Audit 316013

FY End
2023-12-31
Total Expended
$2.10M
Findings
2
Programs
4
Organization: Southern Tier Network, Inc. (NY)
Year: 2023 Accepted: 2024-07-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
479484 2023-001 Significant Deficiency - N
1055926 2023-001 Significant Deficiency - N

Programs

Contacts

Name Title Type
J27MG1PR4MK4 Jeff Gasper Auditee
6074547429 Richard J. Davis, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southern Tier Network, Inc. (the “Organization”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Scope of Audit All 2023 significant federal award operations of Southern Tier Network, Inc. are included in the scope of the Single Audit. Note 3. Period of Audit Audit testing procedures were performed for transactions occurring during the year ended December 31, 2023. Grant information is indicated in the schedule of expenditures of federal awards. Note 4. Subrecipients No amounts were provided to subrecipients. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southern Tier Network, Inc. (the “Organization”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting system.
Title: Note 2. Scope of Audit Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southern Tier Network, Inc. (the “Organization”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Scope of Audit All 2023 significant federal award operations of Southern Tier Network, Inc. are included in the scope of the Single Audit. Note 3. Period of Audit Audit testing procedures were performed for transactions occurring during the year ended December 31, 2023. Grant information is indicated in the schedule of expenditures of federal awards. Note 4. Subrecipients No amounts were provided to subrecipients. All 2023 significant federal award operations of Southern Tier Network, Inc. are included in the scope of the Single Audit.
Title: Note 3. Period of Audit Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southern Tier Network, Inc. (the “Organization”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Scope of Audit All 2023 significant federal award operations of Southern Tier Network, Inc. are included in the scope of the Single Audit. Note 3. Period of Audit Audit testing procedures were performed for transactions occurring during the year ended December 31, 2023. Grant information is indicated in the schedule of expenditures of federal awards. Note 4. Subrecipients No amounts were provided to subrecipients. Audit testing procedures were performed for transactions occurring during the year ended December 31, 2023. Grant information is indicated in the schedule of expenditures of federal awards.
Title: Note 4. Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Southern Tier Network, Inc. (the “Organization”) and is presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Organization has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Matching costs (the Organization’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Organization’s financial reporting system. De Minimis Rate Used: N Rate Explanation: Note 2. Scope of Audit All 2023 significant federal award operations of Southern Tier Network, Inc. are included in the scope of the Single Audit. Note 3. Period of Audit Audit testing procedures were performed for transactions occurring during the year ended December 31, 2023. Grant information is indicated in the schedule of expenditures of federal awards. Note 4. Subrecipients No amounts were provided to subrecipients. No amounts were provided to subrecipients.

Finding Details

2023-001 – Investments for Public Works and Economic Development Facilities - Assistance Listing No. 11.300; Grant Period - For the year ended December 31, 2023 Condition: The Organization did not obtain certified payrolls from certain contractors for expenses that were claimed under the federal program. Criteria: The Organization is required to notify contractors and subcontractors of the requirements to comply with the federal wage rate requirements and obtain copies of certified payrolls when labor is involved. Cause: The Organization did not have the necessary procedures in place to request the required certified payrolls for 3 of 6 invoices selected for testing. Effect of Condition: The Organization was unable to provide certified payrolls for 3 of 6 invoices where the wage rate requirements were applicable. Questioned Cost: None. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's should enact procedures to request certified payrolls from all contractors when applicable in order to comply with the federal wage rate requirements. Views of Responsible Officials and Planned Corrective Actions: The STN management team is reviewing all financial, audit, and program regulations regarding the Davis Bacon Act (federal) and prevailing wage (state) requirements to ensure STN is compliant.
2023-001 – Investments for Public Works and Economic Development Facilities - Assistance Listing No. 11.300; Grant Period - For the year ended December 31, 2023 Condition: The Organization did not obtain certified payrolls from certain contractors for expenses that were claimed under the federal program. Criteria: The Organization is required to notify contractors and subcontractors of the requirements to comply with the federal wage rate requirements and obtain copies of certified payrolls when labor is involved. Cause: The Organization did not have the necessary procedures in place to request the required certified payrolls for 3 of 6 invoices selected for testing. Effect of Condition: The Organization was unable to provide certified payrolls for 3 of 6 invoices where the wage rate requirements were applicable. Questioned Cost: None. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's should enact procedures to request certified payrolls from all contractors when applicable in order to comply with the federal wage rate requirements. Views of Responsible Officials and Planned Corrective Actions: The STN management team is reviewing all financial, audit, and program regulations regarding the Davis Bacon Act (federal) and prevailing wage (state) requirements to ensure STN is compliant.