Audit 23007

FY End
2022-12-31
Total Expended
$923,609
Findings
2
Programs
4
Organization: City of Cortland (NY)
Year: 2022 Accepted: 2023-09-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
26261 2022-004 - - L
602703 2022-004 - - L

Contacts

Name Title Type
ZV5LERJCPXP5 Lisa Henty Auditee
6077530385 Duane Shoen Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the Citys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Uniform Guidance, Audits of State and Local Governments, and Non-Profits Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note 7 Revolving Loan Programs The City operates a revolving loan program utilizing federal financial assistance received under current and prior Community Development Block Grants (CDBG). Loans outstanding at December 31, 2022 under these programs, as reported in the City's basic financial statements, are as follows: Loans Receivable - CDBG $ 850,287 (Less) Allowance for Uncollectible Accounts (172,218) Net Loans Receivable $ 678,069 The City disbursed new loans in the amount of $-0- from Community Development Block Grant program income. The City received program income from the repayment of loan principal in the amount of $72,564 during the year.
Title: Matching Costs Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the Citys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Uniform Guidance, Audits of State and Local Governments, and Non-Profits Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Matching costs, such as the Citys share of certain program costs, are not included in the reported expenditures.
Title: Subrecipients Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the Citys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Uniform Guidance, Audits of State and Local Governments, and Non-Profits Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No amounts were provided to subrecipients.
Title: Other Disclosures Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the Citys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Uniform Guidance, Audits of State and Local Governments, and Non-Profits Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No insurance is carried specifically to cover equipment purchased with Federal Funds. Any equipment purchased with Federal Funds has only a nominal value and is covered by the Citys casualty insurance policies.
Title: Prior Year Expenditures Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note 1 to the Citys basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information is presented in accordance with the requirements of Uniform Guidance, Audits of State and Local Governments, and Non-Profits Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended December 31, 2022, the City recorded expenditures of $14,077 under the (COVID-19) Disaster Grants - Public Assistant (Presidentially Declared Disasters) Program (ALN #97.036), of this amount $14,077 represented expenditures incurred in a prior year.

Finding Details

Finding 2022-004 Issue: Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: NYS Office of the State Comptroller Criteria: Under the requirements of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program as codified in 31 CFR Part 35 Subpart A, recipients are required to provide periodic reports providing detailed accounting of the use of funds, modifications to a State or Territory's tax revenue sources, and such other information as may be required (31 CFR 35.4[c]). Under this same requirement, non-entitlement units of local government were required to submit a Project and Expenditure Report (the Report) by April 30, 2022 and then annually thereafter. Condition: The City did not file the Report due by April 30, 2022. Cause: The City did not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: The City is not in compliance with the federal regulations regarding reporting. Questioned Costs: None. Context: The City was aware of the reporting requirement prior to the single audit; however, they were not able to accurately and appropriately certify the report. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the City ensure all required reports are filed in a timely manner. In addition, we recommend the City completes and files the required Report as soon as practicable. Views of Responsible Officials of the Auditee: The City agrees with the finding and has already implemented a detailed tracking guide and is prepared to meet future reporting requirements for this funding.
Finding 2022-004 Issue: Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Pass-Through Agency: NYS Office of the State Comptroller Criteria: Under the requirements of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program as codified in 31 CFR Part 35 Subpart A, recipients are required to provide periodic reports providing detailed accounting of the use of funds, modifications to a State or Territory's tax revenue sources, and such other information as may be required (31 CFR 35.4[c]). Under this same requirement, non-entitlement units of local government were required to submit a Project and Expenditure Report (the Report) by April 30, 2022 and then annually thereafter. Condition: The City did not file the Report due by April 30, 2022. Cause: The City did not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: The City is not in compliance with the federal regulations regarding reporting. Questioned Costs: None. Context: The City was aware of the reporting requirement prior to the single audit; however, they were not able to accurately and appropriately certify the report. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the City ensure all required reports are filed in a timely manner. In addition, we recommend the City completes and files the required Report as soon as practicable. Views of Responsible Officials of the Auditee: The City agrees with the finding and has already implemented a detailed tracking guide and is prepared to meet future reporting requirements for this funding.