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Home My WebLink About1977-1982 E. F. KALDGR, C.P.A.. P.C. CERTIFIED PUBLIC ACCOUNTANT 548 ROANOKE AVENUE RIVERHEAD, NEW YORK 11901 TLL.EPHONE 519 - 727-7888 December 20, 1982 Town of Southold Tbwn Hall 53095 Main Road Southold, NY 11791 Gentlemen: In accordance with our proposal we have made an exam- ination of the books, records and pertinent documentation of the Economic Development Administration Local Public Works Project #01-51-22356 (Town Hall Addition in am wit of $240,000.11.) Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as was considered necessary in the circumstances. Also used in the examination was the audit program specified in "Audit Instructions for Local Public Works Grants", April 1979 revision and "Auditing Standards for Governmental Ac- tivities", published by the Comptroller General. We cannot present a report in the desired format since the source documents are not available. In our opinion, all requirements Have been fulfilled as evidenced by existing records. We attach hereto an unquAlified certification of the project's transactions and hope that this will suffice for the department's requi.resrents. '! The objectives of our examination were to review, test, ,Y and report on costs incurred and compliance with grants terms, conditions, and requirements. In our opinion the referenced exhibits present fairly the fund control and costs incurred from effective date of the grant through November 30, 1982 in accordance with the financial pro- visions of -the grant, and generally accepted accounting,,prin- ciples. 7a p� ii. This report is intended for use in connection with the grant to which it refers, and should not be used for any other purposes. Very truly yours, SINE F. KALDOR, P.C. Certified Public Accountant EF'K:cue w i Compliance with Grant Terms and Conditions and EDA LPW Requirements ;9 In connection with our examination of the Financial Statements we have reviewed the terms and conditions of the grant and EWLPW instructions and have performed tests of grantee's operations on available records applicable to the compliance requirements set Forth in Parts II A and B of the audit program in the Deparbuant of Commerce Instructions for J local Public Works Grants under Title I of the Public b�brks Employment Acts of 1976 and 1977. In our opinion, for the items tested, the grantee com- plied in all material respects with the applicable compliance matters contained in Parts II A of the audit program .referred to above. Further, based upon procedures performed in accor- dance with kart B nothing cwttie to our attention to indicate that the graAtee had not complied .in all material respects with all applicable items listed in Part IT B of the Audit Pro- 1 • gram referred to above. .Required forms requested from Green-- ' man-Pedersen were not available. i a i x 9 1 ti P 3 Y Ai 5 Administration and inspection fees are in conformity with lump sum agreement entered into for the project. { Administration $ 2,400.00 Inspection 15,000.00 Engineering fees paid agreed with bid of 15,500.00 $ 32,900.00 Design fees paid $ 1,161.90 Construction costs a- t mounted to 228,629.18 Total Project Costs $262,691.38 r E i i• E ki E. i _ 2 _ __ -__..,..�.�.,.,:...s....__._x._,�:..,-_....s:.aa.��..._...:_...,.,_...,.,::..�,...-.:_-,—_. ..,.:�.Y_y.. c:.:•:t3"� �,:.�`a;�_.e.avKhn'r_'L.�a3k..... a,. .e .A._.w.�. _,_v,....z_....+_....+.,.,__ _......� .�-... ._:-.+,�....+,s.ai.'"°. ',..,.5..'•..s;i:.�. : .. _ _ __..._... _ TOWN OF SOUTHOID Local Public Works Project #01-51-22356 STATII= OF PROJECT COSTS FOR THE PERIOD 9/1/77 - 11/30/82, and COMPARISON OF ACCh.'�"'.I`ED PF33TECT COSTS WITH ESTIMATED PROJECT COSTS Audit Reco endations Costs Questioned Accepted Cost Estirates Overrun Claimed Costs Costs per Grant (Unde--run) 1. Administrati-Te Expense $ 2,400.00 - 0 - $ 2,400.00 $ 2,400.00 0 - i 2. Engineering Fees 15,500.00 - 0 - 15,500.00 15,500.00 - 0 - 3. Inspection Fees 15,000.00 - 0 - 15,000.00 15,000.00 - 0 - 4. Design Fees 1,161.90 - 0 - 1,161.90 - 0 - $ 1,161.90 5. Construction Costs 228,629.48 - 0 - 228,629.48 207,100.11 21,529.37 Total for Project $262,691.38 - 0 $262,691.38 $240,000.11 $22,691.27 EXHIBIT "B" SOUT11OLD 'DOWN Local Public Cnbrks Project #01-51-22356 STATEMENT CSF STATUS OF GPANP FUND PAYMENTS November 30, 1982 Total Authorized costs per Grant Budget $240,000.11 Total Accepted project costs $262,691.38 Amount of LPW Grant payable - 1000 of Accepted Costs, or $240,000.11, whichever is smeller $240,000.11 Less: Payments Made Authorized by Grant #01-51-22356 $240,000.00 Authorized. by Grant #01-51-22357 .11 Total Letter of Credit Authorized $240,000.11 Less: Drawdowns deposited in Bank of NY $240,000.11 $240,000.11 - i Available balance - Letter of Credit - 0 - Project balance due to EDA _ 0 _ _ 4 _ NXYI'ES TO FINANCIAL STNIIIIIAE;N RI y A. Financial Statement Presentation and Summary of Significant Accounting Policies: 1. The financial statements presented are prepared '? only the accounts and financial transactions of the Local ,public Works Project Number 01-51-22356 of the Town of Southold. Ac- cordingly, they do not present the financial position or the results of operations of the Town of Southold. y 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 princi- ples. 3. Expenditures are recorded on the accrual basis of accounting. Purchases of equipuent are recordeI at cost. t B. The Total Approved Budget Consists of: t, Approved budget Grant #01-51-22356 $240,000.00 Underrun from Grant #01-51-22357 =d Approved for use on this report .11 Total Approved Budget $240,000.11 a , C. Cost Overruns: '! Cost overruns were incurred in Construction and Design fees. Such overruns were caused by additions and revisions to orig- inal contracts during the construction period. Such overruns were funded by use of Town funds in the amount of $22,691.27. D. Completion of Project: It is the position of the Town of Southold that Project Number 01-51-22356 has been completed and all payments to contractors have been made. 'here is a dispute with a prime contractor, Minnesota Construction Company, regarding final payment of $555.52. The dispute arose when the building was flooded on 1/19/79 due to incomplete insulation on pipes. The pipes had a to be reinsulated and the damage that resulted from the flood had to be rectified. The contractor did not pay subcontractors and suppliers. After liens were placed on the Town Hall build- ing by the subcontractors, payments were made to these subcon- tractors by the Town. As such, the Town maintains that there is no money owing to Minnesota Construction Company. i There is also a lawsuit pending against the Town for personal r injuries sustained by an employee of a subcontractor. Such litigation is being handled by the Town's insurance company. i - 5 - E. F, KALDOR, C.P.A., P.C. .. CERTIFIED PUBLIC ACCOUN"I"AN'f 1540 ROANOKE AVENUE RIVERHEAD. Nt,W YORK 11801 TELEPMGNE 5 t o - 727--7000 s Decentier 7, 1982 Mr. Daniel Falaseo Greenman Pedersen Associates, PC 100 West Main Street Babylon, New York 11702 1 Dear Mr. Falasco: Would you please confirm to us in letter form, as per our telephone conversation of Novenber 29, 1982, ti-1aL the records of the LSA Southold 'lbwn Hall Annex project: cannot be located. , Thauik you for your prompt attention to this request. Very truly yours, i 1 " FJ A NE F. KALLOR Certified Public Ac cowlLant EFK:cw a cc: Wal. R. Pell, III Supervisor i t 1 �a E. F. K A I.1)0 R. C.P.A., P.C. CERT IFILD FUljt.)C AGCOI.INTANT 548 ROANOKE AVENUE RIVERHEAD, NEW YORK 11901 TL LLPIMNE b16 727-76UU L)ecefnLx--,r 20, 1982 Mr. Daniel Falasco Greenman Pedersen Associates, PC 100 West Main Street Babylon, New York 11702 Dear Mr. Falasco: In a telephone conversation with this office on November 29, A 1982 you stated that records for the IMA LPW Project #01-51--22356, Southold Ibmi Hall Addition, cannot be located, and are unavai"l-- albe for audit. 'Jb confirm this information please sign below and return Hie this letter in the self-addressed envelope- providud. extra copy of J Very truly yours, ELAINI-, F. KAJMR Certified Public Accountant Daniel Falasco Date Greenman Pedersen Associates, PC cc: William R. Pell, III Supervisor