FAC Explorer

Audit 30878

FY End
2022-12-31
Total Expended
$4.50M
Findings
4
Programs
8
Organization: City of Rome, New York (NY)
Year: 2022 Accepted: 2023-09-19
Auditor: D'arcangelo & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30162 2022-001 Significant Deficiency - L
30163 2022-001 Significant Deficiency - L
606604 2022-001 Significant Deficiency - L
606605 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $2.36M Yes 0
20.205 Highway Planning and Construction $602,402 - 0
14.218 Community Development Block Grants/entitlement Grants $531,739 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $39,127 - 0
16.554 National Criminal History Improvement Program (nchip) $15,000 - 0
20.600 State and Community Highway Safety $9,874 - 0
16.922 Equitable Sharing Program $2,981 - 0
20.616 National Priority Safety Programs $356 - 0

Contacts

Name Title Type
L5F2L85LR8B9 Daivid C. Nolan Auditee
3153397764 Leonard Carissimo Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPENTS Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESOrganizationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City ofRome, New York, an entity defined in Note I to The Citys financial statements under programs of the federal government for theyear ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Rome,New York, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City ofRome, New York.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized followingthe cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The amounts reported as federal expenditures were obtained from the financial records detail, which is the sourceof the financial statements.Cluster ProgramsThe following programs are identified by the Uniform Guidance to be part of a cluster of programs:U.S. Department of Housing and Urban DevelopmentCDBG Entitlement Grants ClusterAL# 14.218 Community Development Block Grant Entitlement GrantU.S. Department of TransportationHighway Safety ClusterAL# 20.600 State and Community Highway SafetyHighway Planning and Construction ClusterAL# 20.205 Highway Planning and Construction De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 2. SUBRECIPIENTSOf the Federal expenditures presented in the Schedule, the City of Rome, New York provided the following Federal Awards tosubrecipients:Community Development Block Grant Entitlement Grant (CFDA No. 14.218)Center for Family Life and Recovery $ 100,306MVCAA 41,600Rome Alliance for Education 55,000Rome Art and Community Center 32,313Catholic Charities 4,852YWCA of the Mohawk Valley 18,000Total $ 252,071
Title: LOANS RECEIVABLE COMMUNITY DEVELOPMENT BLOCK GRANT-ENTITLEMENT GRANT Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESOrganizationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City ofRome, New York, an entity defined in Note I to The Citys financial statements under programs of the federal government for theyear ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Rome,New York, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City ofRome, New York.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized followingthe cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The amounts reported as federal expenditures were obtained from the financial records detail, which is the sourceof the financial statements.Cluster ProgramsThe following programs are identified by the Uniform Guidance to be part of a cluster of programs:U.S. Department of Housing and Urban DevelopmentCDBG Entitlement Grants ClusterAL# 14.218 Community Development Block Grant Entitlement GrantU.S. Department of TransportationHighway Safety ClusterAL# 20.600 State and Community Highway SafetyHighway Planning and Construction ClusterAL# 20.205 Highway Planning and Construction De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Rome Entrepreneur Assistance Program (REAP) provides loans to small businesses to develop innovative products andservices and create jobs. The program is funded through the Citys Federal Community Development Block Grant. The variousloans awarded range from $10,000 to $300,000. The loans are to be repaid in monthly installments over 5 years at an interest rateof 0% to prime less 1%. The prime rate at December 31, 2022 was 7.5%. The interest received is considered to be programincome and is used to pay administrative costs associated with the program as well as for subsequent loans. At December 31, 2022revolving loan portfolio has cash holdings of $87,955, current year expenditures of $0 and outstanding principal balance of thoseloans were $720,590, less $720,590 set up as an allowance.
Title: DE MINIMIS INDIRECT RATE Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESOrganizationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City ofRome, New York, an entity defined in Note I to The Citys financial statements under programs of the federal government for theyear ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Rome,New York, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City ofRome, New York.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized followingthe cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The amounts reported as federal expenditures were obtained from the financial records detail, which is the sourceof the financial statements.Cluster ProgramsThe following programs are identified by the Uniform Guidance to be part of a cluster of programs:U.S. Department of Housing and Urban DevelopmentCDBG Entitlement Grants ClusterAL# 14.218 Community Development Block Grant Entitlement GrantU.S. Department of TransportationHighway Safety ClusterAL# 20.600 State and Community Highway SafetyHighway Planning and Construction ClusterAL# 20.205 Highway Planning and Construction De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The City of Rome, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the UniformGuidance.

Finding Details

Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT None II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) Compliance Requirement: Reporting U.S. Department of Housing and Urban Development CDBG ? Entitlement Grants Cluster AL# 14.218 Community Development Block Grant ? Entitlement Grant Condition: During our test of FFATA submissions we tested 2 sub grants and 4 contracts and noted the following: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 0 1 1 0 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $138,490 $0 $138,490 $0 $0 Transactions Tested Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements 4 0 1 1 0 Dollar Amount of Tested Transactions Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements $1,162,059 $677,344 $484,715 $0 $0 Criteria: First-tier awards that are subject to reporting under the Transparency Act based on (a) the date of the award and (b) the amount of the obligating action for subawards and subcontracts including modifications. If a subaward/subcontract is subject to reporting, the City is required to enter the award/contract information in the FSRS portal. Information entered should be supported by source documents such as signed subaward/contract agreements and if applicable modifications or amendments. The action needs to be reported in FSRS portal no later than the last day of the month following the month in which the subaward (contract)/subaward (contract) amendment obligation was made. Cause: Unknown. Effect or Potential Effect: Noncompliance with FFATA reporting including timeliness and accuracy of information submitted. Known Questioned Costs: None noted. Context: First-tier subawards/subcontracts. Repeat Finding: No Recommendation: It is recommended that the timeliness and accuracy requirements in submitting the FFATA reporting should be adhered to. Specifically, if a department receives a direct federal grant award and in turn makes first-tier subawards/subcontracts, the person responsible for the grant administration should be alerted to the triggering events that could result in a need for the FFATA reporting. This includes any amendments to the sub award/contract agreement. 78 II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS (Continued) 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) (Continued) Views of Responsible Officials: The City acknowledges the deficiencies found on page 77 of the audit concerning timely filing of Federal Funding Accountability and Transparency Act (FFATA). The Finance Clerk in the Treasurer?s Office prepares the filing on behalf of the City Departments. In this case of deficiency, FFATA reporting was being transmitted from the CED department to the Finance Clerk at the time of Purchase Order Request and not the date of contract execution. The lag between contract executions and Purchase Order Requests has been in some instances longer than the reporting period of contracting, which is the end of the month following the month in which the prime awardee awards any sub-awards equal to or greater than $30,000, and thus reporting has been untimely, although ultimately reported on.
Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT None II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) Compliance Requirement: Reporting U.S. Department of Housing and Urban Development CDBG ? Entitlement Grants Cluster AL# 14.218 Community Development Block Grant ? Entitlement Grant Condition: During our test of FFATA submissions we tested 2 sub grants and 4 contracts and noted the following: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 0 1 1 0 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $138,490 $0 $138,490 $0 $0 Transactions Tested Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements 4 0 1 1 0 Dollar Amount of Tested Transactions Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements $1,162,059 $677,344 $484,715 $0 $0 Criteria: First-tier awards that are subject to reporting under the Transparency Act based on (a) the date of the award and (b) the amount of the obligating action for subawards and subcontracts including modifications. If a subaward/subcontract is subject to reporting, the City is required to enter the award/contract information in the FSRS portal. Information entered should be supported by source documents such as signed subaward/contract agreements and if applicable modifications or amendments. The action needs to be reported in FSRS portal no later than the last day of the month following the month in which the subaward (contract)/subaward (contract) amendment obligation was made. Cause: Unknown. Effect or Potential Effect: Noncompliance with FFATA reporting including timeliness and accuracy of information submitted. Known Questioned Costs: None noted. Context: First-tier subawards/subcontracts. Repeat Finding: No Recommendation: It is recommended that the timeliness and accuracy requirements in submitting the FFATA reporting should be adhered to. Specifically, if a department receives a direct federal grant award and in turn makes first-tier subawards/subcontracts, the person responsible for the grant administration should be alerted to the triggering events that could result in a need for the FFATA reporting. This includes any amendments to the sub award/contract agreement. 78 II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS (Continued) 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) (Continued) Views of Responsible Officials: The City acknowledges the deficiencies found on page 77 of the audit concerning timely filing of Federal Funding Accountability and Transparency Act (FFATA). The Finance Clerk in the Treasurer?s Office prepares the filing on behalf of the City Departments. In this case of deficiency, FFATA reporting was being transmitted from the CED department to the Finance Clerk at the time of Purchase Order Request and not the date of contract execution. The lag between contract executions and Purchase Order Requests has been in some instances longer than the reporting period of contracting, which is the end of the month following the month in which the prime awardee awards any sub-awards equal to or greater than $30,000, and thus reporting has been untimely, although ultimately reported on.
Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT None II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) Compliance Requirement: Reporting U.S. Department of Housing and Urban Development CDBG ? Entitlement Grants Cluster AL# 14.218 Community Development Block Grant ? Entitlement Grant Condition: During our test of FFATA submissions we tested 2 sub grants and 4 contracts and noted the following: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 0 1 1 0 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $138,490 $0 $138,490 $0 $0 Transactions Tested Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements 4 0 1 1 0 Dollar Amount of Tested Transactions Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements $1,162,059 $677,344 $484,715 $0 $0 Criteria: First-tier awards that are subject to reporting under the Transparency Act based on (a) the date of the award and (b) the amount of the obligating action for subawards and subcontracts including modifications. If a subaward/subcontract is subject to reporting, the City is required to enter the award/contract information in the FSRS portal. Information entered should be supported by source documents such as signed subaward/contract agreements and if applicable modifications or amendments. The action needs to be reported in FSRS portal no later than the last day of the month following the month in which the subaward (contract)/subaward (contract) amendment obligation was made. Cause: Unknown. Effect or Potential Effect: Noncompliance with FFATA reporting including timeliness and accuracy of information submitted. Known Questioned Costs: None noted. Context: First-tier subawards/subcontracts. Repeat Finding: No Recommendation: It is recommended that the timeliness and accuracy requirements in submitting the FFATA reporting should be adhered to. Specifically, if a department receives a direct federal grant award and in turn makes first-tier subawards/subcontracts, the person responsible for the grant administration should be alerted to the triggering events that could result in a need for the FFATA reporting. This includes any amendments to the sub award/contract agreement. 78 II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS (Continued) 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) (Continued) Views of Responsible Officials: The City acknowledges the deficiencies found on page 77 of the audit concerning timely filing of Federal Funding Accountability and Transparency Act (FFATA). The Finance Clerk in the Treasurer?s Office prepares the filing on behalf of the City Departments. In this case of deficiency, FFATA reporting was being transmitted from the CED department to the Finance Clerk at the time of Purchase Order Request and not the date of contract execution. The lag between contract executions and Purchase Order Requests has been in some instances longer than the reporting period of contracting, which is the end of the month following the month in which the prime awardee awards any sub-awards equal to or greater than $30,000, and thus reporting has been untimely, although ultimately reported on.
Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT None II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) Compliance Requirement: Reporting U.S. Department of Housing and Urban Development CDBG ? Entitlement Grants Cluster AL# 14.218 Community Development Block Grant ? Entitlement Grant Condition: During our test of FFATA submissions we tested 2 sub grants and 4 contracts and noted the following: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 0 1 1 0 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $138,490 $0 $138,490 $0 $0 Transactions Tested Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements 4 0 1 1 0 Dollar Amount of Tested Transactions Subcontract not reported Report not timely Subcontract amount incorrect Subcontract missing key elements $1,162,059 $677,344 $484,715 $0 $0 Criteria: First-tier awards that are subject to reporting under the Transparency Act based on (a) the date of the award and (b) the amount of the obligating action for subawards and subcontracts including modifications. If a subaward/subcontract is subject to reporting, the City is required to enter the award/contract information in the FSRS portal. Information entered should be supported by source documents such as signed subaward/contract agreements and if applicable modifications or amendments. The action needs to be reported in FSRS portal no later than the last day of the month following the month in which the subaward (contract)/subaward (contract) amendment obligation was made. Cause: Unknown. Effect or Potential Effect: Noncompliance with FFATA reporting including timeliness and accuracy of information submitted. Known Questioned Costs: None noted. Context: First-tier subawards/subcontracts. Repeat Finding: No Recommendation: It is recommended that the timeliness and accuracy requirements in submitting the FFATA reporting should be adhered to. Specifically, if a department receives a direct federal grant award and in turn makes first-tier subawards/subcontracts, the person responsible for the grant administration should be alerted to the triggering events that could result in a need for the FFATA reporting. This includes any amendments to the sub award/contract agreement. 78 II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS (Continued) 2022-01 Reporting Under Federal Funding Accountability and Transparency Act (FFATA) (Continued) Views of Responsible Officials: The City acknowledges the deficiencies found on page 77 of the audit concerning timely filing of Federal Funding Accountability and Transparency Act (FFATA). The Finance Clerk in the Treasurer?s Office prepares the filing on behalf of the City Departments. In this case of deficiency, FFATA reporting was being transmitted from the CED department to the Finance Clerk at the time of Purchase Order Request and not the date of contract execution. The lag between contract executions and Purchase Order Requests has been in some instances longer than the reporting period of contracting, which is the end of the month following the month in which the prime awardee awards any sub-awards equal to or greater than $30,000, and thus reporting has been untimely, although ultimately reported on.