FAC Explorer

Audit 343450

FY End
2023-12-31
Total Expended
$1.94M
Findings
12
Programs
3
Organization: Town of Ripley (NY)
Year: 2023 Accepted: 2025-02-22
Auditor: Buffamante Whipple Buttafaro PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524267 2023-002 - Yes L
524268 2023-003 - - P
524269 2023-004 Material Weakness Yes P
524270 2023-004 Material Weakness Yes P
524271 2023-004 Material Weakness Yes P
524272 2023-004 Material Weakness Yes P
1100709 2023-002 - Yes L
1100710 2023-003 - - P
1100711 2023-004 Material Weakness Yes P
1100712 2023-004 Material Weakness Yes P
1100713 2023-004 Material Weakness Yes P
1100714 2023-004 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.760 Water and Waste Disposal Systems for Rural Communities $1.26M Yes 3
10.766 Community Facilities Loans and Grants $247,600 - 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $50,069 - 1

Contacts

Name Title Type
ZJNKVK5GJ9F6 Lauree Pless Auditee
7167362201 James C. Alexander, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Accounting Policies: Note 1 - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Ripley, New York and is presented on the cash basis of accounting. The information in the 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Note 2 - Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. 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, which are periodically reconciled with the Town’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. Note 1 - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Ripley, New York and is presented on the cash basis of accounting. The information in the 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Note 2 - Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. 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, which are periodically reconciled with the Town’s financial reporting system.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Note 1 - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Ripley, New York and is presented on the cash basis of accounting. The information in the 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Note 2 - Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. 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, which are periodically reconciled with the Town’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. The Town has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year.
Title: Note 4 - Loans Accounting Policies: Note 1 - Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Town of Ripley, New York and is presented on the cash basis of accounting. The information in the 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. Note 2 - Basis of Accounting - The basis of accounting varies by Federal program consistent with underlying regulations pertaining to each program. 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, which are periodically reconciled with the Town’s financial reporting system. De Minimis Rate Used: N Rate Explanation: The Town has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. * Included in federal awards is $423,700 which represents direct loan proceeds through the Rural Development program within the United States Department of Agriculture for the Water District #4 project. As this loan has continuing compliance requirements from the USDA it is included in the total federal awards expended. ** Included in federal awards is $300,000 which represents direct loan proceeds through the Rural Development program within the United States Department of Agriculture for the Highway Garage project. As this loan has continuing compliance requirements from the USDA it is included in the total federal awards expended. *** Included in federal awards is $247,600 which represents direct loan proceeds through the Rural Development program within the United States Department of Agriculture for the Highway Equipment project. As this loan has continuing compliance requirements from the USDA it is included in the total federal awards expended.

Finding Details

Finding 2023-002
Single Audit not Submitted to Federal Clearinghouse by Due Date U.S. Department of Agriculture – CFDA # 10.760 – Water and Waste Disposal Systems for Rural Communities Criteria: The audit and data collection form must be submitted no later than nine months after the end of the fiscal year. Condition: The audit and data collection form were not submitted prior to the due date. Cause: The audit took longer than anticipated. Effect or potential effect: The Town is not in compliance with the Uniform Guidance. Auditor recommendation: The single audit should be completed in a timely manner. Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-003
Reserve requirement U.S. Department of Agriculture – CFDA # 10.760 – Water and Waste Disposal Systems for Rural Communities Criteria: The grant and loan agreements with the USDA require the Town to maintain and annually fund a short-lived asset reserve account (of at least $6,200 per year). Condition: The Town failed to meet the reserve requirement in the current year. Cause: The failure to meet the reserve requirement was primarily attributed to not transferring money to the reserve account. Effect or potential effect: Failure to meet the reserve requirements could result in regulatory penalties. Auditor recommendation: We recommend the Town make the required deposit into the reserve fund as soon as reasonably possible and develop a plan to ensure the reserve requirement is met on an annual basis. Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-002
Single Audit not Submitted to Federal Clearinghouse by Due Date U.S. Department of Agriculture – CFDA # 10.760 – Water and Waste Disposal Systems for Rural Communities Criteria: The audit and data collection form must be submitted no later than nine months after the end of the fiscal year. Condition: The audit and data collection form were not submitted prior to the due date. Cause: The audit took longer than anticipated. Effect or potential effect: The Town is not in compliance with the Uniform Guidance. Auditor recommendation: The single audit should be completed in a timely manner. Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-003
Reserve requirement U.S. Department of Agriculture – CFDA # 10.760 – Water and Waste Disposal Systems for Rural Communities Criteria: The grant and loan agreements with the USDA require the Town to maintain and annually fund a short-lived asset reserve account (of at least $6,200 per year). Condition: The Town failed to meet the reserve requirement in the current year. Cause: The failure to meet the reserve requirement was primarily attributed to not transferring money to the reserve account. Effect or potential effect: Failure to meet the reserve requirements could result in regulatory penalties. Auditor recommendation: We recommend the Town make the required deposit into the reserve fund as soon as reasonably possible and develop a plan to ensure the reserve requirement is met on an annual basis. Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.
Finding 2023-004
Preparation of Schedule of Federal Awards Condition and Criteria: Although the Town was aware of its requirement for an audit in accordance with the Uniform Guidance for the year ended December 31, 2023, the Town did not prepare a schedule of expenditures of federal awards. The schedule should include all federal awards expended during the reporting period in accordance with section 200.502, “Basis for Determining Federal Awards Expended.” Cause: The Town does not have a formal internal control system in place to ensure it has met the reporting requirements of Section 200.502 of the Uniform Guidance. Effect or potential effect: By not instituting an internal control system over the preparation of the schedule of expenditures of federal awards, the single audit requirement may not be properly identified and performed in a timely manner. Auditor recommendation: The Town should prepare a schedule of expenditures of federal awards on an annual basis that incorporates all sources of federal awards the Town expends (USDA, CDBG, etc.). Town’s Response: Please see the corrective action plan issued by the Town.