Title: Note 3 - Community Development Block Grant Disaster Recovery
Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Town of Hempstead, New York (the Town) under programs of the federal government for the year ended December 31, 2022. The information in this 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). 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.Note 2 - Summary of Significant Accounting Policies1)Reporting Entity - For purposes of complying with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Guidance, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance), the Town is defined in a manner consistent with the entity defined in the Towns basic financial statement as of and for the year ended December 31, 2022. The Town of Hempstead Housing Authority has been identified as a discretely presented nonmajor component unit of the Town; however, its financial statements is not available as of date of the Independent Auditors Report and therefore has not been included in the Towns basic financial statements. It has engaged another auditor to perform its financial statement audit and audit of compliance under Uniform Guidance, and therefore its federal awards expended are not included in the Schedule.2)Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.However, expenditures relating to U.S. Department of Homeland Security and Federal Emergency Management Agency (FEMA) Federal Assistance Listing Number 97.036 are reported when (1) FEMA has approved the project worksheet, and (2) eligible expenditures have been incurred, in accordance with FEMA regulations.3)Pass-through entity identifying numbers are presented where available.4)The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.5)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.6)The federal expenditures for U.S. Department of Homeland Security - Federal Emergency Management Agency (FEMA) grants, Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Remnants of Hurricane IDA 4615 DR NY. The $128,548 of expenditures incurred under 1869 DR NY were incurred in 2022.7)The federal expenditures for Community Development Block Grants/Entitlement Grants includes $379,595 expenditures financed with program income.8)The Town is considered a non-entitlement unit (NEU) for the COVID-19 State and Local Fiscal Recovery Funds program. (AL# 21.027). Although the Town received funds from New York State (NEU Recipient Number NY2818), per the OMB Compliance Supplement, NEUs are considered direct recipients under this award. Accordingly, the award is reported as a direct award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Towns Community Development Block Grant Disaster Recovery (CDBG-DR) award includes a federal and New York State component and the allocation between federal and state funding is not a known percentage. As such, the Town is unaware of the federal/state allocation until such time as reimbursement is received. The amount of CDBG-DR federal expenditures reported in the Schedule, includes $4,909,068 of expenditures incurred and which the Town at this time is unaware of the federal component.
Title: Note 4 - Section 8 Housing Choice Voucher Program
Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Town of Hempstead, New York (the Town) under programs of the federal government for the year ended December 31, 2022. The information in this 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). 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.Note 2 - Summary of Significant Accounting Policies1)Reporting Entity - For purposes of complying with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Guidance, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance), the Town is defined in a manner consistent with the entity defined in the Towns basic financial statement as of and for the year ended December 31, 2022. The Town of Hempstead Housing Authority has been identified as a discretely presented nonmajor component unit of the Town; however, its financial statements is not available as of date of the Independent Auditors Report and therefore has not been included in the Towns basic financial statements. It has engaged another auditor to perform its financial statement audit and audit of compliance under Uniform Guidance, and therefore its federal awards expended are not included in the Schedule.2)Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following either the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.However, expenditures relating to U.S. Department of Homeland Security and Federal Emergency Management Agency (FEMA) Federal Assistance Listing Number 97.036 are reported when (1) FEMA has approved the project worksheet, and (2) eligible expenditures have been incurred, in accordance with FEMA regulations.3)Pass-through entity identifying numbers are presented where available.4)The Town has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.5)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.6)The federal expenditures for U.S. Department of Homeland Security - Federal Emergency Management Agency (FEMA) grants, Federal Assistance Listing Number 97.036, include expenditures related to the federally declared disaster Remnants of Hurricane IDA 4615 DR NY. The $128,548 of expenditures incurred under 1869 DR NY were incurred in 2022.7)The federal expenditures for Community Development Block Grants/Entitlement Grants includes $379,595 expenditures financed with program income.8)The Town is considered a non-entitlement unit (NEU) for the COVID-19 State and Local Fiscal Recovery Funds program. (AL# 21.027). Although the Town received funds from New York State (NEU Recipient Number NY2818), per the OMB Compliance Supplement, NEUs are considered direct recipients under this award. Accordingly, the award is reported as a direct award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Effective September 1, 2020, the U.S. Department of Housing and Urban Development, approved the transfer of the Section 8 Housing Choice Vouchers Program from the Town of Hempstead Department of Urban Renewal to the New York State Homes and Community Renewal. As of December 31, 2022, the Town is holding approximately $189,000 of cash, which is expected to be remitted to the U.S. Department of Housing and Urban Development upon receipt of their final guidance.