Kingston, NY (August 13, 2025)- Ulster County Comptroller March Gallagher released an audit of the County’s contract with Ulster County Community Action for providing food and personal items to Ulster County residents located in emergency housing motel placements. The scope of the audit covered two $150,000 contracts, one for 2023 and one for 2024.
The audit found UCCAC’s billing practices for the requested payroll portion violated contract provisions, as they were billed in one lump sum and based on budgeted payroll rather than actual payroll costs incurred. The audit also found that Ulster County failed to enforce the contractual provisions that required monthly billing which hampers the County’s ability to monitor the contract. Additionally, UCCAC lacked appropriate internal controls over inventory items purchased under the County contract due to a lack of segregation of duties. The contract with UCCAC required them to engage motel-placed residents on the safety and condition of their locations, however, it did not require UCCAC to track those engagements.
In addition to the three findings, during the audit the County learned that UCCAC was years behind in their external audits and tax filings. This prevented the County from executing the 2025 contract under Resolution 2024-78, which barred the County from contracting with nonprofits that are not up to date on their financial reporting and tax filings. The requirements of Resolution 2024-78 have been delayed until 01/01/2026 as the County establishes procedures for monitoring nonprofit vendors. Accordingly, a 2025 contract was entered into in July 2025 with UCCAC to provide groceries and personal care items to residents of emergency housing motel placements.
Ulster County Community Action responded to the audit findings by making changes internally to address issues identified.
