FAC Explorer

Audit 322107

FY End
2023-12-31
Total Expended
$868,091
Findings
4
Programs
1
Organization: Town of Babylon L.d. Corporation II (NY)
Year: 2023 Accepted: 2024-09-29
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499290 2023-001 - - I
499291 2023-002 Significant Deficiency - A
1075732 2023-001 - - I
1075733 2023-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $868,091 Yes 2

Contacts

Name Title Type
DHEAJB4M1F37 Joseph Ninomiya Auditee
6315873679 Jeffrey S. Davoli, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (1) 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 limitied as to reimbursement. (2) Federal grants received by the Corporation are subject to audit and adjustment. If any expenditure is disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimursement, which would become a liability of the Corporation. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Town of Babylon L.D. Corporation II (the “Corporation”), a component unit of the Town of Babylon, under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Corporation.

Finding Details

Finding 2023-001
Criteria Non-federal entities other than states are required to follow the procurement standards set out at 2 CFR § 200.318 through § 200.326. They must use their own documented procurement procedures, which conform to applicable federal statutes and the procurement requirements identified in 2 CFR 200. Condition The Corporation’s written procurement standards do not comply with all of the procurement requirements set out at 2 CFR § 200.318 through § 200.326. Effect The Corporation is not in compliance with 2 CFR § 200.318 through § 200.326.
Finding 2023-002
Criteria Per 2 CFR § 200.303, non-Federal entities are required to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-Federal entity is managing the federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition Our internal control testing revealed one instance in which the voucher package for one cash disbursement in the amount of $530,096 did not include documented review and approval by management prior to issuance of payment to the vendor. Effect Without proper review and approval by management prior to issuance of payment to vendors, the Corporation cannot provide reasonable assurance that the federal award has been managed in compliance with all applicable Federal statutes, regulations, and the terms and conditions of the federal award.
Finding 2023-001
Criteria Non-federal entities other than states are required to follow the procurement standards set out at 2 CFR § 200.318 through § 200.326. They must use their own documented procurement procedures, which conform to applicable federal statutes and the procurement requirements identified in 2 CFR 200. Condition The Corporation’s written procurement standards do not comply with all of the procurement requirements set out at 2 CFR § 200.318 through § 200.326. Effect The Corporation is not in compliance with 2 CFR § 200.318 through § 200.326.
Finding 2023-002
Criteria Per 2 CFR § 200.303, non-Federal entities are required to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-Federal entity is managing the federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition Our internal control testing revealed one instance in which the voucher package for one cash disbursement in the amount of $530,096 did not include documented review and approval by management prior to issuance of payment to the vendor. Effect Without proper review and approval by management prior to issuance of payment to vendors, the Corporation cannot provide reasonable assurance that the federal award has been managed in compliance with all applicable Federal statutes, regulations, and the terms and conditions of the federal award.