FAC Explorer

Audit 364708

FY End
2024-12-31
Total Expended
$26.44M
Findings
4
Programs
12
Organization: Town of Babylon (NY)
Year: 2024 Accepted: 2025-08-21
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574139 2024-001 Significant Deficiency - L
574140 2024-002 Significant Deficiency - L
1150581 2024-001 Significant Deficiency - L
1150582 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $17.91M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.20M Yes 1
66.202 Congressionally Mandated Projects $1.00M Yes 1
14.239 Home Investment Partnerships Program $385,576 Yes 0
14.218 Community Development Block Grants/entitlement Grants $331,632 Yes 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $177,092 - 0
14.896 Family Self-Sufficiency Program $60,532 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $44,996 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $23,877 - 0
93.053 Nutrition Services Incentive Program $20,171 - 0
81.128 Energy Efficiency and Conservation Block Grant Program (eecbg) $7,372 - 0
15.616 Clean Vessel Act $6,000 - 0

Contacts

Name Title Type
WYQZSMJQXN44 Victoria Marotta Auditee
6319573000 Jeffrey Davoli 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 limited as to reimbursement. (2) Pass-through entity identifying numbers are presented where available. (3) The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (4) Federal grants received by the Town are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimbursement, which would become a liability of the Town. (5) The federal expenditures for U.S. Department of Homeland Security – Federal Emergency Management Agency (“FEMA”), Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Severe Winter Storm and Snowstorm 4694 DR NY. The $44,996 of expenditures were incurred in the year 2024. (6) The Community Development Block Grant CFDA #14.218 reported federal expenditures includes $11,504 of expenditures funded with program income. (7) The HOME Investment Partnership Program CFDA #14.239 reported federal expenditures includes $47,112 of expenditures funded with program income. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Town of Babylon, New York, (the “Town”) under programs of the federal government for the year ended December 31, 2024. 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 Town it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town.
Title: Federally Funded Loans 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 limited as to reimbursement. (2) Pass-through entity identifying numbers are presented where available. (3) The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (4) Federal grants received by the Town are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, the grantor agencies could make claims for reimbursement, which would become a liability of the Town. (5) The federal expenditures for U.S. Department of Homeland Security – Federal Emergency Management Agency (“FEMA”), Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Severe Winter Storm and Snowstorm 4694 DR NY. The $44,996 of expenditures were incurred in the year 2024. (6) The Community Development Block Grant CFDA #14.218 reported federal expenditures includes $11,504 of expenditures funded with program income. (7) The HOME Investment Partnership Program CFDA #14.239 reported federal expenditures includes $47,112 of expenditures funded with program income. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. In previous years, the Town received loan proceeds in the amount of $4,100,000 from the Section 108 loan guarantee program for a specific capital project. In accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”, Section 205(a) and 2 CFR Section 200.502(b), this amount was considered an expenditure of federal awards in the year the loan proceeds were received. This loan guarantee program is considered to have continuing compliance requirements until the activity financed by the loan has been designated as completed. As of January 1, 2019, the continuing compliance requirements have been met, therefore there were no amounts included in the Schedule as of December 31, 2024. The aggregate Section 108 loan guarantee outstanding balance at year end was $1,881,000. In a prior year, the Town received loan proceeds to fund a sewer expansion project from the New York State Environmental Facilities Corporation. A portion of the loan proceeds were funded with the Capitalization Grant for Clean Water State Revolving Fund AL# 66.458. In accordance with OMB Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations”, Section 205(a) and 2 CFR Section 200.502(a), subrecipients receiving these loans report the expenditures of federal awards in the year the project expenditures were incurred. Since the project expenditures took place in previous years and there are no continuing compliance requirements with this loan, the outstanding loan balance (federally funded portion) as of December 31, 2024, of $7,362,100 is not reported on the Schedule.

Finding Details

Finding 2024-001
2024-001 – Congressionally Mandated Projects Assistance Listing #66.202 – Reporting Condition During our review of reporting requirements under the Congressionally Mandated Projects program, we noted that the quarterly performance report for the quarter ended December 31, 2024, was submitted to the Environmental Protection Agency (“EPA”) in June 2025 – 5 months past the required submission deadline of January 30, 2025. Criteria Per the grant agreement and the EPA’s grant-specific programmatic terms and conditions for EPA community grants, recipients are required to submit quarterly performance reports no later than 30 days following the end of each federal fiscal quarter. This requirement is also consistent with 2 CFR § 200.328(b)(1), which mandates that recipients submit performance reports in accordance with the frequency required by the federal awarding agency. Cause The delay occurred due to an oversight within the department administering the grant. Effect Failure to submit required reports on time may result in noncompliance with grant terms and could adversely impact the entity’s ability to receive continued or future federal funding. Additionally, untimely reporting limits the EPA’s ability to monitor project performance and ensure accountability for federal funds. Questioned Costs None Recommendation We recommend that management establish a formal grants calendar with automated reminders for all reporting deadlines and designate individuals responsible for preparing and submitting reports. Additionally, periodic training should be provided to ensure that all responsible personnel are aware of federal reporting requirements. View of Responsible Official The Town will establish procedures to ensure timely reporting.
Finding 2024-002
2024-002 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 – Reporting Condition The auditee submitted one or more required quarterly Project and Expenditure Reports to the U.S. Department of the Treasury after the established submission deadlines. For example, the report for the quarter ending December 31, 2024, was submitted on February 11, 2025, which was 11 days past the deadline of January 31, 2025. Criteria According to the U.S. Department of the Treasury’s Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds (most recently updated April 29, 2025), recipients are required to submit quarterly Project and Expenditure Reports no later than 30 days after the end of each calendar quarter. Timely submission is required to maintain compliance with federal grant reporting requirements under 2 CFR §200.328(b)(1), which states that recipients must submit performance reports by the required due dates. Cause The delay in submitting the reports was primarily due to confusion on how to report obligated amounts in the Project and Expenditure Report. Specifically uncertain about how to report obligations in accordance with Treasury guidance, which delayed the completion and submission of the report. Effect Late submission of required federal reports may result in noncompliance with grant terms and conditions, increased scrutiny from the granting agency, and potential impacts on future funding. Furthermore, untimely reporting can hinder transparency and federal oversight of how SLFRF funds are being used. Questioned Costs None Recommendation We recommend that management implement stronger internal controls to ensure timely preparation and submission of all required federal reports. This may include designating a responsible official for compliance tracking, developing a calendar of reporting deadlines with automated reminders, and performing periodic reviews to ensure submission timelines are met. Management should also ensure that staff responsible for federal reporting are adequately trained on applicable requirements and deadlines. View of Responsible Official The Town will establish policies and procedures to comply with SLFRF reporting and guidelines to ensure timely and accurate reporting.
Finding 2024-001
2024-001 – Congressionally Mandated Projects Assistance Listing #66.202 – Reporting Condition During our review of reporting requirements under the Congressionally Mandated Projects program, we noted that the quarterly performance report for the quarter ended December 31, 2024, was submitted to the Environmental Protection Agency (“EPA”) in June 2025 – 5 months past the required submission deadline of January 30, 2025. Criteria Per the grant agreement and the EPA’s grant-specific programmatic terms and conditions for EPA community grants, recipients are required to submit quarterly performance reports no later than 30 days following the end of each federal fiscal quarter. This requirement is also consistent with 2 CFR § 200.328(b)(1), which mandates that recipients submit performance reports in accordance with the frequency required by the federal awarding agency. Cause The delay occurred due to an oversight within the department administering the grant. Effect Failure to submit required reports on time may result in noncompliance with grant terms and could adversely impact the entity’s ability to receive continued or future federal funding. Additionally, untimely reporting limits the EPA’s ability to monitor project performance and ensure accountability for federal funds. Questioned Costs None Recommendation We recommend that management establish a formal grants calendar with automated reminders for all reporting deadlines and designate individuals responsible for preparing and submitting reports. Additionally, periodic training should be provided to ensure that all responsible personnel are aware of federal reporting requirements. View of Responsible Official The Town will establish procedures to ensure timely reporting.
Finding 2024-002
2024-002 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 – Reporting Condition The auditee submitted one or more required quarterly Project and Expenditure Reports to the U.S. Department of the Treasury after the established submission deadlines. For example, the report for the quarter ending December 31, 2024, was submitted on February 11, 2025, which was 11 days past the deadline of January 31, 2025. Criteria According to the U.S. Department of the Treasury’s Compliance and Reporting Guidance for State and Local Fiscal Recovery Funds (most recently updated April 29, 2025), recipients are required to submit quarterly Project and Expenditure Reports no later than 30 days after the end of each calendar quarter. Timely submission is required to maintain compliance with federal grant reporting requirements under 2 CFR §200.328(b)(1), which states that recipients must submit performance reports by the required due dates. Cause The delay in submitting the reports was primarily due to confusion on how to report obligated amounts in the Project and Expenditure Report. Specifically uncertain about how to report obligations in accordance with Treasury guidance, which delayed the completion and submission of the report. Effect Late submission of required federal reports may result in noncompliance with grant terms and conditions, increased scrutiny from the granting agency, and potential impacts on future funding. Furthermore, untimely reporting can hinder transparency and federal oversight of how SLFRF funds are being used. Questioned Costs None Recommendation We recommend that management implement stronger internal controls to ensure timely preparation and submission of all required federal reports. This may include designating a responsible official for compliance tracking, developing a calendar of reporting deadlines with automated reminders, and performing periodic reviews to ensure submission timelines are met. Management should also ensure that staff responsible for federal reporting are adequately trained on applicable requirements and deadlines. View of Responsible Official The Town will establish policies and procedures to comply with SLFRF reporting and guidelines to ensure timely and accurate reporting.