FAC Explorer

Audit 372332

FY End
2024-12-31
Total Expended
$2.48M
Findings
5
Programs
8
Organization: Town of Southold (NY)
Year: 2024 Accepted: 2025-11-19
Auditor: PKF O'CONNOR DAVIES LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1162692 2024-001 Material Weakness Yes M
1162693 2024-001 Material Weakness Yes M
1162694 2024-001 Material Weakness Yes M
1162695 2024-001 Material Weakness Yes M
1162696 2024-001 Material Weakness Yes M

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $846,967 Yes 0
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $71,952 Yes 0
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $39,446 Yes 0
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $22,000 Yes 1
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $16,260 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $11,980 Yes 0
15.616 CLEAN VESSEL ACT $5,000 Yes 0
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $3,269 Yes 0

Contacts

Name Title Type
QFNADND8HTG5 Michelle Nickonovitz Auditee
6317654333 Jeffrey S. Davoli, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Town of Southold, 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). All federal financial assistance passed through to other government agencies is included in the schedule of expenditures of federal awards. 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.
(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 elected not 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 expenditure is 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.

Finding Details

Finding 2024-001
Criteria In accordance with 2 CFR § 200.332(a) of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), pass-through entities are required to “clearly identify to the subrecipient” certain information and requirements at the time of subaward, including the Federal award identification, all compliance requirements, and any additional terms and conditions imposed by the pass-through entity. Condition During our audit of the airport improvement program grant awarded to the Town, we noted that the Town did not execute a formal subrecipient agreement with Fishers Island Ferry District, to whom federal funds were passed through during the audit period. Specifically, no written agreement was in place outlining the subrecipient’s responsibilities, applicable compliance requirements, or the terms and conditions of the award. Cause The Town did not have procedures in place to ensure that subrecipient agreements are issued for this program. Effect Without a formal subrecipient agreement, the entity increased the risk that the subrecipient may not fully understand or comply with federal award requirements. This could result in noncompliance with federal regulations, potential misuse of funds, and questioned costs. Additionally, the entity is not in full compliance with Uniform Guidance. Questioned Costs None Recommendation We recommend that the Town develop and implement procedures to ensure that formal written subrecipient agreements are executed prior to the disbursement of federal funds. These agreements should contain all elements required by 2 CFR § 200.332(a), including the identification of the federal award, applicable compliance requirements, and any additional terms and conditions. Views of Responsible Officials The Town agrees with this finding. The absence of subrecipient agreements for the airport improvement program was an oversight. Procedures have since been put in place to ensure that formal written subrecipient agreements are executed prior to the disbursement of federal funds.