FAC Explorer

Audit 50020

FY End
2022-12-31
Total Expended
$1.43M
Findings
2
Programs
2
Organization: Town of Salina, New York (NY)
Year: 2022 Accepted: 2023-08-28
Auditor: D'arcangelo & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51900 2022-001 Material Weakness - B
628342 2022-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.23M Yes 1
14.218 Community Development Block Grants/entitlement Grants $50,000 - 0

Contacts

Name Title Type
L2SNK6NLUMN3 Linda Pease Auditee
3154514210 Leonard Carissimo Auditor
No contacts on file

Notes to SEFA

Title: 2. De Minimis Indirect Cost Rate Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIESOrganizationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Town ofSalina, New York, an entity defined in Note I to The Towns financial statements under programs of the federal government for theyear 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 forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town ofSalina, New York, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Townof Salina, New York.Basis of AccountingExpenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized followingthe cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The amounts reported as federal expenditures were obtained from the financial records detail, which is the sourceof the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Town of Salina, New York has not elected to use the 10 percent de minimis indirect cost rate as allowed under the UniformGuidance.

Finding Details

Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT See finding 2022-001. II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-001 Budget Authorizations U.S. Department of Treasury ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Allowable Activities Condition: The use of the grant funds is not consistently formally authorized by the Board. For certain authorization there is no Board Resolution authorizing the use of the grant funds. 3 out of 7 projects were not authorized. These projects had expenditures of $409,975 out of the to grant expenditures of $1,233,348. Criteria: Specific new revenues not initially included in the budget may be appropriated by resolution of the town board at any time (Town Law, Section 112 [3]). These specific revenues are limited to the following: ? Grants-in-aid from the State and federal governments ? Gifts which must be expended for particular objects or purposes ? Certain insurance recoveries when proposed to be used for the purpose for which the insurance was maintained. Effect: Noncompliance with Town Law and risk of unauthorized expenditures. Known Questioned costs: None noted. Recommendations: We recommend that all budget adjustment for the use of grant funds be clearly authorized by a Board resolution. Managements Response: Authorizations are being verbally authorized, but not consistently passed through a Board resolution in 2022. In 2023, the authorizations are being formally documented in the Board Minutes.
Finding 2022-001
I. FINDINGS?FINANCIAL STATEMENT AUDIT See finding 2022-001. II. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS 2022-001 Budget Authorizations U.S. Department of Treasury ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Allowable Activities Condition: The use of the grant funds is not consistently formally authorized by the Board. For certain authorization there is no Board Resolution authorizing the use of the grant funds. 3 out of 7 projects were not authorized. These projects had expenditures of $409,975 out of the to grant expenditures of $1,233,348. Criteria: Specific new revenues not initially included in the budget may be appropriated by resolution of the town board at any time (Town Law, Section 112 [3]). These specific revenues are limited to the following: ? Grants-in-aid from the State and federal governments ? Gifts which must be expended for particular objects or purposes ? Certain insurance recoveries when proposed to be used for the purpose for which the insurance was maintained. Effect: Noncompliance with Town Law and risk of unauthorized expenditures. Known Questioned costs: None noted. Recommendations: We recommend that all budget adjustment for the use of grant funds be clearly authorized by a Board resolution. Managements Response: Authorizations are being verbally authorized, but not consistently passed through a Board resolution in 2022. In 2023, the authorizations are being formally documented in the Board Minutes.