Audit 38998

FY End

2022-12-31

Total Expended

$2.22M

Findings

2

Programs

2

Organization: Town of Hastings (NY)

Year: 2022 Accepted: 2023-08-30

Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
42317	2022-002	Material Weakness	-	I
618759	2022-002	Material Weakness	-	I

ALN	Program	Spent	Major	Findings
10.760	Water and Waste Disposal Systems for Rural Communities	$1.47M	Yes	1
21.027	Coronavirus State and Local Fiscal Recovery Funds	$250,000	-	0

Contacts

Name	Title	Type
TNA7YK3YMAN4	Kimberly Dennison	Auditee
3156682543	Keeley Ann Hines	Auditor
No contacts on file

Notes to SEFA

Title: Matching Costs Accounting Policies: Expenditures reported on the Schedule are presented in conformity with accounting principles generally accepted in the United States and the amounts presented are derived from the Towns general ledger. Federal expenditures are recorded when an allowable cost is incurred under the applicable program and is due and payable. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Matching costs, i.e., the Towns or States share of certain program costs, are not included in the reported expenditures.

Finding Details

Finding 2022-002

Part III ? Federal Award Findings and Questioned Costs Reference: 2022-002 U.S. Department of Agriculture Waste and Water Disposal Systems for Rural Communities 10.760 Project: Route 11 North/Fuller Road Water District Phase E Program Year: 2022 (first year finding) Criteria: According to the Uniform Guidance in CFR Part 200, Part 3, Procurement and Suspension and Debarment, non-federal entities other than states must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Internal controls should provide reasonable assurance that the Town complies with procurement and suspension and debarment requirements according to the Uniform Guidance. Cause/Condition: Noncompliance with Uniform Guidance was noted as the Town does not have a current and complete procurement policy that is being utilized. The Town's current policies and procedures are not properly designed to follow a procurement policy and document controls over compliance related to suspended and debarred vendors. Questioned Costs: No known questioned costs. Effect: The Town was not in compliance with procurement and suspension and debarment requirements in accordance with the Uniform Guidance. Context: The cause/condition above was applicable to the full population of expenditures of the program and therefore, sampling not relevant. Recommendation: We recommend the Town adopt a procurement policy that conforms to Uniform Guidance standards and implement proper controls and processes to ensure purchasing is completed in accordance with the policy. Documentation should be retained to support controls over complying with suspension and debarment requirements. Management's Response: The Town will create and adopt an updated procurement policy and review policies and procedures related to procurement and suspension and debarment to ensure compliance and proper documentation of controls.

Finding 2022-002

Part III ? Federal Award Findings and Questioned Costs Reference: 2022-002 U.S. Department of Agriculture Waste and Water Disposal Systems for Rural Communities 10.760 Project: Route 11 North/Fuller Road Water District Phase E Program Year: 2022 (first year finding) Criteria: According to the Uniform Guidance in CFR Part 200, Part 3, Procurement and Suspension and Debarment, non-federal entities other than states must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Internal controls should provide reasonable assurance that the Town complies with procurement and suspension and debarment requirements according to the Uniform Guidance. Cause/Condition: Noncompliance with Uniform Guidance was noted as the Town does not have a current and complete procurement policy that is being utilized. The Town's current policies and procedures are not properly designed to follow a procurement policy and document controls over compliance related to suspended and debarred vendors. Questioned Costs: No known questioned costs. Effect: The Town was not in compliance with procurement and suspension and debarment requirements in accordance with the Uniform Guidance. Context: The cause/condition above was applicable to the full population of expenditures of the program and therefore, sampling not relevant. Recommendation: We recommend the Town adopt a procurement policy that conforms to Uniform Guidance standards and implement proper controls and processes to ensure purchasing is completed in accordance with the policy. Documentation should be retained to support controls over complying with suspension and debarment requirements. Management's Response: The Town will create and adopt an updated procurement policy and review policies and procedures related to procurement and suspension and debarment to ensure compliance and proper documentation of controls.