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, 2023. 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.
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. The City has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
he 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, 2023, is as follows: Section 108 loans changed during the year 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 12/31/2023: $ 645,000 2023 Principal Payments: $ 210,000 Section 108 loans changed during the year as follows: Beginning of Year - $ 855,000 Additions - $0 Payments - $ (210,000) End of Year - $ 645,000