activity: Outstanding Loans At 12/31/2023 $ 2,149,780 Proceeds $ - Payments $ (219,000) Outstanding Loans at 12/31/2024 $ 1,930,780
The revenue reported on the schedule of expenditures of federal awards for the Coronavirus State and Local Fiscal Recovery Funds differs from the revenue reported in the American Rescue Plan Fund because the fund level reports on the modified accrual basis of accounting and does not accrue retainages payable, while the Schedule of Expenditure of Federal Awards is reported on the full accrual basis.

Finding Details

Finding 2024-003
Federal Program COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Criteria The City utilizes a separate governmental fund to account for all State and Local Fiscal Recovery Fund transactions. This fund is then used to complete the quarterly reports required under the grant. Condition During the 2024 fiscal year, grant expenditures related to a Commonwealth of Pennsylvania grant (see finding 2024-001) for the public safety building were reported in the American Rescue Plan fund. Since they were reported in the American Rescue Plan fund they were then included in the report submitted for that time period. Cause The decentralized grant administration at the City lead to missing communication between the departments and the improper accounting for the public safety building grant. Effect The City accounted for this Commonwealth of Pennsylvania grant within the American Rescue Plan Fund which lead to the understatement of grant activity in the grant fund and overstated activity within the American Rescue Plan Fund as well as the American Rescue Plan reporting. Questioned Costs None. Context Management detected this public safety building grant of $500,000 reported in the American Rescue Plan Fund during the budget review of activity for the 2026 budget. This discovery also noted that the grant proceeds were never requested for reimbursement from the Commonwealth of Pennsylvania. Repeat Finding No. Recommendation The City should continue to refine its grant administration and accounting functions to allow for a seamless accounting for grant awards. The current decentralized structure for grant administration can allow for grants awarded to not be properly accounted for and grant reimbursement or expenditures not performed timely. Management Response See corrective action plan included in this reporting package.