Title: Subsequent Events
Accounting Policies: Expenditures for non-loan programs are reported on the Schedule on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inOffice of Management and Budget Circular A-87, Cost Principles for State, Local andIndian Tribal Governments for federal funds awarded prior to December 26, 2014, and costprinciples contained in the Uniform Guidance for federal funds awarded on or afterDecember 26, 2014, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Expenditures for loan programs includes outstanding loan principal andaccrued interest on these loans as of the beginning of the fiscal year.The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority has evaluated subsequent events through February 10, 2023, which is thedate the Schedule was available to be issued. No material subsequent events haveoccurred since June 30, 2022, that required recognition or disclosure in the Schedule.
Title: Loan/loan guarantee outstanding balances
Accounting Policies: Expenditures for non-loan programs are reported on the Schedule on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inOffice of Management and Budget Circular A-87, Cost Principles for State, Local andIndian Tribal Governments for federal funds awarded prior to December 26, 2014, and costprinciples contained in the Uniform Guidance for federal funds awarded on or afterDecember 26, 2014, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Expenditures for loan programs includes outstanding loan principal andaccrued interest on these loans as of the beginning of the fiscal year.The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
URBAN DEVELOPMENT ACTION GRANTS (14.221) - Balances outstanding at the end of the audit period were 23165852.
Title: Financial Reporting Entity
Accounting Policies: Expenditures for non-loan programs are reported on the Schedule on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inOffice of Management and Budget Circular A-87, Cost Principles for State, Local andIndian Tribal Governments for federal funds awarded prior to December 26, 2014, and costprinciples contained in the Uniform Guidance for federal funds awarded on or afterDecember 26, 2014, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Expenditures for loan programs includes outstanding loan principal andaccrued interest on these loans as of the beginning of the fiscal year.The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Chapter 121B, as amended, of the General Laws of Massachusetts, to administer communitydevelopment projects and to function as the planning Authority of the City of Boston (theCity). The Authority is a component unit of the City.On October 20, 2016, the board approved the renaming of the Authority d/b/a the BostonPlanning & Development Agency. For all legal documents and as a legal entity, theAuthority shall legally remain.
Title: Basis of Presentation
Accounting Policies: Expenditures for non-loan programs are reported on the Schedule on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inOffice of Management and Budget Circular A-87, Cost Principles for State, Local andIndian Tribal Governments for federal funds awarded prior to December 26, 2014, and costprinciples contained in the Uniform Guidance for federal funds awarded on or afterDecember 26, 2014, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Expenditures for loan programs includes outstanding loan principal andaccrued interest on these loans as of the beginning of the fiscal year.The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Authority under programs of the Federal government for the year ended June 30, 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the Authoritys basic financial statements. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in financial position or cash flows of the Authority.
Title: Urban Development Action Grants (CFDA No. 14.221)
Accounting Policies: Expenditures for non-loan programs are reported on the Schedule on the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained inOffice of Management and Budget Circular A-87, Cost Principles for State, Local andIndian Tribal Governments for federal funds awarded prior to December 26, 2014, and costprinciples contained in the Uniform Guidance for federal funds awarded on or afterDecember 26, 2014, wherein certain types of expenditures are not allowable or are limited asto reimbursement. Expenditures for loan programs includes outstanding loan principal andaccrued interest on these loans as of the beginning of the fiscal year.The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowedunder the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority is the administrator of an Urban Development Action Grant (UDAG) loanissued by the City to Harbor Point Apartments Co. Limited Partnership from grant fundsreceived from the US Department of Housing and Urban Development (HUD). TheAuthority receives repayment of principal and interest based on the repayment terms of the loan and remits the funds to the City. The loan repayment commenced on January 1, 1994, with monthly installments in arrears based on a 40-year amortization schedule. The applicable interest rates are 0% for loan years 1-3, 5% for loan years 4-9, 8% years 10 through April 15, 2015; and 3.65%, simple interest, from April 16, 2015 through the date of full repayment. Lump sum contingent interest payments are due at the end of each operational year equal to 13.335% of net annual cash flow of the project. Repayments will be made only after making cash distributions permittedby the Massachusetts Housing Finance Agency. If repayments are not made, they areconsidered due as part of a balloon payment of all outstanding principal and accrued interest in December 2045.The amount reported on the Schedule reflects the outstanding balance of principal and interest as of July 1, 2021, as the loan includes continuing compliance requirements. During fiscal year 2022, an interest payment of $1,137,213 was received on this loan, which was paid to the City in April 2022. At June 30, 2022, the principal balance was $12,000,000 and accrued interest totaled $11,165,852, inclusive of $438,000 incurred for the year ended June 30, 2022.