Finding 570438 (2023-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2025-07-03
Audit: 361395
Organization: Village of Middleburgh (NY)

AI Summary

  • Answer: The Village incorrectly excludes interim financing from their Federal expenditure calculations.
  • Trend: This miscalculation could lead to ongoing inaccuracies in financial reporting.
  • List: Review and adjust the criteria for Federal expenditures to include interim financing.

Finding Text

The Village's determination of Federal expenditures is incorrect because they do not consider expenditures of interim financing to be Federal expenditures.

Corrective Action Plan

Upon consultation with engineering firms and state regulators who frequently are involved with projects in which the Federal Single Audit applies, it is the Village of Middleburgh’s understanding that the Federal Single Audit applies to entities that expend $750,000 or more in Federal dollars. The Village of Middleburgh did not receive Federal money until 2023. Furthermore, the Village made a good faith effort to contact officials in the New York State Comptroller’s Office, New York Conference of Mayors, and the United States Department of Agriculture (USDA) to substantiate the concerns of Mostert, Manzanero & Scott, LLP, but no guidance was offered that contradicted our understanding. Therefore, it was not possible for the Village to have expended Federal money for the years 2021-22 since the only funds received were New York State issued interim financing. Thus, the Village is not subject to the Federal Single Audit until it received $1,105,759.45 and expended $914,500.80 in USDA issued Federal money in 2023.

Categories

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Other Findings in this Audit

  • 1146880 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $1.11M
21.027 Coronavirus State and Local Fiscal Recovery Funds $39,276