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NYS Comptroller


Taxpayers' Guide to State and Local Audits

Audits of Local Governments and School Districts

Town of New Hudson – Community Development Block Grant (2011M-222)

Released: February 3, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to evaluate the Town's financial management for the period January 1, 2010 through August 3, 2011.


The Town of New Hudson is located in Allegany County and has a population of approximately 780. The Town Board consists of five elected members including the Town Supervisor (Supervisor). The Town was awarded $400,000 in Community Development Block Grant (CDBG) funds, as recipient, pursuant to an agreement with the New York State Housing Trust Fund Corporation's Office of Community Renewal (OCR), dated August 26, 2010.

Key Findings

  • The Board, as governing body of the grant recipient, did not fulfill its responsibility to oversee the use of OCR funds by the Cuba Community Development Corporation (CCDC). The Board did not enter into a written contract to establish the services to be provided by the CCDC as the grant subrecipient, and did not monitor the CCDC's progress toward community development goals funded by the CDBG program.
  • The Board granted the Town Clerk (Clerk) the authority to sign the subrecipient's requests for CDBG funds, and the Clerk was able to control key financial duties relative to the development project with no oversight.

Key Recommendations

  • Enter into a written agreement with the CCDC that establishes the responsibilities and costs for the administration of the CDBG project. Establish formal procedures to monitor the performance of the CCDC in the administration of the CDBG project, including Board review of periodic CCDC status reports on grant activity.
  • Ensure that financial duties relative to the CDBG project are adequately segregated, or institute compensating controls.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email:
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236