EIN: 251269117
UEI: QFKJE1JNMDT4
Audited by: Zelenkofske Axelrod LLC
Oversight agency: 11 [Department of Commerce]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 1, 2025. 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 November 1, 2025 (301 days ago).
What is a management decision? →There were no adequate internal controls to identify and correct material misstatements in key line items in the Form ED-209, Revolving Loan Fund Financial Report (report) for the Legacy or Cares Revolving Loan Funds or submit the reports timely. The key line items contain critical information and should reconcile to the Authority's financial documents and account balances. Cause: The current internal control system in place was not adequate to ensure: loan reporting procedures were followed in accordance with the RLF Plan approved by the EDA. Effect: The reports do not contain accurate information. This is a repeat finding of 2023-001. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2024-001 Reporting Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Revolving Loan Fund (RLF) recipients must administer RLFs in accordance with an RLF Plan approved by EDA. Pursuant to 13 CFR 307.14 (a) All RLF Recipients, including those receiving Recapitalization Grants for existing RLFs, must complete and submit an RLF report, using Form ED-209, in a format and at a frequency as required by EDA. Pursuant to 13 CFR 307.14 (b) All RLF Recipients must certify as part of the RLF report to EDA that the RLF is operating in accordance with the applicable RLF Plan and that the information provided is complete and accurate. Condition: There were no adequate internal controls to identify and correct material misstatements in key line items in the Form ED-209, Revolving Loan Fund Financial Report (report) for the Legacy or Cares Revolving Loan Funds or submit the reports timely. The key line items contain critical information and should reconcile to the Authority's financial documents and account balances. Cause: The current internal control system in place was not adequate to ensure: loan reporting procedures were followed in accordance with the RLF Plan approved by the EDA. Effect: The reports do not contain accurate information. This is a repeat finding of 2023-001. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
Finding 2024-001: Reporting Management Response: The system to record IDA’s loan portfolio has an incorrect cash balance that has been carried forward from prior years. The cash balance is self populated within the reporting system which the Authority can’t correct. The Authority has reached out to our RLF portfolio manager at the EDA for guidance and resolution. Once corrected, we will have a separate finance team member review the reported cash balance agrees to IDA’s general ledger. Anticipated Completion Date: Immediate
2023-001
FAC accepted this audit on June 19, 2024 — management decision was due December 19, 2024.
There were not adequate internal controls in place to ensure that the loan monitoring procedures of the submitted ‘Revolving Loan Fund Plan’ (RLF Plan) were being complied with including obtaining financial statements and federal income tax returns, insurance renewals, and performing site visits. We also noted that there were not adequate internal controls to identify and correct material misstatements in key line items in the Form ED-209, Revolving Loan Fund Financial Report (report) for the Legacy or Cares Revolving Loan Funds or submit the reports timely. The key line items contain critical information and should reconcile to the Authority's financial documents and account balances. Additionally, one revolving phase loan disbursement was selected to review the standard loan documents and it was noted that the required application was not available for review. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Revolving Loan Fund (RLF) recipients must administer RLFs in accordance with an RLF Plan approved by EDA. Pursuant to 13 CFR 307.14 (a) All RLF Recipients, including those receiving Recapitalization Grants for existing RLFs, must complete and submit an RLF report, using Form ED-209, in a format and at a frequency as required by EDA. Pursuant to 13 CFR 307.14 (b) All RLF Recipients must certify as part of the RLF report to EDA that the RLF is operating in accordance with the applicable RLF Plan and that the information provided is complete and accurate. Pursuant to 13 CFR 307.11 (a) (1) (ii) the standard loan documents must include the loan application. Cause: The current internal control system in place was not adequate to ensure: loan monitoring procedures were followed in accordance with the RLF Plan approved by the EDA, reports were completed accurately and timely and the required loan application was maintained. Effect: The loan monitoring procedures were not followed and therefore required information was not obtained, the reports were not filed timely and do not contain accurate information and the loan application was not maintained. Question Costs: None Identification as a Repeat Finding: This is a repeat finding of 2022-002. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date, and 3) the Authority should have internal controls in place to review the standard loan documentation to ensure all documentation is completed, submitted, and retained. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2023-001: Allowable Costs/Cost Principles, Reporting, and Special Tests and Provisions U.S. Department of Commerce Economic Development Cluster Economic Adjustment Assistance ALN 11.307 Condition: There were not adequate internal controls in place to ensure that the loan monitoring procedures of the submitted ‘Revolving Loan Fund Plan’ (RLF Plan) were being complied with including obtaining financial statements and federal income tax returns, insurance renewals, and performing site visits. We also noted that there were not adequate internal controls to identify and correct material misstatements in key line items in the Form ED-209, Revolving Loan Fund Financial Report (report) for the Legacy or Cares Revolving Loan Funds or submit the reports timely. The key line items contain critical information and should reconcile to the Authority's financial documents and account balances. Additionally, one revolving phase loan disbursement was selected to review the standard loan documents and it was noted that the required application was not available for review. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Revolving Loan Fund (RLF) recipients must administer RLFs in accordance with an RLF Plan approved by EDA. Pursuant to 13 CFR 307.14 (a) All RLF Recipients, including those receiving Recapitalization Grants for existing RLFs, must complete and submit an RLF report, using Form ED-209, in a format and at a frequency as required by EDA. Pursuant to 13 CFR 307.14 (b) All RLF Recipients must certify as part of the RLF report to EDA that the RLF is operating in accordance with the applicable RLF Plan and that the information provided is complete and accurate. Pursuant to 13 CFR 307.11 (a) (1) (ii) the standard loan documents must include the loan application. Cause: The current internal control system in place was not adequate to ensure: loan monitoring procedures were followed in accordance with the RLF Plan approved by the EDA, reports were completed accurately and timely and the required loan application was maintained. Effect: The loan monitoring procedures were not followed and therefore required information was not obtained, the reports were not filed timely and do not contain accurate information and the loan application was not maintained. Question Costs: None Identification as a Repeat Finding: This is a repeat finding of 2022-002. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date, and 3) the Authority should have internal controls in place to review the standard loan documentation to ensure all documentation is completed, submitted, and retained. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
May 31, 2024 Finding 2023-001: Allowable Costs/Cost Principles, Reporting, and Special Tests and Provisions Industrial Development Authority Corrective Action Plan: To ensure financial statements, Federal tax returns, Personal Financial Statements, and insurance renewals are received annually the invoice for December will include a reminder, with appropriate due dates, to the borrower. Additionally, in January a separate letter will be sent to each borrower requesting the updated information. Finally, a member of the Business Development staff will be responsible for calling any borrower that fails to comply and request the information. A member of the Business Development staff will perform an annual site visit to each borrower. The individual responsible for filing the ED-209 reports is no longer employed at Allegheny County Economic Development. To ensure the reports are prepared in a correct manner and submitted in a timely manner a member of the Business Development staff will be trained on how to complete and submit the report. In 2024 a reviewing routing procedure was initiated where the reports were circulated for review by the Assistant Director, Operations, Sr. Finance Manager, and Deputy Director review the reports prior to submission. To ensure the reports are submitted timely staff will be required to circulate the report for review at least two weeks prior to the deadline. Additionally, a member of the Fiscal staff will be responsible for reconciling the ED-209 reports with the Authority's financial records and balances. Finally, a checklist for each loan will be provided to each staff member to ensure that all documents are received and kept in the appropriate file. For all new loans a Manager will be responsible for reviewing each file prior to and at closing to ensure that all documents have been reviewed.
2022-002
FAC accepted this audit on August 23, 2023 — management decision was due February 23, 2024.
There were not adequate internal controls in place to ensure that the following requirements of the submitted `Revolving Loan Fund Plan? (RLF Plan) were being complied with: 1) use of correct loan interest rates in accordance with the RLF Plan and 2) loan monitoring documentation is appropriately obtained and/or maintained. Additionally, we noted that there were not adequate internal controls in place to ensure cash balances are accurately tracked in the general ledger to provide for proper SEFA reporting and that required federal oversight reports are reviewed prior to submission or submitted timely. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Revolving Loan Fund (RLF) recipients must administer RLFs in accordance with an RLF Plan approved by EDA. Cause: The current internal control system in place does not provide for formal procedures to review loan terms in accordance with the RLF Plan approved by the EDA, obtain/maintain loan monitoring documentation, accurately record cash balances in the general ledger for proper SEFA reporting, or review required federal oversight reports prior to submission by the established due date. Effect: Lack of formal internal control procedures resulted in 1) an incorrect interest rate being used on a loan issued in the current year, 2) loan monitoring documentation not being obtained/maintained, 3) cash balances being inaccurately reported in the general ledger resulting in inaccurate SEFA reporting, 4) required federal oversight report, form ED-209, not being reviewed prior to submission and being submitted after the due date. Question Costs: None Identification as a Repeat Finding: This is a repeat finding of 2021-002. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should review the general ledger on a monthly basis to ensure cash balances are accurately stated for proper SEFA reporting, 3) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2022-002: Allowable Costs/Cost Principles and Reporting U.S. Department of Commerce Economic Development Cluster Economic Adjustment Assistance ALN 11.307 Condition: There were not adequate internal controls in place to ensure that the following requirements of the submitted `Revolving Loan Fund Plan? (RLF Plan) were being complied with: 1) use of correct loan interest rates in accordance with the RLF Plan and 2) loan monitoring documentation is appropriately obtained and/or maintained. Additionally, we noted that there were not adequate internal controls in place to ensure cash balances are accurately tracked in the general ledger to provide for proper SEFA reporting and that required federal oversight reports are reviewed prior to submission or submitted timely. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Revolving Loan Fund (RLF) recipients must administer RLFs in accordance with an RLF Plan approved by EDA. Cause: The current internal control system in place does not provide for formal procedures to review loan terms in accordance with the RLF Plan approved by the EDA, obtain/maintain loan monitoring documentation, accurately record cash balances in the general ledger for proper SEFA reporting, or review required federal oversight reports prior to submission by the established due date. Effect: Lack of formal internal control procedures resulted in 1) an incorrect interest rate being used on a loan issued in the current year, 2) loan monitoring documentation not being obtained/maintained, 3) cash balances being inaccurately reported in the general ledger resulting in inaccurate SEFA reporting, 4) required federal oversight report, form ED-209, not being reviewed prior to submission and being submitted after the due date. Question Costs: None Identification as a Repeat Finding: This is a repeat finding of 2021-002. Recommendation: We have the following recommendations: 1) the Authority should implement procedures to ensure that the RLF program is administered in accordance with the plan approved by the EDA, 2) the Authority should review the general ledger on a monthly basis to ensure cash balances are accurately stated for proper SEFA reporting, 3) the Authority should implement procedures to ensure that required reports are reviewed for accuracy prior to being submitted by the due date. View of Responsible Official: Management agrees with the finding. See separate corrective action plan.
Finding 2022-001: Segregation of Duties / Internal Control Industrial Development Authority Corrective Action Plan: The following procedures have been implemented to improve controls and segregation of duties. 1. Each Accountant has been assigned an authority for monitoring and invoicing. Invoices are sent on the first of the month. The Auditor or Sr. Finance Manger will monitor Quickbooks to ensure invoices are prepared timely and efforts are made for collection. 2. Loan receivable detail including amortization schedules and payment schedules will be maintained monthly and reconciled to Quickbooks each month. 3. Interfund activity will be recorded timely and reconciled monthly. The Sr. Manger or Auditor will review monthly. 4. Only the Auditor or Sr. Finance Manger will make journal entries. Finding 2022-002: Allowable Costs/Cost Principles and Reporting Industrial Development Authority Corrective Action Plan: 1. To prevent incorrect interest rates in the future, a loan process flow document [Exhibit C] has been created. The project and division manager will use this tool prior to drafting an offer letter, which serves as the first official offering of a fixed rate. Rates will be checked again prior to closing. If at this time, the rate is different then what was provided in the offer letter, the division manager will seek approval from EDA. Please see table included in the corrective action plan. 2. Business Development, Finance, and the Deputy Director have set up monthly loan monitoring meetings. Additionally, Business Development staff will send out annual specific requests for loan monitoring materials for all active loans, on top of the monthly reminders already sent with invoices. 3. ACED Business Development will work with ACED Finance to perform a monthly reconciliation to ensure cash balances are reported accurately and timely in all systems. 4. Federal reports are now being prepared by the Manager of Business Development and reviewed by the Sr. Finance Manager, the Assistant Director, and the Deputy Director before submission with an approval memo tracking their review. Reports are now current and were submitted on time for June 30, 2023. Please contact me with questions or concerns regarding the corrective action plans. Sincerely, Simone McMeans Authorized Designate
2021-002
FAC accepted this audit on June 2, 2022 — management decision was due December 2, 2022.
There were not adequate internal controls in place to ensure that correct interest rates are set in accordance with the submitted `Revolving Loan Fund Plan? and required reports are reviewed prior to being submitted. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. RLF recipients must administer RLFs in accordance with an RLF plan approved by EDA. Program income is a key feature of RLF awards. Known as ?RLF income,? it is used to increase the RLF capital base and to pay eligible and reasonable administrative costs. RLF income (as defined at 13 CFR section 307.8) includes interest earned on loan principal and accounts holding RLF funds, all fees received by the RLF, and other income generated from RLF operations. RLF income excludes repayments of loan principal and any interest earned on accounts holding RLF funds that is remitted to the US Treasury pursuant to generally accepted accounting principles (GAAP) and/or 13 CFR section 307.20(h). Cause: The current internal control system in place does not provide for formal procedures to review loan terms in accordance with the RLF plan approved by the EDA or to review Form ED-209 prior to submission. Effect: Lack of formal internal controls procedures resulted in 1) an incorrect interest rate on a loan issued, 2) program income being reporting as principal and interest instead of interest only in accordance with the reporting criteria, and 3) leveraged loan amounts reported without reconciliation to supporting documentation. Question Costs: None Identification as a Repeat Finding: A Single Audit was not performed in the prior year. Recommendation: We recommend that the Authority implement procedures to ensure that the Authority administers the RLF plan approved by the EDA and that the Authority implement procedures to ensure that required reports are reviewed prior to being submitted to ensure that the reports are submitted with accurate information. View of Responsible Official: Management agrees with the finding. See separate corrective action plan
Show full finding ▾Hide full finding ▴Finding 2021-002: Allowable Costs/Cost Principles and Reporting U.S. Department of Commerce Economic Development Cluster Economic Adjustment Assistance ALN 11.307 Condition: There were not adequate internal controls in place to ensure that correct interest rates are set in accordance with the submitted `Revolving Loan Fund Plan? and required reports are reviewed prior to being submitted. Criteria: Pursuant to 2 CFR section 200.303(a), the nonfederal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. RLF recipients must administer RLFs in accordance with an RLF plan approved by EDA. Program income is a key feature of RLF awards. Known as ?RLF income,? it is used to increase the RLF capital base and to pay eligible and reasonable administrative costs. RLF income (as defined at 13 CFR section 307.8) includes interest earned on loan principal and accounts holding RLF funds, all fees received by the RLF, and other income generated from RLF operations. RLF income excludes repayments of loan principal and any interest earned on accounts holding RLF funds that is remitted to the US Treasury pursuant to generally accepted accounting principles (GAAP) and/or 13 CFR section 307.20(h). Cause: The current internal control system in place does not provide for formal procedures to review loan terms in accordance with the RLF plan approved by the EDA or to review Form ED-209 prior to submission. Effect: Lack of formal internal controls procedures resulted in 1) an incorrect interest rate on a loan issued, 2) program income being reporting as principal and interest instead of interest only in accordance with the reporting criteria, and 3) leveraged loan amounts reported without reconciliation to supporting documentation. Question Costs: None Identification as a Repeat Finding: A Single Audit was not performed in the prior year. Recommendation: We recommend that the Authority implement procedures to ensure that the Authority administers the RLF plan approved by the EDA and that the Authority implement procedures to ensure that required reports are reviewed prior to being submitted to ensure that the reports are submitted with accurate information. View of Responsible Official: Management agrees with the finding. See separate corrective action plan
Finding 2021-002: Allowable Costs/Cost Principles and Reporting Industrial Development Authority Corrective Action Plan: 1)The project manager working on this loan confirmed that the lower rate was not approved by EDA and the 3.5% rate was an oversight by all parties involved in review. To prevent this from happening in the future, a loan process flow document [Exhibit C] has been created. The project and division manager will use this tool prior to drafting an offer letter, which serves as the first official offering of a fixed rate. Rates will be checked again prior to closing. If at this time, the rate is different then what was provided in the offer letter, the division manager will seek approval from EDA. Exhibit C SEE CORRECTIVE ACTION PLAN FOR CHART/TABLE 2) Program income previously reported as principal and interest has been revised to show interest only in accordance with the reporting criteria. For future reporting, the Business Development Manager will generate draft reports to be reviewed by the Assistant Director, Development for accuracy, prior to submission. A template has also been created to provide supplemental instructions for EDA reports submitted via salesforce. 3) Business Development staff will work with EDA to understand the source of data that informs ?leveraged loan amounts? and identify supporting documentation that ties back to these figures. Please contact me with questions or concerns regarding the corrective action plans. Sincerely, Dave Siford Finance Manager david.siford@alleghenycounty.us 412-350-1011
FAC accepted this audit on March 27, 2019 — management decision was due September 27, 2019.
FAC accepted this audit on June 12, 2018 — management decision was due December 12, 2018.
FAC accepted this audit on April 27, 2017 — management decision was due October 27, 2017.
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