Audit 327594

FY End

2023-12-31

Total Expended

$2.58M

Findings

4

Programs

7

Organization: City of Saratoga Springs, New York (NY)

Year: 2023 Accepted: 2024-11-07

Auditor: Bst & CO CPAS LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
504856	2023-002	Material Weakness	-	L
504857	2023-003	Material Weakness	-	P
1081298	2023-002	Material Weakness	-	L
1081299	2023-003	Material Weakness	-	P

ALN	Program	Spent	Major
20.205	Highway Planning and Construction	$893,297	Yes
97.083	Staffing for Adequate Fire and Emergency Response (safer)	$729,151	-
14.218	Community Development Block Grants/entitlement Grants	$492,334	-
97.044	Assistance to Firefighters Grant	$240,141	-
16.922	Equitable Sharing Program	$58,742	-
16.579	Regional Drug Enforcement Task Force	$9,915	-
20.600	State and Community Highway Safety	$4,769	-

Contacts

Name	Title	Type
CR2DD5UWCSJ3	Christine Gillmett-Brown	Auditee
5185800781	Jonathan Gibbs	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 - Summary of Significant Accounting Policies a. Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the City of Saratoga Springs, New York (City) 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 the Comptroller General of the United States; and the audit 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 purpose of the Schedule is to present a summary of those activities of the City funded by the federal government or pass-through entities for the year ended December 31, 2023, using the accrual basis of accounting. For purposes of this Schedule, federal awards include assistance provided by a federal agency, directly or indirectly, in the form of grants, contracts, cooperative agreements, loans and loan guarantees, and other noncash assistance. Negative amounts, if any, on the Schedule represent adjustments or credits made to prior-year expenditures in the normal course of business. b. Relationship to Financial Statements Federal award revenues are reported in the City’s financial statements as federal aid. The City’s government-wide financial statements are presented using the accrual basis. The Schedule presents only a selected portion of the activities of the City. It is not intended to, and does not, present the financial position, statement of activities, or other changes in net assets of the City. c. Direct and Indirect Costs Expenditures for direct and indirect costs are recognized as incurred using the accrual method of accounting and in accordance with Office of Management and Budget Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, and the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. d. Matching Costs Matching costs represent the City’s share of certain program costs and are not included in the Schedule. Note 2 - Noncash Assistance There were no federal awards expended in the form of noncash assistance by the City during the year ended December 31, 2023. Note 3 - Loans and Loan Guarantees The City participates in the Community Development Revolving Loan Program and had $142,000 in economic development and rehabilitation loans to recipients outstanding at December 31, 2023. Note 4 - Insurance The City did not participate in any federal insurance programs during the year ended December 31, 2023. Note 5 - Indirect Cost Rate The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002

Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 2 CFR 200.412, the City is required to complete and submit the data collection form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition and context: The City did not obtain an independent audit within the required period for submission. Cause: Lack of internal controls to ensure an independent audit was completed timely. Effect or potential effect: The City did not comply with requirements of 2 CFR 200.512. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable. Recommendation: The City should develop a course of action to ensure that future single audit reports are completed and submitted to the Federal Audit Clearinghouse in accordance with the requirements of 2 CFR 200.512. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations noted above.

Finding 2023-003

Highway Planning and Construction Cluster, Assistance Listing Number 20.205 Criteria or specific requirement (including statutory, regulatory, or other citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statement. It is the responsibility of City management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition and context: The City’s SEFA required adjustments to properly report federal expenditures related to the Highway Planning and Construction Cluster, Assistance Listing Number 20.205. The required adjustments for the SEFA were identified during audit fieldwork. Cause: Internal controls not operating as designed whereby the City was unable to ensure that the issued SEFA was complete and accurate. Effect or potential effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations, and the terms and conditions of the federal awards it receives. As a result of the error, an adjustment was required to the City’s SEFA. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable. Recommendation: Policies and procedures should be implemented by management of the City to verify the completeness and accuracy of the SEFA. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations noted above.

Finding 2023-002

Criteria or specific requirement (including statutory, regulatory, or other citation): In accordance with 2 CFR 200.412, the City is required to complete and submit the data collection form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition and context: The City did not obtain an independent audit within the required period for submission. Cause: Lack of internal controls to ensure an independent audit was completed timely. Effect or potential effect: The City did not comply with requirements of 2 CFR 200.512. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable. Recommendation: The City should develop a course of action to ensure that future single audit reports are completed and submitted to the Federal Audit Clearinghouse in accordance with the requirements of 2 CFR 200.512. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations noted above.

Finding 2023-003

Highway Planning and Construction Cluster, Assistance Listing Number 20.205 Criteria or specific requirement (including statutory, regulatory, or other citation): Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statement. It is the responsibility of City management to design and implement internal controls that provide reasonable assurance over the completeness and accuracy of the SEFA. The SEFA is the basis for the auditor’s identification of major programs. Condition and context: The City’s SEFA required adjustments to properly report federal expenditures related to the Highway Planning and Construction Cluster, Assistance Listing Number 20.205. The required adjustments for the SEFA were identified during audit fieldwork. Cause: Internal controls not operating as designed whereby the City was unable to ensure that the issued SEFA was complete and accurate. Effect or potential effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations, and the terms and conditions of the federal awards it receives. As a result of the error, an adjustment was required to the City’s SEFA. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable. Recommendation: Policies and procedures should be implemented by management of the City to verify the completeness and accuracy of the SEFA. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations noted above.