Audit 336429

FY End
2023-12-31
Total Expended
$11.77M
Findings
4
Programs
3
Organization: Town of Union (NY)
Year: 2023 Accepted: 2025-01-08

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
518125 2023-002 Material Weakness Yes L
518126 2023-003 - - L
1094567 2023-002 Material Weakness Yes L
1094568 2023-003 - - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $8.60M Yes 2
14.871 Section 8 Housing Choice Vouchers $1.78M - 0
14.218 Community Development Block Grants/entitlement Grants $1.38M Yes 0

Contacts

Name Title Type
YJUBSRG5KZ97 Jennifer Lindsay Auditee
6077862931 Thomas Smith, CPA Auditor
No contacts on file

Notes to SEFA

Title: MATCHING COSTS Accounting Policies: The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information 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 amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source of the data presented. The de minimis election allows the Town to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Town does not use the de minimis election. Matching costs, i.e., the Town’s share of certain program costs, are not included in the reported expenditures.
Title: SUBRECIPIENTS Accounting Policies: The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information 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 amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source of the data presented. The de minimis election allows the Town to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Town does not use the de minimis election. No amounts were provided to subrecipients.
Title: OTHER DISCLOSURES Accounting Policies: The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information 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 amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source of the data presented. The de minimis election allows the Town to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Town does not use the de minimis election. No insurance is carried specifically to cover equipment purchased with federal awards. Any equipment purchased with federal awards has only a nominal value, and is covered by the Town’s casualty insurance policies.

Finding Details

Federal Agency - United State Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds - (21.027) Federal Award Year - 2021 State Agency - Not applicable Criteria - Management is responsible for submitting accurate quarterly reports to the United States Department of the Treasury (the Treasury) for the Coronavirus State and Local Fiscal Recovery Funds (ARPA). Condition - The ARPA quarterly reports submitted to the Treasury did not contain a full population of expenditures. Cause - The quarterly reports were not reconciled back to the accounting software for accuracy. Effect of Condition - The quarterly reports are incomplete and are missing material expenditures. Repeat Finding - This is a repeat finding of item 2022-002 as reported for the year December 31, 2022. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Town should revise the quarterly reports and review future reports to ensure all ARPA related expenditures reported to the Treasury. Views of Responsible Officials and Planned Corrective Actions - Management will review the quarterly reports for accuracy.
Federal Agency - United State Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds - (21.027) Federal Award Year - 2021 State Agency - Not applicable Criteria - ARPA quarterly reports are due to the Treasury within 30 days after the close of each quarter. Condition - Three of the four quarterly reports were not submitted within 30 days after the close of the quarter. Cause - The third party consultant was not able to complete the ARPA information timely. Effect of Condition - The quarterly reports were not submitted by the deadline. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Town should start compiling the information for the ARPA report immediately following the close of each quarter. Views of Responsible Officials and Planned Corrective Actions - Management will start compiling the required information immediately following the close of each quarter.
Federal Agency - United State Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds - (21.027) Federal Award Year - 2021 State Agency - Not applicable Criteria - Management is responsible for submitting accurate quarterly reports to the United States Department of the Treasury (the Treasury) for the Coronavirus State and Local Fiscal Recovery Funds (ARPA). Condition - The ARPA quarterly reports submitted to the Treasury did not contain a full population of expenditures. Cause - The quarterly reports were not reconciled back to the accounting software for accuracy. Effect of Condition - The quarterly reports are incomplete and are missing material expenditures. Repeat Finding - This is a repeat finding of item 2022-002 as reported for the year December 31, 2022. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Town should revise the quarterly reports and review future reports to ensure all ARPA related expenditures reported to the Treasury. Views of Responsible Officials and Planned Corrective Actions - Management will review the quarterly reports for accuracy.
Federal Agency - United State Department of the Treasury Federal Program - Coronavirus State and Local Fiscal Recovery Funds - (21.027) Federal Award Year - 2021 State Agency - Not applicable Criteria - ARPA quarterly reports are due to the Treasury within 30 days after the close of each quarter. Condition - Three of the four quarterly reports were not submitted within 30 days after the close of the quarter. Cause - The third party consultant was not able to complete the ARPA information timely. Effect of Condition - The quarterly reports were not submitted by the deadline. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Town should start compiling the information for the ARPA report immediately following the close of each quarter. Views of Responsible Officials and Planned Corrective Actions - Management will start compiling the required information immediately following the close of each quarter.