TOWN OF SOUTHAMPTON

EIN: 046001304

UEI: QFVJZK9CS3L1

Data as of August 23, 2026

TOWN OF SOUTHAMPTON1 audit years1 findings
1
Audit Years
1
Total Findings
0
Repeat Findings

FY 2022-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on August 12, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 12, 2025 (558 days ago).

What is a management decision? →
2022-002
Reporting
MATERIAL WEAKNESS

2022-002 Improve Oversight of Reporting Over Federal Awards (Material Weakness) Federal Agency: Department of Treasury Cluster/Program: Coronavirus State and Local Fiscal Recovery Fund AL Number: 21.027 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Town is required under American Rescue Plan Act (ARPA) guidelines to submit an annual project and expenditure report by April 30 each year. This reporting should include current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures for each approved ARPA project. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context The Town did not submit an annual report to the Department of Treasury by April 30, 2022. Cause The Town has not established adequate procedures to ensure that reporting requirements are adhered to. Effect or Potential Effect Non-compliance with ARPA reporting requirements can result in loss of funding and adminis¬trative burdens due to audit findings. Questioned Costs There are no known questioned costs.

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Full finding narrative

2022-002 Improve Oversight of Reporting Over Federal Awards (Material Weakness) Federal Agency: Department of Treasury Cluster/Program: Coronavirus State and Local Fiscal Recovery Fund AL Number: 21.027 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Material Weakness Criteria or Specific Requirement The Town is required under American Rescue Plan Act (ARPA) guidelines to submit an annual project and expenditure report by April 30 each year. This reporting should include current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures for each approved ARPA project. Management of the Town is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context The Town did not submit an annual report to the Department of Treasury by April 30, 2022. Cause The Town has not established adequate procedures to ensure that reporting requirements are adhered to. Effect or Potential Effect Non-compliance with ARPA reporting requirements can result in loss of funding and adminis¬trative burdens due to audit findings. Questioned Costs There are no known questioned costs.

Corrective Action Plan

Planned Corrective Action: The Town will adopt policies pertaining to federal awards, specifically ARPA, that have been effective and useful in other municipalities. Using established policies from other municipalities will expedite bringing Southampton into compliance. The new policies will establish controls setting responsibilities and deadlines for timely and accurate submissions. With ARPA funding moving towards an expiration date, these policies will be important to finalize and close-out any awards.

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