Audit 367451

FY End

2023-12-31

Total Expended

$1.52M

Findings

1

Programs

1

Organization: Town of Granby (NY)

Year: 2023 Accepted: 2025-09-25

Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1155207	2023-001	Material Weakness	Yes	AB

ALN	Program	Spent	Major	Findings
10.766	Community Facilities Loans and Grants	$1.52M	Yes	1

Contacts

Name	Title	Type
RWGMVFUMF831	John Snow Jr.	Auditee
3155986500	Keeley Ann Hines	Auditor
No contacts on file

Notes to SEFA

The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods and are presented on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The cash basis of accounting, therefore, does not recognize receivables and payables, inventories, long-lived assets, and accrued income and expenses, which would be recognized under accounting principles generally accepted in the United States of America. The amounts reported in these federal financial reports are prepared from records that are maintained for the program. These records are reconciled to the general ledger. The 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.

The Town obtained from the U.S. Department of Agriculture $2,633,741 in guaranteed loan proceeds on May 16, 2024 under the Community Facilities Loans and Grants Program (10.766) subsequent to approval of their loan application on June 27, 2022. The proceeds, together with additional funds of the Town, were used to pay off the Town’s following 2023 Bond Anticipation Notes maturing on May 17, 2024, which were interim financing under the Program: $250,000 BAN dated May 17, 2023, $2,225,000 BAN dated July 25, 2023 and $270,000 BAN dated November 16, 2023.

Finding Details

Finding 2023-001

Reference Number: 2023-001 Grant Loan Program Reporting Criteria: Internal controls over compliance in relation to reporting requirements of grant loan programs should be designed to verify the expenditures submitted are complete and accurate and transactions exist. Cause/Condition: The Town's internal controls were not designed effectively to ensure project expenditures on the United States Department of Agriculture (USDA) Form E – Rural Development (RD) Project Budget/Cost Certification Reporting were accurate and existed. Effect: The Town reported a duplicate expenditure incurred during the fiscal year ending December 31, 2023 on a Form E Report submitted to the USDA in the amount of approximately $15,000. Recommendation: The Town should design internal control procedures that require reconciliation of the expenditures reported on the Form Es submitted to Rural Development to the general ledger to ensure completeness and accuracy, as well as to detect any duplicate expenses that should be removed from the claim before submission. Management’s Response: The Town acknowledges the audit finding related to internal controls over compliance with USDA Rural Development reporting requirements. During the review, it was identified that two separate project expenditures were incorrectly reported under the same vendor on Form E for the fiscal year ending December 31, 2023. While the expenditures themselves were valid and supported, the misclassification resulted in an inaccurate representation of vendor reporting. Corrective Action Plan: To address this issue and prevent recurrence, the Town has implemented the following measures: 1. Reconciliation Procedures: Finance Department staff will reconcile all expenditures reported on USDA Form E – RD Project Budget/Cost Certification Reporting to the general ledger, ensuring both the accuracy of amounts and the correct vendor attribution. 2. Vendor Verification: A vendor cross-check process will be added to the review, requiring staff to match each reported expenditure to the appropriate invoice, purchase order, and vendor record before submission. 3. Review & Approval Controls: A supervisory review will be conducted prior to submission of Form E reports to verify vendor accuracy, in addition to ensuring no duplicate or misclassified expenditures are reported. The Town is committed to ensuring compliance with all USDA reporting requirements. By strengthening reconciliation, vendor verification, and review processes, we will reduce the risk of reporting errors and maintain accurate, reliable financial reporting moving forward.