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HomeMy WebLinkAboutLaurel Lake Preservation & Trail Plan Procedures ReportRESOLUTION 2011-751 ADOPTED DOC ID: 7218 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2011-751 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON NOVEMBER 9, 2011: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott Russell to execute an engagement letter with Albrecht. Viggiano, Zureck and Company~ P.C. in connection with thc Agreed Upon Procedures Report as required under the grant contract between the Town and New York State Office of Parks, Recreation & Historic Preservation relating to Laurel Lake Preservation and Trail Plan (EPF 540328) in an amount not to exceed $7,500 which shall be a legal charge to the Community Preservation Fund Independent Auditing budget appropriation (H3.1320.4.500.300), all in accordance with the approval of the Town Attorney. Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED [UNANIMOUS] MOVER: Vincent Orlando, Councilman SECONDER: Albert Krupski Jr., Councilman AYES: Ruland, Orlando, Talbot, Krupski Jr., Evans, Russell CERTIFIED PUBLIC ACCOUNTANTS November 2, 2011 Honorable Supervisor and Town Board Town of Southold PO Box 1179 Southold, NY 11971 We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the Town of Southold (the "Town"). We will apply the agreed-upon procedures which the Town has specified as listed in the attached schedule. This engagement is solely to assist in evaluating the Town's assertion that the revenues and expenditures submitted under Contract EPF-540328 are allowable based on the contract provisions, guidelines, rules and regulations, and the policies prescribed by the New York State Office of Parks, Recreation, and Historic Preservation. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagement. Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express an opinion on the Schedule of Contract Revenues and Expenditures. In addition, we have no obligation to perform any procedures beyond those listed in the attached schedule. We will submit a report listing the procedures performed and our findings. This report is intended solely for the use of the Town and the New York State Office of Parks, Recreation and Historic Preservation, and should not be used by anyone other than these specified parties. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. PERSONAL SERVICE. TRUSTED ADVICE. ALBRECHT, VIGGIANO, ZURECK & COMPANY, 245 PARK AVENUE, 24TH FLOOR 25 SUFFOLK COURT NEWYORK, NY 10167 T: 212.792.4075 HAUPPAUGE, NY 11788-3715 T: 631.434.9500 F: 631.434.9518 Town of Southold November 2, 2011 Page 2 You are responsible for the presentation of Schedule of Contract Revenues and Expenditures in accordance with contract provisions; and for selecting the criteria and determining that such criteria are appropriate for your purposes. You are also responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, and/or experience to oversee any nonattest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. Jeffrey Davoli is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. At the conclusion of our engagement, we will require a representation letter from management that, among other things, will confirm management's responsibility for the presentation of the Schedule of Contract Revenues and Expenditures. We estimate that our fees for these services not to exceed $7,500. You will also be billed for travel and other out-of-pocket costs such as report production, word processing, postage, etc. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-or-pocket expenditures through the date of termination. We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional procedures adses, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of the procedures. Very truly yours, Albrecht, Viggiano, Zureck & Company, P.C. Town of Southold November 2, 2011 Page 3 RESPONSE: This letter correctly sets forth the understanding of The T.~ of Southold Town of Southold Schedule A Agreed Upon Procedures 1. Verify that all payments claimed by grantee in the final report were made by examining cancelled checks, payee endorsement, and/or other evidentiary material. 2. In cases where "force account expenditures" (salaries of the grantee's staff), verify time and attendance/payroll documentation exists supporting the charge for personnel used on grant project. 3. In cases where "donations" of labor, materials, equipment, supplies, and Real Property were claimed verify that the donations were applicable to grant activities, that values assigned to donations are legitimate and all donations are matched by documented eligible expenditures for grant activities. 4. Verify that the "Schedule of Project Expenditures by Vendors' supports the documented eligible project expenses. 5. Verify that the "Schedule of Revenues by Source" clearly identifies the source of all eligible matching funds. TOWN OF SOUTHOLD AGREED-UPON PROCEDURES REPORT CONTRACT CLOSEOUT Laurel Lake Preservation and Trail Plan Contract No. EPF 540328 TABLE OF CONTENTS Page Independent Accountants' Report on Applying Agreed-Upon Procedures ................................. 1-2 Schedule of Contract Revenues and Expenditures ..................................................................... 3 Notes to Schedule of Contract Revenues and Expenditures ...................................................... 4 Supplemental Schedules Schedule of Project Expenditures by Vendors ...................................................................... 5 Schedule of Matching Funds by Funding Source .................................................................. 6 CERTIFIED PUBLIC ACCOUNTANTS -1- INDEPENDENT ACCOUNTANTS'REPORT ON APPLYING AGREED-UPON PROCEDURES Town Board Town of Southold PO Box 1179 Southold, NY 11971 Re: Agreed-Upon Procedures Report on Contract #EPF 540328 We have performed the procedures enumerated below, which were agreed to by the NYS Office of Parks, Recreation, and Historic Preservation solely to assist in evaluating the Town of Southold's assertion that the revenues and expenditures submitted under Contract EPF #540328 are allowable based on the contract provisions, guidelines, rules and regulations, and the policies prescribed by the New York State Office of Parks, Recreation, and Historic Preservation. This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with Government Auditing Standards issued by the Comptroller General of the United States of America. The sufficiency of these procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and related findings are summarized as follows: Procedure Verify that all payments claimed by grantee in the final report were made by examining cancelled checks, payee endorsement, and/or other evidentiary material. Findinqs We verified that all payments claimed by the grantee in the final report were made by examining cancelled checks, payee endorsement, and/or other evidentiary material. Procedure #2 In cases where "force account expenditures" (salaries of the grantee's staff), verify time and attendance/payroll documentation exists supporting the charge for personnel used on grant project. PERSONAL SERVICE.TRUSTED ADVICE. ALBRECHT, VIGGIANO, ZURECK & COMPANY, P.C. 245 PARK AVENUE, 24TH FLOOR 25 SUFFOLK COURT NEWYORK, NY 10167 HAUPPAUGE, NY 11788 3715 T:212.792.4075 T:631.4349500 F:631434.9518 www. avz.com -2- Findin,qs We verified that no "force account expenditures" were made relative to the grant project. Procedure #3 In cases where "donations" of labor, materials, equipment, supplies, and real property were claimed verify that the donations were applicable to grant activities, that vaiues assigned to donations are legitimate and all donations are matched by documented eligible expenditures for grant activities. Findin.qs We verified that no "donations" were made relative to the grant project. Procedure #4 Verify that the "Schedule of Project Expenditures by Vendors" supports the documented eligible project expenses. Findinqs We verified that the "Schedule of Project Expenditures by Vendors" supports the documented eligible project expenses. Procedure #5 Verify that the "Schedule of Revenues by Source" clearly identifies the source of all eligible matching funds. Findin.qs We verified that the "Schedule of Revenues by Source" clearly identifies the source of all eligible matching funds. We were not engaged to, and did not perform an examination, the objective of which would be the expression of an opinion on management's assertion. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the use of the State of New York Office of Parks, Recreation, and Historic Preservation and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. Hauppauge, New York April 2, 2012 -3- TOWN OF SOUTHOLD AGREED-UPON PROCEDURES REPORT - CONTRACT CLOSEOUT LAUREL LAKE PRESERVATION AND TRAIL PLAN CONTRACT NO. EPF 540328 Schedule of Contract Revenues and Expenditures For the Period April 22, 2004 through March 31, 2012 REVENUES: Contract Revenue Match Funds, organization sources Total Revenues EXPENDITURES: Acquisition Restoration RCA Blend Grass Seed and Fertilizer Dock Removal Contract Administration Total Expenditures As Submitted $ 97,500 705,855 $ 8O3,355 $ 744,000 40,000 6,975 231 8,149 4,000 $ 803,355 Adjustments As Adjusted $ 803,355 $ -0- 803,355 $ -0- $ -0- Excess (Deficiency) Explanation of Adjustments: None See notes to schedule of contract revenues and contract expenditures. -4- TOWN OF SOUTHOLD AGREED-UPON PROCEDURES REPORT - CONTRACT CLOSEOUT LAUREL LAKE PRESERVATION AND TRAIL PLAN CONTRACT NO. EPF 540328 NOTES TO SCHEDULE OF CONTRACT REVENUES AND CONTRACT EXPENDITURES NOTE t - CONTRACT DESCRIPTION Contract # EPF 540328 dated April 22, 2004 is an agreement between the Town of Southold and the New York State Office of Parks, Recreation and Historic Preservation (NYS OPRHP). The contract provides for NYS OPRHP to reimburse the Town for up to 50% (maximum of $97,500) of the budgeted $807,500 of eligible project expenditures, as listed in Appendix B, to implement the Laurel Lake Preservation and Trail Plan. NOTE 2 - BASIS OF ACCOUNTING AND ACCOUNTING POLICIES The schedule of contract revenues and expenditures has been prepared on the accrual basis. Revenue Reco,qnition Contract and matching revenue is recognized when project expenditures are incurred in compliance with the terms of the contract, irrespective of the filing of claims for reimbursement of actual cash receipts. Acquisition and Development Costs Acquisition costs recognized when incurred and are capitalized as part of the cost of the asset. Development costs are recognized when incurred and have been recorded as contract expenditures in the financial statements in accordance with the contract terms, rather than being capitalized. Use of Estimates The eligible expenses are subject to review by NYS OPRHP upon submission of required detail information and proof of payment. Management is required to determine the allowable expenses under the contract, and generally consults with NYS OPRHP in matters of judgment; however, the final determination of allowable expenses will be made by NYS OPRHP upon final submission of project costs. NOTE 3 - NYS OPRHP CONTRACT REVENUE AND UNREIMBURSED CONTRACT COSTS The following schedule presents the contract revenue recognized at March 31, 2012 as cash received from NYS OPRHP based on payment requisitions and the unreimbursed project costs at March 31, 2012: Contract revenue $ 97,500.00 Cash receipts: 4/22/10 $ 47,205.50 Total Cash receipts $ 47,205.50 Unreimbursed costs at March 31, 2012 -5- TOWN OF $OUTHOLD AGREED-UPON PROCEDURES REPORT - CONTRACT CLOSEOUT LAUREL LAKE PRESERVATION AND TRAIL PLAN CONTRACT NO. EPF 540328 Schedule of Project Expenditures by Vendors ContractorNendor Name A. Acquisition Costs: John McFeely Totals Acquisition Costs B. Development Costs: Dirtworks Dirtworks Long Island Cauliflower Assoc. Terra Tech Site Development Albrecht, Viggiano, Zureck & Co. Total Development Costs Grand Total (A plus B) Description Land - 30.785 acres Restoration RCA Blend Grass seed & fertilizer Dock & Building Removal Professional services Total Paid Amount $ 744,000 744,000 40,000 6,975 231 8,149 4,000 59,355 $ 803.355 See accountants' report. -6- TOWN OF SOUTHOLD AGREED-UPON PROCEDURES REPORT - CONTRACT CLOSEOUT LAUREL LAKE PRESERVATION AND TRAIL PLAN CONTRACT NO. EPF 540328 Schedule of Matchinq Funds by Fundin,q Source A. Source of Matching Funds Town of Southold - Community Preservation Fund Subtotal A B. Source of Other Revenues OPRHP Grant Contract #EPF 540328 Sub-Total B Grand Total (A plus B) 705,855 705,855 97,500 97,500 803~355 See accountants' report.