EIN: 231664406
UEI: GKL3BZAZ4KU5
Audited by: Mercadien, P.C. Certified Public Accountants
Cognizant agency: 14 [Department of Housing and Urban Development]
View federal awards & risk assessment →
Showing data from August 28, 2026 — the Federal Audit Clearinghouse is under high demand right now, so this couldn't be refreshed. This is the most recent data on record, not necessarily today's.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 17, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 17, 2026 (108 days from today).
What is a management decision? →Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2025. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2025. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Person(s) Responsible for the Corrective Action: April Samuels, VP of Finance Corrective Action Plan: Implement monthly reconciliation between PHDC and DHCD to identify and resolve any discrepancies in real time. Anticipated Completion Date: June 30, 2026
2023-001
FAC accepted this audit on June 17, 2026 — management decision was due December 17, 2026.
Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2025. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2025. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Person(s) Responsible for the Corrective Action: April Samuels, VP of Finance Corrective Action Plan: Implement monthly reconciliation between PHDC and DHCD to identify and resolve any discrepancies in real time. Anticipated Completion Date: June 30, 2026
2023-001
FAC accepted this audit on June 17, 2026 — management decision was due December 17, 2026.
Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2024. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2024. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Person(s) Responsible for the Corrective Action: April Samuels, VP of Finance Corrective Action Plan: Implement monthly reconciliation between PHDC and DHCD to identify and resolve any discrepancies in real time. Anticipated Completion Date: June 30, 2026
2022-002
FAC accepted this audit on June 17, 2026 — management decision was due December 17, 2026.
Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2024. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program All Federal Programs Criteria PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2024. Various audit adjustments were also made to the original schedule provided. Cause Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Person(s) Responsible for the Corrective Action: April Samuels, VP of Finance Corrective Action Plan: Implement monthly reconciliation between PHDC and DHCD to identify and resolve any discrepancies in real time. Anticipated Completion Date: June 30, 2026
2022-002
FAC accepted this audit on June 20, 2025 — management decision was due December 20, 2025.
PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”). Cause: During the period under audit, there was not a formal reconciliation and review process over CDBG program income. Effect: PHDC’s program income balance per its general ledger was understated. Recommendation: We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices. Management’s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program: Community Development Block Grant Entitlement Grants Cluster. Federal Assistance Listing Number: 14.218 Criteria: Per the OMB Compliance Supplement, grantees must accurately account for any program income generated from the use of CDBG funds and must treat such income as additional CDBG funds which are subject to all program rules. Condition: PHDC did not journalize $465,246 in program income during the year. $4,034,754 of program income was accounted for in the general ledger, however, $4,500,000 was deducted from the invoices submitted to the Division of Housing and Community Development (“DHCD”). Cause: During the period under audit, there was not a formal reconciliation and review process over CDBG program income. Effect: PHDC’s program income balance per its general ledger was understated. Recommendation: We recommend that PHDC implement a reconciliation process for comparing the general ledger recorded program income to the amounts deducted from DHCD invoices. Management’s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Finding 2022-001 Responsible Perseon(s): April Samuels, VP of Finance No month-end close, no four-eye review process and no account reconiliations PHDC acknowledges the issue noted above and is in the process and or will correct the deficienes by: -Implemented a month-end close cycle which significantly helps in establising team expectations, timely recording, reconcilling both of the balance sheet and income statement items, and improves financial reporting. -Defined staff roles/responsibilities and trained team members to understand the business, as well as their end-to-end process to help ensure accuracy and accountability. -Made great strides with maintaining monthly reconciliations; however their biggest opportunity has been reconciling the program activity/invoices submitted to DHCD in which they most recently implemented a DHCD reconcilliation that ties to the general ledger for the reviewer to verify before approving/submitting the invoice to DHCD.
PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided. Cause: Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect: Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation: We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program: All Federal, State and Local Programs Criteria: PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition: PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided. Cause: Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect: Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation: We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Finding 2022-002 Responsible Perseon(s): April Samuels, VP of Finance PHDC's federal single audit was not completed within the single audit reporting deadline of March 31, 2023. PHDC acknowledges the issue noted above and is in the process and or will correct the deficienes by: -Implementing a monthly meeting with DHCD to ensure they align.
FAC accepted this audit on March 27, 2022 — management decision was due September 27, 2022.
Program Program Name: Community Development Block Grant Entitlement Grants Cluster. CDFA: #14.218. Award Identification Numbers: 11-86071, 17-20209, 18-20190, 19-20078, 20-20319, 20-20150, 21- 20437, 21-20312 and 20-20150. Grant Periods: 07/01/10- 06/30/21, 07/01/16-06/30/20, 07/01/17- 06/30/21, 07/01/18-06/30/21, 10/01/19-09/30/21, 07/01/19-06/30/21, 07/01/20-06/30/21, 07/01/20- 06/30/21 and 07/01/19-06/30/21. Pass-Through Grantor: Division of Housing and Community Development. Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the 40 contracts with contractors tested, one could not be located. Of the one subrecipient contract tested, the subrecipient did not have a valid contract with PHDC for fiscal year 2021. Cause The transition of responsibilities from a retiring employee to his/her replacement whilst working in a remote environment. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is maintained and filed correctly. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program Program Name: Community Development Block Grant Entitlement Grants Cluster. CDFA: #14.218. Award Identification Numbers: 11-86071, 17-20209, 18-20190, 19-20078, 20-20319, 20-20150, 21- 20437, 21-20312 and 20-20150. Grant Periods: 07/01/10- 06/30/21, 07/01/16-06/30/20, 07/01/17- 06/30/21, 07/01/18-06/30/21, 10/01/19-09/30/21, 07/01/19-06/30/21, 07/01/20-06/30/21, 07/01/20- 06/30/21 and 07/01/19-06/30/21. Pass-Through Grantor: Division of Housing and Community Development. Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the 40 contracts with contractors tested, one could not be located. Of the one subrecipient contract tested, the subrecipient did not have a valid contract with PHDC for fiscal year 2021. Cause The transition of responsibilities from a retiring employee to his/her replacement whilst working in a remote environment. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is maintained and filed correctly. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Finding 2021-002 ? Responsible Person(s): George Russell: Director of Home Improvement Programs Lowell Thomas: PHDC Legal ? Missing vendor contract. PHDC acknowledges the issue noted above and is in the process and or will correct the deficiencies by:- ? Ensuring that both the legal and home improvement department(s) maintain independent logs of the status of all open/closed contracts. ? Ensure the finance department gets copies of all fully executed contracts and create protocols that prevent payment to vendors that don?t have fully executed contracts. ? Create transition plans for staff that are known to be leaving/retiring when sufficient notice allows.
2020-002
Program Program Name: Emergency Rental Assistance Program. CDFA: #21.023. Award Identification Numbers: 21-20469 and 20-20150. Grant Periods: 07/01/20-06/30/21 and 07/01/19-06/30/21. Pass-Through Grantor: Division of Housing and Community Development. Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the 40 allowable activities and costs tested, there was an allocation that caused an overstatement of expenses of $80,278. Cause As the finance department of PHDC continued to work remotely, or on a hybrid office/remote schedule during the pandemic, some of the existing procedures and protocols were amended and/or eliminated to continue supporting the other production departments. Autonomy was provided to senior accountants in the department and dual signatures were often eliminated. Effect An opportunity exists for possible unallowable costs and/or possible noncompliance with certain federal and or City compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program Program Name: Emergency Rental Assistance Program. CDFA: #21.023. Award Identification Numbers: 21-20469 and 20-20150. Grant Periods: 07/01/20-06/30/21 and 07/01/19-06/30/21. Pass-Through Grantor: Division of Housing and Community Development. Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the 40 allowable activities and costs tested, there was an allocation that caused an overstatement of expenses of $80,278. Cause As the finance department of PHDC continued to work remotely, or on a hybrid office/remote schedule during the pandemic, some of the existing procedures and protocols were amended and/or eliminated to continue supporting the other production departments. Autonomy was provided to senior accountants in the department and dual signatures were often eliminated. Effect An opportunity exists for possible unallowable costs and/or possible noncompliance with certain federal and or City compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Finding 2021-003 ? Responsible Person: Darren Williams VP of Finance. ? Allocation that caused an overstatement of expenses of $80,278. PHDC acknowledges the issue noted above and is in the process and or will correct the deficiencies by:- - Reviewing/ updating its internal control procedures to include work practices and work review in the remote environment. This will immediately re-establish dual signatures for all journal entries, cash receipts and payment vouchers. - PHDC will also implement a review/ evaluate the allocation of staff members to specific responsibilities to determine whether a reallocation of assignment will be more productive in terms of account reconciliation and financial statement preparation
Criteria Management is responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition Various adjustments were made to the original schedule provided which caused delays in completing the audit. Cause As the finance department of PHDC continued to work remotely, or on a hybrid office/remote schedule during the Pandemic some of the existing procedures and protocols were amended and/ or eliminated to continue supporting the other production departments. Autonomy was provided to senior accountants in the department and dual signatures were often eliminated. Effect An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Criteria Management is responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition Various adjustments were made to the original schedule provided which caused delays in completing the audit. Cause As the finance department of PHDC continued to work remotely, or on a hybrid office/remote schedule during the Pandemic some of the existing procedures and protocols were amended and/ or eliminated to continue supporting the other production departments. Autonomy was provided to senior accountants in the department and dual signatures were often eliminated. Effect An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management?s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Finding 2021-004 ? Responsible Person: Darren Williams VP of Finance. ? Various adjustments were made to the original schedule provided which caused delays in completing the audit. PHDC acknowledges the issue noted above and is in the process and or will correct the deficiencies by:- - Reviewing/ updating its internal control procedures to include work practices and work review in the remote environment. This will immediately re-establish dual signatures for all journal entries, cash receipts and payment vouchers. - PHDC will also implement a review/ evaluate the allocation of staff members to specific responsibilities to determine whether a reallocation of assignment will be more productive in terms of account reconciliation and financial statement preparation. - PHDC will also re-establish a hard month end closing cycle to include not only monthly analytics of the income statement but also the balance sheet. - PHDC hopes to start its audit engagement by mid September with a DRAFT trial balance available by the end of September in order to prevent review delays based on accounting changes and to facilitate financial statement submission to the CITY by December 31st.
FAC accepted this audit on November 27, 2023 — management decision was due May 27, 2024.
Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Cause: The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect: Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation: We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program: Community Development Block Grant Entitlement Grants Cluster Low-Income Home Energy Assistance Criteria: Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition: Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Cause: The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect: Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation: We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program Community Development Block Grant Entitlement Grants Cluster Low-Income Home Energy Assistance Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Corrective Action Policies and procedures will be updated to remedy this finding. The updates will improve recordkeeping and internal control by enhancing documentation and approvals stored within the accounting system. Responsible Party George Russell, Director of HIP Estimated Completion Date March 2021
Program Community Development Block Grant Entitlement Grants Cluster (CFDA 14.218, Award Year 7/1/19- 6/30/2020, Contract #20-20155, Pass-though grantor DHCD) Low-Income Home Energy Assistance (CFDA 93.568, Award Year 7/1/19-6/30/2020, Contract #C000061723, Pass-through grantor Commonwealth of PA) Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition CFDA 14.218 – of the sample of 25 transactions tested for allowable costs, support for three disbursements could not be located, resulting in questioned costs of $23,803. CFDA 93.568 – of the sample of 25 transactions tested, contracts for two vendors could not be located. CFDA 93.568 – of the sample of 25 files tested for eligibility, one client file could not be located. Cause The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program Community Development Block Grant Entitlement Grants Cluster (CFDA 14.218, Award Year 7/1/19- 6/30/2020, Contract #20-20155, Pass-though grantor DHCD) Low-Income Home Energy Assistance (CFDA 93.568, Award Year 7/1/19-6/30/2020, Contract #C000061723, Pass-through grantor Commonwealth of PA) Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition CFDA 14.218 – of the sample of 25 transactions tested for allowable costs, support for three disbursements could not be located, resulting in questioned costs of $23,803. CFDA 93.568 – of the sample of 25 transactions tested, contracts for two vendors could not be located. CFDA 93.568 – of the sample of 25 files tested for eligibility, one client file could not be located. Cause The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Responsible Person – Darren Williams, VP of Finance PHDC acknowledges the issues noted in the finding 2020‐002 and is in the process or will correct the deficiencies by: ‐ Reviewing/updang its internal control procedures to include work pracces and work review in the hybrid environment. This will immediately re‐establish review of all journal entries, cash receipts and disbursements. ‐ PHDC will also implement a review/allocaon of staff members to specific responsibilies to determine where a reallocaon of assignment will be more producve in terms of account reconciliaon and financial statement preparaon. ‐ PHDC will also re‐establish process whereby all supporng documentaon is scanned and saved on the portal to ensure documentaon is retained for audit purposes.
FAC accepted this audit on March 28, 2021 — management decision was due September 28, 2021.
Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Cause: The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect: Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation: We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program: Community Development Block Grant Entitlement Grants Cluster Low-Income Home Energy Assistance Criteria: Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition: Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Cause: The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect: Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation: We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management?s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Program Community Development Block Grant Entitlement Grants Cluster Low-Income Home Energy Assistance Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition Of the contracts with contractors tested, two could not be located. Of the allowable costs tested, support for three disbursements could not be located, resulting in questioned costs of $23,803. Of the client files tested for eligibility, one client file could not be located. Corrective Action Policies and procedures will be updated to remedy this finding. The updates will improve recordkeeping and internal control by enhancing documentation and approvals stored within the accounting system. Responsible Party George Russell, Director of HIP Estimated Completion Date March 2021
Program Community Development Block Grant Entitlement Grants Cluster (CFDA 14.218, Award Year 7/1/19- 6/30/2020, Contract #20-20155, Pass-though grantor DHCD) Low-Income Home Energy Assistance (CFDA 93.568, Award Year 7/1/19-6/30/2020, Contract #C000061723, Pass-through grantor Commonwealth of PA) Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition CFDA 14.218 – of the sample of 25 transactions tested for allowable costs, support for three disbursements could not be located, resulting in questioned costs of $23,803. CFDA 93.568 – of the sample of 25 transactions tested, contracts for two vendors could not be located. CFDA 93.568 – of the sample of 25 files tested for eligibility, one client file could not be located. Cause The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Show full finding ▾Hide full finding ▴Program Community Development Block Grant Entitlement Grants Cluster (CFDA 14.218, Award Year 7/1/19- 6/30/2020, Contract #20-20155, Pass-though grantor DHCD) Low-Income Home Energy Assistance (CFDA 93.568, Award Year 7/1/19-6/30/2020, Contract #C000061723, Pass-through grantor Commonwealth of PA) Criteria Management is responsible for establishing and maintaining effective internal control over the financial reporting function. Management is also responsible for maintaining adequate supporting documentation for transactions and compliance elements. Condition CFDA 14.218 – of the sample of 25 transactions tested for allowable costs, support for three disbursements could not be located, resulting in questioned costs of $23,803. CFDA 93.568 – of the sample of 25 transactions tested, contracts for two vendors could not be located. CFDA 93.568 – of the sample of 25 files tested for eligibility, one client file could not be located. Cause The immediate transition to remote working, as a result of the pandemic, in the middle of a significant general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no standard naming/filing convention being followed. Effect Without proper filing and retention of supporting documentation, we could not determine the accuracy and compliance of the major program compliance requirements. Recommendation We recommend that PHDC follow procedures consistently to ensure that supporting documentation is filed correctly. Management’s Response to Finding PHDC is in agreement with this finding and will complete and implement a corrective action plan.
Responsible Person – Darren Williams, VP of Finance PHDC acknowledges the issues noted in the finding 2020‐002 and is in the process or will correct the deficiencies by: ‐ Reviewing/updang its internal control procedures to include work pracces and work review in the hybrid environment. This will immediately re‐establish review of all journal entries, cash receipts and disbursements. ‐ PHDC will also implement a review/allocaon of staff members to specific responsibilies to determine where a reallocaon of assignment will be more producve in terms of account reconciliaon and financial statement preparaon. ‐ PHDC will also re‐establish process whereby all supporng documentaon is scanned and saved on the portal to ensure documentaon is retained for audit purposes.
FAC accepted this audit on March 1, 2020 — management decision was due September 1, 2020.
FAC accepted this audit on February 3, 2019 — management decision was due August 3, 2019.
FAC accepted this audit on January 29, 2018 — management decision was due July 29, 2018.
FAC accepted this audit on March 2, 2017 — management decision was due September 2, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in Pennsylvania →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and filing records.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.
