Audit 42197

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the de minimis 10% indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Redevelopment Authority of the City of Johnstown under programs of the federal government for the year ended December 31, 2022. 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 Redevelopment Authority of the City of Johnstown, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Redevelopment Authority of the City of Johnstown.

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the de minimis 10% indirect cost rate. The Redevelopment Authority of the City of Johnstown did not provide federal awards to subrecipients during the year ended December 31, 2022.

Title: Identification of Major Federal Award Program Accounting Policies: Expenditures reported on the Schedule are reported on 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the de minimis 10% indirect cost rate. An extensive compliance test, as required by the Uniform Guidance, was performed on the Coronavirus State and Local Fiscal Recovery Funds, which represent 91% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards. Coronavirus State and Local Fiscal Recovery Funds 21.027 $2,172,880; Capitalization Grant for Clean Water State Revolving Funds 66.458 $570,038; Community Development Block Grants/State's Program and Non-entitlement Grants in Hawaii 14.228 $192,754. Total amount of federal awards $2,935,672 X 40%=$1,174,269-minimum amount which must be tested. The Coronavirus State and Local Fiscal Recovery Funds program exceeds $1,174,269 and, therefore, represents the program which the specific compliance requirements must be applied.