Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures presented on the Schedules are presented using 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.
De Minimis Rate Used: N
Rate Explanation: PHDC elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.
The accompanying Schedules of Expenditures of Federal Awards and State and Local Financial
Assistance (the “Schedules”) present the activities of the federal, state and local awards programs of
Philadelphia Housing Development Corporation (“PHDC”). The information in these Schedules 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”) and the City of Philadelphia Subrecipient Audit Guide. Because the Schedules
present only a selected portion of the operations of PHDC, it is not intended to and does not present
the financial position, changes in net position, or cash flows of PHDC.
Title: Summary of Significant Policies
Accounting Policies: Expenditures presented on the Schedules are presented using 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.
De Minimis Rate Used: N
Rate Explanation: PHDC elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.
Expenditures presented on the Schedules are presented using 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.
Title: Unresolved Program Costs – Contracts with Third–Party Subrecipients
Accounting Policies: Expenditures presented on the Schedules are presented using 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.
De Minimis Rate Used: N
Rate Explanation: PHDC elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.
Approximately $1,434,678 in property costs and advances applicable to contracts with the City were
expended by ECA (Energy Coordinating Agency) a PHDC third-party subrecipient for the year ended
June 30, 2020. As of February 15, 2021, PHDC has not determined the eligibility of cumulative costs
and advances of approximately $17,726 expended by the Non Profit Finance Fund (prior year
subrecipient) because PHDC has not received and reviewed audit financial reports required from the
agency covering such items. Ultimate eligibility of these costs is contingent upon PHDC obtaining the
appropriate audit reports indicating compliance on the part of the subrecipients.
Title: Cost Allocation Plan
Accounting Policies: Expenditures presented on the Schedules are presented using 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.
De Minimis Rate Used: N
Rate Explanation: PHDC elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.
PHDC elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.