Finding 479484 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-07-26
Audit: 316013
Organization: Southern Tier Network, Inc. (NY)

AI Summary

  • Core Issue: The Organization failed to obtain certified payrolls from contractors for claimed expenses under a federal program.
  • Impacted Requirements: There is a requirement to notify contractors about federal wage rate compliance and collect certified payrolls when labor is involved.
  • Recommended Follow-Up: Implement procedures to ensure certified payrolls are requested from all contractors to meet federal wage rate requirements.

Finding Text

2023-001 – Investments for Public Works and Economic Development Facilities - Assistance Listing No. 11.300; Grant Period - For the year ended December 31, 2023 Condition: The Organization did not obtain certified payrolls from certain contractors for expenses that were claimed under the federal program. Criteria: The Organization is required to notify contractors and subcontractors of the requirements to comply with the federal wage rate requirements and obtain copies of certified payrolls when labor is involved. Cause: The Organization did not have the necessary procedures in place to request the required certified payrolls for 3 of 6 invoices selected for testing. Effect of Condition: The Organization was unable to provide certified payrolls for 3 of 6 invoices where the wage rate requirements were applicable. Questioned Cost: None. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's should enact procedures to request certified payrolls from all contractors when applicable in order to comply with the federal wage rate requirements. Views of Responsible Officials and Planned Corrective Actions: The STN management team is reviewing all financial, audit, and program regulations regarding the Davis Bacon Act (federal) and prevailing wage (state) requirements to ensure STN is compliant.

Corrective Action Plan

Corrective Action Plan July 25, 2024 Federal Audit Clearinghouse Southern Tier Network respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: EFPR Group, CPAs, PLLC 8 Denison Parkway East, Suite 407 Corning, NY 14830 Audit period: January 1, 2023 – December 31, 2023 The findings from the December 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT NONE FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-001 – Investments for Public Works and Economic Development Facilities - Assistance Listing No. 11.300; Grant Period - For the year ended December 31, 2023 Condition: The Organization did not obtain certified payrolls from certain contractors for expenses that were claimed under the federal program. Criteria: The Organization is required to notify contractors and subcontractors of the requirements to comply with the federal wage rate requirements and obtain copies of certified payrolls when labor is involved. Cause: The Organization did not have the necessary procedures in place to request the required certified payrolls for 3 of 6 invoices selected for testing. Effect: The Organization was unable to provide certified payrolls for 3 of 6 invoices where the wage rate requirements were applicable. Recommendation: The Organization's should enact procedures to request certified payrolls from all contractors when applicable in order to comply with the federal wage rate requirements. Views of Responsible Officials and Planned Corrective Actions: The STN management team is reviewing all financial, audit, and program regulations regarding the Davis Bacon Act (federal) and prevailing wage (state) requirements to ensure STN is compliant. Contact Person Responsible for Corrective Action: Jeffrey Gasper, CEO. Anticipated Completion Date: On-going. If the Federal Audit Clearinghouse has questions regarding this plan, please call me at 607-454-7429. Sincerely yours, Jeffrey Gasper Southern Tier Network CEO

Categories

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Other Findings in this Audit

  • 1055926 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.300 Investments for Public Works and Economic Development Facilities $1.00M
23.002 Appalachian Area Development $1.00M
21.027 Coronavirus State and Local Fiscal Recovery Funds $47,442
32.005 Universal Service Fund - Rural Health Care $43,200