Finding 1144501 (2021-004)

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Requirement
L
Questioned Costs
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Year
2021
Accepted
2025-06-27
Audit: 360421
Organization: City of Cortland (NY)

AI Summary

  • Core Issue: The City failed to file the Single Audit reporting package on time, missing the deadline by nearly 12 months.
  • Impacted Requirements: This noncompliance violates §200.512 of the Uniform Guidance, which mandates timely submission of audit reports.
  • Recommended Follow-Up: Improve financial reporting processes and ensure all necessary information is ready on time to meet future deadlines.

Finding Text

Issue: Noncompliance with Uniform Guidance Late Filing of Single Audit Reporting Package Federal Agency: Not applicable. Federal Program: Not applicable. Assistance Listing Number: Not applicable. Pass-Through Agency: Not applicable. 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, 2021. Cause: The City experienced significant turnover within key positions of the Finance and Administration departments, which has caused delays in financial reporting. Effect or Potential Effect: The entity is not in compliance with §200.512 of the Uniform Guidance. Questioned Costs: None Context: This year's Single Audit reporting package was filed on September 27, 2023, approximately 12 months after the required filing date. This compares with the prior year, when the Single audit reporting package was filed on November 22, 2021, approximately 2 months after the required filing date. Repeat Finding: This 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 experienced substantial turnover in 2021 including the departure of both the Finance Director and Deputy Director, followed by additional retirements over the next fiscal year. With the multiple vacancies and limited succession planning, it made it challenging for new staff to meet the demands of current operations with vacancies and learn prior practices and financial systems in order to prepare timely information for the auditor. Prior practices relied heavily on institutional knowledge, year-end adjustments and audit journal entries to identify federal grant expenditures. In addition, there remains a lack of centralized grant and contract awards which contributed to the lack of detailed tracking of information and timely reporting of information requested by the auditor, in order to complete financial statements for submission deadlines outlined in Uniform Guidance, §200.512.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $160,235
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $105,695
97.044 Assistance to Firefighters Grant $32,381
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $22,500
16.607 Bulletproof Vest Partnership Program $15,897
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,986
10.664 Cooperative Forestry Assistance $3,512