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Home My WebLink AboutCPF Annual Audit DEN\TIS NONCARROW Town Hall,53095 Main Road P.O. TOWN CLERK �Ki�SP2�� Box 1179 Southold,New York 11971 Fax � REGISTRAR OF VITAL (631)765-6145 Telephone(631) o0 STATISTICS MARRIAGE OFFICER 7 RECORDS MANAGEMENT www:southoldtoldtownny.gov OFFICER FREEDOM OF INFORMATION OFFICER ' ,, „ OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO.2026-595 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JUNE 30,2026: RESOLVED that the Town Board of the Town of Southold hereby accepts the bid of Cullen & Danowski,LLP,Certified Public Accounts,Port Jefferson Station,New York,in an amount not to exceed$10,000 for the preparation of an annual audit of the Community Preservation Funds for the year 2025 for purposes of determining whether the fund has been administered consistent with the provision of New York State Law § 64-e and Southold Town Code Chapter,17. Contract period shall be from date of award until completion of the 2025 Community Preservation Fund audit with an option for renewal,under the same terms and conditions,with concurrence of the Town and the contractor for two additional one-year periods in an amount not to exceed$10,250 for the CPF audit year 2026 and$10,500 for CPF audit year 2027, all in accordance with the bid proposal; and,be it further RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Albert J. Krupski Jr to execute an engagement letter with Cullen&Danowski, LLP,Certified Public Accounts, regarding the preparation of an annual audit of the Peconic Bay Community Preservation Fund for the year ended December 31,2025, in accordance with the bid proposal submitted to the Town, and subject to the approval of the Town Attorney. Lei . Denis Noncarrow Southold Town Clerk RESULT: Adopted MOVER: Councilwoman Doherty SECONDER: Justice Stevens AYES: Councilman Mealy,Justice Stevens, Councilwoman Doherty, Councilwoman Smith, Councilwoman Suess, Supervisor Krupski,Jr. NAYES: None CULLEN & DANOWSKI, LLP CERTIFIED PUBLIC ACCOUNTANTS July 10,2026 The Honorable Supervisor and Town Board JUL 2 0 2026 Town of Southold Department of Land Preservation LAND PRESERVATION DEFT P.O.Box 1179 Town of Southold Southold,NY 11971-0959 To the Honorable Supervisor and Town Board: We are pleased to confirm our understanding of the services we are to provide the Town of Southold(Town)for the year ended December 31,2025. Audit Scope and Objectives We will audit the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance of the Town of Southold Peconic Bay Community Preservation Fund and the related notes to the financial statements, which collectively comprise the financial statements of the Town of Southold Peconic Bay Community Preservation Fund as of and for the year ended December 31, 2025. The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor's report will not provide an opinion or any assurance on that other information. • Schedule of Real Estate Purchases • Schedule of Related Outstanding Debt The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and issue an auditor's report that includes our opinion on whether your financial statements are fairly presented, in all material respects, in conformity with Accounting Principles Generally Accepted in the United States of America(GAAP).Reasonable assurance is a high level of assurance but is not absolute assurance and,therefore,is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions,can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate,they would influence the judgement of a reasonable user made based on the financial statements. The objectives also include reporting on internal control over financial reporting and compliance with provisions of laws, regulations, contracts and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with GovernmentAuditing Standards. 1650 ROUTE 112.PORT iEFFERSON STATION,NEW YORE:11 776-3060 Page 1 of 7 PHONE: 631-473-3400 FAX:631-473-4863 %411N11N.CDLI,P.NET Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31, 2025 Auditor's Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS; the standards for financial audits contained in GovernmentAuditing Standards,issued by the Comptroller General of the United States,and will include tests of accounting records and other procedures we consider necessary to enable us to express such opinions.As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management.We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets,or (4) violations of laws or governmental regulations that are attributable to the Town or to acts by management or employees acting on behalf of the Town. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits, nor do they expect the auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions,there is an unavoidable risk that material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements.However,we will inform the appropriate level of management of any material errors, any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention,unless clearly inconsequential. Our responsibility as the auditor is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as the auditor. We will also conclude,based on the audit evidence obtained,whether there are conditions or events,considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of certain assets, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources,creditors,and financial institutions.We will request written representations from your attorneys as part of the engagement and they may bill you for responding to this inquiry. Our audit of the financial statements does not relieve you of your responsibilities. Page 2 of 7 Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31, 2025 Audit Procedures-Internal Controls We will obtain an understanding of the Town and its environment,including internal control relevant to the audit,sufficient to identify and assess the risks of material misstatement of the financial statements,whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinion. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to GovernmentAuditing Standards. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error; as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control.An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance. Audit Procedures-Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Town's compliance with provisions of applicable laws, regulations, contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing,implementing,establishing and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met;following laws and regulations;and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements and all accompanying information in conformity with GAAP,and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us,and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers).You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records,documentation,identification of all related-party relationships and transactions,and other matters; (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the Town from whom we determine it necessary to obtain audit evidence.At the conclusion Page 3 of 7 Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31, 2025 of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by GAAS and GovernmentAuditing Standards. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial,both individually and in the aggregate,to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the Town involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements.Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the Town received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the Town's complies with applicable laws, regulations, contracts, agreements, and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws,regulations, contracts,and grant agreements that we report. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits,attestation engagements,performance audits,or studies.You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. Other Services We will also prepare the financial statements and related notes of the Town of Southold Peconic Bay Community Preservation Fund in conformity with U.S. generally accepted accounting principles based on information provided by you.These nonaudit services do not constitute an audit under GovernmentAuditing Standards and such services will not be conducted in accordance with GovernmentAuditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We,in our sole professional judgment,reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities relating to the financial statements and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes, and that you have reviewed and approved the financial statements and related notes,prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Page 4 of 7 Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31, 2025 Engagement Administration,Fees and Other We understand that your employees will prepare all related parties or other confirmations we request and will locate any documents selected by us for testing. We will provide copies of our report to the Town; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation,or containing privileged and confidential information,copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of our firm and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to the New York State Office of the State Comptroller, or their designee, or the U.S. Government Accountability Office for purposes of a quality review of the audit,to resolve audit findings,or to carry out oversight responsibilities.We will notify you of any such request. If requested, access to such audit documentation will be provided under our supervision. Furthermore, upon request,we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others,including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of seven years after the report release date or for any additional period requested by the cognizant agency or pass-through entity.If we are aware that a federal awarding agency,pass-through entity, or auditee is contesting an audit finding,we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Christopher V.Reino,CPA,CITP is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. To ensure that Cullen&Danowski, LLP's independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. Our fee for these services of $10,000 based upon our projection of the time that we will spend on the engagement at our government audit hourly rates. Our invoices for these fees will be rendered as work progresses and are payable upon presentation.The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. 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. We may use the Town's name in a list of our clients for marketing purposes. Reporting We will issue written reports upon completion of the audit. Our reports will be addressed to the Honorable Supervisor and Town Board of the Town of Southold.Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances,it may be necessary for us to modify our opinions,add a separate section,or add an emphasis- of-matter or other-matter paragraph to our auditor's report,or if necessary,withdraw from this engagement. If our opinion is other than unmodified,we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. Page 5 of 7 Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31,2025 We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will state that(1)that the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town's internal control or on compliance,and(2)the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control and compliance.The report will also state that the report is not suitable for any other purpose.If during our audit we become aware that the Town is subject to an audit requirement that is not encompassed in the terms of this engagement,we will communicate to management and those charged with governance that an audit in accordance with GAAS and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. A copy of our most recent external peer review report dated January 28, 2025,accompanies this letter. We appreciate the opportunity to be of service to the Town of Southold 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. Very truly yours, Cullen&Danowski,LLP For the Firm: Christopher V.Reino,CPA,CITP Partner RESPONSE: This letter correctly sets forth the understanding of the Town of Southold: Signature: %--� �✓° l � ' � J sk� s Name: Title: ya:e r Date: 7� Page 6 of 7 Town of Southold Peconic Bay Community Preservation Fund For the Year Ended December 31, 2025 BRIDGES, HORNING & COMPANY, P.C.'%b . Certified Public Accountants Report on the Firm's System of Quality Control January 28,2025 To the Partners of Cullen&Danowski,LLP and the Peer Review Committee of the PICPA We have reviewed the system of quality control for the accounting and auditing practice of Cullen&Danowski,LLP(the firm) in effect for the year ended May 31,2024. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature,objectives,scope,limitations of,and the procedures performed in a system review as described in the Standards may be found at www.aicpa.org/prsummarv. The summary also includes an explanation of how engagements identified as not performed or reported on in conformity with appliable professional standards, in any,are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable professional standards in all material respects. The firm Is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported on in conformity with the requirements of applicable professional standards,when appropriate,and for remediating weaknesses in its system of quality control,if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of and tompliance with the firnn'S System of quality control based on our review_ Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act and an audit of an employee benefit plan. As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion,the system of quality control for the accounting and auditing practice of Cullen&Danowski,LLP in effect for the year ended May 31,2024,has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass,Pass With def+tienty(ie3),or foil. Cullen&Danowski,LLP has recelved a peer review rating of pass. Bridges,Horning&Co.,P.C. AICPA RIDER REGARDING PAYMENT UNDER MUNICIPAL CONTRACTS The Town of Southold (hereinafter the "Town") shall pay `�Al ()()C' (hereinafter the "Contractor") upon the submission of a voucher at the appropriate time of billing. Such voucher shall be due and payable within 45 days after receipt of such voucher, but such sum shall not be due and payable by the Town until the Town Board of the Town has received such a voucher and has audited and approved for payment the voucher to be submitted by Contractor in connection therewith. The Town Board shall process any voucher received from Contractor as expeditiously as possible. In the event that the Town disputes or objects to any portion of any voucher submitted by Contractor pursuant to this paragraph, the Town shall, within 30 days of the receipt of such voucher, notify Contractor in writing of such dispute or objection. Contractor acknowledges that Contractor is familiar with the requirements of section 118 of the Town Law which, in effect, prohibit payment of any of Contractor's claims against the Town unless an itemized voucher therefore shall have been presented to the Town Board or Town Comptroller and shall have been audited and allowed by the Town Board or Town Comptroller. The acceptance by the Contractor of the payment shall be, and shall operate as a release to the Town from all claims and all liabilities to the Contractor for all the things done or famished in connection with this work and for every act and neglect of the Town and others relating to or arising out of, this Contract, except Contractor's claims for interest upon the final payment, if this payment be improperly delayed. No payment, however final or otherwise, shall operate to release the Contractor or its sureties from any obligations under this Contract. REQUIRED PROVISIONS OF LAW Each and every provision of law and clause required by law to be inserted in this Contract shall be deemed to have been inserted herein. If any such provision is not inserted, through mistake or otherwise, then upon the application of either party, this Contract shall be physically amended forthwith to make such insertion. In particular, the Contractor shall, among other things, fully comply with: (a) Labor Law section220-e and Executive Law sections 291-299 and the Civil Rights Law relating to prohibition against discrimination and providing equal opportunity. (b) Affirmative action as required by the Labor Law. (c) Prevention of dust hazard required by Labor Law section 222-a. (d) Preference in employment of persons required by Labor Law section 222. (e) Eight-hour workday as required by Labor Law section 220(2). PREVAILING WAGE RATES REQUIRED BY LAW (a) The parties hereto, in accordance with the provisions of section 220(3) of the Labor Law, hereby agree that there shall be paid each employee engaged in work under this Contract not less than the wage rate and supplements set opposite the trade or occupation in which he/she is engaged, which are the wage rates and supplements established as the prevailing rate of wages for the work covered by this Contract. (b) Labor classifications not appearing on the schedule of wages can be used only with the consent of the Owner and then the rate to be paid will be given by the Owner after being advised by the Department of Labor. (c) The Contractor shall post in a prominent and accessible place on the site of the work a legible statement of all wage rates and supplements, as specified in the Contract,for the various classes of mechanics,workingmen/women, or laborers employed on the work. Dated: CONTRACTOR TOWN OF SOUTHOLD By: By: Cam,,z Name: Albert J. Krupski Jr , Officer or Authorized Agent Title: Southold Town Supervisor Cullen & Dandowski, LLP DEN-IS NONCARROW Town Hall,53095 Main Road P.O. TOWN CLERK 30 r4 Box 1179 v Q� Southold,New York 11971 Fax (631)765-6145 Telephone(631) REGISTRAR OF VITAL 765-1800 STATISTICS MARRIAGE OFFICER www.southoldtownny.gov RECORDS MANAGEMENT $Q OFFICER FREEDOM OF INFORMATION OFFICER � 11NTY OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO.2026-595 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JUNE 30,2026: RESOLVED that the Town Board of the Town of Southold hereby accepts the bid of Cullen & Danowski,LLP,Certified Public Accounts,Port Jefferson Station,New York,in an amount not to exceed$10,000 for the preparation of an annual audit of the Community Preservation Funds for the year 2025 for purposes of determining whether the fund has been administered consistent with the provision of New York State Law§ 64-e and Southold Town Code Chapter 17. Contract period shall be from date of award until completion of the 2025 Community Preservation Fund audit with an option for renewal,under the same terms and conditions,with concurrence of the Town and the contractor for two additional one-year periods in an amount not to exceed$10,250 for the CPF audit year 2026 and$10,500 for CPF audit year 2027, all in accordance with the bid proposal: and,be it further RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Albert J.Krupski,Jr to execute an engagement letter with Cullen &Danowsld, LLP, Certified Public Accounts regarding the preparation of an annual audit of the Peconic Bay Community Preservation Fund for the year ended December 31,2025. in' accordance with the bid proposal submitted to the Town, and subject to the approval of the Town Attorney. Denis Noncarrow Southold Town Clerk RESULT: Adopted MOVER: Councilwoman Doherty SECONDER: Justice Stevens AYES: Councilman Mealy,Justice Stevens; Councilwoman Doherty, Councilwoman Smith, Councilwoman Suess, Supervisor Krupski,Jr. NAYES: None •xn v-� Y^ � WIMPe �x�F �•f, ryar !c p�i+wl• �'1 `'{1'fn a9��t• a ",A i r f i o � •a. st- c ` - -C•evc;,v� t PROPOSAL FOR EXTERNAL AUDIT SERVICES ; i Town of.Southold Peconic Bay w.r Community Preservation Fund For the Year Ended December'31,2025 with an option to renew for December 31, 2026 and December 31, 2-027 CHRIST(OPHER V. REINO, CPA, C1TP— PARTNER CVRC CDLI_P.NET'I (P) 631 .473.3400 x 107 I (F) 631 .828.1508 R I ED • LAND PRESERVATION SoutholdTown cf CONTENTS NTS TRANSMITTALLETTER ....................................... .............................. 'I WHATSETS US APART? ...................................................................... 3 OURCORE VALUES............................. ............................................... 3 OURPARTNERS .............:.................................................................... 4 OUREXPERIENCE ......... .................................................................. 4 AUDIT TEAM QUALIFICATIONS............................................................ 5 YOURAUDIT TEAM............................................................................... 6 REFERENCES ......................................_................................................. 8 OBJECTIVE AND SCOPE............. ....................................................... 9 AUDITMETHODOLOGY........................................................................ 9 QUALITYCONTROL .......................................................................... 11 QUALITYASSURANCE............... ..................................................... 11 SYSTEM REVIEW REPORT. _ ............................ ................................. 12 MUNICIPAL CLIENTS LISTING........ . .................................. _ .......... .13 FEESFOR SERVICES .....................................................:.................... 15 CULLEN & DANOWSKI, LLP CERTIFIED PUBLIC ACCOUNTANTS June 2,2026 Denis Noncarrow Town Clerk Town of Southold Southold Town Hall 53095 Main Road Southold, New York 11971 Dear Mr. Noncarrow: We respectfully submit this proposal for consideration in the selection of auditor for the three years ending December 31,2025 through,and including, December 31,2027. We believe we are qualified to offer the Town of Southold Peconic Bay Community Preservation Fund the same quality and timely service that we have been providing to our other local municipal clients; in evaluating our firm, please consider the following: ■ Cullen & Danowski, LLP (Firm) is a firm of certified public accountants licensed in the state of New York, serving the New York and metropolitan area since 1971. ■ Five of our firm's eight partners specialize in municipal auditing and accounting. ■ In addition to the Firm's audit partners and principal, our management team includes senior-level directors, managers, and supervisors, many of whom have over twenty years of experience with our firm. ■ Employee longevity, resulting in a highly qualified audit staff, is one of the keys to our success. Our staff has acquired the special knowledge, skills, and experience needed to serve local municipalities effectively and efficiently. ■ With over forty professionals, our firm is the ideal size for providing auditing and accounting services to local municipalities. ■ We continuously provide our clients with up-to-date information regarding the many changes promulgated by both state and federal governments, as well as the Governmental Accounting Standards Board. 1650 ROUTE 112,PORT JEFFERSON STATION,NEW YORK 11776-3060 PAGE I 1 - PHONE:631-473-3400• FAX:631-473-4863 •WWW.CDLLP.NET r ■ As part of our audit engagement,we determine the Town's degree of compliance with internal Board policy and with federal and state regulations. ■ Prior to release,to ensure your satisfaction with our services, your financial statement report is put through an extensive review by our quality Control Department. ■ our intention is to aid and assist the,Board and the Town, and therefore,take a positive approach in our management letter recommendations. * We encourage a continuous,year-round dialogue in order to be responsive to all your needs. We would be pleased to serve as auditor for the Town of Southold Peconic Bay Community Preservation Fund, and have attached a detailed proposal and quoted fees for the services to be rendered. Please contact our office should you have any questions or require additional information. Respectfully submitted, Christo her V. Reino,CPA,CITP P Partner Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE I-2 WHAT SETS US "ART? Our years of experience?Our hard-earned expertise?The breadth of our services?Our attention to our clients? These qualities are all undeniably, even vitally important. While we possess them all, our defining and differentiating characteristics can be stated in two words: PRESENT & ACCOUNTABLE By PRESENT, we mean that Cullen& Danowski is with you, available to you and accessible when you need us.When you work with us,you will have all of our years of experience and the depth or our expertise at your disposal. We will be there to provide the ongoing resources to assist you, by giving you sound advice, implementing change, and providing auditing, accounting,tax, consulting services and anything in between, in a timely manner. By ACCOUNTABLE,we mean that we stand behind our work and our clients. Naturally,that means we are meticulous about our work. Confident that it will stand up to any scrutiny from others, because it has stood up to our own scrutiny. This is what sets Cullen & Danowski apart. Once you have had a chance to get to know us and our work, we think you'll agree. OUR CORE VALUES Honesty, integrity,trust, and unwavering commitment to our clients and staff are Cullen & Danowski's core values. Since 1971, Cullen & Danowski, located in Port Jefferson Station, NY, has been committed to providing our clients with ' I` the highest level of quality service. From attracting and employing the most experienced professional and fi administrative staff, keeping current ' with professional standards and best practices, to working with state of the art technology, Cullen & Danowski has a earned a reputation of providing W exceptional service. Town of Southold Peconic Bay community Preservation Fund CULLEN&DANOWSKI. LLP PAGE 1-3- OUR PARTNERS We are a firm of eight partners: JAMES E. DANOWSKI, • SANDERS, NE, CPA JILL S. DANOWSKI,CPA, ESQ CHRISTOPHER V. REINO, CPA, CITP Kim M. SCHARF, Five of our eight partners specialize in municipal auditing and accounting; all of whom have at least thirty years of experience in public accounting. OUR EXPERIENCE We are a full-service firm with a strong commitment to the growth and success of our clients and the community.The Firm has developed a highly respected reputation over the years through the determination and hard work of the partners and associates. We provide general accounting, auditing, taxation, and management consulting services for clients in the private and public sectors.A major portion of our practice is devoted to providing services for governmental and not-for-profit organizations and, in particular, auditing local municipalities. Consequently, all staff members spend considerable time serving our municipal clients. We keep our clients updated by mailings and we hold and/or participate in several informative workshops during the year for board members, chief financial officers,treasurers,and other staff members.Some of the topics include; internal controls, the internal audit function, financial statement reporting, treasurer duties, payroll reporting,personnel compliance, reserve funds,and fund balance management. Our firm maintains associations with attorneys and other professionals who are helpful in providing a variety of services to towns. Additionally, we are experienced in dealing with the major bond counsels and fiscal advisors serving local municipalities, and have interacted on behalf of our clients with federal and state government agencies on a variety of matters. Some of the consulting engagements for which we have been engaged are: • Fund balance forecast; ■ multiple year financial projections; ■ reserve fund analysis; ■ evaluation of cash management systems; and ■ analysis of capital projects expenditures and reporting. Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE 1 -4- Financial statement audits conducted in accordance with auditing standards generally accepted in the United States of America,the standards contained in Government Auditing Standards,conducted in accordance with the provisions of the Uniform Guidance are among the services we provide.We also offer assistance with the preparation of financial reports. As a member of the AICPA Governmental Audit Quality Center, we receive timely information on a variety of technical, legislative, and regulatory subjects that we can apply to our audits.We ensure compliance with the appropriate standards and changes to regulations. Our firm is independent as defined by both generally accepted auditing standards and the Government Accountability office's Government Auditing Standards with regard to your town. As such, there are no conflicts of interest. There has never been any disciplinary action taken, nor is there any pending against the Firm with any regulatory bodies or professional organizations. There have been no federal or state desk reviews, or field reviews of the Firm's audits. AUDIT TEAM QUALIFICATIONS Our management team includes audit partners,a principal, senior-level directors, managers, and supervisors. Many of the senior-level team have more than twenty years of experience with our firm.The experience of our management team allows us to properly plan the audit and supervise the assigned staff auditors. Employee longevity is one of the keys to our success, many of our staff have been with our firm for a long time. We staff each of our engagements with a team of highly experienced, degreed accountants, many of whom are certified public accountants,with the remainder working towards certification.All members of our audit teams are permanent,full-time employees. New York State requires all certified professionals to receive at least forty hours of continuing professional education (CPE) per year. Firm members involved in municipal and not-for-profit audits conducted in accordance with Government Auditing Standards are also required to fulfill the CPE requirements of the Government Accountability Office(GAO). All staff meet the continuing education requirements of the New York State Education Department,the U.S. Comptroller General, and the American Institute of Certified Public Accountants. Town of Southold Peconic Bay community Preservation Fund CULLEN &DANOWSKI, LLP PAGE 1 5- YOUR AUDIT TFAM The following would be the supervisory members of the audit team, all of whom are certified public accountants,licensed in the state of New York.All members of the audit team will be full-time staff of the Firm who have had prior local municipal auditing experience: CHRISTOPHER V.REINO, CPA, CITP . PARTNER MARGARET S.THOMAS, CPA(CGMA) DIRECTOR OF QUALITY CONTROL Senior and staff accountant will be assigned to the engagement upon confirmation of appointment. PARTNER CHRISTOPHER V. REINO, CPA, CITP I CVR@CDLLP.NET Christopher V. Reino, CPA, CITP, a graduate of Dowling College, started his accounting career as an Intern with our Firm in 1989. Christopher is extremely well versed in accounting, but he is just as well versed in computer information technology. With many years of diversified accounting, audit, tax and consulting experience, Christopher provides a wide variety of clients with municipal auditing services, business taxation services, individual taxation services, accounting services, computer consulting and special engagement services. His industry expertise includes working with school districts, villages, fire districts, towns, and other local municipalities, as well as corporations and individual tax clients. In addition to being an active member of the New York Government Finance Officers Associations' Accounting, Auditing, and Financial Reporting Committee, the Long Island Village Clerks and Treasurers Association,and the Suffolk County Village Officials Association,Chris prides himself on giving back to the local community through his many civic endeavors. He is the Treasurer of the Rocky Point Lions Club Scholarship and Community Improvement Foundation, as well as a board member and past President of the Rocky Point Lions Club. Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE 1-6- I DIRECTOR OF QUALITY CONTROL MARGARET S. THOMAS, CPA(CGMA ) I MST@CDLLP.NET . Marci joined Cullen&Danowski, LLP in 20241as the Director of Quality Control.She is a5 " r' nationally recognized author, speaker, and consultant focusing on accounting and financial reporting for municipalities, commercial entities, non-profits, and employee benefit plans. With experience as an author and discussion leader, Marci provides 5 quality control and risk assessment services to ensure continued quality in the Firm's accounting and auditing practices,concentrating predominantly on school districts and other municipalities. She began her professional career at Deloitte in Atlanta,holding positions of increasing responsibility, culminating in her role as a non-equity partner. She left Deloitte to pursue educating at the University of North Carolina at Chapel Hill where she taught accounting,financial management,strategy, and governance, related to healthcare organizations. She is co-author of a textbook on healthcare financial management,a book on physician practice management,and a book on non-profit governance. PROFESSIONAL AFFILIATIONS l American Institute of Certified Public Accountants AICPA Certified Information Technology Professional AICPA Employee Benefit Plan Audit Quality Center AICPA Governmental Audit Quality Center AICPA Local Municipalities Section AICPA Not-for-Profit Section Association of Certified Fraud Examiners Long Island village Clerks and Treasurers Association Long Island Water Conference Nassau County Chapter of NYS Association of School Business Officials New York State Conference of Mayors and Municipal Officials New York State Government Finance Officers Association New York State Society of Certified Public Accountants NYSSCPA Public Schools Committee Suffolk County Chapter of NYS Association of School Business Officials Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE 1 -7- REFERENCES We have an extensive list of local municipal clients(see municipal client listing). We have selected five of our current audit clients as references. i Ms. Dorothy Godlewski TOWN OF Town Comptroller SOUTHAMPTON 631_702-1890 dgodlewski@southamptontownny.gov Ms. Louise Schrader INCORPORATED VILLAGE Treasurer OF LINDENHURST 631-957-7507 treasurer@vil[ageoflindenhurst.com Ms.Jeanette DiPaola TOWN OF RIVERHEAD Financial Administrator 631-727-3200 Ext. 621 dipaola@townofriverheadny.gov Mr. Paul V. Pontieri,Jr. INCORPORATED VILLAGE Mayor OF PATCHOGUE 631-475-430o Ext.ill ppontieri@patchoguevillage.org Ms. Neide Valeira TOWN OF EAST HAMPTON Deputy Town Budget officer 631-324-6888 nvaleira@ehamptonny.gov Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE I -8- OBJECTIVE AND SCOPE We will audit the basic financial statements and other supplementary information and we will apply certain limited procedures to the required supplementary information forthe year ending December3i,2025,and for the two years ending December 31,2026 and December 31,2027. These audits will be in accordance with: - auditing standards generally accepted in the United States of America;and, the standards for financial audits, contained in Government Auditing Standards, issued by the Comptroller General of the United States. The audit will include test of the accounting 'records of the Town and other procedures we consider necessary to enable us to form an unmodified opinion that the basic financial statements and other supplementary information are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America.We will report on the Town's compliance with laws and regulations and its internal control over financial reporting as required by the Government Auditing Standards and OMB Uniform Guidance. AUDIT MET`I-IODOLOCzY Audits of New York State local municipalities are conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Based on our understanding of your town and the experience we have in auditing towns,we do not anticipate any potential audit problems.Our approach to the audit includes: . • Audit Planning • Field Work • Issuance of Reports AUDIT PLANNING & FIELD WORK In the conduct of our.engagement, significant effort will be devoted to designing an audit program that is tailored to the Town's needs. Proper planning not only promotes audit efficiencies, but also allows us to identify any major areas of concern. Town of Southold Peconic Bay community Preservation Fund CULLEN&DANOWSKI, LLP PAGE I -9- We will schedule an entrance meeting with key town administration personnel.The objectives of this meeting are to develop background information on your accounting and financial reporting system,to identify the type and relative emphasis of specific work to be performed,and to agree on a timetable for the completion of the audit.We will also schedule a planning meeting between the Town's management and the audit engagement partner to discuss the audit process,our audit approach and the scope of our services. Initial year engagements require very specific attention to the transition from one audit firm to another.We have very experienced personnel that wil I be assigned to this engagement to ensure a smooth transition.Your audit team will coordinate a review of the prior year auditor's work; and provide a listing of schedules to be prepared by the Town. We understand the importance of change and will coordinate this transition with management to ensure that it is seamless. Our audit planning continues with a brainstorming and planning meeting of all members of our audit engagement team. We will discuss pertinent information from the Town's prior audit reports, current developments obtained from reviewing the year's Board meeting minutes and our meeting with the Town's key administration personnel,as well as fraud risks.Additionally,we will develop our audit plan. Our field work will be conducted in two phases,and we will make every effort to minimize disruptions to town staff. Duringthe preliminary risk assessment phase of the audit,our auditteam members will interview various town personnel, document, review, evaluate,and test the Town 's current procedures and system of internal controls. One of the primary objectives of this review and evaluation will be to evaluate the internal control structure and to identify any weaknesses and deficiencies. Areas of focus will include cash receipts, cash disbursements,payroll,purchasing,and information technology. We will also test the Town's transactions for compliance with federal, state, and local laws and regulations employing judgmental sampling techniques. The second phase of our field work will take place once the Town's books are effectively closed.At that time, the audit team will perform substantive testing and audit the financial balances. We will draft the financial statements under the oversight of the Town's designated individual who assumes management responsibility. We will employ analytical procedures to identify variances that are not within expectations, as well as judgmental sampling techniques based on our extensive experience in auditingtown's and our understanding of the Town of Southold Peconic Bay Community Preservation Fund. Any proposed adjusting journal entries will be reviewed with management. Upon completion of our field work,we will provide the Town with copies of trial balances,adjusting journal entries and any schedules it requires. ISSUANCE OF AUDIT REPORTS After the completion of the second phase of field work, we will begin the audit of the Town's financial statements, which include government-wide full.accrual basis financial items that are required by the GASB, and are in addition to the Town's governmental funds records. If the Town does not itself prepare, or have a third-party accountant prepare, the financial statements, the Firm can assist in preparation as a non-audit service at no additional cost, if the Town can designate an individual who, in our judgment, possesses the suitable skill, knowledge or experience to oversee our service in accordance with Generally Accepted Government Auditing Standards. Town of Southold Peconic Bay Community Preservation Fund CULLEN &DANOWSKI,LLP PAGE I-10- Supervisory reviews of the audit work files and draft financial statements by the engagement partner and audit manager/supervisor take place throughout the audit. The technical review of the financial statements by the Firm's Quality Control Department takes place before the financial statements are provided to the Town's management for review and discussion with the engagement partner. Other required audit reports, including management letter recommendations,are also prepared at this time. The Firm's thorough audit planning,preparation of the audit team and timing of the audit work will contribute to the timely issuance of the reports by the prescribed due dates.We are available to make a presentation of the reports to the Board. QUALITY CONTROL (QC) One of the most important aspects for the success of any engagement is quality control. To ensure your satisfaction, this is a process that we give significance to. Prior to release, your financial statement report is put through an extensive review by our Quality Control(QC) Department. The objective of the quality control review process is to help guarantee not only the delivery of reports that consistently meet or exceed your expectations, while adhering to industry standards and any applicable regulations, but also that the report strictly complies with our firm's standards of excellence. Our QC experts have impeccable analytical skills, are capable of interpreting laws and regulations, implementing defined policies and performing investigative duties when needed.With a precise eye for detail, our QC Department has the responsibility of making sure that products and services you receive are reliable and of finest quality. QUALITY ASSURANCE As a member of the American Institute of Certified Public Accountants (AICPA) Division of Firms, Cullen & Danowski undergoes a mandatory peer review of the accounting and auditing practice.This triennial review is conducted according to the quality control standards issued by the AICPA. At the conclusion of our most recent peer review,the review concluded the Firm met the objectives and received a"passed" opinion. Peer review opinions are classified as "passed," "passed with deficiencies" or"failed."The receipt of a "passed" opinion is testimony to our commitment to the highest standards.That report is attached. Town of Southold Peconic Bay Community Preservation Fund CULLEN &DANOWSKI, LLP PAGE 11 - I SYSTEM RMEW REPORT I BRIDGES, HORNING & COMPANY, F.C. Iwerrifmd Public Accountant, Report on the Firm's System of Quality control January 28,2025 To the Partners of culien&Danowski,LLP and the peer Review Committee of the PICPA we have reviewed the system of quality control for the aCCOUrttfng and auditing practice of Cullen$Danowsk;.LLP(the firm) in effect for the year ended May 11,202d. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American institute of Certf led Public Accountants (5tandardsl_ A summary of the nature,objectives,scope,limitations of,and the procedures performed in a system review as dekribed in the Standards may be found at y IDrvammarv. The summary also Includes an explanation of how engagements identified as not performed or reported on in conforTnitt•with appliable professional standards,In any,are evaluated by a peer reviewer to determine a peer review rating. FirTn's Responslblifty The firm is responsible for designing and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the rectuirements Of applicable professional standards In all material re&peas. The firm Is also responslble for evaluating actions to promptly rernediate engagements deemed as not performed or reported on in conformity with the roquiremenus of applicable professional standard,when appropriate;and Far rernetimting weaknesses In its system of quality control,if any. peer Revieww's Responsibliky Oui resljQixlAility Is to a gprem an opinion on the design of and compliance with the firm's system of quel-rtY contmI baxd or our review. Required Selections and Considerations Engagements selected for review included enttakernents nerfewmed under GPvernmenr Audtina Stondords, includifm compliance audits under the Single AiAlt Act and an audit of an empl i-e benefrt plan. As part of our peer review,we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and e.etent of our procedures. Opinion in our opinion,the system of quality control for the accounting and auditing practice of Cullen&Danowski,LLP in effect for the year ended May 31,2024,has been suitably designwd and complied wRh to provide the Rm,with reasonable assurance of performing and reporting In conformity with applicable professional standards in all material respects. Firms can receive a rating of poss,puss with deficiencyfies),or fail. Cullen&00mowskl,LLP has rectived a peer review rating of pass. Bridges,Homing&Co.,P.C. 420L A I C P Ac- Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE ( 12- MUNICIPAL CLIENTS LISTING SCHOOL DISTRICTS SOUTH COUNTRY CSD ACCOUNTING SOUTHAMPTON UFSD AMAGANSETT UFSD SOUTHOLD UFSD FIRE ISLAND UFSD SYOSSET CSD MALVERNE UFSD TUCKAHOE COMMON SD MERRICK UFSD VALLEY STREAM UFSD THIRTY NORTH MERRICK UFSD WEST BABYLON UFSD OYSTERPONDS UFSD WEST HEMPSTEAD UFSD REMSENBURG-SPEONK UFSD ROOSEVELT UFSD �NTERNALAUD/T SHELTER ISLAND UFSD COLD SPRING HARBOR CSD EAST ISLIP UFSD SPRINGS UFSD EAST VALLEY STREAM UFSD TWENTY-FOUR SUFF O UFSD EASTERRNN UFOLK BOCES EXTERNALAUD/T EDGEMONT UFSD AMITYVILLE UFSD ELMONT UFSD BABYLON UFSD FARMINGDALE UFSD BALDWIN UFSD GARDEN CITY UFSD BAY SHORE UFSD GLEN COVE CITY SD BAYPORT.-BLUE POINT UFSD HARRISON CSD BELLMORE UFSD HAUPPAUGE UFSD BELLMORE-MERRICK CHSD HERRICKS UFSD BETHPAGE UFSD LEVITTOWN UFSD BRIDGEHAMPTON UFSD MINEOLA UFSD UFSD CENTER MORICHES UFSD MINEOLA UFSD CENNE MORIQUOT CSD NEW HYDE PARK-GARDEN CITY PARK UFSD EAST HAMPTON UFSD NORTH BABYLON UFSD EAST MEADOW UFSD PELHAM UFSD EAST PLAINVIEW—OLD BETHPAGE CSD M MEADOW UFSD ROCKVILLE CENTRE UFSD EAST WILLISTON UFSD S EASTPORT-SOUTH MANOR CSD FREEPORT UFSD SMITHTOWN CSD CHSD ITHTO SOUTHERN WESTCHESTER BOCES GREAT NECK UFSD HALF HOLLOW HILLS CSD VALLEY STREAM CHSD HAMPTON BAYS UFSD WEST(SLIP UFSD HAM TONIELDS CSD WESTHAMPTON BEACH UFSD WHITE PLAINS CSD HICKSVILLE UFSD HUNTINGTON UFSD ISLIP UFSD JERICHO UFSD KIRYAS JOEL UFSD LAWRENCE UFSD LINDENHURST UFSD LITTLE FLOWER UFSD LONG BEACH CITY SD LONGWOOD CSD MILLER PLACE UFSD MOUNT SINAI UFSD NORTH SHORE CSD PLAINEDGE UFSD SAG HARBOR UFSD SHOREHAM-WADING RIVER CSD Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI, LLP PAGE I 13 FIRE DISTRICTS VILLAGES ATLANTIC BEACH FD INC.VILLAGE OF AMITYVILLE BELLPORT FD INC.VILLAGE OF BELLPORT BETHPAGE FD INC.VILLAGE OF DERING HARBOR BOHEMIA FD INC.VILLAGE OF EAST HILLS BRIDGEHAMPTON FD INC.VILLAGE OF EAST ROCKAWAY CENTEREACH FID INC.VILLAGE OF FLOWER HILL CENTER MORICHES FD INC.VILLAGE OF GREAT NECK ESTATES COMMACK FD INC.VILLAGE OF GREENPORT DEER PARK FD 14 INC.VILLAGE OF HEAD OF THE HARBOR EAST MARION FD INC.VILLAGE OF HUNTINGTON BAY FARMINGVILLE FD INC.VILLAGE OF LAKE SUCCESS FISHERS ISLAND FD INC.VILLAGE OF LAUREL HOLLOW GORDON HEIGHTS FD INC.VILLAGE OF LINDENHURST GREENLAWN FD INC.VILLAGE OF LLOYD HARBOR HALESITE FD INC.VILLAGE OF MASSAPEQUA PARK HAUPPAUGE FD INC.VILLAGE OF MUNSEY PARK HICKSVILLE FD INC.VILLAGE OF NORTH HILLS HOLBROOK FD INC.VILLAGE OF OCEAN BEACH HUNTINGTON FD INC.VILLAGE OF OLD FIELD (SLIP TERRACE FD INC.VILLAGE OF OLD WESTBURY JERICHO FD INC.VILLAGE OF PATCHOGUE LAWRENCE-CEDARHURST FD INC.VILLAGE OF PLANDOME MANOR MATTITUCK FD INC.VILLAGE OF PORT WASHINGTON NORTH MONTAUK FD INC.VILLAGE OF QUOGUE ORIENT FD INC.VILLAGE OF ROSLYN ROCKY POINT FD INC.VILLAGE OF SAG HARBOR SETAUKET FD INC.VILLAGE OF SALTAIRE SOUTHAMPTON FD INC.VILLAGE OF SANDS POINT SOUTHOLD FD INC.VILLAGE OF UPPER BROOKVILLE SYOSSET FD SPRINGS FD TOWNS WEST HEMPSTEAD FD TOWN OF EAST HAMPTON— WESTHAMPTON BEACH FD COMMUNITY HOUSING FUND TOWN OF EAST HAMPTON— LIBRARIES COMMUNITY PRESERVATION FUND AMITYVILLE PUBLIC LIBRARY TOWN OF OYSTER BAY COMSEWOGUE PUBLIC LIBRARY TOWN OF RIVERHEAD— EAST ISLIP PUBLIC LIBRARY PECONIC BAY COMMUNITY PRESERVATION FUND FREEPORT MEMORIAL LIBRARY TOWN OF SHELTER ISLAND GREAT NECK LIBRARY TOWN OF SOUTHAMPTON — HEWLETT-WOODMERE PUBLIC LIBRARY COMMUNITY PRESERVATION FUND JERICHO PUBLIC LIBRARY MANHASSET PUBLIC LIBRARY SPECIAL DISTRICTS PORT WASHINGTON PUBLIC LIBRARY CARLE PLACE GARBAGE DISTRICT SHELTER ROCK PUBLIC LIBRARY FISHERS ISLAND WASTE MANAGEMENT GLENWOOD GARBAGE DISTRICT WATER DISTRICTS GLENWOOD-GLEN HEAD GARBAGE DISTRICT HICKSVILLE WATER DISTRICT MUNICIPAL EMPLOYEE BENEFITS CONSORTIUM JERICHO WATER DISTRICT (MEBCO) MASSAPEQUA WATER DISTRICT NASSAU COUNTY BRIDGE AUTHORITY PLAINVIEW WATER DISTRICT PORT WASHINGTON POLICE DISTRICT SOUTH FARMINGDALE WATER DISTRICT SYOSSET SANITATION DISTRICT WEST HEMPSTEAD WATER DISTRICT Town of Southold Peconic Bay Community Preservation Fund CULLEN &DANOWSKI, LLP PAGE I-l4- FEES FOR SERVICES , We use a computerized client time record system, which enables us to track the actual time spent on an engagement by date,staff level,and work code.This time record assists us in projecting proposed fees.Based on our extensive experience in local municipal auditing and our estimate of the time required, we will undertake and complete the engagement for the year ending December 3i, 2025 for the fee indicated below. This fee includes the audit of the financial statements that are prepared in compliance with GASB Standards, the audit of the federal financial assistance programs, as required under the Single Audit Act Amendments of 1996. Out-of-pocket expenses in connection with this engagement will be the responsibility of this firm.We will not seek reimbursement from the Town of Southold Peconic Bay Community Preservation Fund for travel or other out-of-pocket expenses other than charges from financial institutions for processing audit confirmations. Progress billings against the engagement fee will be submitted to the Town of Southold Peconic Bay Community Preservation Fund during the course of the engagement. The schedule of professional fees and expenses for the audit of the December 31, 2025 financial statements, are as follows: Government Total Audit Hours Rates Cost Partner 8 $ 250 $ 2,000 Director of Quality Control 2 195 390 Audit Manager 15 190 2,850 Audit Senior 75 i6o 12,000 i00 $ i7,240 Proposed fee(reflects professional discount) $ 10,000 *The above hours do not include time spent for telephone conferences and meetings to discuss ongoing issues with the Town. Nevertheless,these services are included in the fee. We understand that the Town of Southold Peconic Bay Community Preservation Fundis contemplating an option to renew these services for the years ending December 3i, 2026 and December 3i, 2027. The fee for the additional work of preparation of the annual financial statements, performed under management's responsibility, would be.as follows: zoz6 2027 $ i0,250 $ i0,500 Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI LLP PAGE )- 15- Additional professional services requested by;the Board will be billed at the rates indicated previously through the year ending December 31, 2026. Additional services requested in subsequent years will be billed at the hourly rates in effect for the respective year;we will discuss those rates with the Town of Southold Peconic Bay Community Preservation Fund and arrive at a cost estimate accordingly. Christopher V. Reino, CPA, CITP as Partner of the Firm of Cullen & Danowski, LLP, certifies that he is empowered to submit this proposal and authorized to sign an engagement letter with the Town of Southold Peconic Bay Community Preservation Fund on behalf of the Firm. Christopher V. Reino,CPA,CITP June 2,2026 Town of Southold Peconic Bay Community Preservation Fund CULLEN&DANOWSKI LLP PAGE I 16- COVER SHEET FOR DOCUMENTS CSGU%ldrrown SENT TO-: Sent by: ASSISTANT T/A, JULIE M. MCGIVNEY ASSISTANT T/A BENJAMIN JOHNSON ASSISTANT T/A KAYLA GRIFFIN CONFIDENTIAL SECRETARY, AMY SCHLACHTER Type of Agreement : —T� zim� Nature of Contract/Agreement s JY�A- 'dn Val 0 A-),—3- cUf4k/ N,�� c. y