FAC Explorer

Audit 353407

FY End
2023-12-31
Total Expended
$2.63M
Findings
26
Programs
10
Organization: City of Cortland (NY)
Year: 2023 Accepted: 2025-04-11
Auditor: Insero & CO CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554823 2023-007 Material Weakness - L
554824 2023-008 Material Weakness - L
554825 2023-007 Material Weakness - L
554826 2023-007 Material Weakness - L
554827 2023-008 Material Weakness - L
554828 2023-007 Material Weakness - L
554829 2023-008 Material Weakness - L
554830 2023-007 Material Weakness - L
554831 2023-008 Material Weakness - L
554832 2023-007 Material Weakness - L
554833 2023-008 Material Weakness - L
554834 2023-007 Material Weakness - L
554835 2023-008 Material Weakness - L
1131265 2023-007 Material Weakness - L
1131266 2023-008 Material Weakness - L
1131267 2023-007 Material Weakness - L
1131268 2023-007 Material Weakness - L
1131269 2023-008 Material Weakness - L
1131270 2023-007 Material Weakness - L
1131271 2023-008 Material Weakness - L
1131272 2023-007 Material Weakness - L
1131273 2023-008 Material Weakness - L
1131274 2023-007 Material Weakness - L
1131275 2023-008 Material Weakness - L
1131276 2023-007 Material Weakness - L
1131277 2023-008 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $946,030 Yes 1
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $117,108 Yes 2
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $63,235 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $46,378 - 0
66.458 Clean Water State Revolving Fund $39,381 - 0
97.044 Assistance to Firefighters Grant $35,777 - 0
93.568 Low-Income Home Energy Assistance $8,361 - 0
20.600 State and Community Highway Safety $5,781 - 0
16.607 Bulletproof Vest Partnership Program $5,000 - 0
20.616 National Priority Safety Programs $1,386 - 0

Contacts

Name Title Type
ZV5LERJCPXP5 Elizabeth Greenwood Auditee
6077588373 Duane Shoen Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect cost rate. 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 City’s 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.
Title: Matching Costs Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect cost rate. Matching costs, such as the City’s share of certain program costs, are not included in the reported expenditures.
Title: Subrecipients Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect cost rate. No amounts were provided to subrecipients.
Title: Other Disclosures Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect 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 City’s casualty insurance policies.
Title: Revolving Loan Programs Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect cost rate. 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, 2023 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 theamount 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: Prior Year Expenditures Accounting Policies: 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: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimis indirect cost rate. During the year ended December 31, 2023, the City recorded expenditures of $46,378 under the (COVID-19) Disaster Grants - Public Assistant (Presidentially Declared Disasters) Program (ALN #97.036), of this amount $21,663 represented expenditures incurred in a prior year.

Finding Details

Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.
Finding 2023-007
Federal Award Findings and Questioned Costs Finding 2023-007 Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Classification: Material Noncompliance Federal Agency: U.S. Department of Treasury; U.S. Department of Housing and Urban Development Federal Program: Coronavirus State and Local Fiscal Recovery Funds; Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 21.027; 14.228 Pass-Through Agency: NYS Office of the State Comptroller; NYS Office of Community Renewal Criteria:Under the Single Audit Act of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.512, Report Submission, the Single audit reporting package is required to be filed within the earlier of 30 calendar days after receipt of the auditors' report, or 9 months after the end of the audit period. Condition: This deadline was not met on a timely basis for the year ended December 31, 2023. Cause:Staffing shortages caused the delays in financial reporting. Effect or Potential Effect: As a result, the entity is not incompliance with §200.512 of the Uniform Guidance. Questioned Costs: None. Context:This year's Single Audit reporting package was filed in early April, approximately six months after the required filing date. This compares with the prior year, when the Single Audit reporting package was filed September 26, 2023, which was prior to the required filing date. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the requirements of §200.512 of the Uniform guidance be adhered to by striving to have all information required for the audit available on a timely basis. This will help to ensure timely audit report issuance and compliance with the filing deadline. Views of Responsible Officials of the Auditee: The City is still facing staffing shortages and is working to get the subsequent financial statements completed. It is expected the 2024 reporting package will be filed on time.
Finding 2023-008
Federal Award Findings and Questioned Costs - Continued Finding 2023-008 Issue: Identification of Federal Awards and Preparation of a Complete and Accurate Schedule of Expenditures of Federal Awards (SEFA) Classification: Material Weakness Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Assistance Listing Number: 14.228 Pass-Through Agency: NYS Office of Community Renewal Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statement. It is the responsibility of the auditee's management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition: The City's initial SEFA provided for the audit was incomplete and contained inaccurate program expenditure amounts. In particular, there were multiple federal programs that were materially misstated; including the following major federal program for the year under audit: 1. ALN 14.228 Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii In addition, there were multiple federal programs that were not identified on the initial SEFA for the year under audit: 1. ALN 20.600 / 20.616 Highway Safety Cluster 2. ALN 66.818 Brownfield Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 3. ALN 66.458 Capitalization Grants for Clean Water State Revolving Funds 4. ALN 93.568 Low-Income Home Energy Assistance 5. ALN 97.039 (COVID-19) Disaster Grants - Public Assistance (Presidentially Declared Disasters) Cause:The City does not have a method to accurately track the related expenditures for reporting. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal, the auditee may not have complied with those requirements. In addition, there is increased risk regarding the accurate reporting of grant expenditures and noncompliance with policies and procedures surrounding the recording of federal awards. Questioned Costs:None. Context:The City was aware of the requirement to prepare a SEFA prior to the audit; however, they were not able to accumulate the appropriate records to correctly identify the source of funding for all ongoing projects. In addition, management was unable to accurately determine the amounts to be reported on the SEFA in accordance with 2 CFR §200.502. The adjustments to the SEFA amounted to an increase in Total Federal Expenditures reported of $253,510. Repeat Finding:This finding is not a repeat finding. Recommendation: We recommend the City develop and implement procedures to ensure that information related to all federal awards is accumulated to assist in the preparation of the SEFA. In addition, we recommend management of the City verify the completeness and accuracy of the amounts reported on the SEFA. Views of Responsible Officials of the Auditee:The City agrees with the finding.