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
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December 15. 1912
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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
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Ene: Attachmen+~s 1 and 2
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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)
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111,867.00
98,900.00 13,267.00
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$119.978.25 ~120.000.oo j (21.75)
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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
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$120 , 000 . 00
$120,000.00
114J384.~
$ 5~615.}O
$121.000. oq
$119,978.25
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~119.91~
$119,978.25
114 .384.9Q
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A'PrACHMENT 1
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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.
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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.
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TOWN OF WAPPINGER
C.OMPTROl.L.ER'S OFFICE
Mii.'.. '31RF:ET
WP,"f'lhGERS FALLS. N. Y. 12590
WAPp ,
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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.
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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.
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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.
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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.
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MATT EW W. RYAN
COMPTROLLER
TOWN OF WAPPINGER
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TOWN OF WAPPINGER
GRANT 'NO. 01-51-26285
AUDIT REPORT
NOVEMBER 23, 1976 THROUGH DECEMBER 15, 1978
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December 15, 1978
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ON. OvDoc:Kb ROAD
..oUGHKDNI., Nav YORK 1 2803
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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.
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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.
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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
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Enc: Attachments 1 and 2
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ATI'ACHMI~ 1
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ONE OVEROCKER ROAD
POUGHKEEPSIE, NEW YORK 12803
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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.
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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
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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
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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)
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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
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~38.000.00
$37,081.56
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$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.
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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.
. .
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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.
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TOWN OF WAPPINGER
COMPTROLLER'S OFFICE
MILL STREET
WAPPINGERS FALLS. N. Y. 12.590
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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.
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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.
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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.
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5. There are no:
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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.
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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.
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COMPTROLLER
TOWN OF~,WAPPINGER
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SUPERVISOR
TOWN OF WAPPINGER
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TOWN OF WAPPINGER
GRANT NO. 01-51-26277
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AUDIT REPORT
NOVEMBER 23, 1976 THROOGH DECEMBER 15, 1978
December 15, 1978
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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.
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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
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Ew': Attachments 1 and 2
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ATTACHMENT 1
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ONE OVEItOCKb ROAD
POUGHKR""., NIIW YORK 12603
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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
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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)
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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
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1)78
$125JOOO.00
.$124,699.28
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~124 , 699.,28
$124,699.28
118.928.79
l 5, 770.49
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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.
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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 .
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TOWN OF WAPPINGER
COMPTROLLER'S OFFICE
MILL STREET
WAPPINGERS FALLS, N. Y. 121590
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MATTHEW W. RYAN
COMPTROLLER
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December 15, 1978
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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.
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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.
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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.
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COMP OLLER
TOW F WAP! NGER,\ yr.
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SUPERVISOR
TOWN OF WAPPINGER
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