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1976-11-23 to1978-12-15 'l.'OWN OF WAPPINGEH CJEANf NO. 01-51-;?iTYl~ AUDIT REPOR'I' NOVEMBER 23. 1976 THROUGH DECEMBER lh 1972 e, December 15. 1912 f ",<'b 1\, . ,'if \f\} g;-",~. fUld y~ ~ g>~ ~ ~..(, "---1 ! I j ~+ :~ ;j1 ~, ~jf ~0jJ+?u. and y;a(YU ~1<<<Id fJlellic dAXJank~ c;U~ fYkfl' ;f~ .~ ~ '\, ~' OJ ., ONE OVEROCKER ROAD POUGHKEEPSIE, NEW YORK 12603 .14.482..080 December 15, 1978 Mr. Louis D. Diehl, Supervisor Members of the Town Board Town of Wappinger Wappingers Falls, New York 12590 laddies and Gentlemen: This report is to present the results of our final audit of the Town of Wappinger, as required by the U. S. Department of Commerce, Economic Development Administration, Office of Public Works for LPW Grant No. 01-51-2637~. This Grant requires the grantee to renovate Oakwood Knolls Sewer Plant to conform with Federal and New York State Health laws. The grant provides for reimbursement of cost incurred in an estimated amount not to exceed $120.000.00. The ,'b,;r," j ';1'5 cf our examination W(TC tel r(~view, tes t and repcrt upcn the ,~,.,.t incurred ,.l,j,,1' the grant, and rev:ew, test and report en cump.l~":,:" ',:th ,;rant terms, c~llditions and EDA requirements. Accordingly, we pepfccf' :xamination of' the cost incurred by the grantee and reviewed its mE ,:c:np:ying with the LPW grant requirements for the period frum NO'{Crr'l' ,_ .n'(' t:hrc'llgh December 15, 1978. Our work did not constitute an audit..'r' ,"_I,. 3tqt ements prepared by the organization, other than the statement (j L' - '3tS D~a:;j('d from November 23, 1976 through December 15, 1)78 (Exhibit A), Statl~; of Grant Fund Payments as of December 15, 1978, (Exhibit 13). u:tails concerning the scope of the audit and the resultc cf "~'j( 0, presented in the referenced attachments. Attachment 1 - Financial Activities: Auditors Report Exhibit A - statement of Project Cost Claimed from November c"" 1 T{C' through December 15, 1978 and Comparison of k:(:>l1ted Project Costs with Estimated Costs. Exhibit B - Statement of status of Grant Fund Payments as of December 15, 1978. Attachment 2 - Compliance with Grant Terms and Conditions and Other EDA LPW Requirenents. .~ Mr. Louis D. Diehl, Supervisor Members of the Town Board December 15, 1978 Page 2 The report is intended for use in connection with the grant to which it refers and should not be used for any other purpose. In accordance with the "Audit Instructions for Local Public Works Grants Under Title 1 of the Public Works Employment Acts of 1976 and 1977", we have sent four (4) copies of this report and attachments ;to the Department of Connnerce, James M. Nugent, Audit Manager. Very truly yours, PELlEGRINI AND SEDORE, C. P. A. s Y~dO: ~ f Certified Public Accountant JII3/cs Ene: Attachmen+~s 1 and 2 , /4'1'ACHHENT + ~~~~ TOWN OF WAPPINGER PROJECT NO. 01-51-26374 STA'ThiENT OF PROJECT COSTS CLAIMED FRCM NOVEMBER 231 1976 !!!ROUGH DECEMBER 15 J 1978t AND CCMPARISON OF ACCEPl'ED PROJECT COSTS WITH ESTIMATED PROJECT COSTS COST CU.SSIFICATIOIS COOTS CLAIMED PER ED 113A AUDIT REC<H!ENDATIONS QUESTIONED ACCEPI'ED COSTS COSTS ESTIMATES PER GRANT OVERRUN ( UNDERRUN) REFERElI::E NQrES Administrative Expe nse s $ $ Basic A/E Fees Updat ing and/ or completion of' plans and Specifications 5,369.61 Othe r A/E Fee s Project Inspection Fees Including Audit 2,741.64 Re1ocatl'11 Expenses Relocation Pay- ments to Indi'ricLaJ sand Bus inp S F Demolit!"n and Removal Construction and Project Improve- ments 111,867.00 Equipment Contingencies (Note C) MBE Non-Compliance (Note D) TarALS F<R I PROJECT $119.918.25 $ $ $ 1,000.00 $(1,000.00) $ 5,369.61 5, 700. 00 (330.39) 2,741. 64 3,800.00 . (1,058.36) J "~ ,1, 111,867.00 98,900.00 13,267.00 ! '2 10,900.00 (10,900.00) ! I j 'I" J , $119.978.25 ~120.000.oo j (21.75) (i'+.",. --' y~ ~ aw, ~ ~ r~ . . I , ATrACHMEN'f 1 EXlIIl3IT B 'TOWN OF WAPPI?liER LOCAL PUBLIC WffiKS PROJECT NO. 01-51-26374 STATEMENT OF STATUS OF GRANT FUND PAYMENTS AS OF DECEMBER 1'). 197d Te,tal Authorized Costs per Grant Budget Pro,ject Custs Less: Questioned Costs TaI'AL ACCEPI'ABIE HWJECT COSTS Amount cf LPW Grant Payable - 10~ of Above Acceptable Costs Le s s Payme nt s Made: Authorized by Grant No. 01-51-26314 TOTAL LE'ITm OF CREDIT Al.1m~IZED Less: Payment Vouchers Process by the (bank) AVAIlA"IE BAlANCE - IETTER OF CREDIT PPC,IF:C:7 RAlANCF, t.l' DECEMBER 15, 1918 P!-~"FIVABIE FTIUM EDA 12:. . . ~'i llAIANCE AT DECEMBER 15. 1918 RECEIVABLE ~'L,\! EDA CONSIST OF THE FOI..I..CMJ:1<<}: -- ;!f' ~,alIl!-"d Percentage of F1 ve Percent (5%) DUt~ to t.he Contractor on September jO, 1919 t! 9P~,. tUUI g~ ~ ~ so( fr" $120 , 000 . 00 $120,000.00 114J384.~ $ 5~615.}O $121.000. oq $119,978.25 -0- ~119.91~ $119,978.25 114 .384.9Q :~-'" J.. 593. ~~ .2~3. ~ ~ " i I A'PrACHMENT 1 , /1.:- TOWN OF WAPPINGER WCAL PUBUC WORKS PROJECT NO. 01-51-26374 GR.ANr NOTES TO FINABCIAL STATEMENTS FOO THE PERIOD ElDED DECEMBER 15, 19.TIi A. Financial Statement Presentation and. Stumna.ry of Significant Accounting Policies: 1. The financial statements presented are prepared from only the accounts and financial transactions of the local Public Works Project No. 01-51-26314 of the Town of Wappinger, New York. Accordingly, they do not present the financial position or the results of operations of Town of Wappinger, New York. 2. The financial transactions of the project are recorded in accordance with the terms and conditions of the grant, which are not inconsistent with generally accepted accounting principles. 3. Expenditures are recorded on the accrual basis of accounting. Purchases of equipment are recorded as costs. B. The Total Approved Budget Consists of: Budget as approved on Form ED-508 LPW for Grant No. 01-51-26374 ~120.000.00 C. Inasmuch as the prupose of the contingency item of the approved budget (ED-508LPW) is to cover possible overruns on the other cost classiflC'8ticns, no costs for this item should be claimed on the ED 112A. D. 'nj{~ required percentage for M. B.E. participation (l~) was reviewed and found t.c, be in full compliance with EDA LPW requirements of the Public WCrKf" Employment Acts of 1916 and 19fT. 9'+., ..J g~ ~ ~ ~ 1>1.& ~ J 1 'l i i' t . ;. f , i 1 1 , ~ i i i I 'i ATrAC!!,MENT g TOWN OF WAPPINGER LOCAL PUBLIC WCRKS PROJECT NO. 01-51-26374 GRANT STATEMENl' OF COMPLIANCE WITH GRANr TERMS AND CONDITIONS AND ECONOMIC DEVELOPMENT ADMINISTRATION LOCAL PUBLIC ',lOOKS REQUIREMENTS FeE THE PERIOD ElIDING .DECEMIER 15, 1978 In connection with our examination of the financial statements as reported in Attachment 1, we have reviewed the terms and conditions of the grant and EDA/LPW instructions and have performed tests of Town of Wappingers operations and records applicable to the compliance require- ments set forth in Parts 11 A and B of the audit program in the Depart- ment of Conmerce Audit Instructions for Local Public Works Grants Under Title 1 of tlE Public Works Employment Acts of 1976 and 1977. I In our opinion, for the items tested, the grantee complied in all material respects with the applicable compliance matters contained in Part 11 A of the audit program referred to above. FUrther, based upon :''''c.eedure:' Jerf'ormed in accordance with Part 11 B, nothing came to our l.;~tention . ( indicate that the grantee had not complied in all material sppcts 'wi:-)\ all applicable items listed in Part 11 B of the a,JlE t p"ogram re fe rred to above. I ~"""#'''i tUUi Y.u., ~ ~ ~ 1r'" TOWN OF WAPPINGER C.OMPTROl.L.ER'S OFFICE Mii.'.. '31RF:ET WP,"f'lhGERS FALLS. N. Y. 12590 WAPp , O~. /',"'," t'~ ~~., t~':'i;." -\<;',J\,. 5/' . .~'~ '.J-' i ~ : ~~'J' o :1.~"II"'~ Go . ~ . "" ./ ~~~ <~~., ~ss co\) . /. MATTHEW W. RYAN COMPTROLLEfl December 15, 1978 Pellegrini & Sedore, C.P.A. 's 1 Overocker Road Poughkeepsie, New York 12603 Gentlemen: - In connection with your examination of the (1) Statements of Project Costs Claimed from 11/23/76 through 12/15/78 and Satus of Grant Fund Payments as of December 15, 1978 for the Town of Wappinger, New York, Economic Development Administration Local Public Works Project No. 01-51-26374 for the purpose of expressing an opinion as to whether these statements present fairly project costs claimed and status of grant funds in conformity with generally ~ccepted accounting principles, and (2) compliance with the Department of Contnerce's "Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977", we confirm, to the best of our knowledge and belief, the following representations made to you during your examination on matters pertaining to the project being audited. 1. We are responsible for the fair presentation in the Statements of Project Costs Claimed and Status of Grant Fund Payments in conformi ty wi th generally accepted account i: . principles. We believe that all costs claimed are eligi~lr for rei mbursement under the terms of the grant agreemen r" J' this regard, our response to costs questioned by you are SLt forth as an appendix to this letter. 2. We have made available to you all a. Financial records and related data. b. Minutes of the meetings of the Town Board of the Town of Wappinger or summaries of actions of recent meetings for which minutes have not yet been prepared. f Page 2 c. Background information set forth in Section IV E of the IIAudit Instructions for Local Pub"ic Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977" thereafter referred to as the Audit Gui de. 3. There have been no: a. Irregularities involving management or employees who have significant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. c. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. " 4. Related party transactions and related amounts receivable or payable, including revenues, expenditures, loans, transfers, leasing arrangements and guarantees have been properly recorded or disclosed in the Statements of Project Costs Claimed and Status of Grant Fund Payments. There have been no bribes or kickbacks. 5. There are no: a. Matters of noncompliance with grant contract terms or requirements set forth in the Audit Guide whose effects should be considered for disclosure or questioning costs in the Statement of Project Costs Claimed and Status of Grant Fund Payments or as a basis for recording a loss contingency. b. Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No.5. 6. There are no unasserted claims or assessments that our Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No.5. 7. There are no material transactions that have not been properly recorded in the accounting records underlying the Statements of Project Costs Claimed and Status of Grant Fund Payments. All liabilities with respect to EDA funds have been recorded in the proper records. I Page 3 '" 8. The town has satisfactory title or a non-cancelable long-term lease to all real property relevant to the project, and there are no liens or encumbrances on such assets nor has any of these assets been pledged. 9. Purchase commitments have not been made for inventory quantities in excess of normal requirements or at prices in excess of the prevailing market prices. ~ i 10. We have complied with all aspects of contractual agreements that would have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments in the event of noncompliance. 11. No events have occurred subsequent to date of the financial statements that would require adjustment to, or disclosure in the Statements of Project Costs Claimed and Status of Grant Fund Payments. , ~~- MATT EW W. RYAN COMPTROLLER TOWN OF WAPPINGER :1 MWR/LDD/db ! . I .n..~,'.. , ,,-,,, ,. *:.,~ " ! '1 TOWN OF WAPPINGER GRANT 'NO. 01-51-26285 AUDIT REPORT NOVEMBER 23, 1976 THROUGH DECEMBER 15, 1978 , . December 15, 1978 ( . 1 fJ>.u,?ItMu' uui !/~ ~ 9~ ~ ...."d \ . ~ I <<<' , , >)";-,,.,,~ ,,,'t,f"~ ""~)I"" "I'!:-t}~,~:,/ '.,'e. .'~/~.;~,~, 'g>~. awl y~ ~9~~ &w.&w 3'turJ ON. OvDoc:Kb ROAD ..oUGHKDNI., Nav YORK 1 2803 .,..._..~ December 15, 1978 Mr. Louis D. Diehl, Supervisor ~mbers of the Town Board Town of Wappinger Wappingers Falls, New York 12590 Ladies and Gentlemen: This report is to present the results of our final audit of the Town of Wappinger, as required by the U. S. Department of Commerce, EconOOlic Develop- ment Administration, Office ~ Public Works for LPW Grant No. 01-51-26285, This grant requires the grantee to develop wells in the Ardmore area to pro- vide capacity in case of emergency and to augment existing capacities. The grant provides for reimbursement of cost incurred in an estimated amount not to exceed $38,000.00 'TIne objectives of our examination were to review, test and report upon thE cost incurred under the grant, and review, test and report on compliance with grant terms, conditions and EDA requirements. Accordingly, we performed an examination of the cost incurred by the grantee and reviewed its rrethcd of complying with the LPW grant requirements for the period from November 23, 1976 thrcugh December 15, 1978. Our work did not constitute an audit of financial statements prepared by the organization, other than the statement of Pr.:.Jf>ct Cc:>L:' Claimed from November 23, 1976 through December 16, 1978 (Exhibit A) and the .;tatus of Grant Fund Payments as of December 15, 1978, (Exhibit B), Details concerning the scope of the audit and the results of the auc: it' are presented in the referenced attachments. 1 'f ;I ~ Attachment I - Financial Activities: Auditors Report Exhibit A - statement of Project Cost Claimed from November 23, 1976 through December 15, 1978 and Comparison of Accepted Project Costs with Estimated Costs. fi;' ,:) j I 1 J 1 Exhibit B - statement of Status of Grant Fund Payments as of December 15, 1978. A~tachment 2 - Compliance with Grant Terms and Conditions and Other EDA LPW Requirements. Mr. Louis D. Diehl, Supervisor ~mbers of the Town Board December 15, 1978 Page 2 The report is intended for use in connection with the grant to which it refers and should not be used for any other purpose. In accordance with the II Audit Instructions For I..ocal Public Works Grants Under Title I of the Public Works Employm:mt Acts of 1976 and 197711, we have sent four (4) copies of the report and attachments to the Department of Connnerce, James M. Nugent, Audit Manager. Very truly yours, i . PELIEGRINI AND SEDORE, C. P. A. s t~dO: J~f Certified Public Accountant . . . JIi3/CS Enc: Attachments 1 and 2 ~ ATI'ACHMI~ 1 (!jJeII~j(tni and y~ ~ (jJJk ~~ ~ f!J_J ONE OVEROCKER ROAD POUGHKEEPSIE, NEW YORK 12803 .'....a2-.0.0 December 15, 1978 Mr. Louis D. Diehl, Supervisor ~mbers of the Town Board Town of Wappinger Wappingers Falls, New York 12590 ladies and Gentlemen: \ . We have examined the Town of Wappinger statement of Project Costs Claimed and Status of Grant Fund Payments for Economic Development Admin- istration Grant Number 01-51-26285, as of and for the period ending December 15, 1978, and tested financial transactions, accounts, reports and related supporting documentation. Our examination was made in accordance with generally accepted auditing standards and the standards for audit of financial transactions, accounts and reports, as set forth in the auditing standards for governmental activities published by the Comptroller General of the United States, and accordingly, includ(~d such test of the accounting records and such other auditing procedures as we considered necessary in the circumstances, including those set fortI! in the Department of Commerce's Audit Instructions for Local Publjc Works Grants Under Title I of the Public Works Employment Acts of 1~76 and ]';'1'1. . , . In (lUr opinion the accompanying statements of grant costs presents fairly t.he budgeted cost, cost claimed and status of grant funds for Grant No. n-51-26285 as of December 15, 1978, in conformity with generally ae "'rted accounting principles, the Department of Cormnerce's audit instructi\\n. referred to above and the specific financial terms of the grant'li.:n"o:rlf.n:. Respectfully submitted, PElLEGRINI AND SEDORE, C. P. A. s /;~i'~1 ls L. Sedore, Jr. Certified Public Accountant JIfJ/cs I t I j , i . t , I f" i ~ ,~"" :,(. MWrA~ 1 ~:e TOWN OF WAPPI:ooER PROJECTTf- ~ -262~ 9l'~F PROJE~ COO C FttGf NOVEMBER 23. 1976 THRCOOH 15 J 1978. AM> CCMPARISOB OF ACCEPl'ED PROJECT COOTS WITH ESTIMATED PRroECT COSTS ~ COOTS AUDIT REC(M.!ENDATIONS COST COOT CLAIMED PER QUESTIONED ACCEPI'ED ESTIMATES OVERRUN REFERElI::E CIASSIFICATIONS ED 113A COSTS COSTS PER GRANl' (~UN) NarES Administrative Expenses $ $ $ $ 4,000.00 $(4,000.00) Basic AlE Fees Updating andl or completion of plans and Specifications 1,900.00 1,900.00 1,900.00 Other AlE Fees . . . Project Inspection fees including . . . audit 1,839.80 1,839.80 1,300.00 539.8J RelocatIon ~ns~' Relocation Pay- ment s tn Individuals and Business Demol1 ~"" : \ ,n and Removal Constructlcn and Projec t Improve- ments 33,347.76 33,347.76 :::'8,800.00 L ' 4',' ,,(, Equipmen t. Contingencies (Note C) 2,000.00 (2,000. ')0) MBE Non-Compliance (Bote D) TCfl'ALS FCE PROJrr !31.081.56 $ ~37.087.56 $38.000.00 j (91'2.44) , 91.,. ~",. ".J y~ ~ ~ ~ L" ; t i - . '. , TOWN OF WAPPINGER LOCAL PUBLIC WORKS ffiOJECT NO. 01-51-26285 GRANT STATEMENT OF STATUS OF GRANT FUND PAYMENI'S AS OF DECEMBER 15 ~ 1978 Total Authorized Costs per Grant Budget Project Costs less: Questioned Costs TOTAL ACCEPrABIE PRWECT COOTS Amount of' LPW Grant Fayable - 10C1f0 of' Above Acceptable Costs less Payments Made: Authorized by Grant No. 01-51-26285 TOTAL I.E'rI'm OF CREDIT AUTHORIZED less: Payment Vouchers Process by the (bank) AVAIIABIE BALANCE - I.El'TER OF CREDIT PRWECWI' ~ AT DECEMBER 15, 1978 RECEIVABLE FRClof EDA PRC4JECT BA.LANCE AT DECEMBER 15. 1918 RECEIVABLE FROM EM COmI9I' OF 'mE FOLWW:Irt:J: A Retained Percentage of' Five Percent (5~) Due to the Contractor on September 30, 1979 {JI~";"i MUI g~ ~ 8W;,..~ ~... ,:i38. 000. 00 $38,000.00 .35..1420.18 $ 2.519.82 ~~ 1 \~~ " ~38.000.00 $37,081.56 -0- $31.087.56 $37,087.56 35.420.18 $ 1.661.3~ 'L}.667 .~8 A'l'T \CHME.l'JT ,J.. TOWN OF WAPPINGER LOCAL PUBLIC WORKS PROJEC'l' NO. 01-51-26282 GRAN'l' NOTES TO FINANCIAL STATEMENl'S FOR THE PERIOD ENDED DECEMBER 15, 1978 A. p'inancial Statement Presentat ion and Surmnary of Signlficant Accm.mting Policies: 1. The financial statements presented are prepared from only the a.ccounts and financial transactions of the local Public Works Project No. 01-51-26285 of the Town of Wappinger, N=w York. Accordingly, they do not present the financial position or the results of operations of Town of Wappinger, New York. 1 . . 2. The financial transactions of the project are recorded in accordance with the terms and conditions of the grant, which are not inconsistent with generally accepted accounting pr inciple s . 3. Expenditures are recorded on the accrual basis of accounl,ing. Purchases of equipment are recorded as costs. Tctn.l 'rwed Budget Consists of: Hudget ac; a.pproved on Form ED-508 LPW for Grant Nh 01-:) 1-2t,;Y' k.4....:!JOO . 00 cLHsmuch as the purpose of the contingency item of the approved i .' ED-508LPW) is to cover possible overruns on the other cost (Jt, : '1.:0 , D) CJsts for this item should be claimed on the ED 113A. required percentage for M. B.E. participation (10%) was r":vi,"" '( bE' :in full compliance with EDA LPW requirements of the ?;,'Li r-:u.ployrnent Acts of 1976 and 1977. .' ,:rill I ~&pM; tutd y-,-, ~ 9I.l.t..- "-1'" ATrACmem ~ '\;if'. .J , . TOWN OF WAPPINGER LOCAL PUBLIC !!<E.KB PROJECT NO. 01-..~1-26285 GRAN1' STATEMElfr OF CCMPI.IANCE WITH GRAliT TERMS AND CONDITIONS AND ECONOMIC DEVELOPMENr ADMINISTRATION LOCAL ~ PUBUC W(IOO3 REQUIREMENrS X<E THE PERIOD ENDIM} DECEMBER 15 t 1978 In connection with our examination of tre financial statements as reported in Attachment 1, we have reviewed the terms and conditions of the grant and EDA/LPW instructions and have performed tests of the Town of Wappinger operations and records applicable to the compliance require- ments set forth in Parts llA and B of the audit program in the Department of Commerce Audit Instructions for Local Public Works Grants Under Title 1 of the Public Works Employment Acts of 1976 and 1977. . . . , . . In our opinion, for the items tested, the grantee complied in all material respects with the applicable compliance matters contained in Part 1l...A of the audit program referred to above. Further, based upon procedures performed in accordance with Part 11.B, nothing came to our attention to indicate that the grantee had not complied in all material respects with all applicable items listed in Part 11 B of the audit program referred to above. I t1'+i"i ..,/ y~ ~ ~ ~ ~.. ~ i l '~ l{ 1 ~ ~ , i I i i ~ TOWN OF WAPPINGER COMPTROLLER'S OFFICE MILL STREET WAPPINGERS FALLS. N. Y. 12.590 ~ WAP/)1. ~o-., ~~ ~. '''. ,,',"i: . _ .'+~.. .. .... , '~ o ~. J- , : >0: ~~J. o :;.~'''''''.~ c::. " /' .:: ..A "'~ " ~ C'~~ ~ ~SS CO\,) MATTHEW W. RYAN COMPTROLLER December 15, 1978 Pellegrini & Sedore, C.P.A.ls 1 Overocker Road Poughkeepsie, New York 12603 Gentlemen: . " In connection with your examination of the (1) Statements of Project Costs Claimed from 11/23/76 through 12/15/78 and Status of Grant Fund Payments as of December 15, 1978 for the Town of Wappinger, New York, Economic Development Administration Local Public Works Project No. 01-51-26285 for the purpose of expressing an opinion as to whether these statements present fairly project costs claimed and status of grant funds in conformity with generally accepted accounting principles, and (2) compliance with the Department of Corrmerce's "Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977", we confirm, to the best of our knowledge and belief, the following representations made to you during your examination on matters pertaining to the project being audited. 1. We are responsible for the fair presentation in the Statements of Project Costs Claimed and Status of Grant Fund Payments in conformity with generally accepted accounting principles. We believe that all costs claimed are eligible for reimbursement under the terms of the grant agreement. In this regard, our response to costs questioned by you are set forth as an appendix to this letter. 2. We have made available to you all a. Financial records and related data. b. Minutes of the meetings of the Town Board of the Town of Wappinger or summaries of actions of recent meetings for which minutes have not yet been prepared. I I I I i I I I i I I I Page 2 c. Background information set forth in Section IV E of the "Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977" thereafter referred to as the Audit Guide. 3. There have been no: a. Irregularities involving management or employees who have significant roles in the system of internal accounting control. - . b. Irregularities involving other employees that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. c. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. 4. Related party transactions and related amounts receivable or payable, including revenues, expenditures, loans, transfers, leasing arrangements and guarantees have been properly recorded or disclosed in the Statements of Project Costs Claimed and Status of Grant Fund Payments. There have been no bribes or kickbacks. . . . 5. There are no: I a. Matters of noncompliance with grant contract terms or requirements set forth in the Audit Guide whose effects should be considered for disclosure or questioning costs in the Statement of Project Costs Claimed and Status of Grant Fund Payments or as a basis for recording a loss contingency. b. Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No.5. 6. There are no unasserted claims or assessments that our Attorney has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No.5. 7. There are no material transactions that have not been properly recorded in the accounting records underlying the Statements of Project Costs Claimed and Status of Grant Fund Payments. All liabilities with respect to EDA funds have been recorded in the proper records. ~ Paqe 3 8. The town has satisfactory title or a non-cancelable long-term lease to all real property relevant to the project, and there are no liens or encumbrances on such assets nor has any of these assets been pledged. 9. Purchase commitments have not been made for inventory quantities in excess of normal requirements or at prices in excess of the prevailing market prices. 10. We have complied with all aspects of contractual agreements that would have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments in the event of noncomp 1 i ance. . 11. No events have occured subsequent to date of the financ al statements that would require adjustment to, or disclosure n the Statements of Project Costs Claimed and Status of Grant Fund Payrrents. :t:~~ ~ COMPTROLLER TOWN OF~,WAPPINGER Ii , ". J1J, /., i .:' 1,/ . . ~( LO D. EHL '. -'t:. SUPERVISOR TOWN OF WAPPINGER . . . J -0 w MWR/LDD/db ! TOWN OF WAPPINGER GRANT NO. 01-51-26277 . AUDIT REPORT NOVEMBER 23, 1976 THROOGH DECEMBER 15, 1978 December 15, 1978 , I I gJ'&'l?;"i tuUI y~ ~ ~ Lr:ft I ..It HI ''t. f!J+m' and y~ cc~ c9'~ ~~ CuatUN (Jk,.J ONE OVEROCKER ROAD POUGHKEENIE, NEW YORK 12803 .14-4112-8080 December 15, 1978 Mr. Louis D. Diehl, Supervisor Members of the Town Board Town of Wappinger Wappingers Falls, New York 12590 ladies and Gentlemen: This report is to present the results of our final audit of the Town of Wappinger, as required by the U. S. Department of Commerce, Economic Development Administration, Office of Public' Works for LPW Grant No. 01-51-26277. This Grant requires the grantee to place fire hydrants throughout the central part of the Town of Wappinger. The Grant provides for reimbursement of cost incurred in an estimated amount not to exceed $126,000.00. The objectives of our examination were to review, test and report upon the cost incurred lmder the grant, and review, test and report on compliance with the ter.rs, conditions and EDA requirements. Accordingly, we performed an examination 'ftne cost incurred by the grantee and reviewed its method of complying with the U'W grant requirements for the period from November 23, 1976 through Del~'~rnber 15, 1978. Our work did not constitute an audit of financial statements prepared by the organization, other than the statement of Project Costs claimed from November 2-;, IG76 through December 15, 19'78 (Exhibit A), and the Status of Grant l"uncl Pay- mer: t.s 8r: of December 15, 1978, (Exhibit B). ~~tails concerning the scope of the audit and the results of the audit are presented in the refrenced attachments. Attachment 1 - Financial Activities: Auditors Report Exhibit A - Statement of Project Cost claimed from November 23, 1976 through December 15, 1978 and Comparison of Accepted Project Costs with Estimated Costs. Exhibit B - Statement of status of Grant Fund Payments as of December 15, 1978. Attachment 2 - Compliance with Grant Terms and Conditions and Other EDA LPW Requirements. I &;~" h"';;1:'~r~':';' :.~ I I I I I 1 Mr. Louis D. Diehl, Supervisor .l>femberc of the Town Board December 15, 1978 P::H-~~-.-' ;~ The report is intended for use in connection with the grant to which it r,~fers and should not be used for any other purpose. In accordance with the "Audit Instructions For Local Public Works Grants Under Title I of the Public Works EmploJ'lll=nt Acts of 1976 and 1977", we have sent four (4) copies of this report and attachments to the Department of ConnnerceJ. James M. Nugent, Audit Manager. Very truly yours, PELIEGRINI MID ~. A. s fl::::d:' Jr. . f Certified Public Accountant I JLS/cs Ew': Attachments 1 and 2 ( ATTACHMENT 1 '. ~+m' ami y~ ~ g'-"e ~ ~i1e [J>.,.J ONE OVEItOCKb ROAD POUGHKR""., NIIW YORK 12603 .'4.4...eo.O December 15, 1978 Mr. Louis D. Diehl, Supervisor rEmbers of the Town Board Town of Wappinger Wappingers Falls, New York 12590 ladies and Gentlemen: We have examined the Town of Wappinger Statement of Project Costs Claimed and status of Grant Fund Payments for Economic Development Admin- istration Grant Number 01-51-26277, as of and for the period ending December 15, 1978, and tested financial transactions, accounts, reports and related supporting documentation. Our examination was made in accordance with generally accepted auditing standards and the standards for audit Gf financial transactions, accounts and reports, as set forth in the auditing standards for governmental activities published by the Comptroller General of the United states, and accordingly, included such test of the accounting records and such other auditing procedures as we considered necessary in the circumstances, including those set forth in +he Department of Conunerce's Audit Instructions For Local Public Works Grants Under Title 1 of the Public Works Employment Acts of 1976 and J977. In our opinion the accompanying statements of grant costs presents fairly the budgeted cost, cost claimed and status of grant funds for Grant No. 01-51-26277 as of December 15, 1978, in conformity with generally accepted accounting principles, the Department of Commerce's audit instructions referred to above and the specific financial terms (,1' ',t,,> grant agreement. Respectfully submitted, PEUEGRINI AND/ ~ At James L. Sedore, Jr. Certified Public Accountant JU3/cs I ~ ~ "';;- ~" I I ~ I -;":' i:! ,.., A:rTAClil€NT 1 EXHIBIT A TOWN OF WAPPINGER PROJECT NO. 01-51-26277 STATEMENr OF PROJECT COSTS CIAIMED FRCM NOVEJ'ffiER 23 J 1976 THROUGH DECEMBER 15. 197"8, AND COMPARISON OF ACCEPI'ED PROJECT COSTS WITH ESTIMATED PROJECT COSTS COOTS AUDIT RECOMMENDATIONS COST COST CLAIMED PER QUESTIONED ACCEPTED ESTIMATES OVERRUN REFERENCE CLASSIFICATIONS ED 113A COSTS COOTS PER GRAN'"11 iUNDERRUN) NOl'ES Administrative Expenses $ $ $ $ 1,000.00 $(1,000.00) Basic AlE Fees lJpdat ing andl or Completion of plans and Specifications 6,240.00 6,240.00 6,240.00 Other AlE Fees Project Inspec- tion Fees Including (1,110.48) Audit 3,049.52 3,049.52 4,160.00 Relocation Expense:-; Relocation Pay- ments to Individuals and Businpss Demolition and Removal Construction and Project Improve- 115,409.76 108,300.00 ments 115,409.'76 7,:1 (}j. 76 Equipment Contingencies 6,300.00 (6,300.00) (Note C) MEE Non-Compliance (Note D) TOTALS FOR PROJECT j124.699.28 ~ $124.699.28 ~126.000.00 $(1.300.72) ! a'~""."., tUttI g~ ~ ~ d ~.. froWN OF '....APPINGER LOCAL PUBLIC WORKS PROJEC'r NO. 01-51-26277 G'RANT STA'''EMENT OF STATUS OF GRANT FUND PAYMENTS AS OF DECK~rnF~R T,'t:L i\.1lL10rized CORts per Grant Budget Pre,; -:t Costs ILss; Questioned Costs TOTAL ACCEPTABLE PROJECT COSTS Amount of LPW Grant Payable - 100% cf Above Acceptable Costs Ie s s Payme nt s Made; Authorized by Grant No. 1-51-26277 n26,ovo.00 $126,000.00 118,928.79 $ 7,071.21 'rOTAL LETTER OF CREDIT AUTHORIZED less; Payment Vouchers Processed by the (bank) AVAILABLE ~E - LE'I'I'ER OF CREDIT PRCltTF:C'l' BALANCE AT DECEMBER 15, 1978 PF'f""'F'IVARIE T.'R('k! EDA l':: " :-~','T PAIAt"fCE Kr DECEMBER 15 J 1978 RECEIVABIE :: ":DA CON..3IST OF THE FOLLOWING: -";- -trdnE'ri Percentage of Five Percent (5%) :> I:, t ~l' r~ontl'actor on November 30, 1979 9'+",- tUUI y~ ~ 9"-",.~ ~ 'fA A~.AC"1:IMEN".r 1 EXHIBrI' B 1 l~ LJ t 1)78 $125JOOO.00 .$124,699.28 -0- ~124 , 699.,28 $124,699.28 118.928.79 l 5, 770.49 1.'b'(',~~ l . . ~ " , ;j . ~ ~ I ~ r I Jet 1, '~ . :! A'ITACHMENr 1 TOWN OF WAPPI.ooER ~AL PUBLIC WORKS PROJEcr NO. 01-51-26277 GRANr NarES TO FINANCIAL STATEME:NTS FOR THE PERIOD ENDED DECEMBER 15, 1978 A. Financial statement Presentation and Sununary of Significant Accounting Policies: 1. The financial statements presented are prepared from only the accounts and financial transactions of the local Public Works Project No. 01-51-26277 of the.Town of Wappinger, New York. Accordingly, they do not present the financial position or the results of operations of the Town of Wappinger, New York. 2. The financial transactions of the project are recorded in accordance with the terms and conditions of the grant, which are not inconsistent with generally accepted accounting principles. 3. Expenditures are recorded on the accrual basis of accounting. Purchases of equipment are recorded as costs. B. The Total Approved Budget Consists of: Budget as approved on Form ED-508LPW for Grant No. 01-)1-26277 R26.ooo.oo C. Inasmuch as the purpose of the contingency item of the apprwed : idp: i, (ED-508LPW) is to cover possible overruns on the other C'Jst cIa, sin. 'ations, no costsf'or this item should be claimed on the ED 113A. D. The required percentage for M. B.E. participation (10%) was revic-'wed an: md to be in full compliance with EDA LPW requiremenh of the Public Work::- Employment Acts of 1976 and 1977. g'J+",. II,", g~ ~ 9'.16;, d +-'" ~ t f . ~,.\ . I AT'l'ACHME~ TOWN OF WAPPINGER LOCAL PUBLIC WORKS~OJECT NO. 01-51-26277 GRANT STATEMENT OF COMPLIANCE WITH GRANr TERMS AND CONDITIONS MID ECONOMIC DEVELOPMENf ADMINISTRATION LOCAL PUBLIC WCRKS REQUIREMENI'S FCE THE PERIOD ENDING DECEMBER 15. 1978 In connection with our examination of the financial statements as reported in Attachment I, we have reviewed the terms and conditions of' the grant and EDA/LPW instructions and have performed tests of the Tuwn of Wappinger operations and records applicable to the compliance require- ments set forth in Parts II A and B of the audit program in the Department of Commerce Audit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977. In our opinion, for the items tested, the grantee complied in a1] material respects with the applicable compliance matters contained in Part II A f the audii program referred to aboH>. Further, based. upon prC'~ed1) ',,' J)"rf'Tmed -- r 'lccordance with Part II f~, nothing ~arre t<.'.!Ur attt-L! -. indicate Ull-l.t the grantee had not complied in all material "C-;-.ij" all applic~i t.\le items listed in Part II B of the audit prugl'ak . q tJove . {i'~ ;"i ".,j 09",-, ~ ~ d 1 ~ r 1 , I I \ ~ ~ I TOWN OF WAPPINGER COMPTROLLER'S OFFICE MILL STREET WAPPINGERS FALLS, N. Y. 121590 ~ WAPp,/v. ~~ 0" "."~''-.: . _ ~~ ~ ..... . . . ~ o I- > ~. o ~~'r.r"" ~ % ~ ~~.... ~~SS CO\,) MATTHEW W. RYAN COMPTROLLER ; i f ~ i I f . December 15, 1978 j I I I I · Pellegrini & Sedore, C.P.A.ls 1 Overocker Road Poughkeepsie, New York 12603 Gent 1 emen : In connection with your examination of the (1) Statements of Project Costs Claimed from 11/23/76 through 12/15/78 and Status of Grant Fund Payments as of December 15, 1978 for the Town of Wappinger, New York, Economic Development Administration Local Public Works Project No. .01-51-26277 for the purpose of expressing an opinion as to whether these statements present fairly project costs claimed and status of grant funds in conformity with generally accepted accounting principles, and (2) compliance with the Department of Corrmerce I s II Audit Ins truct ions for Loca 1 Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977", we confirm, to the best of our knowledge and belief, the following representations made to you during YOUr' examination on matters pertaining to the project being audited. 1. We are responsible for the fair presentation in the Statements of Project Costs Claimed and Status of Grant Fund Payments in conformi ty with generally accepted account; Ii" principles. We believe that all costs claimed are eligible for reimbursement under the terms of the grant agreement. In this regard, our response to costs questioned by you are set forth as an appendix to this letter. 2. We have made available to you all a. Financial records and related data. b. Minutes of the meetings of the Town Board of the Town of Wappinger or summaries of actions of recent meetings for which minutes have not yet been prepared. , Page 2 c. Background information set forth in Section IV E of the IIAudit Instructions for Local Public Works Grants Under Title I of the Public Works Employment Acts of 1976 and 1977" thereafter referred to as the Audit Gui de. 3. There have been no: a. Irregularities involving management or employees who have significant roles in the system of internal accounting control. b. Irregularities involving other employees that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. . c. Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices that could have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments. 4. Related party transactions and related amounts receivable or payable, including revenues, expenditures, loans, transfers, leasing arrangements and guarantees have been properly recorded or disclosed in the Statements of Project Costs Claimed and Status of Grant Fund Payments. There have been no bribes or kickbacks. 5. There are no: a. Matters of noncompliance with grant contract terms or requirements set forth in the Audit Guide whose effects should be considered for disclosure or questioning coste in the Statement of Project Costs Claimed and Status of f:,~,.~,t Fund Payments or as a basis for recording a loss continq':!.c" b. Other material liabilities or gain or loss conting("1r:C':. that are required to be accrued or disclosed by Statenter'!," Financial Accounting Standards No.5. 6. There are no unasserted cl aims or assessments that ()ur Attorney has advised us are probable of assertion and rlUst disclosed in accordance with Statement of Financial ACCOlln " Standards No.5. 7. There are no material transactions that have not been properly recorded in the accounting records underlying the Statements of Project Costs Claimed and Status of Grant Fund Payments. All liabilities with respect to EDA funds have been recorded in the proper records. I Paqe 3 8. The town has satisfactory title or a non-cancelable long-term lease to all real property relevant to the p:~oject, and there are no 1 iens or encurrbrances on such asse+:s nor has any of these assets been pledged. 9. Purchase commitments have not been made fori :lVentory quantities in excess of normal requirements or at prices in excess of the prevailing market prices. 10. We have complied with all aspects of contractual agreen~nts that would have a material effect on the Statements of Project Costs Claimed and Status of Grant Fund Payments in the event of noncompliance. 11. No events have occured subsequent to date of the financial statements that would require adjustment to, or disclosure in the Statements of Project Costs Claimed and Status of Grant Fund Payments. . .; M.' r---"" ~i' I \ I .__' , .j V \"-" ~TH W W. R AN \ - COMP OLLER TOW F WAP! NGER,\ yr. ~ . I ( I ' I. J . , ,r ,i ,,:i VI ~IHC ~<:- f ' SUPERVISOR TOWN OF WAPPINGER . LDDjMWRjdb f