Finding 571690 (2022-004)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2025-07-21
Audit: 362629
Organization: City of Cortland (NY)

AI Summary

  • Core Issue: The City failed to file the required Project and Expenditure Report by the April 30, 2022 deadline, leading to noncompliance with federal reporting requirements.
  • Impacted Requirements: Compliance with the Coronavirus State and Local Fiscal Recovery Funds program mandates accurate and timely reporting of fund usage and modifications to tax revenue.
  • Recommended Follow-Up: The City should file the overdue report as soon as possible and implement a reliable tracking system for future reporting obligations.

Finding Text

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

Corrective Action Plan

Criteria: Under the requirements of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program as codified in 31 CFR Part 35 Subpart A, recipients are required to provide periodic reports providing detailed accounting of the use of funds, modifications to a State or Territory's tax revenue sources, and such other information as may be required (31 CFR 35.4(c)). Under this same requirement, non-entitlement units of local government were required to submit a Project and Expenditure Report (the Report) by April 30, 2022 and then annually thereafter. Cause/Condition: The City did not have a method to accurately track the related expenditures for reporting. Therefore, the City did not file one of one Reports. Effect: The entity is not in compliance with federal regulations regarding reporting. Questioned Costs: None. Context: The City was aware of the reporting requirement prior to the single audit, however, they were not able to accurately and appropriately certify the report. Recommendation: We recommend the City ensure all required reports are filed, and filed in a timely manner. In addition, we recommend the City completes and files the required Report as soon as practicable. Response: The City agrees with the finding and has already implemented a detailed tracking guide and is prepared to meet future reporting requirements for this funding. Corrective Action Plan: Expenses to date were reconciled in late July 2023. In addition, Common Council adopted an allocation plan for remaining funds in August 2023 to help direct and track remaining projects utilizing American Rescue Plan Act funds. Common Council will receive updated reporting on American Rescue Plan Act funds at a minimum of twice per year. Anticipated Completed Date: April 15, 2024. Responsible Contact Person: Elizabeth Greenwood, Director of Administration & Finance City of Cortland, 25 Court Street, Cortland, NY 13045 (607) 758-8373

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $839,240
21.027 Coronavirus State and Local Fiscal Recovery Funds $355,154
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $50,785
97.044 Assistance to Firefighters Grant $47,619
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12,454
16.554 National Criminal History Improvement Program (nchip) $10,000
93.568 Low-Income Home Energy Assistance $7,242
16.607 Bulletproof Vest Partnership Program $4,993
20.600 State and Community Highway Safety $4,863
97.067 Homeland Security Grant Program $2,665