FAC Explorer

Audit 301192

FY End
2023-06-30
Total Expended
$2.20M
Findings
8
Programs
5
Organization: City of Amsterdam, New York (NY)
Year: 2023 Accepted: 2024-03-29
Auditor: Rbt CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390368 2023-007 Material Weakness - L
390369 2023-008 Significant Deficiency Yes I
390370 2023-009 Significant Deficiency - I
390371 2023-010 Significant Deficiency - A
966810 2023-007 Material Weakness - L
966811 2023-008 Significant Deficiency Yes I
966812 2023-009 Significant Deficiency - I
966813 2023-010 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $843,349 Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $433,587 Yes 4
20.205 Highway Planning and Construction $269,603 - 0
97.039 Hazard Mitigation Grant $91,765 - 0
16.607 Bulletproof Vest Partnership Program $990 - 0

Contacts

Name Title Type
WZJJLM4GJEG5 Louise Biron Auditee
5188414355 Donna Crowley Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the Federal award activity and financial assistance program activity of the City of Amsterdam, New York under programs of the federal government and the New York State Department of Transprotation for the year ended June 30, 2023. Federal awards received directly from the Federal agencies as well as Federal awards passed through other government agencies are included in the Schedule. The federal 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 for Federal Awards (“Uniform Guidance”). The state information is presented in accordance with preliminary Title 17, Part 43 of the New York State Codification of Rules and Regulations (NYCRR). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The City of Amsterdam, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4 - Loans Outstanding Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The City had the following gross loan receivable balances outstanding at June 30, 2023, which were originally funded with federal awards. Loans made during the year are included in the federal expenditures presented in the schedule:
Title: Note 5 - Reconciliation to Financial Statements Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: N/A The federal expenditures presented in the Schedule of Expenditures of Federal Awards and State Transportation Assistance (the “SEFA”) reconcile to the Federal revenue reported in the Statement of Revenues, Expenditures and Changes in Fund Balance as follows:

Finding Details

Finding 2023-007
Finding 2023-007 Schedule of Expenditures of Federal Awards Type of Finding: Internal Control Deficiency and Compliance Finding Condition: The City did not prepare a complete and accurate Schedule of Expenditures of Federal Awards and State Transportation Assistance ("SEFA"). Criteria: The Schedule of Expenditures of Federal Awards and State Transportation Assistance is required to be prepared by the Auditee under federal and state regulations. Cause: Federal and state expenditures are not tracked by funding source. Reimbursements from funding sources are not always allocated accurately to federal and state revenue accounts when received. Effect: Total expenditures of federal awards and state transportation assistance reported on the SEFA as required for the single audit was not accurate, requiring additional research and audit adjustments. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City obtain a clearer understanding of the SEFA and the preparation process such that the annual compilation of data is complete and accurate. Auditee's Response: See corrective action plan.
Finding 2023-008
Finding 2023-008 Debarment Review Documentation 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Internal Control Deficiency Condition: The City did not provide evidence of sufficient internal controls over debarment. Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred. Cause: The City relies on the City Planning Board to verify debarment status before contracts are awarded. There was no documenation that this check was performed. Effect: Debarment may not have been verified. Perspective: Although neither vendor was actually debarred, RBT noted that out of 2 transactions tested, the City did not maintain documentation of search for debarment for either. Repeat Finding: This is a repeat of finding 2022-009. Recommendation: RBT recommends that the City review its internal controls and documenation process for debarment when spending federal funds. Auditee's Response: See corrective action plan.
Finding 2023-009
Finding 2023-009 Quotes and Bids 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Internal Control Deficiency and Compliance Finding Condition: The City did not go out to bid for a purchase and did not document quotes for another purchase. Criteria: Federal expenditure procurement requirements provide for internal controls to ensure federal funds are not misused. Cause: The City did not go out to bid. Quotes may have been obtained, but documenation could not be located. Effect: The City may have paid more than necessary. Perspective: RBT noted that out of 2 transactions tested, the City did not maintain documentation of quotes or bids for either. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City follow the procurement process when spending federal funds. Auditee's Response: See corrective action plan.
Finding 2023-010
Finding 2023-010 Payroll Review 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Activities Allowed and Unallowed Type of Finding: Internal Control Deficiency Condition: The City does not have a procedure in place to review and approve payroll after it is entered but before the payroll is processed. Criteria: Federal expenditures require internal controls over processes to ensure federal funds are not misused. Cause: The City has a tight turnaround time for payroll which makes a pre-issuance review difficult. Effect: The City may process checks that are not legitimate. Perspective: RBT noted that out of 5 payroll reports tested, 5 were not reviewed and approved prior to being processed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City implement a procedure to review and approve payroll after it is entered but before the payroll is processed. Auditee's Response: See corrective action plan.
Finding 2023-007
Finding 2023-007 Schedule of Expenditures of Federal Awards Type of Finding: Internal Control Deficiency and Compliance Finding Condition: The City did not prepare a complete and accurate Schedule of Expenditures of Federal Awards and State Transportation Assistance ("SEFA"). Criteria: The Schedule of Expenditures of Federal Awards and State Transportation Assistance is required to be prepared by the Auditee under federal and state regulations. Cause: Federal and state expenditures are not tracked by funding source. Reimbursements from funding sources are not always allocated accurately to federal and state revenue accounts when received. Effect: Total expenditures of federal awards and state transportation assistance reported on the SEFA as required for the single audit was not accurate, requiring additional research and audit adjustments. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City obtain a clearer understanding of the SEFA and the preparation process such that the annual compilation of data is complete and accurate. Auditee's Response: See corrective action plan.
Finding 2023-008
Finding 2023-008 Debarment Review Documentation 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Internal Control Deficiency Condition: The City did not provide evidence of sufficient internal controls over debarment. Criteria: Federal expenditure debarment requirements provide for internal controls to ensure federal funds are not used to pay contractors that are debarred. Cause: The City relies on the City Planning Board to verify debarment status before contracts are awarded. There was no documenation that this check was performed. Effect: Debarment may not have been verified. Perspective: Although neither vendor was actually debarred, RBT noted that out of 2 transactions tested, the City did not maintain documentation of search for debarment for either. Repeat Finding: This is a repeat of finding 2022-009. Recommendation: RBT recommends that the City review its internal controls and documenation process for debarment when spending federal funds. Auditee's Response: See corrective action plan.
Finding 2023-009
Finding 2023-009 Quotes and Bids 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Procurement, Suspension, and Debarment Type of Finding: Internal Control Deficiency and Compliance Finding Condition: The City did not go out to bid for a purchase and did not document quotes for another purchase. Criteria: Federal expenditure procurement requirements provide for internal controls to ensure federal funds are not misused. Cause: The City did not go out to bid. Quotes may have been obtained, but documenation could not be located. Effect: The City may have paid more than necessary. Perspective: RBT noted that out of 2 transactions tested, the City did not maintain documentation of quotes or bids for either. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City follow the procurement process when spending federal funds. Auditee's Response: See corrective action plan.
Finding 2023-010
Finding 2023-010 Payroll Review 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Activities Allowed and Unallowed Type of Finding: Internal Control Deficiency Condition: The City does not have a procedure in place to review and approve payroll after it is entered but before the payroll is processed. Criteria: Federal expenditures require internal controls over processes to ensure federal funds are not misused. Cause: The City has a tight turnaround time for payroll which makes a pre-issuance review difficult. Effect: The City may process checks that are not legitimate. Perspective: RBT noted that out of 5 payroll reports tested, 5 were not reviewed and approved prior to being processed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City implement a procedure to review and approve payroll after it is entered but before the payroll is processed. Auditee's Response: See corrective action plan.