Finding 1214613 (2023-013)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2026-05-13

Audit: 401283

Organization: Town of Saugerties (NY)

Auditor: RBT CPAS LLP

AI Summary

Core Issue: The Town lacks adequate internal controls to verify contractor debarment, risking non-compliance with federal funding requirements.
Impacted Requirements: Compliance with 48 CFR sections 9.405-2(b) and 52.209-6, which mandate checks against debarred contractors for federal fund usage.
Recommended Follow-Up: Revise procurement policies to include procedures for checking contractor suspension and debarment to ensure compliance with federal regulations.

Finding Text

Finding 2023-013 Procurement, Suspension and Debarment – Internal Control U.S. Department of Housing and Urban Development 21.027 – Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Condition: The Town did not have sufficient internal controls over debarment. Criteria: CSLFRF recipients are required under 48 CFR section 9.405-2(b) and the clause at 48 CFR section 52.209-6 to ensure federal funds are not used to pay contractors that are debarred. Cause: The Town did not have policies in place to review contractors for suspension and debarment. Effect: Debarment was not verified. Questioned Costs: None identified. Perspective: None of the transactions tested were with contractors that were suspended or debarred. Repeat Finding: Repeating of finding 2022-009. Recommendation: RBT recommends that the Town review its internal controls process for procurement and revise the procurement policy to include suspension and debarment procedures when spending federal funds. Auditee’s Response: The Town agrees with this finding. See corrective action plan.

Corrective Action Plan

Finding 2023-013 - Procurement, Suspension and Debarment - CSLFRF Auditee's Response and Planned Corrective Action The Town will review all contracts funded with CSLFRF for applicable contractors and perform verification of non suspension and non debarment. Policies will be reviewed and updated to insure adherence to this requirement. Planned Implementation Date of Corrective Action: January 2025 Person Responsible for Corrective Action: Fred Costello, Town Supervisor

Other Findings in this Audit

1214610 2023-010

Material Weakness Repeat
1214611 2023-011

Material Weakness Repeat
1214612 2023-012

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	SECTION 8 HOUSING CHOICE VOUCHERS	$1.30M
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$454,857