FAC Explorer

Audit 333967

FY End
2022-12-31
Total Expended
$1.78M
Findings
10
Programs
2
Organization: Town of Saugerties (NY)
Year: 2022 Accepted: 2024-12-19
Auditor: Rbt CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516129 2022-007 - - L
516130 2022-008 - - N
516131 2022-009 Significant Deficiency - I
516132 2022-010 - - L
516133 2022-011 - - L
1092571 2022-007 - - L
1092572 2022-008 - - N
1092573 2022-009 Significant Deficiency - I
1092574 2022-010 - - L
1092575 2022-011 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $543,437 Yes 3
14.871 Section 8 Housing Choice Vouchers $4,863 Yes 0

Contacts

Name Title Type
KQ67H7AK88Z7 Gary Newkirk Auditee
8452462800 Shannon Mannese 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: The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditure the Town of Saugerties, New York under programs of the federal government for the year ended December 31, 2022. 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 selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in fund balance/net position of the Town.
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: The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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: The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4 - 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: The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal expenditures presented in the Schedule of Expenditures of Federal Awards (the SEFA) reconcile to the Federal revenue reported in the Statement of Revenues, Expenditures and Changes in Fund Balance as follows: Federal Expenditures as reported in the SEFA: $1,777,836 Reconciling items: State grants 1,630,858 Federal/State Aid as Reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances: $3,408,694
Title: Note 5 - Sub Recipients 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: The Town of Saugerties, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the Town of Saugerties did not provide any to subrecipients.

Finding Details

Finding 2022-007
Finding 2022-007 Reporting Type of Finding: Compliance Finding Condition: During review of the Housing Choice Voucher program, RBT noted that the Town did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited. Criteria: As a condition of receiving federal awards, the Town agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Town did not have appropriate audit ready information/documentation in place in order for the unaudited FDS submission and audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: The unaudited information was submitted on September 20, 2023, and the audited information has not been submitted as of October 17, 2024. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town prepare all required information/documentation to ensure that the Authority can submit the unaudited and audited financial information to HUD timely. Auditee's Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-008
Finding 2022-008 Special Testing and Provisions: Depository Agreements 14.871 – Section 8 Housing Choice Vouchers Type of Finding: Compliance Finding Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Town did not have a depository agreement on file with its financial institution. Criteria: HCV recipients are required to enter into depository agreements with their financial institution using form HUD-51999 or a form required by HUD in the Annual Contribution Contract (“ACC”). The agreements serve as safeguards for Federal funds and provide third-party rights to HUD. Cause: The Town could not locate the agreement upon request. Effect: Lack of safeguards could put the Town’s assets at risk. Questioned Costs: None identified. Perspective: The Town’s HCV money is on deposit at one financial institution. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town have this agreement signed by the financial institution. Auditee’s Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-009
Finding 2022-009 Procurement, Suspension and Debarment 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Significant Deficiency Condition: The Town did not have sufficient internal controls over debarment. Criteria: CSLFRF recipients are required to ensure federal funds are not used to pay contractors that are debarred. Cause: The Town did not have policies in place to review contractors for suspension and debarment. Effect: Debarment was not verified. Questioned Costs: None identified. Perspective: None of the transactions tested were with contractors that were suspended or debarred. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town review its internal controls process for procurement and revise the procurement policy to include suspension and debarment procedures when spending federal funds. Auditee’s Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-010
Finding 2022-010 Reporting 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Compliance Finding Condition: The Town did not comply with the second annual Project and Expenditure report submission deadline. Criteria: Project and Expenditure reports must be submitted annually by April 30th. Cause: The Town did not have proper personnel set up as the authorized representative. Effect: The Project and Expenditures report was submitted late on May 18, 2023. Questioned Costs: None identified. Perspective: The Project and Expenditure filing occurs annually. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town ensure they have access for the authorized representative to submit the reports prior to the deadline. Auditee’s Response: See corrective action plan.
Finding 2022-011
Finding 2022-011 Reporting 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Compliance Finding Condition: The Town did not report an expenditure incurred during the year. Criteria: CSLFRF expenditure reporting requirements mandate that all CSLFRF funded expenditures be reported. Cause: The expense was overlooked. Effect: All CSLFRF expenditures were not reported. Questioned Costs: None identified. Perspective: One out of six expenditures tested were not reported. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town report all grant expenditures so that reporting is complete and accurate. Auditee’s Response: See corrective action plan.
Finding 2022-007
Finding 2022-007 Reporting Type of Finding: Compliance Finding Condition: During review of the Housing Choice Voucher program, RBT noted that the Town did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited. Criteria: As a condition of receiving federal awards, the Town agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Town did not have appropriate audit ready information/documentation in place in order for the unaudited FDS submission and audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: The unaudited information was submitted on September 20, 2023, and the audited information has not been submitted as of October 17, 2024. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town prepare all required information/documentation to ensure that the Authority can submit the unaudited and audited financial information to HUD timely. Auditee's Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-008
Finding 2022-008 Special Testing and Provisions: Depository Agreements 14.871 – Section 8 Housing Choice Vouchers Type of Finding: Compliance Finding Condition: During review of the Housing Choice Voucher (“HCV”) program, RBT noted that the Town did not have a depository agreement on file with its financial institution. Criteria: HCV recipients are required to enter into depository agreements with their financial institution using form HUD-51999 or a form required by HUD in the Annual Contribution Contract (“ACC”). The agreements serve as safeguards for Federal funds and provide third-party rights to HUD. Cause: The Town could not locate the agreement upon request. Effect: Lack of safeguards could put the Town’s assets at risk. Questioned Costs: None identified. Perspective: The Town’s HCV money is on deposit at one financial institution. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town have this agreement signed by the financial institution. Auditee’s Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-009
Finding 2022-009 Procurement, Suspension and Debarment 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Significant Deficiency Condition: The Town did not have sufficient internal controls over debarment. Criteria: CSLFRF recipients are required to ensure federal funds are not used to pay contractors that are debarred. Cause: The Town did not have policies in place to review contractors for suspension and debarment. Effect: Debarment was not verified. Questioned Costs: None identified. Perspective: None of the transactions tested were with contractors that were suspended or debarred. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town review its internal controls process for procurement and revise the procurement policy to include suspension and debarment procedures when spending federal funds. Auditee’s Response: The Town agrees with this finding. See corrective action plan.
Finding 2022-010
Finding 2022-010 Reporting 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Compliance Finding Condition: The Town did not comply with the second annual Project and Expenditure report submission deadline. Criteria: Project and Expenditure reports must be submitted annually by April 30th. Cause: The Town did not have proper personnel set up as the authorized representative. Effect: The Project and Expenditures report was submitted late on May 18, 2023. Questioned Costs: None identified. Perspective: The Project and Expenditure filing occurs annually. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town ensure they have access for the authorized representative to submit the reports prior to the deadline. Auditee’s Response: See corrective action plan.
Finding 2022-011
Finding 2022-011 Reporting 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Type of Finding: Compliance Finding Condition: The Town did not report an expenditure incurred during the year. Criteria: CSLFRF expenditure reporting requirements mandate that all CSLFRF funded expenditures be reported. Cause: The expense was overlooked. Effect: All CSLFRF expenditures were not reported. Questioned Costs: None identified. Perspective: One out of six expenditures tested were not reported. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Town report all grant expenditures so that reporting is complete and accurate. Auditee’s Response: See corrective action plan.